Capify Business Loans: Eligibility, Costs, and Key Features

If you’re in the market for a small business loan, it makes sense to extend your search beyond the traditional lenders. Capify is one of the leading alternative business  finance providers, with a lending presence in the USA, Australia and the UK. 

So, how does the loan application process for a Capify unsecured business loan differ from the major high street banks, like a Barclays business loan? And what additional benefits can Capify offer to business borrowers?

Let’s explore the types of loan Capify can offer, the eligibility criteria for their loans and what additional features and support you can expect. 

Introduction to Capify business loans

Capify has been a presence in the alternative business finance space since 2008. The company aims to provide a fast and flexible alternative to the traditional routes to finance. Instead of the slow, long-winded loan application process with a major bank, Capify’s goal is to get companies the money they need, fast. 

What types of business loans does Capify offer?

Capify offers unsecured small business loans, secured loans for larger lending requirements and merchant cash advances for businesses that take card payments. 

Let’s take a more detailed look at what each of these three finance products are and how they may be a good fit for your business and funding needs:

1. Unsecured small business loans:

An ​​unsecured business loan doesn't require you to pledge any specific assets (like property or equipment) as collateral. Approval for the loan will be based primarily on your business's creditworthiness and financial strength.

Unsecured loans can be riskier for the lender but potentially faster and easier for you, as the borrower, to obtain. Interest rates will usually be higher, and terms shorter, due to the inherent risk of unsecured lending for the lender. 

Capify offers unsecured business loans of up to £1 million, with the emphasis on a simple and quick process for getting you the capital you need. 

Here’s a breakdown of the Capify unsecured loan:

• Loan amounts offered: £5,000 to £1 million
• Terms: Repayment terms are generally between three to 12 months, depending on what’s been agreed within the deal.
• Security?: No, Capify’s small business loans are unsecured.
• Approval time: Same-day approvals and funding possible within 24 hours
• Repayments: Fixed, regular repayments. Capify uses a factor rate based on risk to determine the total payback and term amount.
• Interest rate: Capify uses a factor rate rather than APR, to estimate the cost of a loan. Capify’s APR is high – 67.89% on a loan of £24,000 with a term of 1 year. This compares to Barclay’s current APR of 12.9% on their loan products (Q1 2025).

2. Secured business loans:

A secured business loan requires you to offer specific assets (like property, equipment or machinery) as collateral on the finance. If you default on the loan, your lender can seize and sell these assets to recover their losses.

Having this additional need for collateral reduces the risk for the lender, which often means lower interest rates and larger potential loan amounts for the borrower. If you’re struggling to find funding, a secure loan can be a helpful option.

Capify offers secured loans of up to £1 million, and will need collateral assets to secure the lending agreement. They offer the option of using your residential property as collateral against the loan. This is a helpful option, but remember that your assets (including your home) can be seized if you can’t meet the loan repayments.

Here’s a quick-look breakdown of the Capify secured loan:

• Loan amounts offered: £75,000 to £1 million
• Terms: Repayment terms are generally between three to 12 months, depending on what’s been agreed within the deal.
• Security?: Yes, collateral is required. 
• Approval time: Same-day approvals and funding possible within 24 hours
• Repayments: Fixed, regular repayments. Capify uses a factor rate based on risk to determine the total payback and term amount.
• Interest rate: Capify uses a factor rate rather than APR. Capify’s APR is high – 67.89% on a loan of £24,000 with a term of 1 year. 

3. Merchant cash advance:

A merchant cash advance (MCA) gives you upfront capital in exchange for a percentage of your future credit and debit card sales. Repayments are automatically deducted from your daily sales, making it a flexible funding option for short-term cash-flow issues, though typically with higher costs than traditional loans.

Capify offers merchant cash advances up to £750,000 and makes the process of applying for the finance extremely simple.

• Finance amounts offered: £5,000 to £750,000
• Terms: Repayment terms are generally between three to 12 months, depending on what’s been agreed within the deal.
• Security?: No, but certain eligibility criteria must be met 
• Approval time: Same-day approvals and funding possible within 24 hours
• Repayments: Fixed regular and weekly repayments. Capify uses a factor rate based on risk to determine the total payback and term amount.
• Interest rate: Capify uses a factor rate rather than APR. Capify’s APR is high – 67.89% on a loan of £24,000 with a term of 1 year. 

Which businesses are eligible for a Capify business loan?

If a Capify business loan sounds like a good option for your business, the first step is to check if you’re eligible for the lender’s business loan products. 

Here’s a breakdown of the three key eligibility criteria:

1. Business structure: You must be a trading business and registered in the UK as a limited company, sole trader or partnership.
2. Trading history: You must have a minimum trading history of 12 months.
3. Monthly turnover: Your monthly turnover must be at least £10,000.

Capify does consider all credit profiles. If you don’t have a good business credit profile, or you’re a start-up that hasn’t yet built up a business credit profile, you can still apply. 

You can check whether your business qualifies for a Capify business loan using their eligibility checker page.

What are the eligibility requirements and what documentation will I need?

To qualify for a Capify business loan, your business must be UK-based, have been trading for at least 12 months, and generate a monthly turnover of £10,000 or more. While all credit profiles are considered, stronger financials can improve your chances. You'll typically need to provide recent bank statements, proof of business ownership, and basic company financials as part of your application.

How much does a Capify business loan cost, and what are the interest rates?

If you tick all the eligibility boxes, your next step is to check how much a Capify loan will cost you. This means thinking about interest rates, fees you will be charged and the overall repayment costs of taking out the loan. 

Let’s look at the general costs of taking out a business loan with Capify:

• Interest rates: As noted, Capify uses a factor rate (or capital rate) when working out the cost and interest on your loan. The interest will be fixed for the loan term, with rates starting from approximately 10.99% per annum (Q1 2025).
• Custom interest: The actual rate you pay on your loan will depend on factors like the loan amount, term and business your credit profile. ​

Fees: Additional fees that you pay, on top of any interest owed, will include a processing fee, an origination fee and a monthly service fee. You can see these costs in the table below or on the Capify website.

Service fees will be charged on a pro-rata basis, either daily or weekly, depending on the type of loan.

How do Capify’s interest rates and fees compare with other small business loan options?

Capify's interest rates and fees are competitive within the alternative lending market, but may be better suited to short-term, rather than long-term borrowing. Always do your homework and compare offers from multiple lenders to make sure you’re getting the best deal and terms for your business needs. 

How long does the loan approval take?

If you have an unexpected cash flow need, getting funding quickly becomes a priority. It’s important to factor this in when choosing your lender, so you understand how long the loan approval and funding process may take.

How fast can I secure funding, and what is the application timeline?

The online application takes about 10 minutes to complete. Conditional approval can be received in 60 seconds, and Capify aims to offer same-day approval in full. Funds can potentially be available within 24 hours, post-approval. ​

Does Capify offer a loan calculator to estimate costs before applying?

Having a firm understanding of the full costs of your loan is vital. To cover your repayments, you need enough cash flow to meet these repayment costs. Using a loan calculator helps you work out your repayments and the total cost of the loan.

Capify has a loan calculator on their website. You can enter your monthly turnover and the period you want to borrow the money. The Capify loan calculator will then show you how much you could borrow and the repayment costs.

Here’s an example:

Loan period: 6 months

Monthly turnover: 50,000

Capify would be able to lend you: £30, 952

• ​​Daily repayments: £325
• Monthly repayments: £6,500
• Total Cost of Loan: £8,048
• Total Repayment: £39,000

Will Capify run a credit check as part of the loan application process?

Capify doesn’t base its approval for a business loan application solely on your company credit score. Other factors, such as bank statements, cash flow position and overall financial health will be taken into consideration. But your credit score will be a significant factor in the decision-making process.

Capify does carry out credit checks. Credit checks will be run once Capify is ready to submit your loan application and you’ve approved their terms & conditions. Capify can provide its broker channel partners with ‘look alike’ offers for some clients upon request without conducting a credit check. 

All final offers regarding available funding, terms and interest rates will be subject to your credit score and any adverse information that’s found.

Does Capify provide any guidance on how to use the loan effectively?

Capify offers a range of resources and guidance to help your small business get the most from any funds you borrow. This includes advice on cash-flow management, marketing strategies, operational improvements and improving financial health. ​

Let’s look at what resources are available through the Capify website:

• Cash flow hub: This has advice on balancing your cash flow management and how to balance your inflows and outflows to achieve positive cash flow.
• Survey hub: This area of the site has updates from the Capify SME Business Confidence Survey so you can see how other businesses are faring this quarter.
• Business booster hub: Here’s where you can get advice on optimising your business, with tips on marketing, financial forecasting and more.
• Finance info hub: This section of the site has articles explaining all the basics you need to know about business loans, funding and finance.
• Business insights: Here you can find topical insights into business strategy, financial management and business news.
• Blog: This blog has articles and advice for running a successful small business. 
• FAQs: These frequently asked questions (FAQS) cover general queries re funding, as well as FAQs about small business loans and cash advances.

iwoca: the business finance alternative for short-term lending

If you’re looking for a short-term business loan, iwoca is one of the key business finance specialists to have at the top of your list.

• You can apply online in minutes
• Borrow from £1000 to £1,000,000 
• Get an answer in minutes and funds within 24 hours
• No early repayment fees

It’s a fast, simple and straightforward way to fund the next chapter of your business.

Apply for a short-term business loan

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