Capify offers fast Merchant Cash Advances and Business Loans for UK SMEs. Understanding their eligibility helps businesses access funding quickly.
Basic Eligibility Criteria for SMEs
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Business Location: Your business must be based and operating in the UK.
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Trading History: Typically requires a minimum trading history, often 6-12 months, demonstrating business activity.
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Turnover / Card Sales: Minimum monthly turnover or card transaction volume is required. For MCAs, a consistent level of card sales (e.g., £5,000+ per month) is key. For loans, overall turnover is assessed.
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Business Structure: Capify serves various structures including Limited Companies, Sole Traders, and Partnerships.
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Industry: While broad, certain industries (especially those with high card transaction volumes like retail and hospitality) are particularly well-suited for MCAs.
Information & Documentation Needed:
Capify aims for a simple process, typically requiring:
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Basic Business Information: Company name, address, contact details, director/owner information.
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Trading Information: Recent business bank statements (usually 3-6 months) to show turnover and cash flow.
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Card Sales Data (for MCA): Recent merchant processing statements (usually 4-6 months) showing monthly card transaction volumes.
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Proof of Identity: Standard ID verification for the business owner(s)/director(s).
Application Process
Capify's application process is designed for speed and simplicity:
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1. Initial Enquiry: Start with a quick online form or phone call to provide basic business details and funding needs.
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2. Document Submission: Provide necessary documents like bank statements and merchant statements, often submittable electronically.
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3. Underwriting & Decision: Capify assesses the business's performance and affordability quickly, often providing a decision within 24-48 hours.
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4. Offer & Funding: If approved, you receive a clear offer. Upon acceptance, funds are typically transferred rapidly, often within the same day or next day.
Finance Terms and Conditions
Key terms differ between MCA and Business Loans:
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Merchant Cash Advance (MCA): Funding amount based on card sales (£5k - £500k+). Repayment via a fixed percentage of daily card takings. Total cost expressed as a factor rate (e.g., 1.2 means repay £1.20 for every £1 borrowed). No fixed term.
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Business Loans: Amounts typically £5k - £500k. Fixed repayment terms (e.g., 6-18 months) with set daily or weekly payments. Costs include interest and potentially an origination fee.
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Security: Often unsecured, but personal guarantees from directors/owners are commonly required.
Who Is Capify Finance Best For?
Capify's solutions are particularly well-suited for:
Retail, Hospitality & Service Businesses (MCA):
Businesses with consistent daily card sales find the MCA model attractive due to its flexible repayment structure tied directly to revenue.
Learn more: Understanding Merchant Cash Advances
SMEs Needing Fast Funding:
Companies requiring quick access to working capital for opportunities or unexpected costs benefit from Capify's rapid decision and funding times.
Learn more: When speed matters in business finance
Businesses with Less Traditional Profiles:
Capify's focus on recent performance can make them an option for businesses that might struggle to meet the stricter historical criteria of traditional banks.
Learn more: How alternative lenders assess businesses
Tips for a Successful Application
To enhance your chances of approval with Capify:
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Provide Complete Statements: Ensure you submit all requested bank and/or merchant statements for the required period, as this is key to their assessment.
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Demonstrate Consistent Performance: Highlight steady or growing turnover/card sales in your recent statements.
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Be Clear About Funding Use: Explain how the funds will be used to benefit the business (e.g., purchase stock, cover short-term costs, invest in equipment).
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Understand the Costs: Ensure you fully understand the factor rate (for MCA) or interest rate and fees (for loans) and how repayments work before accepting an offer.
