We’re excited to introduce a new way to finance your growth!
In partnership with Softloans, we now offer Merchant Growth Financing designed for modern businesses like yours.
What makes it different?
Repay a percentage of your sales, not fixed monthly amounts
No collateral and no hidden costs
One clear fee agreed upfront
Apply in 10 minutes, get an offer in 24 hours
What is Merchant Growth Financing?
Merchant Growth Financing (MGF) is a modern and flexible type of business funding that directly links repayment to your company's sales revenue. Unlike traditional loans with fixed monthly payments, MGF repayment adjusts dynamically:
When sales increase: Repayments accelerate.
When sales slow down: Repayments automatically shrink.
This flexible model helps remove the stress of fixed obligations during slower business periods.
Key Advantages of Merchant Growth Financing
Merchant Financing is different from traditional business loans and lines of credit because there is:
No physical collateral required: You don't need to pledge assets to secure the funding.
No compounding interest: The cost is a single, fixed fee.
One clear upfront fee: You always know the exact total cost of the financing before you sign.
Who is eligible for Merchant Growth Financing?
Merchant financing is designed specifically for Small and Medium-sized Enterprises (SMEs), focusing on your business's cash flow and growth potential rather than just credit scores or physical assets.
Eligibility Criteria
To be eligible, your business must meet the following minimum criteria:
Business Type: E-commerce stores, retailers, and service providers are typical candidates.
Minimum Revenue: At least €3,000 in monthly sales revenue.
Time in Business: At least 6 months of operational history.
How much can merchants borrow and how fast is the process?
The amount of funding a merchant can access is determined by their historical turnover and growth potential.
Funding Range and Offer Details
Typical Funding Amounts: Range from €1,000 to €100,000.
Offer Speed: Merchants typically receive a non-binding offer within 24 hours of application.
No Obligation: The application is non-binding, allowing merchants to see their potential offer with no commitment to accept it.
What does Merchant Growth Financing cost?
Softloans charges a fixed, one-time fee that is determined and communicated to the merchant before they sign the agreement. The fee varies based on the merchant's data but is typically around 12%–15% of the principal amount. This model ensures the cost is transparent and predictable, with no hidden fees.
Cost Calculation Example
This example illustrates how the fixed fee is calculated and applied:
Loan amount: €20,000
Fee: 12% (€2,400)
Merchant receives: €17,600 upfront
Total to repay: €20,000 (via % of sales)
Transparent, predictable, no hidden fees!
How do repayments work?
Repayments are automatic and flexible, collected as a small, pre-agreed share of your sales revenue.
Repayment Mechanics
Collection Method: A small percentage of sales revenue, typically 15%–20%, is automatically collected via your payment processor from each sales transaction.
Flexibility:
High Sales: When sales increase, you repay faster.
Low Sales: When sales dip, repayments slow down automatically.
No Stress: This flexible system ensures that financing never puts an unnecessary strain on your business cash flow.
What if Sales slow down or repayment takes longer than expected?
The Merchant Growth Financing model is specifically designed to handle sales fluctuations, meaning your repayment adjusts automatically. Softloans focuses on partnership, not penalties.
Handling Slow Sales
If your sales slow down, there are:
No late fees.
No penalties.
No negative impact on your credit score from slower repayment.
You repay only when revenue is generated.
Extended Repayment Periods
Most merchants repay the funding within 6–12 months. If repayment extends past 12 months, Softloans will work collaboratively with the business. We monitor revenue trends via secure data integrations. If an extension is needed, we engage in open communication to understand the cause (e.g., seasonality, cash flow gaps) and find a solution. Our goal is a long-term partnership.
How do merchants Apply and Access Funds?
The application process is fully digital, fast, and requires no physical paperwork.
Application Steps (Approx. 10 Minutes)
Go to Montonio page here and click Apply for Merchant Growth Financing --> you will be redirected to the Softloans page to start the application process.
Input Basic Details: Fill in essential contact and business information (e.g., name, company code, contact details).
Connect Platforms: Securely connect your bank, e-commerce, and marketing platforms using our integrations.
Receive Offer: Get your non-binding offer usually within 24 hours.
Funds payout
Accessing the funds is quick once an offer is accepted:
Application Time: ~10 minutes
Offer Time: Within 24 hours
Payout Time: Often the same day funds are accepted, processed via our banking partners (e.g., ConnectPay).
Why are integrations required and how is data protected?
Softloans requires integrations to build an accurate and fair picture of your business's performance, which ensures a fast decision process and a fair offer.
Purpose of Integrations
Integrations provide a real-time, aggregated view of key business metrics:
Bank Accounts: Confirms real revenue flow and overall cash position.
E-commerce Platforms: Shows sales trends and volume.
Marketing Platforms (e.g., Meta, Google Ads): Indicates marketing efficiency and spend.
Note: Softloans only view aggregated business data for decision-making. We never access personal data or granular, campaign-level details.
Data protection measures
Softloans uses bank-grade security protocols to protect all merchant data:
Encrypted Data Flow: Data transmissions are secured with HTTPS.
Strong Authentication: We utilize Strong Customer Authentication (SCA).
Secure Storage: We use encrypted database backups.
Regular Audits: We conduct regular vulnerability scans and security audits.
What do merchants use Merchant Growth Financing for?
Merchant Growth Financing helps SMEs seize growth opportunities by providing capital for strategic investments.
Most Common Use Cases
Inventory: Stocking up before peak sales seasons or launching new product lines.
Marketing: Funding large-scale ad campaigns, establishing influencer partnerships, or running seasonal promotions.
Expansion: Launching into new markets, scaling logistics, or localizing operations.
Who is Softloans?
Softloans is a fintech company founded in Lithuania, specializing in embedded financing solutions for SMEs. We operate by partnering with platforms like Montonio, Payment Service Providers (PSPs), and SaaS platforms to integrate financing directly into the merchant experience. Our mission is to make financing simple, fast, and growth-focused for modern businesses.