Founded in 2002, Capify, formerly AmeriMerchant, arranges financing for small businesses. The company does not offer provide the loans directly, but arranges funding through its affiliates and subsidiaries. Capify offers two types of products: business loans and merchant cash advances, which is funding based on future projected credit and debit car sales. Businesses can borrow between $5,000 and $1 million. Loans obtained through Capify do not have monthly payments, but instead have fixed, daily repayments. Capify has an online portal that allows businesses to apply for loans online and get a decision in as little as 60 seconds. Capify offers loans to businesses in most parts of the United States., the United Kingdom, Canada, and Australia.
Capify provides a simplified application process that businesses complete online. The company can provide loans ranging from $5,000 to $1 million. Capify provides loans for businesses in many different industries. To qualify for a Capify loan, your business must have been in operation for one year, have at least $10,000 a month in gross sales, and you must be able to provide proof you own the business.
Simple Loan Terms
Capify offers small business loans that do not have the traditional interest rate. Instead, businesses are presented with a payback amount and fixed payments are deducted daily. Capify loans can be used for any business-related expense, including inventory, advertising and marketing, hiring employees, renovating existing commercial buildings, and expanding or purchasing new real estate. You do not have to provide collateral or a personal guarantee for a Capify loan. Businesses also do not need to have a business plan to qualify for funding.
You apply online with Capify and you can be approved for a loan within seconds. Once your application is complete, you can receive some types of funding within two days.
Capify looks at your business’ funding history, not your personal credit history. Businesses can receive loans even if their owners have a poor credit score. Capify claims its approach to lending gives it the “capability to approve 90% of qualified applicants”.
Capify does not limit its financing support to businesses in the U.S. The company offers financing products to businesses in most parts of the United States, the United Kingdom, Canada, and Australia.
While Capify offers a number of resources to help businesses get the funding they need to launch projects or products, there are limitations to the platform as well. These limitations include the following items:
Like most lenders with online applications portals, Capify does not give much information up front about the costs of its loans. Business owners need to complete the online application or call the company to find out how much funding they qualify for and what the payment terms for that funding will be.
Non-Transparent Costs and Terms
Capify does not charge traditional interest rates for its small business loans. The company decides on a payback amount and sets up fixed daily payment deductions until the loan has been paid back. Business owners who are interested in this type of loan could benefit from an analysis of the total cost of Capify’s daily payment plan versus the more traditional payments made on loans with interest rates that are paid on a monthly basis. Capify’s website also does not include information about any costs or fees that may be associated with its loans, such as prepayment penalties, origination fees, closing costs, or documentation fees. Borrowers could also benefit from knowing how long they can borrow money from when they apply for a loan from Capify. The company states it loans are usually for shorter terms than traditional loans that require collateral, but it does not list the length of terms it can offer loan applicants.
More Application Information Needed
Capify does not inform business owners who fill out the online application what to expect or what information they need to provide. Loan applicants may want to know if there will be a hard pull of their credit history, which could impact their credit rating. Applicants would also benefit from a terms of service section before they begin their application that would let them know what companies Capify may share their information with and what privacy protections Capify will provide.
Not Available to All Businesses
Capify small business loans are not available in North Dakota or West Virginia. The company also does not provide loan to startups that have been in operation less than one year or to very small businesses with less than $10,000 per month in gross sales.