Capify business loans

Capify is an alternative lender that helps small and medium-sized businesses in the UK borrow money. This guide provides a detailed overview of Capify business loans, including eligibility, cost, features, and how they compare to other funding options.

What type of business loans does Capify offer?

Capify offers three major types of funding for established UK firms that need working cash.

Loans for businesses without security

Capify's unsecured loans don't need security and can be as small as £5,000 or as much as £1,000,000. These loans may be suitable for businesses who need quick access to money to pay invoices, buy inventory, cover taxes, or buy equipment.

Businesses with steady income streams may find it easier to manage their cash flow if they make daily or weekly payments instead of monthly ones. Terms usually last between 3 and 12 months, however Capify can be flexible and give terms from 3 months to 5 years, depending on the nature of the product being sought.

You can add to your Capify loan after repaying half of the original amount, but you must pass eligibility checks again.

Business loans with collateral

Capify provides secured loans between £75,000 and £1,000,000, using a home as security. Capify will look at residential property as collateral.

Interest rates for secured loans are typically lower than on unsecured loans. The lender has less risk when the loan is backed by property, which is why the rate is lower.

Secured loans might let you borrow more money and pay it back over a longer period of time than unsecured loans. But if you default, the lender reserves the right to seize the property.

It often takes weeks instead of days to get approval. Capify conducts an independent property valuation and places a legal charge on the property, both of which add time. You will also have to pay upfront fees for the legal work and the valuation. You will have to pay these expenses even if the valuation leads to a denied application or a lower loan amount.

Merchant cash advances

Capify gives businesses who take at least £20,000 in card payments a month cash advances. You get a lump sum that is automatically paid back as a percentage of your future card sales. The amount you have to pay back changes based on how much you sell. It's less during slow times and more during busy times.

Which businesses are eligible for Capify's business loans?

Capify only works with limited corporations, limited liability partnerships, partnerships, and sole traders in the UK that have been in business for at least a year.

You need to make at least £10,000 a month turnover to get an unsecured business loan. Capify can usually lend you up to 90% of your sales.

To get a merchant cash advance, your firm needs to process at least £20,000 in card payments each month.

To get a secured loan, you must be a limited company or limited liability partnership in the UK and own a home that you may use as collateral. The least amount you can borrow with a secured loan is £75,000. 

If your business can't pay back the loan, the majority owner must give a personal guarantee, which means you are personally responsible.

Capify looks at all credit profiles and makes decisions about each application by hand, not by computer.

Eligibility requirements

Before you apply, make sure you meet these fundamental requirements:

• A business in the UK, like a limited company, LLP, partnership, or single trader

• Trading for at least a year

• At least £10,000 in turnover a month (for unsecured loans)

• Minimum £20,000 in card transactions each month (merchant cash advances)

• Limited business or LLP status (only for secured loans)

Capify undertakes a soft credit check when you first apply, but this won't hurt your credit score. You need to show confirmation of identity, 12 months of business bank statements, and talk to an underwriter to get the whole application.

Most applications for unsecured loans get a decision the same day, and the money is usually available in as little as 24 hours.

How much does a Capify business loan cost? Fees and interest rates

Capify doesn't utilise the standard APR to figure out how much it costs to borrow money. Instead, it employs a factor rate. Knowing all the costs involved can help you figure out the real cost.

Rates of interest

Capify's interest rates are very different for secured and unsecured loans.

Rates for unsecured loans start at about 10.99% per year. However, the cost is significantly higher than traditional lenders, with representative APR examples ranging from 47.9% to 67.89%.

Rates are often lower for secured loans because the lender's risk is lower. Capify's example shows that a £300,000 secured loan with a fixed rate of 7% over 12 months is possible. Businesses that can use residential property as collateral can get secured loans for a lot less money.

Capify is an alternative lender that works with businesses who may not be able to get bank loans. They offer quick decisions and flexible repayment plans. This is why their unsecured rates are higher.

Breakdown of fees

Capify charges three sorts of fees in addition to interest. You may find all the information you need on Capify's fees page:

When you take out the loan, you will only have to pay the processing cost once. The origination fee is a percentage of your loan amount (up to 6%), and the monthly service fee of £24.90 is charged on a daily or weekly basis, depending on when you want to pay it back.

You would pay the following for a £20,000 loan:

• Fee for processing: £449

• The origination cost might be as high as £1,200 (6% of £20,000)

• Service fees: £24.90 a month for the length of the loan

These costs can make borrowing more expensive. Before you accept an offer, always use Capify's business loan calculator on their website to see how much you'll have to pay back, including all interest and fees. Please note: the above is for example purposes and fees do vary depending on the product.

No fines for paying off early

One thing about Capify is that they don't charge fees for paying off a loan early. You can pay off the loan early without any extra expenses if your business's cash flow gets better or you find a cheaper way to refinance.

How do Capify's business loans compare to alternatives?

Quickness and ease

Capify processes applications swiftly, making judgements on unsecured loans the same day and sending money in as little as 24 hours. Other lenders like Funding Circle make quick decisions (usually within an hour) and send money typically within 48 hours.

The amounts and terms of the loan

Capify gives out unsecured loans of £5,000 to £1,000,000 and secured loans of £75,000 to £1,000,000. Repayment terms for unsecured loans are typically between 3 and 12 months, though Capify can be flexible and offer terms up to 5 years depending on the loan amount and circumstances. Secured loans allow for longer repayment periods.

Funding Circle offers loans of £10,000 to £750,000 with terms ranging from 6 months to 6 years. This gives firms who want longer repayment periods more options.

Flexible repayment

Capify offers daily or weekly payback plans, which work well for firms that have solid, regular income. Funding Circle has regular monthly payments, which many businesses like since they make it easier to keep track of their finances.

Rates of interest and costs

For a typical £24,000 loan over 12 months, Capify's APR can go up to 67.89%. There are also processing fees (£249-£749), origination fees (up to 6%), and monthly service fees (£24.90).

Funding Circle's rates start at 6.9% per year, and there are no monthly service fees or extra processing fees. The rates are clear and fixed, and there is an origination fee.

Requirements and approval

Capify needs you to have been trading for at least 12 months and have a minimum monthly turnover of £10,000. They look at all credit profiles using human underwriters. Funding Circle works with businesses that have been open for at least 12 months and provides decisions in as little as 1 hour, with funds typically available within 48 hours.

Paying off early

You can pay off your loan early with no fees with both Capify and Funding Circle.

Experience of the customer

Funding Circle has a rating of 4.5 out of 5 stars and has helped more than 110,000 UK businesses.

Things to consider before applying

Total cost of borrowing - Figure out how much you'll have to pay back, including all costs. When you take out a Capify loan, you have to pay interest, processing costs, origination fees, and monthly service fees. When you need something quickly, it can make sense to pay more to borrow money for a very short time.

Schedule for repayment - Capify offers daily or weekly repayment schedules. Funding Circle uses monthly repayments. Consider which payment frequency works best for your business's cash flow patterns.

Loan term - Shorter durations indicate greater payments but less interest altogether. Longer durations lower the amount of each payment but raise the overall interest. Choose a loan that balances affordability and cost-effectiveness.

Planning and purpose - Know exactly why you need the money and what you'll do with it. There is a difference between borrowing to fill in cash flow shortages and borrowing to invest in growth. Make sure the loan's structure and pricing fit your needs.

Knowing your options can help you make the best choice for your business, whether you choose Capify or look into other possibilities like Funding Circle's small business loan or FlexiPay programs. Review our guide to things to consider before applying for business funding.

Funding Circle has helped more than 110,000 businesses in the UK reach their goals. Our rates start at 6.9% a year, and there are no fines for paying off your loan early. You can get a judgement in as little as an hour and money within 48 hours.

Are you ready to look at your options?

19/05/26: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.