Capify: Business Loans and Merchant Cash Advances
Capify is one of the best-known alternative finance providers in the UK. Previously known as United Kapital and Capiota, this lender was founded in 2008 and offers Merchant Cash Advances and Business Loans. The firm also operates internationally, with offices in the USA, Australia and Canada as well as the UK — making them one of the largest alternative finance providers in the world.
Capify offers merchant cash advances and business loans — for both products, you can borrow between £3,500 and £500,000. The loan amounts are based on your monthly turnover, and both products are repaid via small daily transactions. Here are the main features:
Borrow from £3,500 to £500,000
Capify offer a wide range of loan amounts. The minimum of £3,500 is fairly representative of the wider market (although some other lenders will go as low as £1,000), whereas the upper limit of £500,000 is significantly higher than some other options on the market. Of course, the amount you can borrow depends on lots of factors specific to your business, but in principle Capify offer large loan amounts which should be sufficient for larger businesses.
Business Loan features
- Raise up to 75% of your average monthly turnover
- Small daily repayments
- Terms from 5–12 months
- You process at least £7,000 per month through your business bank account
- For limited companies trading at least 9 months
Raise up to 75% of your average monthly turnover
The amount you can raise via a business loan is directly related to your monthly turnover. Assessing turnover vs loan amount is a common method in the industry — however, Capify will also look at other factors like existing debts and trading history before making a decision. If your turnover fluctuates a lot month-on-month, you may not be eligible for the full 75%, although this decision will be made on a case-by-case basis.
Small daily repayments
Big monthly payments can put a strain on cash flow, making the loan difficult to service and leaving less cash available for the day-to-day running of the business. Because Capify takes repayments every day in small amounts, the issue of meeting a large monthly payment is removed.
Terms from 5–12 months
With terms from five to twelve months, Capify's business loan is a short-term product, designed for a few months of working capital rather than long term growth projects. Some business owners might prefer a term of two years or more, but for short term plans a business loan from Capify should have a long enough term length.
You process at least £7,000 per month through your business bank account
As well as the turnover ratio criteria, Capify require that you process at least £7,000 through your business bank account each month to be eligible for a business loan. Compared to some other providers this is a more difficult requirement to satisfy, but may also mean Capify are able to offer favourable terms to large enough businesses.
For limited companies trading at least 9 months
Business loan providers usually won't lend to companies with less than two years of trading history, so in this respect Capify's offering is competitive, and they're able to help fairly new businesses that meet the other requirements.
Merchant Cash Advance features
- Raise up to 150% of your average monthly card takings
- Small daily repayments
- Once 60% is paid back, you may be eligible to top up your funds
- Processing credit cards for 60 days
- More than £3,000 per month in card payments
Raise up to 150% of your average monthly card takings
Merchant cash advances are based on your card terminal sales. With Capify, you can borrow up to 150% of your average monthly takings — although if your business is seasonal and your month-on-month takings fluctuate a lot, you may not be eligible for the full 150%.
Small daily repayments
Repayments are calculated per transaction, which means a small percentage of every sale through your card machine goes towards repaying the advance. Additionally, Capify's merchant cash advance is integrated with your card payments provider, so these repayments happen automatically with no input from you. Many businesses using merchant cash advances find this method of repayment easier to manage than a monthly payment, and because it's directly based on your sales it goes up and down with your daily income.
Once 60% is paid back, you may be eligible to top up your funds
Merchant cash advances differ from business loans because they're technically an advance on your future sales, rather than a loan. This means once you've paid back 60% of the original advance you may be able to top up your funding with Capify, unlocking more funds from your card terminal sales.
More than £3,000 per month in card payments
The criteria for a merchant cash advance with Capify are easier to satisfy than some other lenders, with the minimum revenue just £3,000 per month via a card machine. Retailers, bars and restaurants find that the criteria for business loans can be difficult to satisfy, so a merchant cash advance may represent another route to funding that would otherwise be unavailable.
Processing credit cards for 60 days
This requirement is competitive within the merchant cash advance space, with some lenders requiring at least 120 days of historic card sales. This means that even if your business is very new, if you're taking more than £3,000 per month you may be eligible for funding with Capify.
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