Capify is one of the leading providers of business loans in the country, offering flexible financing solutions to help businesses grow. Known for its streamlined application process and quick access to funds, Capify business loans can help you manage your cash flow and grow.
But with so many options available, is Capify really the right one for you? That’s what we’ll investigate in this article. Read on as we cover everything you need to know, including Capify’s key features along with its pros and cons.
Key features of Capify business loans
Capify provides several features that make it an attractive option to small and medium-sized enterprises (SMEs), including:
Flexible loan amounts
Capify offers business loans that range from £5,000 right up to £750,000, and are available as both a small business loan and merchant cash advance. They’re also available to sole traders, and provide businesses with the flexibility to borrow according to their specific needs.
Short-term financing
Capify loans are known for being short-term, with repayment periods ranging from six to 12 or 18 months. This can help your business manage debt without forcing it into a longer-term commitment. Even better – there are no fees for early repayment.
Unsecured loans
Most Capify loans are unsecured, meaning your business does not need to offer collateral to gain approval. It lowers the risk of borrowing, particularly when you don’t have significant assets.
Daily or weekly repayments
Compared to other loan providers that have monthly repayments, Capify offers daily or weekly repayment schedules. This can ease cash flow management for your business, particularly if you have a regular revenue stream.
Pros of Capify business loans
There is a lot to like about Capify, such as:
Speed and efficiency
The simple application and quick approval process is one of the standout advantages of Capify. If you need rapid funding for new equipment or an office refurbishment, Capify is a great option.
No collateral required
Capify’s unsecured loans reduce the risk if your business doesn’t have substantial assets to pledge. However, the majority owner of your business is required to provide a personal guarantee when taking out a loan.
High approval rate
Acquiring a business loan can be difficult – but Capify has a relatively high approval rate, which can be beneficial if you struggle to get funding from traditional banks.
Dedicated support
Capify provides personalised support, helping businesses through the application process and offering expert advice tailored to your financial situation.
Cons of Capify business loans
Despite the benefits, there are also a few drawbacks of Capify that you need to be aware of before applying. In particular, these include:
Higher interest rates
The short-term nature of Capify’s loans also comes with higher interest rates. The average APR for a loan of up to £25,000 is a whopping 67.89%, which can work out to be incredibly expensive.
Minimum monthly turnover required
Capify has fairly stringent criteria that you have to meet, including at least £10,000 in monthly turnover for a small business loan. In addition, you also have to have been trading for 12 months, meaning many smaller enterprises are not eligible for funding.
Costly fees
When taking out a Capify business loan, you may be subjected to processing, origination and monthly service fees. These can soon add up, meaning they’re not a great option for some smaller enterprises.
Maximum loan term
This can be a benefit for some businesses, but for others it will be a negative. At just 18 months, Capify’s maximum loan term is at the shorter end of the market when compared to other lenders.
What is the best alternative to Capify business loans?
On the surface, Capify claims to target its service to small and medium-sized businesses. However, in reality, this claim doesn’t really stand up to scrutiny. While Capify loans will be suitable for some businesses, the stringent criteria rule out many smaller enterprises and startups.
If that’s the case for you, Funding Triangle is a great alternative. We offer unsecured loans ranging from £10,000 to £500,000 with as little as 4.8% APR. 120 lenders are ready to provide your business funding, meaning you can receive a same-day decision.
