- Relaxed borrower qualifications
- Short application process
- Typical time to funding: two to seven days
- Expensive terms and fees
- Some additional fees
- Poor customer support
- Unsuited for seasonal businesses
Capify is a New York-based merchant cash advance (MCA) service and alternative lender that was launched in 2002. Like most funders of its type, Capify specializes in providing working capital to businesses with poor credit but good cash flow.
Capify’s application process, rates and fees, and qualifications are all, as far as I can tell, fairly standard. It’s worth noting that Capify’s reach extends beyond the US border, however, making it an option for borrowers in the UK and Australia as well. As all countries have different lending laws, which affect the products offered by Capify, this review will only cover the US branch of the lender’s service.
While Capify is a legitimate lender, they are not up-front with information. If you have other options, I’d recommend taking your business to a lender that’s willing to provide a little more information to potential borrowers.
Read on for the full review, or check out our favorite alternatives to merchant cash advances and our loan comparison chart.
Table of Contents
Capify offers the following types of business funding:
To qualify for funding from Capify, you must meet these prerequisites:
|Merchant Cash Advance||Short-Term Loan|
|Time In Business:||N/A||12 months|
|Revenue:||At least $5K/month in credit card sales||At least $10K/month in gross sales|
|Other:||Must have processed credit cards for at least 60 days||N/A|
Terms & Fees
There’s not a lot of information on Capify’s website. Here’s the information I was able to gather:
|Borrowing Amount:||$5K – $1M|
|Term Length:||No maturity date (MCA)
six to 15 months (STL)
|Effective APR:||Learn more|
Capify offers fairly standard merchant cash advances and short-term loans. While I cannot give you any specifics, the company’s peers charge factor rates that are usually somewhere between 1.1 and 1.4 times the amount borrowed, so I expect that Capify does the same. In other words, for every dollar borrowed, you’d have to repay between $1.10 and $1.40, not including origination fees.
Be aware that a factor rate is not the same as an interest rate or APR. A factor rate does not compound like interest; you cannot save money by repaying early. For more information, read up on how short-term loans work with APR.
The first step to getting a Capify loan is to fill out an application via the company’s website. This form will ask for basic information about you and your business; Capify uses the information to determine whether or not it can fund your business. If you’re approved, you’ll be offered an initial estimation of the rates and fees that Capify can offer you.
If you wish to continue on with the process, it’s simply a matter of sending in documentation to validate all the information you’ve supplied about your business. Your file will be sent to underwriting and, assuming everything checks out, you’ll get an official quote. If you accept, the funds will be wired into your bank account.
The time from application to funding normally takes between two and five business days.
Sales & Advertising Transparency
Capify provides a minimal amount of information on its products, mainly focusing on qualifications and the amount you’re able to borrow. The site does very little in the way of communicating how Capify’s loans work, nor does it provide any way of comparing the company’s funding options to other services. As a consolation, you will get some fairly detailed info about how merchant cash advances work in general.
Customer Service & Technical Support
Customer service is available by phone from 9:30 AM to 6:00 PM EST. There is also an inquiry field on the lender’s contact page. You can also find Capify on Facebook, Google+, LinkedIn, and Twitter.
In my experience, the representatives are trained to make the sale instead of disclosing clear and understandable information. I couldn’t get anyone to provide general information about their products; when a representative offered me a quote, he wouldn’t give me any idea of how much the loan might cost.
That said, many Trustpilot reviewers were happy with the level of support offered by their representatives.
Negative Reviews & Complaints
Capify has a B- rating with the Better Business Bureau. Currently, the lender has one complaint registered within the last few years. There are also a few complaints on the company’s Trustpilot page.
Here are the most significant complaints regarding this service:
- The MCA Repayment Method: Capify employs one of the most annoying of repayment methods: lockbox withholding. In some cases, this has led to the usual problems, such as delayed funds, defaults when the merchant switches bank accounts, etc. If you do take an advance from Capify and repay it using a lockbox, make sure you understand how the system works.
- Too Many Fees: Reviewers have claimed that Capify charges as many as three different fees. While it’s common to have two fees (a factor rate and an origination or closing fee), three is uncommon.
- Rejections For Seasonal Businesses: Given that repayments are daily, Capify is often not able to lend to seasonal businesses as those businesses may not mesh with their repayment formulas.
- Customer Service: Reps will not provide a lot of information up front.
Positive Reviews & Testimonials
The most significant source of positive reviews is Capify’s Trustpilot page where it has an aggregate score of 9.3 based on 44 user reviews.
Customers praise Capify’s:
- Honesty: It’s amazing that MCAs are a business in which “kept to the terms of the contract” is praise, but there you have it. Capify will not breach the contract.
- Customer Service: Merchants are happy with the customer service through all aspects of the process: initial questions, follow-up regarding the progress of the loan, and renewals.
- Speed: As is usually the case with alternative lenders, customers are happiest with the easy application process and quick access to cash.
While Capify’s size and reach are impressive, the truth is that Capify is otherwise a standard short-term funding company. Considering how closely the company plays its cards to its chest, it’s not easy to tell if size translates into better rates.
If you choose to get a quote from Capify, please don’t neglect to make some comparisons. Need some lenders to compare with Capify? Check out our favorite alternatives to merchant cash advances; maybe you’ll find something that suits your business.