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Payment Receivables Financing

What is Payment Receivable Financing?

Payment Receivables Financing (PRF) targets acquirers, payment facilitators, payment service providers (PSPs) and other payment companies in order to help them settle merchants faster.

Payment companies get access to a credit line to access liquidity based on their processing volume and the merchant porfolio to be settled faster assigning the underlying recceivables, be it directly from the schemes or from their respective settlement source, to oCap.

PRF is designed to enable real-time settlements under certain parameters generating a cash like transaction experience for the merchants.

Why oCap?

We have an in-depth understanding of payment related data and the common transaction and settlement flows in the payment eco-system.

This allows oCap to build a product specifically designed to cater for the smaller and medium sized payment companies helping them to stay competitive and attractive for their merchant base.

oCap allows quick and convinient onboarding and minimal integration allowing less technology driven payment companies to benefit.

CONSUMER

RETAILER

MERCHANT DISCOUNT RATE

Retailer does not pay interest but increased MDR to the acquirer or payment facilitator

Settlement T+2
to T+30

Settlement T+3
to T+30

Settlement T+1
to T+7

Settlement T+1
to T+7

Settlement T+2
to T+30

ISSUING
INSTITUTE

CARD
SCHEMES

ACQUIRING
INSTITUTE

PAYMENT
FACILITATOR

oCap provides acquirers and payment
facilitators with the liquidity to
pre-finance retailer settlements

Do You Qualify for Payment Receivable Financing?

Acquirer/Payment Service Provider (PSP) eligibility criteria:

  • Only accredited Acquirers and Payment Facilitators of VISA and Mastercard will be accepted
  • Minimum of two years in business and profitable with a growth history over the last two years
  • Minimum credit scoring with commercial credit bureaus, e.g. D&B in Singapore
  • Passing of AML and KYC checks on Directors and UBOs
  • Guarantees through directors, bank and/or parent companies
  • Each merchant that will be part of the quick settlement or cash advance scheme will be assessed on oCap’s side
  • Information on overall merchant portfolio and risk distribution

Acquirer/Payment Service Provider (PSP) assessment on:

  • Financial data (e.g. audited financials, monthly updated management accounts)
  • Periodic on-site visit
  • Due diligence on compliance process and merchant onboarding
  • Review of risk and compliance guidelines
  • Review of merchant underwriting guidelines
  • Overall merchant portfolio risk, pre-funded merchant portfolio and revenue distribution on merchant portfolio

Fast Facts

Revolving credit facility

Drawdowns against actual payment receivables from the payment schemes or acquirer

Flexible terms

Repayment of drawdowns based on your settlement cycles from daily to quarterly

Pay per use

Daily re-calculation of interest costs against actual total utilization of your facility

Financing Amount

Based on historical merchant portfolio volumes, net settlement volumes and corporate credit assessment

Credit Approval Process

Effective combination of company assessment and analysis of current merchant portfolio

Eligibility

ACRA-registered business for at least 24 months and accredited payment facilitator, acquirer or third-party agent with the major card schemes