Capify is a finance provider that offers Merchant Cash Advances (MCA) and business loans in the UK to SMEs. Many businesses in the UK are unable to thrive because of bad credit, business funds are limited or entirely unavailable to them. Capify solves this problem by providing SMEs with funding options which meet their needs including business loans for bad credit.
What’s Special About Capify
- You can borrow £5000 up to £500000
- You only need to make small and regular payments to repay your loan. No large monthly payments
- Common short term loans lasts for six months, medium loans eighteen months, and long term loans anywhere from three to five years
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Capify’s Products and Services
Capify offers two main services to its customers: business loans and Merchant Cash Advances. It also offers card machines in partnership with United Merchant Services. You can apply for the business loans and Merchant Cash Advances on Capify’s website.
Capify Business Loans
Capify small business loans are convenient because customers repay on a little and often basis (daily or weekly) to help with cash flow management. Capify business loans are available from £5, 000+ and the repayment is completely automated.
Uses of Capify Business Loans
The Capify business loan helps to grow your business. As such, you can use the funds to carry out any business-related activity provided it grows your business in the end. The following is what you can do with your Capify business loan:
- Bulk-buying Stock. Sometimes, you might run out of stock especially during seasonal rushes and you wouldn’t want to lose customers. As such, a small Capify business loan will help you restock your shop and continue with business.
- Buying New Equipment. Capify small business loans can also help businesses buy new equipment to run and expand their operations.
- Business Technology. Many successful businesses invest in high-technology business tools to speed up business operations, protect customer data, and streamline data storage and retrieval.
- Refurbishment and Renovation. Your business surroundings should match and promote your brand. If your interior is not appealing, get that business loan to renovate it. You can also invest in new equipment to help in running business activities comfortably.
- Marketing and Advertising. Your business can use the Capify loan to launch a marketing strategy that will help you reach a larger audience.
- Staff Training and Education. Every business needs to be run by a competent team for smooth operations. Your Capify loan can help to train and educate staff.
How to Apply for a Capify Business Loan
To qualify for a business loan with Capify, you need to be a limited company, a sole trader or a partnership based in the UK, have a trading history over 12 months, and have a minimum monthly turnover of £10,000.
First, check if your business qualifies for the loan by either using Capify’s online eligibility tool or by calling the Capify team on 0800 151 0980. If you meet their eligibility criteria, Capify will give you a personalised quote showing how much you can borrow. One of Capify’s finance specialists will call you to fill out an application form. You will need to provide basic information about you and your business, sign the loan documents, and return them for approval. Upon acceptance, the money will be deposited into your business bank account. You can borrow between £5, 000 to over £150,000.
Merchant Cash Advances (MCA)
Merchant Cash Advances use card terminals as assets to secure lending, taking repayments as a proportion of revenue through transactions. Merchant cash advances are ideal for businesses who accept credit and debit card payments from their customers. Such businesses include retailers, restaurants, pubs, and bars. With Merchant Cash Advances, you repay a certain percentage of your credit and debit card takings at the end of each working day. However, the percentage you pay depends with how busy your day is. The busy the day, the more you repay.
A Merchant Cash Advance is the purchase of your business future credit card receivables at a discount. There is no interest charged and there is no fixed payback period. An MCA is paid back daily with a percentage of each credit card sale going to pay the MCA. An MCA works with your business cash flow needs in mind. If your business has a slow season or a slower month, you still pay a percentage of your credit card sales in this case a smaller amount as a result of lower sales. Because a percentage is automatically paid daily there are no due dates to remember and you can go do what you do best which is run a successful business.
How to Apply for a Merchant Cash Advance
To apply for a Merchant Cash Advance, you need to run a UK-based business either as a limited company, a sole trader, or in partnership. Your business must turn over at least £3, 500 per month and have at least 6 months trading records. Your business can use a Capify Merchant Cash Advance in the same way it uses Capify Small business loans. Examples of businesses that can take Capify Merchant Cash Advances include dentists, garden centres, pubs, garages, hairdressers, tattoo studios, and restaurants. You can borrow from £3, 500 and above.
Card Machines
Capify partners with United Merchant Services (a card terminal provider) to supply card machines that accept all major credit and debit cards. As such, businesses will be able to take instant, contactless and mobile payments from clients. This speeds up transactions and invoicing.
Capify Supported Sectors
Capify supports UK SMEs in different sectors including eCommerce, restaurants, wholesale, construction, IT services, manufacturing, car servicing and repair, retailers, and health.
Capify Fees
Capify fees are associated with the set up and management of your business finance accounts. If you will apply for funding from Capify, you should expect the following fees.
Business Loan Fees
| Processing Fee | Origination Fee | Monthly Service Fee | |
|---|---|---|---|
| Up to £9, 999 | £249 | 4% | £24.90 |
| £10, 000 – £29, 999 | £349 | 4% | £24.90 |
| £30, 000 – £49, 999 | £449 | 4% | £24.90 |
| £50, 000 – £99, 999 | £549 | 4% | £24.90 |
| £100, 000 plus | £649 | 4% |
Merchant Cash Advance Fees
| Processing Fee | Origination Fee | Monthly Cashplus Fee | |
|---|---|---|---|
| Up to £9, 999 | £249 | 4% | £25 |
| £10, 000 – £29, 999 | £349 | 4% | £25 |
| £30, 000 – £49, 999 | £449 | 4% | £25 |
| £50, 000 – £99, 999 | £549 | 4% | £25 |
| £100, 000 plus | £649 | 4% |
Capify Customer Support and Capify Reviews
Capify has a team of dedicated professionals who help to guide business owners in finding the best financial solutions for their businesses. Positive customer reviews are about Capify’s excellent customer service, its easy loan application process, and quick funding. However, customers have complained about their loan applications being turned down, instances of lengthy loan application processes, missed payments, spam emails, and high fees. At the time of writing, it has been rated 3.8 out of 5 stars on Trustpilot.
Is Capify Safe to Use?
Yes. Capify is fully registered and licensed to United Kapital Limited, making it safe to use. Additionally, its website is fully encrypted making customer data safe.
Capify Alternatives
Capify is a legitimate lender but they are not up-front with information on their website. The company also has high entry requirements, making it difficult for new or very small companies to apply for loans. If you need a lender that is more transparent about its services and one that accommodates smaller companies, the following are ideal alternatives.
- Iwoca
- Fleximize
- Boost Capital
- Funding Circle
Final Thoughts on Capify UK Review
Capify provides simple and quick access to capital for Small and Medium sized businesses to help them grow. The company has an excellent customer support team that guides clients throughout the loan application process. Capify’s major downside is the high fees.
