Capify business loans: Rates, eligibility & more

Finance provider Capify was founded in the USA in 2002. It expanded into the UK market in 2008 when many small and medium enterprises (SMEs) were struggling to navigate the global financial crisis.

The company offers a range of business funding options, which we explore in more detail below.

An overview of Capify business loans

Capify offers a number of business loans than can help your business cover bills and other expenses, buy new equipment or stock, expand premises, pay suppliers or cover hiring and training costs.

Unsecured business loans

Unsecured business loans enable you to borrow a lump sum of cash that you then repay, with interest, over a set term. Monthly repayments are fixed, so you’ll know exactly how much to budget for each month.

As the loan is unsecured, you won’t need to provide an asset as collateral. However, interest rates tend to be higher compared to secured loans, and terms tend to be shorter.

Secured business loans

Capify secured business loans require you to use your residential property as security. Because this reduces the risk for the lender, you may find it easier to get approved for a secured loan than an unsecured one. But keep in mind that if you fail to repay your loan, your property is at risk.

As with unsecured loans, you repay your secured loan over a set time, in fixed monthly repayments that include interest.

Merchant cash advance

A merchant cash advance is another type of unsecured business loan and is best suited to businesses that take regular card payments. You’ll receive a lump sum of cash that is repaid automatically as a percentage of your future card sales. A fee will also be added. The advantage of this is that when business is quiet, you won’t pay back as much, but during busier periods, you’ll pay back more.

What is Capify’s typical interest rate?

The amount of interest you pay on your business loan depends on several factors, including the type of loan you apply for, the amount borrowed, your business credit record, and your business’s annual turnover.

Generally, a business with a strong credit history and high annual turnover will qualify for better rates than a business with a limited credit history and low annual turnover.

How much can I borrow with a Capify business loan?

The amount you can borrow primarily depends on the type of loan you’re applying for. Here’s a quick summary of the borrowing amounts for each loan type:

Unsecured business loans: Between £5,000 and £3 million
Secured business loans: Between £75,000 and £3 million
Merchant cash advance: Between £5,000 and £3 million

However, borrowing sums also depend on factors such as your business credit rating and financial standing.

What is the acceptance rate for a Capify business loan?

Capify doesn’t publish its acceptance rates. But you’ll typically find it easier to get accepted if you meet the eligibility criteria and have a good credit record. That said, Capify says it considers all credit profiles and may be able to help you even if a traditional lender will not.

Eligibility criteria and whether you qualify

Exact eligibility criteria depend on the type of business loan you apply for. However, for all loan types, your business must have been trading for at least 12 months.

If you’re applying for an unsecured business loan, you must have a minimum monthly turnover of £10,000, and if you’re applying for a secured business loan, you must be a UK registered limited company or limited liability partnership (LLP).

To apply for a merchant cash advance, you must be a UK-based sole trader, partnership or limited company and you must take at least £20,000 per month in card payments.

You can check your eligibility for a business loan with Capify in just a couple of minutes. It only carries out a soft credit check which won’t affect your credit score, and it enables you to see how likely you are to get accepted before you apply in full. Capify assesses each application on a case-by-case basis.

Additional information

Before applying for a business loan with Capify, be sure to read through the terms and conditions and consider the following:

Early repayment fees

It’s possible to receive your funds with 24 hours of approval, as long as you’ve provided the necessary information.

How long does it take to get approved?

You can often get approved for a business loan with Capify the same day. However, this may depend on whether you’ve provided the necessary information as requested. Secured loans can take longer to approve (sometimes weeks) as your asset will need to be assessed.

Estimated time to receive funds

Cambridge & Counties Bank doesn’t specify how long it will take to receive your funds once your application has been approved. But this is typically within a few days.

Can a loan be repaid early?

It may be possible to repay your loan early, but an early repayment charge is likely to apply, so check your agreement carefully.

Is security required?

All Capify products require a personal guarantee which means you become responsible for repaying the loan if your business can’t. Secured loans also require you to use your residential home as collateral – if you fail to repay your loan, the lender has the right to repossess your property and sell it to recoup its money.

What documentation is required

When applying for a business loan with Capify, you’ll need to provide the necessary information and documentation.

Business information

You’ll need to provide full details about your business, including its name and address, the type of business, its trading history and average monthly turnover. You will also need to provide details about any other borrowing your business has, your landlord’s details and references, and any other financial information requested.

Business owner information

You’ll usually need to supply details about all business owners, including their names, addresses, and contact details. You will also be asked to provide your driver’s licence, bank statements and proof of ownership.

Funding requirement

You must typically state how much you wish to borrow and what you plan to use the funds for.

How to apply for a Capify business loan

To apply for a Capify business loan you should first use its eligibility checker. Simply enter a few details about your business and yourself, as well as how much you wish to borrow, and find out whether you’re eligible for the type of loan you wish to apply for, without affecting your credit score. If you’re eligible you can then proceed with your application online or someone will call you back.

If you prefer, you can phone 0800 151 0980 to speak to a member of the Capify team who can help with your application.

When applying for a business loan, you’ll always have a dedicated point of contact you can reach out to with any questions.

Is the application process different to other lenders?

Capify aims to simplify the process of applying for a business loan by enabling applicants to easily check whether they qualify for a loan and then proceed with the application if they do. Unlike some providers, funds can often be transferred the same day.

How to improve your chances of getting funded

The best way to improve your chances of getting funding is to ensure you complete your application form accurately and provide the necessary information and documentation quickly. Capify says it will consider all applications, so even if your business has poor credit, you may still qualify.

Pros & cons of a Cambridge & Counties Bank Limited business loan

Pros

Your application may still be considered even if you have bad credit
Unsecured and secured business loans are available
Easy application process
Loans are often approved the same day, with funds transferred within 24 hours

Cons

Upfront fees and early repayment charges may apply
If you choose a secured loan, your asset could be at risk if you fail to repay on time
All business loans require a personal guarantee

Alternative funding options for different lenders

If the above business loans aren’t suitable for your company, there are alternative finance options available from other lenders, such as:

Why use a finance broker?

A finance broker can make it easier to compare and apply for business loans. Because they work with a range of lenders and products, they can steer you towards options that are more likely to fit your circumstances. This can be important if you’re a newer business with a limited credit history or if you’ve had financial difficulties in the past. A good broker will also handle the application process on your behalf.

Keep in mind that some brokers charge for their services, either as a flat fee or as a percentage of the funds you borrow, so make sure you understand the costs before you go ahead.

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.

Capify business loan review: Interest rates, eligibility, and the application process