Capify Australia: Review for Borrowers

This Capify review will help you gain a better understanding of what Capify – the small business lender -is like as a company.   We look at how Capify is controlled, the products that Capify offer, and what it is that makes Capify one of Australia’s most successful online lenders.. We will of course run through what Capify looks for in  prospective borrowers and what Capify clients have had to say about their experiences too. Read the following Capify review to see if they suit your business financing needs.

#2 The Industry Veteran

Est. 2002

Editorial Rating

94.8%

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Loans size & Terms

$5,000 to $300,000

Unsecured Loans

Capify Business Funding Review

Capify Review in Numbers

🌐 Website:https://www.capify.com.au
®️ Logo:
📝 ABN:38 630 469 117
📝 Credit License:630 469 117
💰 Loan Amount$5,000 – $300,000
⏲️ Loan Term3 months – 12 months
💸 Unsecured Loans?Unsecured Loans are Available
⌚ Lender Requirements
  • Trading for at least 6 months
  • Turnover greater than $10,000 per month
📃 Required: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.
⏱️ Response Time:Pre-approval within 24hours, Funds issued within 24hours of approval.
🌝 Easy to Apply:Yes, fully online (expedited application here)

The Nitty-gritty

💌 Online Reviews:99% positive feedback from borrowers online. Borrowers are pleased with the quick application process and ease of receiving funds.
🏆 Awards and Recognition:
  • Included in Inc.’s 5000 list
  • 2016Australian Business Banking Award for Best Business Lender
  • 2016Finalist for Small Business Excellence WSABE Award, 2016
💳 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.
⚖️ ComparisonCompare Capify with 20+ Australian Lenders on Lend.com

Capify Reviews and Ratings

⭐ RatingScoreboard:

⭐⭐⭐⭐⭐ Credibility

⭐⭐⭐⭐ Client Reviews

⭐⭐⭐⭐ Website

⭐⭐⭐⭐ Flexibility

⭐⭐⭐⭐⭐ Interest Rate


94.8% Editorial Rating

#2 Capify Overall Description
Editorial Rating

94.8%

View details

Capify is one of the best known and friendliest lenders in Australia. It has been operating smoothly for 16 years, and has received nothing besides positive feedback. If you want a quick and hassle-free business financing, Capify is one of the best options for you.

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Full Review: Table of Contents

Table of Contents

What Products do Capify Offer?

Capify offers two main products; Unsecured Business Loans and Merchant Cash Advances.

Capify Unsecured Business Loans

Capify launched unsecured business loans in Australia in 2008– ranging from $5000 – $300,000  – with all loans incurring a 3% origination fee (fairly standard for the online lending industry). Most commonly, a typical client will be seeking small business loans falling within the $20,000 – $50,000 range.  

In your repayment schedule, the repayment amount is presented as one fixed sum – easier to digest for customers but not the same as being shown in APR so it’s important to consider this if you’re comparing rates between different providers. Simply understand your loan period relative to a full 12-month repayment schedule.

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.

Capify Merchant Cash Advance

As there are very few Merchant Cash Advance providers for small businesses in Australia, it does make Capify a very good option for this form of business finance. The Merchant cash advance is ideal for retailers or businesses who accept credit and debit cards with point-of-sale card readers.. 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 repayment  amount that is paid daily or weekly, Capify will deduct a percentage of each day’s point-of-sale revenue until the amount borrowed + merchant cash advance fees are repaid.

As a merchant cash advance involves paying a fixed percentage of your revenue from your daily card sales it can be particularly helpful for the small businesses in Australia seeking working capital but see sales fluctuate from day-to-day or season-to-season.

 

Company Story

Capify has been in business for over 16 years and has financed over $500,000,000 in small business loans around the world to date. The firm has multiple investors and holds a credit facility with Goldman Sachs, so the pedigree and reputation of the business is obviously strong. The core focus on service and simplicity has served Capify well and its these same foundations the firm operates on today. Despite not being a traditional bank lender, they’ve won several awards for business excellence and for excellent business lending practices and services. In addition to the provision of Australian small business loans, Capify offers its lending services in the UK market. In years gone by, Capify operated in Canada and the US as well but exited both markets in the last couple of years (closing its Canada operations and selling its US loan book – more on this in the footer).

All of this has resulted in Capify being one of Australia’s primary business lenders. The application process takes as little as 60 seconds and Capfy have always been known for their fast turnaround time to make a lending decision. Applications are pre-approved within 24hours and once a loan is agreed, funds are issued within a further 24hours. Arguably, other Australian business lenders have now caught up with Capify in terms of speed and some, such as Prospa, are perhaps even faster (fine margins though and both are still much faster than the big banks). 

 

Capify values small businesses and works 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. The Capify Bill of Rights states that: “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 loans are for 3-12 months. And with loans between $5,000 – $300,000 there’s a fairly vast scope to help everyone. Nowadays, there are a significant number of Capify reviews for an interested borrower to explore – and the vast majority of them are positive.

2020 November Update

In addition to the $135 million credit facility Capify secured with Goldman Sachs in 2019, Capify has successfully secured a further $15 million AUD in private investment in 2020.  

The fact that Capify has been able to raise $15 million as an online small business lender in the midst of a global pandemic, we think vouches to Capify’s business model and loan book.

It also confirms Capify’s commitment for the continuation of online lending to small businesses in Australia – Capify founder and CEO David Goldin is acutely aware businesses need access to capital more now than ever and had this to say: “There’s a lot of government-backed loan programs out there to assist SMEs but there’s been no shortage of articles that the big banks are just not deploying the right amount of capital. So we think that we will have some good success deploying it out to Australian SMEs either that could not get approved for government money or looking for a different solution.”

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Success Stories with Capify:


Capify Client Reviews

  • TrustPilot Australia: 296 Reviews, 85% Excellent, 14% Great, <1% Poor, <1% Bad – , 4.8/ 5 Total Score (Excellent)
  • TrustPilot UK: 4.5 / 5 (305 Reviews)

The Feedback:

There is strong feedback across the board for Capify Australia, with some Capify reviews detailing:

“Capify are a great team. Definitely recommend them for when you need some quick funds. Huge thumbs up”.

“Professional, friendly, rapid & hassle free. Didn’t have to “jump through hoops” considering the substantial sum lent”.

There are three  reports of bad feedback, two of them are for the same reason – users who were rejected for funding. So this possibly suggests Capify may be more stringent than other loan providers. The other piece of poor feedback felt fees were too high – Capify successfully helped them with the capital for an impending ATO payment but they wouldn’t use Capify again.

Analysis of Client Reviews:

There are just shy of 300 Capify Australia reviews online. The vast majority of them are either excellent or great – with just three disgruntled or rejected borrowers thrown in, as well. Positive reviews state that the application and lending process is easy, response time is fast, and Capify’s 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.

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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. A smooth, mobile friendly, and informative website that can be used by both seasoned SME owners and newcomers to the world of online business financing. There is also a huge variety of information in their help centre and a great place for first time borrowers to start.

The features of a Capify business loan and the minimum borrowing criteria that Capify sets are clearly displayed and easy to find on Capify’s site. Leaving no ambiguity which could cause unnecessary application delays and wasted time.

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 does 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.

Key Points

Capify offers 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). 

Capify Review Summary
Overall
95%
95%
  • Credibility - 100%
    100%
  • Client Reviews - 97%
    97%
  • Website - 90%
    90%
  • Compatibility - 92%
    92%

Editor's Conclusions

Capify is one of the best known and friendliest lenders in Australia. It’s been operating smoothly for 16 years and has received nothing besides positive feedback. If you want quick and hassle-free small business financing, Capify is one of the best options for you.

Capify is obviously among the top 3 largest and most respected lenders in the Australian small business loan market alongside competitors like Prospa and OnDeck. Capify has  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. 

Best for the following industries:

✓ Retailers

✓ Hospitality

✓ Automotive

 

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Merchant Cash Advance – Important Information on 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

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Capify Australia – Background Information & Research

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.

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

Capify was part of a global lending group with 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 andTrue 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 business loan provider known as Strategic Funding Source.

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Capify History – Notable Developments

Piggy bank

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.

 

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Big Funding in 2019

Last year Capify announced a huge investment backing from the juggernaut Goldman Sachs through Goldman’s 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. As the first lender to enter the Australian small business loan 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 believes they have the right foundations to build on this with rapid market share growth.

 

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