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Payoneer Capital Advance review
Accounts receivables advances for e-commerce businesses.
A Payoneer Capital Advance is fast funding geared toward marketplace sellers struggling with uneven cash flow. While more expensive than a traditional business loan, it might not be as difficult to qualify for.
Details
| Min. Amount | $100 |
|---|---|
| Max. Amount | $500,000 |
| Loan Term | Up to 1 month |
| Requirements | At least 6 months of history on the marketplace you use, in good standing on Seller Central with your marketplace |
First, do I qualify?
To qualify for a Payoneer Capital Advance, you need to meet the following criteria:
- At least six months of history on the marketplace you use
- In good standing on Seller Central with your marketplace
This is the minimum criteria businesses must meet to qualify — Payoneer considers other factors as well when you apply.
What makes a Payoneer Capital Advance unique?
A Payoneer Capital Advance is one of a handful of financing products designed specifically for online businesses — though it’s looking to expand to other types of businesses soon. Unlike other types of accounts receivable financing, it involves relatively few documents and takes just a few clicks to apply.
It could be particularly useful if your business regularly struggles with cashflow, since taking out another cash advance is simple. Borrowers are automatically preapproved for additional offers, which you can accept or reject as you need. And you don’t have to accept the full offer each time, ensuring you never borrow more than your business needs.
How does Payoneer Capital Advance work?
A Payoneer Capital Advance is a type of accounts receivables financing for e-commerce businesses struggling with cashflow. It involves selling between $100 and $500,000 of your future accounts receivables to Payoneer, which you repay plus a fee of 1.25% to 2% per 30 days it takes to pay back.
Once approved, you get your funds immediately. Payoneer automatically deducts your repayment from your account when it’s due. If you don’t have the funds, Payoneer continues to deduct payments from your accounts receivables until you’ve fully paid off the advance.
What are the benefits of a Payoneer Capital Advance?
From its fast funding to its low advance amounts, here are a few perks of taking out a Payoneer Capital Advance:
- Immediate funding. Payoneer instantly deposits the funds into your account as soon as you’re approved.
- Easy to reborrow. You don’t have to go through the application process again if you want to take out another Payoneer Capital Advance.
- Friendly to new businesses. Your business only needs to be around for six months to meet the minimum age requirement.
- Advances as low as $100. There’s little risk of overborrowing when you just need a little extra help to keep up with demand.
What to watch out for
Consider these potential drawbacks before taking out an advance with Payoneer:
- More expensive than a traditional loan. Accounts receivables financing is generally more costly than a business term loan or line of credit — and Payoneer is no exception.
- Tied to store’s performance. How much you can borrow is directly tied to your business’s sales, so you might not qualify for the maximum amount if you hit a seasonal lull.
- Only for e-commerce businesses. Other types of businesses looking for accounts receivables financing should consider other options — for now at least.
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Payoneer reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | B |
| BBB customer reviews | 4.1 out of 5 stars, based on 307 customer reviews |
| BBB customer complaints | 218 customer complaints |
| Trustpilot Score | 4.5 out of 5 stars, based on 21,579 customer reviews |
| Customer reviews verified as of | 13 October 2020 |
Payoneer has a generally strong online reputation as of April 2019 — though not all customers are pleased. It gets an A rating from the Better Business Bureau (BBB) based on factors like transparency and time in business.
However, its 20 BBB reviewers gave it an average of just over 1 star and 92 have filed complaints. The main gripe? Many customers had trouble transferring money to and from their Payoneer account — where the funds are deposited — and struggled to have the issue resolved with customer service.
It does much better on Trustpilot, scoring a 9.2 out of 10 based on over 7,000 reviews. Those happy with Payoneer praised its friendly customer service team and fast turnaround.
How do I apply?
Before you apply, make sure your business meets Payoneer’s minimum eligibility requirements. You can get started on the application through Payoneer’s website. Follow these steps:
- Click the Go to Site button on this page — you’ll be redirected to the Payoneer website.
- Click Contact Us on the Payoneer website.
- Enter information about yourself and your company.
- Click Contact Me to have a representative walk you through your options.
If you qualify, Payoneer should reach out with an offer. Follow the directions to connect your Payoneer account to your marketplace account so you can easily make payments and transfer funds.
What documents do I need to apply?
Payoneer doesn’t require any documents to apply. Instead, you’ll need to provide information about your total monthly revenue, as well as your bank account details.
I got a Payoneer Capital Advance. Now what?
You can use your advance to cover any business-related expenses — such as buying more inventory or covering shipping costs. Payoneer automatically deducts your repayment plus the fee from your account when it’s due — or continues deducting from your accounts receivables until the advance is paid off.
Borrowers are typically preapproved for repeat advances. If you need more funding, log in to your Payoneer account to see what offers are available.
Does Payonneer offer any other services?
Yes, Payoneer also offers a payment service that makes it easy for e-commerce businesses to make payments across the world in different currencies. You can also sign up for this with a Payoneer account.
Bottom line
A Payoneer Capital Advance is a simple cashflow solution designed specifically for e-commerce businesses. It requires few documents to apply and can get you funding instantly starting as low as $100.
But it’s not for all types of businesses or financing needs. If you need something more long term, you might want to check out other business loan options.