Before applying for Mollie Capital, you are responsible for ensuring you fully understand the terms, conditions and contractual obligations associated with your Mollie Capital agreement.
What is Mollie Capital?
Mollie Capital is a financing solution designed to provide customers with quick access to business funding. Mollie Capital is a non-loan cash advance given to customers in exchange for a portion of their future sales revenue. Capital can be offered directly by Mollie or in partnership with a third party known as YouLend.
Who is YouLend?
YouLend is our trusted third-party partner that provides flexible financing solutions to support businesses with their funding needs. Mollie and YouLend work together to assess applications and provide funding to our customers.
What is a soft credit check?
By submitting an application for Mollie Capital, you consent that we may conduct a soft credit check. A soft credit check allows us to assess your creditworthiness and eligibility without impacting your credit score. Other lenders can see that a check was made on your account, but cannot see the result of this.
What is the repayment rate?
The repayment rate is stipulated in each Capital offer we provide, and is a fixed percentage of your sales revenue that we will automatically withhold from your settlement as means of repayment of the cash advance. We will automatically collect this amount from the available balance on your Mollie account until the full amount, including fees, has been repaid. This way, you repay more on busy days and repay less when business slows down.
For example, if your repayment rate is 20%, and your revenue on a particular day is €1000 , then €200 will be withheld from your settlement and collected by us as repayment for that day.
What happens to repayments if my daily revenue changes significantly?
When accepting a Capital offer, you'll be given an estimated payback period based on your trading history and expected sales.
- If repayments fall significantly behind or seem unlikely to meet the expected repayment timeline, we (or YouLend) will discuss your financial situation and explore possible solutions.
- We (or YouLend) will try to contact you over a 30 day period since you last paid the minimum expected amount. If we cannot reach you within this period, your funding will be deemed in default, and the recovery process will start.
What can I use my funding for?
Mollie Capital can only be obtained for purposes directly related to the business associated with the Mollie account you're applying with. The funds are intended to support and grow your business operations, such as inventory, equipment, or marketing, and cannot be used for personal expenses or other unrelated purposes.
What is a personal guarantee?
A personal guarantee is a commitment by an individual - the guarantor - to personally guarantee full repayment of all amounts arising from or in connection with Mollie Capital. It is common industry practice to require a guarantee when the financed amounts are unsecured. In case of default on Capital repayment(s), we will always take your business’s situation into account before invoking a personal guarantee. We only use the personal guarantee as a final resort.
If it is enacted, it can have serious implications for the guarantor. This includes:
- The individual’s personal assets (like savings, property, or investments) can be used to repay the outstanding repayment amounts.
- In the event of default, the unpaid debt may be reported on the guarantor’s personal credit report, potentially affecting their credit score.
- The guarantor may be subject to legal action to collect the debt.
Where can I find the signed agreement?
Once you have signed your Capital agreement, it will be available to you in your Mollie dashboard.
- In your Mollie Dashboard, choose Capital in the topbar menu.
- Select the financing that you want review (if applicable).
- Your signed contract is available as a download.
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