UK
IRE
AU
CA
US
ZA
NA
Established in 2019, BizCap says it’s dedicated to giving small and medium sized enterprises (SMEs) fast access to flexible loans. It even considers applications from companies without a perfect credit score, basing its decision on the business as a whole, not just its credit history.
This review takes a look at the types of business loans it offers.
An overview of BizCap business loans
Bizcap offers the following range of business loans:
Fast business loans
Designed to help your business pay bills or cover unexpected expenses, fast business loans can be approved in as little as three hours and funded the same day. These loans come with daily and weekly repayment plans, and you can borrow up to £150,000.
Small business loans
Small business loans can suit companies with fewer than 50 employees that are looking to grow, with funds available in as little as 48 hours. You can borrow up to £500,000, which can help your company pay for equipment, renovations, hiring staff or vehicles.
Small business loans usually come with fixed interest rates, and you can make flexible daily and weekly repayments to suit your cash flow.
Secured business loans
BizCap’s secured business loans allow you to borrow larger sums of up to £750,000, enabling you to pay for renovations, upgrade facilities or open a new location.
In return, you must secure the loan against an asset such as property or inventory. As this lowers the risk for the lender, you usually receive more favourable terms, such as a more competitive interest rate. However, should you default on your loan, the lender can seize the asset and sell it to recover its money.
Bridging finance
A bridging loan enables you to bridge the gap between buying a new property and selling an existing one. The loan is usually secured against property, and you’ll need to have a clear exit strategy in place. With BizCap, you can borrow up to £750,000 and funds can be received in as little as 72 hours.
Business line of credit
A business line of credit provides a flexible way to borrow the funds you need to help pay for equipment or inventory. You can access up to £500,000, but rather than taking the money as a lump sum, you draw on the funds as required. You only pay interest on the amount borrowed.
What is BizCap’s typical interest rate?
The interest rate offered will be determined by a factor rate, which is a fixed fee that’s applied over the term of the loan. The factor rate applied considers your business’s creditworthiness, the term of the loan, and the proposed use of the funds. It therefore varies depending on the type of loan.
If you repay your loan as agreed, your factor rate will likely decrease.
How much can I borrow with an BizCap business loan?
The amount you can borrow will primarily depend on the type of business loan you’re applying for, as well as your business’s cash flow, trading history, assets and loan purpose. Here’s a quick summary of the borrowing amounts for each loan type:
- Fast business loans: £5,000 to £150,000
- Small business loans: £5,000 to £500,000
- Secured business loans: £30,000 to £750,000
- Bridging finance: £150,000 to £750,000
- Business line of credit: £5,000 to £500,000
What is the acceptance rate for an BizCap business loan?
BizCap doesn’t advertise its acceptance rates. However, factors that can affect approval include your business’s trading history, revenue history, assets and credit history. BizCap also considers the business owner and other factors to help build a comprehensive profile of the applicant.
When considering your application, BizCap initially only runs a soft credit check which won’t impact your credit score. If you’re accepted and proceed with your application, BizCap will carry out a full credit check at this point.
Eligibility criteria and whether you qualify
To apply for most business loans with BizCap, your business needs to have a valid UK company registration number, have been trading for at least four months, and have a monthly turnover of £12,000 or more.
Criteria are slightly different for secured loans and business lines of credit. With a secured loan, you need to have been trading for at least five months, and you must have a suitable asset to use as collateral. If you’re applying for a business line of credit, you must have been trading for at least nine months and have a minimum monthly revenue of at least £20,000.
Additional information
Before applying for a business loan with BizCap, check the terms of conditions carefully, considering the following:
Early repayment fees
Unlike many lenders, BizCap won’t charge you for paying off your business loan early. Instead, it offers discounts to businesses who settle their loan before the end of the term. Terms are typically between three and 12 months.
How long does it take to get approved?
You can usually get approved for a business loan with BizCap in as little as three hours. Applying online takes less than five minutes, and your application will then be assessed.
Estimated time to receive funds
If your application is approved, the length of time it takes to receive your funds depends on the type of loan. Fast business loan funds are usually in your account the same day, while small business loans and secured business loans can take up to 48 hours. With bridging finance, it can take up to 72 hours to receive the funds.
Can a loan be repaid early?
Yes, you can repay your business loan early. In fact, BizCap encourages it by offering discounts to companies that do.
Is security required?
That depends on the type of loan. Secured loans and bridging finance must be secured against an asset, which is often property. This asset is at risk if you fail to keep up with your repayments.
What documentation is required
To apply for a business loan with BizCap, you’ll need to provide the necessary information and documentation. This includes your business bank statements.
Business information
When filling in the short online application form, you’ll be asked to supply your business name and address, your monthly revenue, and your business sector. For secured loans, you will need to provide details of the assets you’re wishing to borrow against.
Business owner information
You’ll also need to provide the names and contact details of all business owners.
Funding requirement
When completing the application, you’ll be asked to state your desired loan amount and what you plan to use the funds for.
How to apply for an BizCap business loan
To apply for a loan with BizCap, you must first fill in the short application form online. Your application will then be assessed, and you’ll be told if it has been approved – often within a few hours.
Alternatively, you can call 0808 304 8690 between 8.30am and 5.30pm Monday to Friday, or email info@bizcap.co.uk for additional support.
Is the application process different to other lenders?
Unlike some lenders, the initial application process only requires a soft credit check that won’t affect your credit score. BizCap also states that it requires fewer documents than many other lenders, which makes the process much faster.
How to improve your chances of getting funded
To increase your chances of getting funding, make sure you complete your application form accurately and provide the relevant information and documentation quickly.
You don’t necessarily need to have a good credit score to get accepted, but it helps to have up-to-date financial records and to be able to show that you can comfortably afford your loan repayments.
Pros & cons of an BizCap business loan
Pros
- You don’t necessarily need to have perfect credit to get accepted
- Range of business loans available
- BizCap only initially runs a soft credit check which won’t affect your credit score
- No fees for repaying your loan early
- Fast approval
Cons
- No long-term business loan options
- Not suitable for companies with a trading history of less than four months
- If you choose a secured loan, your asset could be at risk if you fail to meet your repayments
Alternative funding options for different lenders
If the above business loans don’t seem suitable for your company, you could explore alternative options from other lenders. These could include:
Why use a finance broker?
A finance broker can take much of the effort out of finding and applying for a business loan. They have access to a wide panel of lenders and loan options, helping you focus on those most likely to approve your application. This can be particularly helpful if your business is relatively new, has a poor credit history, or has experienced financial setbacks in the past.
A good broker will outline any fees that apply and handle the paperwork on your behalf. However, some do charge for their services – either a fixed fee or a percentage of the loan amount – so make sure you understand the costs before you commit.
Get started with Swoop's business funding platform
Our team at Swoop would be happy to discuss your business funding requirements with you to help you find the right deal to support your application and help your business grow.
Apply in minutes 
FREE no obligation, personalised quote 
FCA regulated 
Get quote 
yet? Register here!