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Capify reviews

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Jan 4, 2023

Fact Checked By:
David Nicholson - Finance Editor

Capify review – What is Capify?

Alternative funding provider and business finance Capify launched its service in 2008 when United Kapitol merged with Capiota to create the company.

It was the first UK based business loan company to offer SMEs Merchant Cash Advance services during the financial crisis. It now employs over 70 people.

Capify is a platform that gives business owners the opportunity to achieve their goals. Capify business loans lend money to businesses, for marketing, purchasing more stock, and investing in new equipment. It has helped thousands of companies realise their potential over the past decade.

What is Capify?

Capify offers two main services: Merchant Cash Advances and Business Finance Loans. Both of these services can be applied online via the Capify website.

For a capify business loan, you will need to give a few pieces of information, such as your name, email address, and contact number. Let’s take a look at each service.

Business loans

If you are looking into Capify business loans you can use Capify’s online tool to check your eligibility. You will need to enter:

  • How much you wish to borrow
  • How fast you need the funds
  • How you will use the business loan
  • The legal status of your company
  • How long you have been trading
  • Your annual estimated turnover
  • The percentage of turnover that comes from debit/credit card transactions
  • Information about your company – if you have a bad credit rating you will struggle to receive business loans.

Capify will give you information about your business eligibility criteria. This doesn’t impact your credit score which is very useful.

Technically, you can typically borrow up to 75% of your monthly average turnover. There are however some restrictions:

  • Applicants can borrow from £5,000 to over £150,000.
  • You can repay it with small, regular payments over 6-12 months depending on how much you make.
  • A limited company must be established to run a UK-based company.
  • Your company must process more than £10,000 per month.
  • At least 12 months’ worth of trading records is required to be given loan options.

Merchant Cash Advance

Merchant cash advance loans allow you to get an advance of funds depending on the future sales of your debit and credit cards. Capify merchant cash advance borrowing may be useful for those who own restaurants, bars, pubs, and similar businesses.

To apply for merchant cash advances you will need to complete the eligibility tool to apply for business loans.

There are some rules that you must follow to see if you are eligible for merchant cash advances:

  • The maximum borrowing limit for merchant cash advances is £3,500
  • Your daily cash flow will determine your repayment.
  • You can run a limited company or a partnership. Or you can be a sole trader.
  • Your company must generate at least £3,500 each month for these business loans.
  • At least six months’ worth of trading records is required.

What features does Capify offer?

Capify has a few unique features that make its business loan services stand out. Capify’s flexibility in borrowing and repayment options is one of its greatest draws to help cash flow. You can borrow up to £3,500 over six-to-twelve months, regardless of whether you are a sole trader or a partnership.

You’ll get more than just the core features which are why Capify reviews for a business loan are outstanding.

  • Your dedicated account manager with a Capify business loan. This personal relationship manager touch will guide you through the application process, and answer all your questions.
  • UK-based support. The UK has a dedicated business lender support line that is available six days a week They will help you no matter what question it is. Capify review has a Trustpilot rating of 4.7/5.
  • Daily payments. You can make small daily repayments if you take advantage of the Merchant Cash Advance. You can adjust this based on how much money you make each day.
  • Unsecured loans. Capify will require you to have a minimum monthly income. This allows you to qualify for an unsecured loan. This is rare for most SME funding providers.
  • Top-up loans. Capify is also able to offer top-up loans. You can also increase your initial loan amount without having to reapply if you require additional funding.

What are the charges for Capify?

We now come to the main drawbacks of Capify’s services. The fees. For loans up to £25,000, the average effective APT is 67.89%.

Capify offers a good example of how it works out on their site:

  • You ask for a loan of £24,000
  • There is a £295 processing fee
  • A 3% origination fee applies.
  • You will receive £22,895.
  • You must repay £29,472.
  • The loan will cost you £6,487

This is a very expensive way to go. Capify notes that many small businesses are turned down by the major banks every year.

Capify: Who are you?

Capify claims that its service is aimed at giving small business loans and medium-sized businesses finance.

In reality, however, this is not the case. Many smaller businesses are disqualified by the stringent criteria that you must meet. Similarly, new startups don’t qualify. For a Merchant Cash Advance, you must have been in business for at least 12 months and have a turnover of at least £3,500 per month.

This service is ideal for those who own a business and are looking to grow. Because of the high APR, other credit sources are more affordable if you have them. Capify is a good alternative.

What are the disadvantages of using Capify?

Capify has many positive points but there are some drawbacks. Capify’s main drawback is its high fees. It can be costly to borrow large amounts due to the 67.89% APR.

The high entry requirements also mean that small businesses won’t have the opportunity to apply. It is quite expensive to have a monthly turnover of £7,000 for business loans, and £3,500 for merchant money advances.

Capify has received very positive customer service reviews. There were instances when Capify received spam mails, missed payments and lengthy applications.

Capify – is it safe?

Capify is committed to protecting its customers’ privacy. Capify uses an award-winning platform for storing and retrieving your data. Their website is also fully encrypted.

The company is fully registered and Capify is a trademark licensed by United Kapital Limited. Its service is safe and secure. It provides excellent customer service, as the majority of its reviews are positive.

Capify verdict

Capify has a lot to offer. Alternative forms of business financing can be more cost-effective than traditional banks. Capify is a flexible service that can potentially be beneficial to many different organizations.

The service has some issues. High fees are the main problem. The APR is very expensive. There are also fees to apply and arrange for the application. This means you will end up paying a lot.

If your business has a high turnover and has been trading for more than a year, you might be eligible for this loan. You’ll need to find financing for your business elsewhere if that is not the case.

Contact us here to get a business loan suitable for your exact requirements.