Capify Business Loans: Review and Alternatives

Capify is a UK alternative finance provider that specialises in merchant cash advances and short-term business loans for small and medium-sized businesses. It tends to suit established, revenue-generating businesses that want fast funding and are comfortable repaying from daily or weekly takings rather than fixed monthly instalments. Businesses seeking the lowest possible headline cost, or long repayment terms, often compare Capify against several lenders before deciding.

This review explains how Capify works, what it looks for, how pricing is typically structured, and how it stacks up against the wider market. Greenwood Capital is a whole-of-market broker, so this is educational information to help you weigh your options, not a recommendation or financial advice.

Capify at a glance

Capify provides unsecured and secured short-term business loans and merchant cash advances, usually to businesses trading for at least 12 months with a minimum monthly turnover of around £10,000 (or £20,000 in card takings for a merchant cash advance). Funding decisions are often quick, sometimes within a day or two, which is a large part of its appeal.

How does Capify work?

Capify offers two main products: a business loan repaid in fixed daily or weekly amounts, and a merchant cash advance repaid as an agreed percentage of your card sales. Both are designed around cash flow rather than a single monthly direct debit.

Merchant cash advance

A merchant cash advance is a lump sum repaid automatically as a percentage of your future debit and credit card takings. When sales are strong you repay faster, and when they slow the amount collected falls in proportion. This makes it popular with retail, hospitality and other card-heavy businesses with seasonal or variable income.

There is no fixed end date in the way a traditional loan has one. The total you repay is set at the outset as a fixed amount, so you know the full cost before you start, but the time it takes to clear depends on your trading. Advances typically range from £5,000 up to £3 million, scaled to your card and overall turnover.

Short-term business loan

Capify’s business loan is a fixed lump sum repaid through set daily or weekly payments over a defined term, often a matter of months rather than years. Unsecured loans run from around £5,000 to £3 million, with secured facilities typically starting near £75,000. It suits businesses that want the predictability of a fixed schedule but still prefer smaller, more frequent payments aligned to their cash flow.

What are Capify’s eligibility requirements?

Capify generally looks for an established, trading UK business with consistent revenue rather than a brand-new start-up. The exact criteria vary, so confirm current requirements directly, but the common themes are trading history, turnover and the health of your bank and card activity.

• Trading history: usually at least 12 months of trading.
• Turnover: a minimum monthly turnover of around £10,000, or at least £20,000 in monthly card takings for a merchant cash advance, since repayments are drawn from sales.
• Business type: limited companies, partnerships and sole traders are typically considered.
• Personal guarantee: directors or owners are commonly asked to sign one, even where the loan is unsecured against assets.
• Bank and card data: recent statements and card processing records help assess affordability.

Adverse credit does not automatically rule you out, because affordability is judged heavily on trading performance, but it can affect the amount offered and the cost. Always check the latest position with the lender.

How much does Capify cost?

Capify pricing is typically expressed as a fixed fee or factor rate rather than an annual interest rate, so you agree a total repayment amount up front. For example, you borrow a sum and repay that sum plus an agreed cost, with no separate compounding interest in the traditional sense.

The cost depends on your risk profile, turnover, trading stability and the term. Because short-term products are repaid quickly, the equivalent annualised cost can look high compared with longer-term bank lending, even when the flat fee seems modest. That is a normal feature of fast, short-term finance across the market, not unique to Capify.

We do not quote specific rates or fees here because they move and are set per applicant. Rates vary by profile and revenue, so request a current, itemised quote and check the total amount repayable, any early settlement terms, and whether renewals or top-ups carry additional cost before you commit.

What is the Capify application process?

The application is designed to be quick and largely digital, with a decision often turned around in a day or two. The typical steps look like this.

• Enquiry: you submit basic business details and how much you want to borrow.
• Document and data sharing: you provide recent bank statements and, for a merchant cash advance, card processing statements. Open banking may be used to speed this up.
• Assessment: Capify reviews turnover, cash flow and trading stability to gauge affordability.
• Offer: you receive a quote showing the amount, the total repayable and the repayment structure.
• Acceptance and funding: once you accept and complete any checks, funds are usually released quickly, often within a few working days.

How fast is Capify, and what should you have ready?

Capify is built for speed, with initial decisions frequently made within 24 to 48 hours and funding following soon after, provided your paperwork is in order. Having the right information ready is the single biggest factor in how quickly you complete.

To move fast, have these to hand:

• Recent business bank statements, usually the last three to six months.
• Card processing statements if you are applying for a merchant cash advance.
• Basic business details such as company number, trading address and time trading.
• Director or owner identification for verification and the personal guarantee.
• A clear figure for how much you need and what it is for.

A realistic worked example

Consider a café group in Manchester taking most of its sales by card. It wants £30,000 to refit a second site before the summer and cannot wait weeks for a traditional term loan. Trading is healthy but seasonal, with quieter winter months.

A merchant cash advance could fit here. The business receives the lump sum and repays a fixed percentage of daily card takings, so repayments ease naturally in slower weeks and rise when trade is busy. The owner knows the total repayable from day one, which helps with planning, and the fast turnaround means the refit can happen before peak season.

The trade-off is cost. Because the advance is repaid over a relatively short period, the effective cost of borrowing is higher than a longer bank facility would be. If the café could wait and qualified for cheaper term funding, that might reduce the overall cost, which is exactly the kind of comparison worth running before committing.

Capify pros and cons

Pros

• Fast decisions and funding, useful for time-sensitive needs.
• Repayments flex with card sales on a merchant cash advance, easing pressure in quiet periods.
• Total cost is fixed and known up front, with no traditional compounding.
• Accessible to businesses that may not fit rigid bank criteria, with trading performance weighted heavily.
• Suits card-heavy sectors such as retail and hospitality.

Cons

• Short terms mean the equivalent annualised cost can be high.
• A personal guarantee is commonly required.
• Daily or weekly collection may not suit every cash flow.
• Less suited to businesses wanting long repayment periods or the lowest headline rate.
• Merchant cash advances rely on strong card turnover, so cash-based businesses fit less neatly.

How does Capify compare to the wider market?

Capify is one of several UK options for fast, revenue-based business finance. The best choice depends on how you take payment, how much you need, and whether speed or cost matters most. Here is a fair view of four alternatives.

iwoca

iwoca is a UK lender best known for flexible short-term business loans and revolving credit up to substantial limits, with fast, largely automated decisions. It often suits smaller businesses and sole traders wanting a straightforward loan or flexi-loan they can draw and repay flexibly, and it typically charges interest only on what you use on its credit line. Where you want a conventional repayment structure rather than a card-linked advance, iwoca is worth comparing.

Fleximize

Fleximize provides secured and unsecured business loans with monthly repayments and terms that can run longer than a typical short-term advance. It markets flexible features such as repayment holidays and top-ups, and it can suit established businesses wanting a larger loan over a longer period. If you prefer monthly instalments and a longer horizon, Fleximize may be a better structural fit than a merchant cash advance.

YouLend

YouLend focuses on revenue-based and merchant cash advance style funding, often delivered through platform and payment partners. Like Capify, repayments flex with sales, so it appeals to card-heavy and online sellers. It is a natural comparison point for anyone specifically weighing a merchant cash advance rather than a fixed-term loan.

Funding Circle

Funding Circle offers unsecured term loans, generally over one to several years, with fixed monthly repayments. It tends to suit established businesses wanting a larger, longer loan at a potentially lower overall cost than short-term products, provided they meet its criteria and can wait a little longer than the fastest advances. It is less suited to businesses needing money within a day or two.

Capify is genuinely the stronger choice when you take a high share of sales by card, value speed, and want repayments that rise and fall with trade. For longer terms, lower overall cost, or a conventional monthly loan, one of the alternatives above may serve you better.

Who is Capify best for, and who should look elsewhere?

Capify is best for established, revenue-generating businesses, particularly in retail and hospitality, that need funds quickly and prefer repayments linked to daily takings. If predictability of total cost, speed, and flexibility around seasonal dips matter most, it is a sensible option to compare.

You should look elsewhere if you want the lowest possible cost of borrowing, a long repayment term over several years, or fixed monthly instalments. Newer businesses without much trading history, or those with little card turnover, may also find other lenders or secured facilities a better fit. Comparing several offers side by side is the only reliable way to know.

Let Greenwood Capital compare the market for you

Choosing between a merchant cash advance, a short-term loan and a longer term facility comes down to how you trade, how fast you need funds, and what total cost you are comfortable with. Greenwood Capital is a Manchester-based, whole-of-market broker, and we can compare Capify against the wider lending market and help match options to your circumstances.

This page is general information, not financial advice. If you would like an impartial, no-obligation comparison based on your business, get in touch and we will help you weigh the choices clearly.