CAN Capital is the largest source of alternative funding for small businesses in the United States. Since 1998, the company has provided almost $4 billion in capital to small business, assisting roughly 125,000 small and medium-sized businesses throughout North America.
CAN Capital does not require a good credit score in order to obtain (1) a small business loan or (2) a merchant cash advance (the two main financing options that CAN Capital offers).
While credit score is an important requirement when making a loan, CAN Capital does not require high scores to be approved. The lowest credit score we have seen is just above 550 with the average being 652. This makes CAN Capital an attractive source for loans to a small or emerging business. Entrepreneurs come from a variety of industry backgrounds. Often, those who borrow once from CAN Capital come back and borrow more (70% of customers renew).
Business loans from CAN Capital are often used for inventory, equipment upgrades, business renovations and every day expenses.
- In business for 4+ months
- Making at least $2,500 per month
- 550+ credit score
CAN Capital is a great funding option for new and small businesses. CAN Capital will loan anywhere from $2.5k to $150k. The average amount loaned to small businesses is around $46k. The company offers loan terms anywhere from 4 to 24 months, while the average life of a small business loan sits around 13 months. Additionally, the average interest rate of one of these loans is 27.3%. Other benefits include:
Positive CAN Capital Reviews
Every CAN Capital reviews we have on our site is positive. Entrepreneurs say that CAN Capital employees are great to work with. The company usually provides quick funding and always makes the funding process smooth and easy.
The main reason CAN Capital has the no.1 spot for business loans is because they have low requirements that are displayed online. They even have a calculator to estimate costs. Other lenders will only tell you their cost and requirements after you apply. With transparent information from CAN Capital, you can decide right away if this is a good loan for you and your business.
Low Credit Score Requirements
On their website, CAN Capital promises multiple times that applicants will not be judged based on their credit score alone (unlike the banks’ process). You also won’t find many lenders that will give capital to businesses that are only 4 months old. This is why CAN Capital is a good option for new businesses with low credit (550 or above), little credit history, high revenue. When CAN Capital does a credit pull for a loan, they only perform a soft pull.
No Added Fees
CAN Capital does not tack on fees. Although they do not display this information on their website, a representative of CAN Capital promised that the price you see is the price you get. There are never any prepayment penalties or closing fees.
Actually, CAN Capital rewards companies that payback their loans early with a 6% prepayment discount on the FULL outstanding balance after 90 days (if the account is in good standing). When you apply for a loan with CAN Capital, this information is in their Business Loan Agreement.
Loans from CAN Capital are ideal for businesses that need fast access to small amounts of cash (2 days to funding). Most banks won’t even look at loans under $50,000, and many alternative lenders only provide minimum loans of $5,000. With CAN Capital, you can get a $2,500 loan. To qualify for higher loans, you must be making more than the minimum requirement each month.
Even though CAN Capital provides access to financing that some companies would otherwise not have, there are some holes in their service. These items should be considered prior to obtaining a loan:
The majority of people think that the most important aspect of a business loan is the interest rate, and we tend to agree with them. When you take out a loan with CAN Capital, you will pay about $0.35 in interest for every $1 you take out. These calculations are based on CAN Capital’s own calculator – taking out a $100k loan for 12 months.
However, these rates go down with your term length. For example, if you only need to borrow cash for 4 months, CAN Capital charges around $0.15 per $1 borrowed.
While your business only needs to generate $4,500 in monthly revenue to apply, this monthly revenue will only qualify you for a $2,500 loan.
The highest amount CAN Capital will lend is $150,000 – slightly lower than the average. But if you want to access this much cash, your business needs to generate around $1 million in monthly sales. As far as we can tell, no other lender has such high revenue requirements.
CAN Capital has no prepayment penalties and no closing costs. Even though these are great features, they do not display this information on their website.
Frequently Asked Questions
How long will it take to receive funds from CAN Capital?
CAN Capital can provide funding in approximately 2 days.
Does CAN Capital require collateral with its loans?
CAN Capital does not require any collateral as long as meet all the necessary requirements. Collateral might be required for those who have sub par credit scores or income.
Does CAN Capital have prepayment penalties?
CAN Capital does not have any prepayment penalties.
Does CAN Capital charge origination fees?
CAN Capital does charge a 2% origination fee during the loan process.
Does CAN Capital charge closing fees?
CAN Capital does not charge a closing fee when finishing out the loan process.
How can I contact CAN Capital?
You can contact CAN Capital by calling or by visiting CAN Capital’s site directly and filling out the loan application.
Types of Loans Offered
- Business Loans – $2,500 to $150,000
- Merchant Cash Advance – $5,000 to $150,000
- Installment Loan – $50,000 to $100,000
- TrakLoan (cash flow loan) – $2,500 to $250,000
15% to 35%
Find Out What You Qualify For
Borrow for 4-24 months
The Borrowing Process
If you meet these two qualifications and are interested in a loan from CAN Capital, you can prequalify for a business loan in 10 minutes with this simple information. Once you fill this out, you will need to enter in more information, verify your identity, confirm the terms of the loan, and e-sign a loan agreement. Your chances of receiving funding with an alternative lender like CAN Capital are much higher than receiving funding from a bank. In the last year, the average alternative funder has approved between 62.7 – 61% of applicants.
Before applying for a business loan from CAN Capital, make sure you meet the minimum requirements:
- 4 months in business
- $4,500 in monthly revenue
Once you fill this out, you will need to enter in more information, verify your identity, confirm the terms of the loan, and e-sign a loan agreement.
Your chances of getting funding with an alternative lender like CAN Capital are much higher than receiving funding from a bank. In the last year, the average alternative funder has approved between 62.7 – 61% of applicants.