Capify Review (2021)

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RATED:

75.5

Our Capify review found they offer unsecured business loans between $5,000 and $300,000, with flexible repayment arrangements including daily or weekly payment. The lender places emphasis a quick and simple online application process, fast approval and funding and flexible loan terms.

ProductsBusiness Loans
Merchant Cash Advance
Funding Amount$5,000 to $300,000
Loan Terms3 to 12 Months
Min. Trading Period6 Months
Min. Trading Turnover$10,000 a month
Unsecured/Secured Unsecured
Funding SpeedSame day approval
24 hours funding

Capfiy logo with words Capify review under it

See how Capify stacks up against other lenders

Loan ProductsShort-term business loanMerchant cash advance
Loan Terms & Funding Size
💰 Loan Amount$5,000 to $300,000$5,000 to $300,000
⏳ Loan Length3 to 12 months3 to 12 months
📆Payment scheduleFixed Daily (no interest)Fixed Daily (no interest)
💳 Line of Credit Available?
Loan Costs
💸Fees3% Origination Fee + Processing Fees3% Origination Fee + Processing Fees
﹪Interest Rate TypeFactor RateFactor Rate
🔓 Unsecured Loans?✔️✔️
👍 Early Repayment✔️✔️
Loan Qualification
🎓 Qualification BasicsABN or ACN, Australian Bank Account, Australia citizenABN or ACN, Australian Bank Account, Australia citizen
🛍️ Min. Trading 6 Months6 Months
📅 Min. Turnover $10,000 a month$10,000 a month
Approval & Funding Speed
🏍 Fast Online Application✔️✔️
💨 Funding SpeedPre-approval in 24 hours if link bank account
Funding within 24 hour of approval
Pre-approval in 24 hours if link bank account
Funding within 24 hour of approval

Capify Pros and Cons

Pros

  • Will consider a business with a weak credit score
  • Works with customer to find loan terms that respect business cash flow
  • No interest rates Capify uses an agreed payback amount for cost transparency
  • SMART Box™ loan statements
  • Loans best for: All industries
    Cash Advance best for: Restaurants, Retail (online and shopfront
    Salons/Spas, Auto Repairs, Hotels

Cons

  • Not for start-ups
  • No personal loans
  • Limited repayment period
  • Processing and early repayment fees
  • Live chat is often offline during business hours

Capify review of Products – Types of financing available

Capify offers two types of business financing for Australian business. Both business loan products can be up to $300,000 and have a maximum repayment term of 12 months. The products available are:

  1. Short term business loans
  2. Merchant cash advances (MCA)

Small Business Loans

Capify unsecured business loan lending is quick and made easy, giving you access to funds to make your business grow, run and invest in your business. An unsecured business loan allows you to borrow funds without using an asset as security. Its called unsecured business funding or alternative funding.

Managing business finances is easy and more flexible with Capify smaller cash advance loans with regulat repayments rather than a lump sum at the end of the month.

Capify Short-term small business loans

A small business term loan is best when you require a fixed amount of funding in return for a consistent repayment plan. Term loans are best when you know how much capital you will need, and you can pay back the loan before it matures.

One thing to note is that Capify does not have a minimum business credit score. Capify base their loan decision on monthly gross sales, daily balance and credit score. This makes Capify an excellent choice if you have a poor credit score. Capify will consider applicants with an unpaid default against their name as long as they have a proof of a payment plan.

Capify business term loans eligibility/qualification:

Minimum Time Business Operating

Minimum Time In Business

6 Months

Minimum Turnover

Minimum Turnover

Min. $10,000 a month

Credit History

Credit History

N/A

Other

Other

Must hold ABN or ACN
Australian Citizen
No loan with other lenders (big banks excepted)
Proof of ownership

Capify loans are unsecured loans so do not need collateral upfront, there is a requirement that the majority owner of the business provides a personal guarantee.

Capify funding size and terms for short-term loans

Loan Amount

Loan Amount

$5,000 to $300,000

Term Length

Term Length

3 to 12 months

Payment Schedule

Payment Schedule

Fixed daily debit repayments

Low Doc Loans

Low Doc Loans

✓ (for under $75,000)

Unsecured-Secured

Unsecured loans?

Unsecured

Capify is a good option if you need a short-term loan of significant size that you can pay in 12 months or a small loan that you can pay in 3 to 6 months.  One significant feature is that Capify has minimal paper for loans under $75,000.

Capify loans are unsecured loans so do not need collateral upfront, there is a requirement that the majority owner of the business provides a personal guarantee.

Capify short term loan costs and fees

Origination Fee

Origination Fee

3% of the loan amount

Interest Rate

Interest Rate

Factor rate

Other Costs

Other Costs

Up to $9,999 = $449
$10k – $19k = $549
$20k – $50k = $649
$50k – $75k = $749
Over $75k = $849
Daily direct debit fee = $2.50

No Hidden fees

No Hidden fees

Early Payment Permitted

Early Payment Permitted

Capify does not have interest rates or annual percentage rate (APR) or similar, instead Capify have a total payback amount.  A total payback amount means the business will know upfront what the total cost will be, which means complete transparency. You will receive a document that outlines the lenders’ fees and total payback.

This policy differs from most other lenders who charge interests. This may make comparing costs with lenders difficult. If you wish to compare costs with other lenders, make sure you ask for a SMART Box™ statement from these lenders. Capify is not a signatory to this SMART Box™ system run by AFIA.

Merchant Cash Advance With Capify

Merchant cash advances are like term loans in that you receive a lump sum of funding upfront but differ in the way you pay back the loan. With an MCA arrangement, you pay back the loan using a percentage of credit, debit card and EFTPOS terminal sales. This means your MCA payments will vary according to the volume of sales card sales the business makes. Tying repayments to sales can be helpful if your small business has unpredictable cash flows.

Merchant Cash Advance

A Merchant Cash Advance (MCA) is a way for your business to access cash and pay it back over time using a percentage of future sales from your machine settlement.

For businesses that accept credit card/EFTPOS payments at the counter or on the move.

No matter what the brand machine or terminal you have, repayments are a small percentage of each day’s EFTPOS settlement. Merchant Cash Advance (MCA) could be a helpful aspect of ensuring you manage the cash flow of your business effectively.

When would I choose a Merchant Cash Advance?

a Merchant cash advance is a good solution if your business has sales via debit and credit cards or EFTPOS machine and your business has volatile cash flow. If cash flows fluctuate you may prefer as a pay as you go arrangement as this helps you to avoid larger lump sum payments each period.

If you arrangement a Merchange cash advance with Capify then you should ensure you have a card terminals such as Tyro, NAB, ANZ, Verifone, Commonwealth Bank, St George, Westpac, Suncorp etc.

A Merchant Cash Advance is right for you if;

  1. Your business accepts credit card or EFTPOS machine sales.
  2. You’re looking to avoid a steep payment at the end of the month.
  3. Your business sales can fluctuate, so you want to pay as you go.
  4. You’re looking for a fast and straightforward business finance solution.

Merchant cash advance eligibility/qualification

Minimum Time Business Operating

Minimum Time In Business

Min. 6 months trading
6 Months of financial data

Minimum Turnover

Minimum Turnover

Min. $10,000 a month in gross sales

Credit History

Credit History

N/A

Other

Other

Valid ABN or ACN
Registered for GST
No loan with other lenders (big banks excepted)
Proof of ownership

Capify funding size and terms for merchant cash advances:

Loan Amount

Loan Amount

$5,000 to $300,000

Term Length

Term Length

3 to 12 months

Payment Schedule

Payment Schedule

Fixed daily debit repayments

Low Doc Loans

Low Doc Loans


(for under $75,000)

Unsecured-Secured

Unsecured loans?

Unsecured

Payments are daily for business days only.

Capify merchant cash advance cost and fees

Origination Fee

Origination Fee

3% of the loan amount

Interest Rate

Interest Rate

Factor rate

Other Costs

Other Costs

Up to $9,999 = $449
$10k – $19k = $549
$20k – $50k = $649
$50k – $75k = $749
Over $75k = $849
Service Fee = $35

No Hidden fees

No Hidden fees

Early Payment Permitted

Early Payment Permitted

MCA repayments require the lender to take a fixed percentage of your sales via the EFTPOS terminal, credit card and debit cards until the advance paid in full. Repayments occur automatically each day the business is open. Capify doesn’t advertise the percentage that you will pay back each day (known as the ‘holdback’ rate).

Capify review for ease of application and application process

The Capify online application only takes minutes. There is no cost to apply or obligation to complete the application or accept a loan offer. The application process comprises 5 steps.

  • Business Details
  • Loan Details
  • Business information
  • Personal Information
  • Bank Statement – Fast Track Application.

By linking your bank statement with BankStatements.com.au, you can receive your funding in as little as 24 hours. Capify takes manual statements however this will delay the pre-approval process.

As part of the application process, you will need to give Capify approval to perform a credit check of your business. Should you not wish to have a credit check, Capify can give you a ‘look-alike’ offer however this offer will still be subject to Capify investigations such as your credit score.

If Capify has all the information to assess your application, pre-approval for term loans can take 2 to 24 hours and up to 48 hours for cash advances.

Capify will supply funds to your nominated bank account within 24 hours after this time. If funding is not urgent, Capify can use this time to a wider range of loan terms that may be more favourable to your needs.

Capify make small business finance simple

Low Doc Loans

Quick and Simple Application

Apply online in minutes for a quick, obligation-free quote with no application fee.

Early Payment Permitted

Same Day Approvals

Fast, same-day approvals for unsecured business loans with minimum paperwork.

Loan Amount

Funds in account in 24 hours

Approval in within one day and funds in your account within 24 hours.

Capify ease of application and application process

The Information you will provide as part of your application will vary depending on if you are after a business term loan or merchant cash advance and the size of the loan. Capify uses a factor rate to calculate your loan amount. This means the lender will assess the level of risk your business presents along with your daily balance, gross monthly sales, and your credit score.

Capify allows low doc applications which means if you are applying for a loan or advance of less than $75,000 then you will not need to financials, tax returns or BAS.

Application information – For loans or Advances under $75,000

  • Last 6 months Bank Statements of the business account
  • Driver’s license for the owner of the business
  • Front of the official cover page of the bank statement (confirming account name, BSB, and account number).

Application information – For loans or advances greater than $75,000

  • Bank statements for the last 6 months (Capify may require longer for larger loans) and/or Merchant statements for the last 4 to 6 months (if applicable)
  • Driver’s license for the owner of the business
  • Proof of ownership

With Capify you can apply for short-term loans or merchant cash advance of $5,000 to $300,000 for 3 to 12 months. Capify does not offer other loans such as long term or lines of credit.

Capify review of funding speed

Online Application

Online Application

5 minute application

Approval

Approval

Pre-approval within 24 hours
(with a linked bank account)
48 hours with no linked bank account

Funding

Funding

Within 24 hours after approval

If you provide Capify with all information correctly with your application and link your bank account, then you can receive pre-approval within 24 hours. If you don’t link your bank account or permit Capify to run a credit check during application then pre-approval can take 48 hours (or longer).

When you agree to loan terms with Capify, you will receive funds in your nominated bank account within 24 hours. If you need funds urgently, Capify can work with you for a solution.

What can you use a Capify loan for?

As part of your application, you will need to list how you intend to use the funds. Capify does not list any restrictions regarding how you use the funds.

Capify provides the following examples that their customers have used for funds:

  • Loan purposes
  • Day to Day
  • Equipment
  • Expansion
  • Hiring Staff
  • Inventory
  • Marketing
  • Renovation
  • Tax
  • Unexpected Expenses
  • Working Capital
  • Other
  • Pay bills
  • Marketing
  • Hiring extra staff
  • Purchasing Stock
  • Improve cash flow
  • Purchasing a business car or truck
  • Renovating or expanding the business
  • Upgrading or purchasing equipment

Repayment Terms

If you have a term loan and wish to find out the balance of your loan, you will need to call Capify and speak with your relationship manager or send Capify an email. Some clients may find this inconvenient and prefer a lender that allows you to see your balance through the lenders’ platform. If you have an MCA, then you can access a list of your transactions via the Capify platform.

Payments for the loan is daily, options such as weekly or monthly are not available.

Capify allows early repayments however since they do not base your total payback amount on interest, your main cost saving will be on other costs such as daily debit amounts. If you fall behind on your payment in the first 30 days of the loan, then Capify may ask for a clawback.

Should you wish to top up your loan, you can apply when 50% of your existing loan is paid. If in future you wish to re-apply for a term loan, Capify will pre-approve your last loan as long as you can show your cash flow has not changed. The amount Capify will fund will, however, depend on bank statements for the last 6 months.

Capify review of Customer Service

Capify customer support is available during business hours. You can contact them by phone, email and live chat. We found the live chat interesting as most Australian lenders don’t have this feature, the main issue is that every time we tried it, the live chat box seemed to be down. We left an email with Capify but did not receive replies, which is disappointing.

Capify review of customer reviews – Trustpilot

Trustpilot customers rate Capify as excellent with 5 stars giving a TrustScore of 4.8 from 296 reviews. Feedback sentiment praises their customer feedback with some noting their ability to help customer needing extra help due to covid-19.

Our Capify review conclusion

With 2 distinct financings options, Capify should have a solution that will offer you the business finance you require. If you choose an unsecured business loan then you can choose up to $300,000 but you should be aware that you will only have 12 months to pay the loan. On the plus side, repayments are daily and you pay an agreed amount through the life of the loan. This avoids any large repayments and interest fees.

If your business has a sales model using EFTPOS and debit and credit cards. Then Capifys Merchant Cash advance is a good option. As you only pay a portion of your sales, you repayment should be hassle-free as you don’t need to actively manage your repayment,

About Capify

Capify’s has the simple goal of providing tailored and flexible solutions to help business manage their finances. Since its foundation has made over 15,437 loans right across Australia. In 2019, Capify secured a 135 million credit facility extension with Goldman Sachs, which highlights both its success and commitment to Australian small business owners.

Capify has a large international presence. The business was founded by David Goldin in New York and known as AmeriMerchant. Later Capify went international with United Kapital in the United Kingdom, True North Capital in Canada and AUSvance in Sydney, Australia all being consolidated under the Capify umbrella.