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CAN Capital

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13 User Reviews

6.3

Overall Score

LAST UPDATED: March 24th, 2020

CAN Capital is one of the largest sources of alternative funding for small businesses in the United States. Since 1998, the company has provided around $7 billion in working capital, assisting roughly 125,000 small- and medium-sized businesses throughout North America with term loans. CAN Captial offers business loan and merchant cash advance options.  

CAN Capital requirements include a 680+ credit score, six months in business, and annual revenue of $150,000. Often, business owners who borrow once from CAN Capital come back and borrow more (70 percent of customers renew).

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The Good

  • Loan Terms
  • Positive CAN Capital Reviews
  • Transparent Information
  • Prepayment Discount
  • Fast Funding

Loan Terms

CAN Capital is a great funding option for new and small businesses looking for a short-term loan. CAN Capital will loan anywhere from $2,500 to $150,000. The average amount loaned to small businesses is around $46,000.

The company offers loan terms anywhere from 4 to 24 months, while the average life of a small business loan sits around 13 months. It's convenient for borrowers that there are repayment terms ranging from short-term to long-term.

Additionally, the average interest rate of one of these loans is 27.3 percent. 

Positive CAN Capital Reviews

CAN Capital has several positive reviews on BestCompany.com. Entrepreneurs say that CAN Capital employees are great to work with. The company typically provides quick access to borrowed money and always makes the funding and application process smooth and easy. 

Transparent Information

CAN Capital is great for business loans because the company has low requirements that are displayed online including low, fixed daily payments, automated ACH deductions from the business checking account, and a no personal collateral required policy.

CAN Capital also considers business performance and cash flow as part of its business loan terms. They even have a calculator to estimate costs. Other lenders will only tell you their cost and requirements after you apply, rarely letting customers know detailed information upfront, such as what credit score is required, what monthly payments will look like, and what your repayment terms will be.

With transparent information from CAN Capital, you can decide right away if this is a good loan for you. Having transparent information also makes the loan application process a lot simpler and worry-free. 

Prepayment Discount

At CAN Capital, companies that payback their loans early are rewarded with a six percent 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. 

Fast Funding

Loans from CAN Capital are ideal for businesses that need fast access to small amounts of cash (two 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. 

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The Bad

  • Interest Rates
  • Small Loans

Interest Rates

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 $100,000 loan for 12 months. However, these rates go down with your term length and may fluctuate based on your credit. For example, if you only need to borrow cash for four months, CAN Capital charges around $0.15 per $1 borrowed. 

CAN Capital also charges an origination fee of three percent. However, CAN Capital is transparent about its requirements and does not charge any hidden fee that will surprise the borrower. 

Small Loans

The annual revenue requirement is high with a minimum of $150,000. 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 have seen, no other lender has such high revenue requirements. 

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The Bottom Line

A business loan from CAN Capital is a reasonable choice for small business owners looking for a short-term loan. Businesses should remember that while their interest rates may be as low as 15 percent, they could reach as high as 35 percent.

CAN Capital is an industry leader in terms of providing top-notch service for small businesses based upon the following criteria: the lender provides fast access to cash in the form of small business loans or a cash advance, has no hidden fees, requires no personal collateral, has automated ACH deductions that come straight from your business checking account, and shows actual loan requirements.

CAN Captial also has reasonable loan requirements and takes business performance and cash flow into consideration. However, note that CAN capital requires a three percent origination fee and only offers small business loans up to $150,000. Applicants can receive their money in as little as one business day. 

CAN Capital customers need to have decent credit, as the company's credit score requirement is 680 and higher. Borrowers also need to have six months in business and annual revenue of at least $150,000.

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Star Rating

4.3

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13 Reviews

Review Breakdown

5 grade

62%

4 grade

23%

3 grade

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2 grade

8%

1 grade

8%

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