Capify Australia: Review for Borrowers

This Capify review will help you to comprehend and realise who they are as a company – who are the managers of Capify, what they offer as a lender, how they are unique and special, how they differ from their competition and what they look for in a prospective borrower. Read the following Capify review to find out more about this company and discover if it’s suitable for your needs.

Capify Review in Numbers

Australian Business Number (ABN): 42 613 345 1250
Australian Credit License: Capify does business internationally and has a licensed California Finance Lender number (6054066)
Loan amount: from $5,000 – $400,000
Loan term: from 3 months – 15 months
Unsecured Loans Offered? Yes
Easy Online Application: Yes
Response Normally Within: 3 Days
Documents Required to Apply: Bank statements for the last 4-6 months, merchant statements for the last 4-6 months, a driver’s license for the business owner.
Requirements to Apply: Operating for at least 6 months, minimum turnover of $10,000/month.
Minimal Interest Rates: No interest rates. Capify sets a total payback amount in your loan contract which is paid as part of your consistent monthly repayment.
General Feedback from Clients Online: Capify generally has positive feedback from borrowers online. Borrowers are pleased with the efficient application process and the ease of the lending process.
Awards and Recognition: Included in Inc.’s 5000 list, 2016; Australian Business Banking Award for Best Business Lender, 2016; Finalist for Small Business Excellence WSABE Award, 2016.
Website Address: https://www.capify.com.au

Short Summary:

The winner of the 2016 Australian Business Banking Awards for Best Business Lender doesn’t need much interpretation for our side. Capify is obviously among the top 3 largest and most respected lenders in the Australian small business loan market. It is one of the most flexible and exciting platforms to use, requires the least documents and information to make a choice, and is one of the quickest to decide and fund. We recommend checking your eligibility for free using the button below.

 

Company Story

Capify Australia Logo

Capify is one of Australia’s primary lenders. Their application process takes as little as 60 seconds, and they are known for their fast application turnaround time – usually 3 business days to be approved and funded. Capify offers flexible loan repayment dates, a wide range of loan amounts, and their costs are minimal. They have a significant number of online reviews for an interested borrower to explore – and most of them are positive. Borrowers are generally pleased with their customer service and the lending process as a whole

Capify has been in business for over 13 years and has financed over $100,000,000 for Australian business owners. They focus on service as well as simplicity. Despite not being a traditional bank lender, they’ve won several awards for business excellence and for excellent business lending practices and services. Additionally, Capify services both Australia as well as the UK, US, and Canada. This range is impressive.

Their Managing Director of Capify Australia, John de Bree, states that they value small businesses and work to provide, “simple, quick and responsible access to funding.” This is all outlined in Capify’s “Bill of Rights” which is intended to outline their mission and values. Their Bill of Rights is this: “Transparent, Responsible, Unwavering, Ethical.” This summarizes to “True” Business Lending – and they plan to stick by these philosophies no matter where the industry changes or shifts.

Capify Client Reviews

– TrustPilot Australia: 206 Reviews, 206 Positive, 9.5 / 10 Total Score (Excellent)
– BestCompany.com: 1 User Review, 1 Negative, 2.8 / 10 Total Score
– Merchant Maverick: 1 Review (article), 3 / 5 Total Score

Analysis of Client Reviews:

There are over 200 Capify Australia reviews online. The vast majority of them range from excellent to average – with a few disgruntled borrowers thrown in, as well. Primary complaints are that the company is just too big, and that translates to a lack of service. Positive reviews state that the application and lending process is easy, response time is fast, and their instant quote service is helpful.

Capify.com.au Website:

Capify’s website is what you would have expected from one of the most recognizable names in the world of business financing in Australia. Smooth, mobile friendly, and informative website that can be used by both seasoned SME owners and newcomers to the world of online financing.

Capify Australia – Loan Compatibility

  • Startup: No, Capify only works with companies which have been in operation for at least 6 months.
  • Bad credit: Yes, Capify typically doesn’t require personal financial records.
  • Sole trader: Yes, Capify has no requirements regarding whether or not they work with sole traders.
  • Established business: Yes, Capify will accept established businesses.
  • Turnover: Capify does require at least $10,000/month turnover.

Key Points

SME loans by paying back small percentage of principal loan as a fixed amount over time. To ensure compliance with the prescribed company rules, many SME-lenders require full access to the clients’ business account.

Loans are provided in the personal name of the business owner, not in the name of the business, which can influence other areas of the persons life such as credit worthiness and credit score.

According to Capify, it has provided over $500 million to businesses and over 24,000 loans in four countries across 550 different industries ranging from retail, bars, restaurants and health services to manufacturer, distributors, ecommerce companies and service businesses.

Factor Rates and Interest Rates

Much like other small business lenders Capify uses a ‘factor-rate’ rather than interest rates. Factor rates are not the same as traditional interest because the repayment rate never goes down as the principal loan amount is repaid.

Factor rates and interest rates are entirely different concepts.
With a factor rate, the fee is calculated once (at the initial stage of applying for the loan) based upon the original borrowing amount.With interest, repayments are calculated over time as a percentage of the remaining loan amount, until the loan is paid off.

This key difference changes the dynamics of how loans are paid off, and therefore, how cost-efficient they are for the borrower. As a rule of thumb, the longer the duration of the loan, the more disadvantageous factor rates become.

More Background Info

Capify was Originally founded in 2002 by David Goldin. In 2007 and 2008, Goldin founded three seperate lending companies – Capiota in the UK, True North Capital in Canada, AmeriMerchant in the US and AUSvance in Australia.

Australian Operations

Capify has provided more than $100 million unsecured loans in Australia since 2008, under the brand name of AUSvance.Currently lends around $40 million per year as an aggregated total of all its activities in Australia only.

Business Consolidation

AUSvance operating across Australia since 2002; AmeriMerchant operating across the United States since 2002; United Kapital and Capiota operating throughout the United Kingdom since 2007; True North Capital operating throughout Canada since 2007.

Once the companies became established in their respective marketplaces, Mr Goldin united the businesses under a single name — Capify. Capify is headquartered in New York, USA, with more than 200 employees globally across 4 countries.

With respects to global reach with a single brand name, Capify is unique. Capify operates in four different territories simultaneously (US, UK, Australia and Canada) under one corporate entity.

In the UK, Capify offers short-term loans of up to £50,000 through a fully online platform.
Repayments are negotiated based on average turnover value and are designed to work alongside a business’ cash flow. Qualified applicants can receive funds directly into their business bank account “within days” according to Capify.

In addition to simple loans, Capify also provides alternative finance solutions, including “working capital products”, to small and medium-sized businesses.

Recent Developments

Piggy bankIn 2013, Capify raised $30 million from undisclosed private investors.

In 2015, Capify partnered with Alibaba. Alibaba partnership was designed to simplify online commerce and buying/selling of goods online, not to compete with banks. Capify offers Alibaba users the ability to apply for an unsecured loan of between $5,000 and $400,000 from Capify using an automated 60 second credit scoring model.

In 2017, Capify announced a developing partnership reminiscent of a slow-motion merging with Strategic Funding Source Inc. The terms of the deal will see Capify’s US customers “integrated” into Strategic Funding Source’s adaptive proprietary operating platform.

Both Strategic Funding and Capify have been providing non-bank financing options to small and mid-size businesses for over a decade. This integration enables Strategic Funding to expand its US operations by marketing to and providing capital to existing Capify customers.

If Capify customers renew their existing financing, merchant cash advances or business loans, they will automatically become “a part of the Strategic Funding family of customers” according to Capify. In effect, Stategic Funding Source will absorb Capify’s customers into its own operations.

According to a joint statement from Capify and Strategic Funding Source Inc, as part of the transition, many of Capify’s New York-based employees will become part of the larger and growing family of employees at Strategic Funding. The transition also allows Capify’s existing U.S. clients and partners the opportunity to take advantage of a larger variety of financing options. Founded in 2006 and headquartered in New York, Strategic Funding has provided over 35,000 small businesses with various financing options.