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Businsess Loans > Lender Reviews > Capify
This Capify review provides an in-depth look at one of Australia’s leading online business lenders. We’ll explore Capify's business model, the financial products they offer, their eligibility requirements, and customer feedback to help you determine if they meet your business financing needs.
Capify Overview
- Website: capify.com.au
- ABN: 38 630 469 117
- Credit License: 630 469 117
Loan Options and Terms
- Unsecured Loans: $5,000 – $500,000
- Secured Loans: $100,000 – $5,000,000
- Loan Terms:
- Unsecured: 3 months – 12 months
- Secured: Flexible terms from 1 month
Eligibility Requirements
- Business operating for at least 6 months
- Minimum monthly turnover of $10,000
Documentation Needed
- Loans under $150,000: 12 months of bank statements, front and back of the owner’s ID.
- Loans over $150,000: Business financials, tax returns, and business activity statements.
Application and Funding Process
- Response Time: Pre-approval within 24 hours, funds issued within 24 hours of approval.
- Application: Fully online, with an expedited application process available.
Customer Feedback and Recognition
- Online Reviews: 99% positive feedback from borrowers, praising the quick application process and ease of funding.
- Awards:
- Included in Inc.’s 5000 list
- 2016 Australian Business Banking Award for Best Business Lender
- Finalist for Small Business Excellence WSABE Award, 2016
Cost Structure
- No traditional interest rates; instead, Capify sets a total payback amount in the loan contract.
- 3% origination fee.
Pros and Cons
Advantages
- Minimal documentation required for sign-up.
- Industry veteran with 18 years of experience.
- First Australian online business lender.
- Over $500 million in funding provided globally.
- High customer satisfaction with 99% positive reviews.
Disadvantages
- Minimum monthly turnover requirement of $10,000.
- Smaller operation compared to Prospa.
- 3% origination fee.
Capify’s Products
Unsecured Business Loans
Capify offers unsecured loans ranging from $5,000 to $500,000. These loans come with a 3% origination fee and are typically sought by SMEs for amounts between $20,000 and $50,000. Repayments are fixed sums rather than APR-based, providing clarity but requiring careful comparison with other lenders.
Unsecured loans require a personal guarantee from the business owner, affecting their creditworthiness. This approach allows Capify to offer high-value loans without collateral, distinguishing them from competitors like Prospa, which caps unsecured loans at $150,000.
Merchant Cash Advance
Capify’s Merchant Cash Advance is ideal for businesses with regular card sales. Instead of fixed repayments, a percentage of daily sales is deducted until the advance and associated fees are repaid. This option is beneficial for businesses with fluctuating revenues, providing flexibility tied to sales performance.
Secured Finance Loans
Introduced in 2023, Capify’s secured loans range from $100,000 to $5 million, using various business assets or mortgages as collateral. Loans have a 75% Loan to Value Ratio, with interest rates starting at 1.5% per month. Secured loans can serve multiple business purposes, including distressed construction loans and ATO debt repayment.
Company Background
Capify has been a staple in the business lending industry for over 20 years, providing more than $500 million in loans worldwide. The company has strong financial backing, including a credit facility with Goldman Sachs and private investments. Their focus on service and simplicity has earned them numerous awards and a reputation for reliability.
Recent Developments
In late 2022, Capify launched a $40 million fund to support SMEs facing financial challenges, particularly during economic downturns. This initiative reflects Capify’s commitment to maintaining open lending channels when traditional banks tighten their criteria.
Capify stands out as a respected SME lender with a strong track record and positive customer reviews. Their flexible, fast, and straightforward approach to business lending makes them a viable option for many businesses, although potential borrowers should consider the specific terms and conditions, especially regarding turnover requirements and fees.
