CapFusion Review

Note: Capfusion is no longer originating business loans. Take a look at our filterable business loan reviews to learn about other funding options that might work for your small business.

Pros

• Relaxed credit score requirements
• Low factor rates

Cons

• High origination fee
• Fair public reputation

CapFusion Overview

CapFusion is a Kansas-based alternative lender. Companies like CapFusion eschew the focus on credit ratings favored by traditional banks and look instead at your monthly revenue. This allows previously overlooked businesses to access capital quickly, though at a premium cost.

CapFusion attempts to make up for some of the general shortcomings of online funders with flexibility and early payoff incentives. Nevertheless, you should always approach online funders with caution. Consider doing some serious comparison shopping before committing to short-term funding.

Services Offered

CapFusion offers the following:

• Short-term loans

Borrower Qualifications

The representative I spoke to emphasized that CapFusion’s borrower qualifications aren’t necessarily set in stone–although the company is less flexible with first-time customers, who must (roughly) meet the following qualifications:

Terms and Fees

You won’t find a ton of useful data on the site, but the company does invite you to call for more information. To CapFusion’s credit, they’re very willing to part with details over the phone:

As I mentioned before, CapFusion is generally more flexible with repeat customers, so use the above as more of a guideline for new customers.

As a short-term funder, CapFusion uses a flat-fee payback structure rather than interest rates. The company expresses their rates as percentages (18% – 24%), but we’ve given you the multiplier conversion for easier comparison with other short-term funders. No matter how you express it, you’ll be paying back between $1.18 to $1.24 for every dollar you borrow. So if you receive $10,000, you’ll owe between $11,800 and $12,400.

Because CapFusion offers unsecured funding, most customers don’t have to worry about covering their debt with collateral or liens. Instead, CapFusion will extract payments via automated clearing house (ACH) debits from your business account. These payments will either be made every business day or each week, depending on what arrangements you make with CapFusion.

With flat fees your interest is front-loaded into the amount you receive, so your effective interest ends up being higher the shorter your term length is. CapFusion confirmed to me, however, that they offer early repayment incentives and base their rates, partially, on the term length (each quarter raises the rate) of your loan.

Expect an origination fee of roughly 5 percent on the amount you borrow, in addition to the flat fee.

Application Process

You can begin the application process online or over the phone.

CapFusion recommends having your four most recent bank statements handy to finish the application process. You’ll also need a signed credit check authorization form so CapFusion can do a soft pull on your credit. and about four months of bank statements to prove your income.

Sales and Advertising Transparency

CapFusion’s website attempts to be helpful and useful, but ends up being a bit vague and overly general in practice. It’s not the worst site I’ve seen, but it’s definitely far from the best.

Customer Service and Technical Support

I appreciated how accommodating CapFusion was to my questions. They were willing to provide a wealth of information with minimal sales pressure.

Users seem to have generally had good experiences with customer service.

Negative Reviews and Complaints

CapFusion has an A- rating with the BBB and four complaints on record. The A- rating is due to failure to respond to one of those complaints. General criticisms include:

• Not always as easy as it seems: While it’s comparatively easy to qualify, it is possible that you’ll ultimately be turned down despite assurances to the contrary.
• Rapid payments: You’ll be debited every business day (or every week in some cases), which can be difficult to factor into your costs.
• Expensive: You’re going to pay a lot for fast funding from CapFusion.

Positive Reviews and Testimonials

CapFusion gets a 9.0 out of 10 on Trustpilot (based on 31 reviews). Customers like the following about CapFusion:

• Customer service: Most positive reviews are about customer service, which is generally described as helpful and professional.
• Speed: Several users marveled at how quickly they were able to receive their funds.
• Flexible with repeat customers: CapFusion tries to make things easier and more lucrative for their loyal customer base, offering larger sums, better rates, and more flexible term lengths.

Final Verdict

In the extremely competitive online funding industry, it’s critical for funders to find ways to stand out among their competitors. CapFusion manages to do this by offering a bit more flexibility to customers and, more importantly, incentivizing them to pay off their loans early. These things, combined with the company’s helpful staff, helped me to come away with a fairly positive impression of CapFusion. The company’s online reputation has taken a small hit this year, but it’s not enough to trigger any major alarm bells.

Of course, we’re still talking about online funding here, which means it’s going to be on the expensive side. Before you commit to anything, check out our list of merchant cash advances and small business loans for alternatives.

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