Capify Australia: Review for Borrowers
Capify Review in Numbers
|$5,000 – $300,000|
|3 months – 15 months|
|Click here for expedited application|
|Pre-approval within 24hours, Loan a further 48hours|
|For loans under $75,000 Bank statements for the last 6 months & front and back of the owner’s IDF (users can automatically share bank statements to Capify’s software).|
|Minimal Interest Rates:||No interest rates as such. Capify sets a total payback amount in your loan contract which is paid as part of your consistent daily or weekly repayment. 3% origination fee.|
|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:||
What Products do Capify Offer?
Capify offer two main products; Unsecured Business Loans and Merchant Cash Advances.
To start with business loans – all loans are subject to a 3% origination fee and can range from $5000 – $300,000 but with loans usually falling within the $20,000 – $50,000 range. The repayment amount is presented as one fixed sum – easier to digest for customers but not the same as being shown an APR so it’s important to consider this if you’re comparing rates between different providers.
As there are not as many providers for a Merchant Cash Advance it does make Capify a very good option for this product. The Merchant cash advance is ideal for retailers or businesses who accept credit card and point-of-sale machine sales. As an alternative to a business loan, a merchant cash advance is a real way to match working capital requirements to the sales your business makes. Rather than a fixed amount being agreed to be paid daily or weekly, Capify will deduct a percentage of each days point of sales revenue until the amount borrowed is repaid + merchant cash advance fees.
As you’re paying a fixed percentage of daily sales it can be particularly helpful for businesses where they see their sales fluctuate.
Capify is one of Australia’s primary lenders. Their application process takes as little as 60 seconds, and they have always been known for their fast application turnaround time – although arguably this is now behind some of its competition such as Sail – it usually takes 3 business days to be approved and funded (still much faster than the big banks). 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 16 years and has financed over $500,000,000 for small businesses around the world to date and is aiming to fund just over $100,000,000 in the coming 12 months. 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 the UK, as well as Australia. It used to serve the US and Canada too but exited both the US and Canadian market in the last couple of years (more on this below).
At the time of writing this Capify Review, the 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.
Success Stories with Capify:
Capify Client Reviews
- TrustPilot Australia: 254 Reviews, 84% Excellent, 15% Great, 1% Bad – , 4.7 5 Total Score (Excellent)
- TrustPilot UK: 4.7 / 5 (274 Reviews)
Strong feedback across the board for Capify Australia, with some users detailing:
Just the two reports of bad feedback are for the same reason – users who were rejected for funding. Possibly suggesting Capify may be more stringent than other loan providers.
Analysis of Client Reviews:
There are over 250 Capify Australia reviews online. The vast majority of them are either excellent or great– with just two disgruntled rejected borrowers thrown in, as well. Positive reviews state that the application and lending process is easy, response time is fast, and their instant quote service is helpful. Many of the Capify reviews specifically mention their contact at Capify too, personally naming many members of staff, attesting to the great service provided by Capify.
Capify’s website is what you would have expected from one of the most recognizable names in the world of business financing in Australia. A smooth, mobile friendly, and informative website that can be used by both seasoned SME owners and newcomers to the world of online financing. There is also a huge variety of information in their help centre and a great place for first time borrowers to start.
Capify Australia – Loan Compatibility
- Startup: No, but lower than the industry standard. Capify works with companies which have been in operation for at least 6 months.
- Bad credit: Yes, but Capify do require a personal guarantee from the owner of the business..
- 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.
Capify offer SME loans by paying back a small percentage of the principal loan, either daily or weekly, as a fixed amount over time (except for the Merchant Cash Advance which is better suited to businesses whose sales fluctuate as it works on a % of sales). To ensure compliance with the prescribed company rules, many SME-lenders require full access to the clients’ business account.
Loans are provided to the business but do require a guarantee by the business owner, which could potentially influence other areas of the person’s life such as creditworthiness and credit score.
Merchant Cash Advance – Factor Rates and Interest Rates
Much like other small business lenders Capify uses a ‘factor-rate’ for its Merchant Cash Advance 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
Capify Review Summary
Credibility - 100%
Client Reviews - 97%
Website - 90%
Compatibility - 92%
This Capify review stipulates the fact that Capify is one of the better-known and better-liked lenders in Australia. It sports a terrifically friendly website, which can be used by the majority of Austrlaian small businesses to get an online loan with no hassle. Capify have been in business for the past 17 years and have higher flexibility and experience than any other loan company in Australia.
More Background Info
Capify has provided more than $100 million unsecured loans in Australia since 2008, under the brand name of AUSvance. It currently lends around $40 million per year as an aggregated total of all its activities in Australia only.
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.
AUSvance operating across Australia since 2008; 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. Fom 2008 – 2017 Capify was headquartered in New York, USA, and had more than 200 employees globally across 4 countries. More recently it has focused purely on non-bank high-growth small business loan sectors in the UK and Australia, closing its Canadian operation and transitioning its US clients to an alternative SME capital provider – Strategic Funding Source.
In 2013, Capify raised $30 million from undisclosed private investors.
In 2015, Capify partnered with Alibaba. The 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 takeover with Strategic Funding Source Inc. The terms of the deal were to l see Capify’s US customers “integrated” into Strategic Funding Source’s adaptive proprietary operating platform.
Both Strategic Funding and Capify had e been providing non-bank financing options to small and mid-size businesses for over a decade. The integration enabled Strategic Funding to expand its US operations by marketing to and providing capital to Capify’s customer base.
For Capify customers that wish to 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, Strategic Funding Source absorbed all of 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 were to become part of the larger and growing family of employees at Strategic Funding.
With the clients now transitioning to Strategic Funding, this has now signalled the close of Capify in both the US and Canada.
Big Funding in 2019
This year Capify announced a huge investment backing from the juggernaut Goldman Sachs through their Private Equity Division. $135m was injected by Goldman Sachs to further expand the Australia and UK divisions of Capify and further increase the lending they conduct. Capify has traditionally “outgrown its previous credit facilities” and Capify’s CEO David Goldin believes with this bold support the firm can now double its annual lending over the coming 12 months. As the first to enter the Australian market David had this to say “We were the first lender here, so in a way there was no competition, but we actually had one really big competitor – awareness.” Now that more and more customers are becoming aware of the alternatives to the banks, Capify believe they have the right foundations to build on this with rapid market share growth.