Zip Business Capital Review (2022)

  • Updated: 15/01/2022
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Formerly known as Spotcap, Our Zip Business Capital review looks at the unsecured business line of credit this SME lender offers.  The credit line can be $10,000 to $500,000 and has a payment period of 1 to 60 months. As you only pay interest for what you draw, Zip Business Capital is a suitable solution if you need access to a credit facility but don’t know how much funding you need.

🗺️ ProductsLine of credit
💰Funding AmountUp to $500,000
📊 Loan Terms1 to 36 Months
Min. Trading Period18+ Months
Min. Trading Turnover$200,000 per year
🛍️ Unsecured/Secured Unsecured
💳 Funding SpeedSame day approval
24 hours funding
Zip Business logo with words zip business review under it

Loan ProductsLine of credit / business loan hybrid
Loan Terms & Funding Size
💰 Loan Amount$10,000 to $500,000
⏳ Loan Length1 to 60 months
📆Payment scheduleWeekly, Fortnightly, Monthly
💳 Line of Credit Option?✔️
Loan Costs
💸Fees (excl. interest)2-3% Origination Fee
﹪Interest Rate TypeInterest only on drawdown
Pay principal and interest over the loan term (pay same each period)
Total Interest Percentage/cost (TIP) and Annualised Percentage Rate (APR) is quoted
🔓 Unsecured Loans?✔️
👍 Early Repayment✔️ (No cost/penalty)
Loan Qualification
🎓 Qualification BasicsAustralian based business
Profitable business
🛍️ Min. Trading Qualification18 Months
📅 Min. Turnover Qualification$200,000 per annum
🗎 Low Doc Loans✔️ Under $150,000
😕 Bad Credit OK?Min. credit score of 300
(400 for construction)
Approval & Funding Speed
🏍 Fast Online Application✔️ Approval within 24 hours
💨 Funding SpeedFunding within 24 hours of approval if you provide your bank details

Zip Capital Business Advantages and Disadvantages


  • Line of credit gives flexibility over term loans
  • Only pay interest on funds your draw
  • Unlimited drawdowns in months 1 to 3
  • Integrates with your accounting software
  • The credit line can be extended
  • Low minimum credit score (300)
  • Will deal with businesses with loan default in the past
  • No hidden fees


  • Drawdowns available only in the first 3 months
  • Credit lines are non-revolving (after 3 months)
  • Lack of financial products to choose from
  • Your business should be profitable
  • Not for start-ups
  • Each drawdown may have a different payment schedule

Zip Business Capital Products

With the Zip Business Capital line of credit, you can access up to $500,000 with unlimited drawdowns over the first 3 months of the agreement.  Each drawdown is a separate loan with its own repayment plan, which can be from 1 to 60 months.

Credit lines with Zip Business Capital can save you on interest costs as you only pay interest for the fund you draw from the facility. This contrasts with a business term loan, which is a lump sum payment, meaning you will pay interest costs even if you don’t use all the credit.

  • Unsecured line of credit
Zip Business quick overview of line of credit product

What is a line of credit?

A line of credit is a business finance arrangement that gives you flexible access to funds via a credit facility over a set period. The advantage of aline of credit is that you only pay interest for the funds you draw from the credit line.

Access to a credit line can help overcome the limitations of traditional loans or business loans. These loans involve a lump sum payment, which means you will pay interest for the entire loan even if you don’t use the capital. A line of credit allows your business to avoid paying fees on funds you do not utilise.

If you find your business costs unpredictable and need to access cash quickly, a line of credit can be a solution. With this type of finance, you have pre-approved access to a set amount of funding for a specific amount of time. You can use this funding multiple times as long as you have credit remaining and without seeking further approval from the lender.

As you don’t need approval from the lender each time you need funds, a line of credit is best for immediate expenses. These include cash flow, stock and inventory purposes and working capital.

How does a line of credit with Zip Business work

Zip Business Capital line of credit eligibility

Qualification requirements for a Zip business loan

Zip Business Capital requires your business to have been operating for at least 18 months and minimum annual revenue of $200,000. This makes Zip unsuitable for startups and new businesses, as you will need to have a history of bank statements showing cash flow.

Your business will need a minimum credit score of 300 (400 for construction) so Zip can be a good option for your business that has a weak credit history. Zip Business Capital considers recent business performance, risk profile, and cash flows when assessing any borrower’s qualifications.

Line of credit funding size and loan terms

zip line of credit funding size and loan terms

Zip Business Capital loans range from $10,000 to $500,000. As a guide, Zip Business Capital will lend you about one month worth of average revenue or 10% of annual turnover. You should expect this may vary according to your credit history.

There are unlimited drawdowns permitted in the first 3 months of the loan as long as you have not maxed out the facility. The line is also rolling for these 3 months which means you can re-draw any funds you have paid back during this time. Each drawdown needs to be at least $500.

After the 3 months, you can no longer draw from the line however you can apply for a new credit line. Zip will assess the financial situation of the business before granting a further 3 months.

Each drawdown is a separate loan, with its own repayment schedule. This schedule can be weekly, fortnightly or monthly and can range between 1 to 60 months.

What you get with a zip business line of credit

Line of credit costs and fees

Costs for loans with Zip Business

The Fintech lender only charges origination and interest fees on the amount you draw, this means that if you do not end up using the loan, you will not need to pay any fees.

Each drawdown is a new loan with its own repayment schedule. So if you make multiple drawdowns, you could pay each loan at different times.

Each loan works to an amortisation schedule. While the principal and interest will vary each payment period, the total amount you will always be the same. There is no compounding with your interest rates.

Zip business Capital does not advertise their interest rates, so it is hard to know what the cost will be but the loan provider is transparent with their costs.  The lender provides small business owners with a quote that includes both the Total Interest Percentage/Cost (TIP) and Annualised Percentage Rate (APR) for conditional and unconditional approvals.

In unconditional approvals, Zip Business Capital includes a SMART Box™ statement which is a tool for standardising pricing disclosure. This tool provides multiple pricing metrics to help you better understand and assess the cost of your small business loan and compare Zip Business Capital with other lenders.

Zip Business Capital ease application and application process

Zip Business Capital platform allows you to complete your business loan application in only 5 minutes.

One point to note is that if you applying for a loan under $150,000, then you may not need to provide financial documentation. You simply need to answer the following questions:

  1. What was your business revenue (sales) in the last 12 months?
  2. What was your business revenue (sales) in the last 3 months?
  3. What was your business net profit in the last 12 months?
  4. Do you have an overdraft, line of credit, or business credit card? If yes, provide the limit and limit used.
  5. Does your business have any outstanding borrowings? If so, provide total outstanding borrowings amount and total monthly payments.
  6. Does your business have ATO debt outstanding? If so, is this on a payment plan?
How to apply for a line of credit with Zip Business

The application process comprises 4 steps.

  1. Eligibility Check
  2. Create an account
  3. Basic information – when do you need funds, loan duration, product type (SME government-guaranteed or Zip Business standard), and general business information (entity name, ABN, industry, personal information)
  4. Financials (upload Income Tax Returns, Annual account final for last 2 years, Business activity statements for last 4 quarters, latest integrated client account from ATO or connect accounting software)
  5. Bank Account (bank account number, BSB, account holder)

The Zip business Capital platform allows for integration with the following accounting products:

list of accounting product Zip Business links with

Should you not wish to provide your banking details, you can provide a PDF or CSV of the bank statement for the last 12 months. If you do this, Zip business Capital can only provide you with a conditional credit line offer as the lender will need to connect to your bank for final approval.

Zip Business Capital funding speed

Zip business funding speed

Online application with Zip Business Capital can take as little as 5 minutes. If Zip Business Capital has the correct information, they will advise of their decision within 24 hours.

When you apply for a credit line with Zip Business Capital, you will need to provide your bank account. If you do this, then Zip can provide funds into your account the next working day.

What can you use the loan for?

Zip Business Capital allows you to choose how you will use the funds as long as it is for business purposes. You cannot use the credit line for personal needs, The lender suggests a range of ways you can use the loan. These include:

Uses for a Zip Business Line of Credit

Zip Business Capital Review – Customer Support

When you contact Zip Business Capital customer support via their website, you can choose if you would like a reply via email or phone. No live chat is available. Customer service is available business hours 5 days a week. Fast Business loans sent some inquiries to the customer support team as part of our fast finding and replies by email were relatively prompt. We like that there were no follow up calls given we did not request this.

Zip Business Capital also has a handy FAQ section which should answer questions you may have about Zips products and how they can help you with your business needs.

Zip Business Capital Review – Customer Reviews – Trustpilot

As Zip Business Capital has only been operating since 2019, no Trustpilot social media presence is available. When operating as SpotCap Australia, TrustPilot gave SpotCap a score of 4.5 stars out of 5 (Excellent) from 100 reviews.

Conclusions about Zip Business Capital

Our Zip Business Capital review found the lender offers an excellent product for small businesses. While the lenders’ financial services target clients that need a line of credit, there is no reason one cannot use the credit line as a short-term business loan.

With credit lines as little as $10,000 and as high as $500,000 and a repayment period of up to 5 years, this Fintech has a lending product that is literally flexible enough to suit all SME’s but those that will need exceptionally large loans. You can make multiple drawdowns (up to your credit limit), use your entire credit limit at once and even choose not to use the loan, and you will bear no costs.

About Zip Business Capital

In 2019, Zip co financial services took over Spotcap Australia and New Zealand. Now known as Zip Business Capital, clients should expect the same experience that was provided by Spotcap given Zip Business Capital have the same loan policies, products, and platform, the Rocket Internet-backed Spotcap has offered Australian SMEs since 2015. This means you should expect the same experience the Berlin, Germany headquartered provider offers lending markets such as the UK, the Netherlands, and Spain.

Zip Co is familiar to many for its ‘Buy Now, Pay Later’ products such as Zip Pay, Zip Money, and Zip Biz.  Like Zip Co, Zip Business Capital provides loans but only to businesses, not for personal use.