eCapital Review

About Lender

eCapital, a leading alternative finance and factoring company, is dedicated to supporting small and medium-sized businesses across Canada. With a robust suite of funding solutions tailored to various industries, eCapital ensures that businesses have access to the capital they need, precisely when they need it. Whether it's asset-based lending, invoice factoring, or flexible payroll funding, eCapital offers innovative financial solutions designed to address the diverse cash flow challenges faced by businesses in today's dynamic marketplace.

Backed by over 25 years of experience, eCapital has successfully aided more than 30,000 companies in achieving their growth objectives. The company prides itself on its responsive and adaptive approach, providing agile solutions that align with each client's specific requirements. With a team of over 600 financial professionals and a commitment to transparency, integrity, and innovation, eCapital remains dedicated to empowering businesses to thrive and succeed in an ever-evolving economic landscape.

Key Features

1. Responsive Funding Solutions. eCapital offers agile and responsive funding solutions, ensuring businesses can access the capital they need promptly and efficiently.

2. Industry-Tailored Financing. With a focus on various industries, including transportation, staffing, healthcare, consumer goods, and more, eCapital provides customized financing solutions to address specific challenges within each sector.

3. Invoice Factoring Expertise. Specializing in invoice factoring, eCapital assists businesses in releasing cash against outstanding customer invoices, offering a reliable cash flow solution for new, growing, and established enterprises.

4. Flexible Payroll Funding. For staffing agencies, eCapital provides flexible payroll funding solutions, allowing businesses to adjust funding levels based on monthly volumes and ensuring timely payroll processing.

5. Asset-Based Lending. eCapital's Asset Based Lending (ABL) solutions enable businesses to secure loans based on the value of their assets, including accounts receivable, machinery, equipment, inventory, and real estate.

6. Comprehensive Industry Support. Supporting over 80 industries, eCapital's alternative financing solutions cater to a diverse range of businesses, offering fast access to capital and unparalleled flexibility.

Pros and Cons

Pros

Cons

Reliability

Reliability stands as a cornerstone of eCapital's ethos, underscored by its BBB accreditation and impressive Trustpilot rating of 4.0 out of 1,165 total reviews. These credentials serve as a testament to the company's commitment to maintaining high standards of service and customer satisfaction. By achieving BBB accreditation, eCapital demonstrates its dedication to ethical business practices and transparency, instilling confidence in clients and partners alike. Furthermore, the positive Trustpilot rating reflects the experiences of a substantial number of users, highlighting the consistency and reliability of eCapital's financial solutions.

Moreover, eCapital's reliability extends beyond mere credentials, encompassing its track record of delivering timely and tailored funding solutions to businesses across diverse industries. Through a combination of responsive customer support, transparent processes, and innovative financing options, eCapital has earned a reputation as a dependable partner for businesses navigating cash flow challenges.

How to Apply for eCapital Funding?

1. Initial Contact. Reach out to eCapital through their website, phone, or email to initiate the application process. You can also request a quote or consultation to discuss your specific financing needs.

2. Consultation and Review. Upon initial contact, an eCapital representative will review your current financial situation, including accounts receivable, historical data, and business credentials. This consultation helps eCapital understand your business and tailor a funding solution to your requirements.

3. Document Submission. You'll be asked to submit certain documentation, including business and personal credit applications, government-issued identification, articles of incorporation, insurance documents, and other relevant paperwork. These documents are essential for assessing your eligibility and determining the appropriate funding solution.

4. Evaluation and Proposal. After reviewing your financial information and documents, eCapital will prepare a detailed funding proposal based on your specific needs. This proposal outlines the terms and conditions of the financing arrangement, including funding amounts, fees, and repayment terms.

5. Acceptance. Upon receiving the funding proposal, carefully review the terms and conditions outlined by eCapital. If you're satisfied with the offer, sign your acceptance of the proposal to proceed with the funding arrangement.

6. Due Diligence and Legal Documentation. After accepting the proposal, eCapital will conduct due diligence to verify the information provided and finalize the legal documentation. You'll receive the necessary legal documents outlining the agreed terms and conditions of the funding arrangement.

7. Funding Disbursement. Once the legal documentation is completed and approved, eCapital will disburse the agreed funding directly into your account. Funds are typically transferred immediately after the approval of submitted invoices and signed bill of lading.

8. Customer Notification. eCapital will notify your customers of the funding relationship through a formal email known as the Notice of Assignment. This email introduces your customers to eCapital and provides specific payment instructions for future invoices.

Conditions and Requirements

Conditions

1. Flexible Funding Amounts. eCapital offers flexible funding amounts tailored to the specific needs and financial capabilities of borrowers. Funding levels may vary based on factors such as accounts receivable volume or asset valuation.

2. Competitive Fees. While specific fees vary depending on the type of financing solution and services utilized, eCapital strives to offer competitive and transparent fee structures, ensuring clarity for borrowers.

3. Quick Approval Process. eCapital aims to provide a swift approval process, with decisions typically made within a few days of receiving all required documentation. This enables borrowers to access funds promptly to address their financial needs.

4. Customized Financing Solutions. eCapital works closely with borrowers to design customized financing solutions that align with their business objectives and cash flow requirements. Whether it's invoice factoring, payroll funding, or asset-based lending, solutions are tailored to meet individual business needs.

5. Responsive Customer Support. Borrowers can expect responsive and dedicated customer support from eCapital's team of financial professionals throughout the financing process. This includes assistance with documentation, inquiries about funding arrangements, and ongoing support as needed.

Requirements

1. Business Documentation. Borrowers typically need to provide documentation verifying their business, such as articles of incorporation, business licenses, and tax identification numbers.

2. Financial Statements. Financial statements, including balance sheets, income statements, and cash flow statements, may be required to assess the financial health and viability of the business.

3. Accounts Receivable Aging Report. Borrowers may need to provide an accounts receivable aging report, detailing outstanding invoices and customer payment histories, especially for invoice factoring arrangements.

4. Creditworthiness. While eCapital may consider the creditworthiness of borrowers, the primary focus is often on the creditworthiness of their customers for invoice factoring solutions.

5. Operational History. Established businesses with a track record of operations may have an advantage when applying for financing, although startups and newer businesses may still be considered.

6. Asset Valuation. For Asset Based Lending (ABL) solutions, borrowers must have assets, such as accounts receivable, inventory, machinery, equipment, or real estate, that can be used as collateral.

Ways to Receive the Money

Borrowers may opt to receive funds directly into their eCapital account. This account functions as a virtual wallet where borrowers can manage and access their funds conveniently. Once the funds are deposited into the eCapital account, borrowers can initiate transfers to their linked bank accounts or use the funds for various business expenses.

Products

1. Asset Based Lending (ABL). Asset Based Lending provides businesses with a secure loan based on the value of their assets, including accounts receivable, machinery, equipment, inventory, and real estate. This flexible financing option allows businesses to leverage their assets to access the capital needed for various purposes.

2. Payroll Funding. Specifically designed for staffing agencies, eCapital's payroll funding solutions offer flexibility in managing payroll expenses. Funding levels can be adjusted based on monthly staffing volumes, ensuring that making payroll is never a challenge for the staffing industry.

3. Freight Factoring.Tailored for the transportation industry, eCapital's freight factoring solutions help trucking companies turn their freight invoices into immediate cash. This enables transportation businesses to address cash flow challenges and sustain their operations efficiently.

4. Invoice Factoring. eCapital Freight Factoring allows businesses to unlock cash tied up in their outstanding invoices. Instead of waiting for customers to pay, eCapital advances a significant percentage of the invoice value, providing immediate access to working capital.

5. Equipment Financing. eCapital provides equipment financing solutions tailored to businesses looking to acquire or upgrade machinery, vehicles, technology, and other essential assets. With equipment financing, businesses can conserve cash flow while acquiring the equipment needed to drive productivity and growth.

6. Lines of Credit. eCapital offers lines of credit to provide businesses with flexible access to working capital, allowing them to manage cash flow fluctuations, fund day-to-day operations, and seize growth opportunities as they arise. Lines of credit provide businesses with a revolving credit facility that can be accessed as needed, offering greater financial flexibility and stability.

7. Visa Commercial Cards. eCapital offers Visa commercial cards to streamline business purchasing and expense management processes. These cards provide businesses with a convenient and efficient way to make purchases, track expenses, and manage employee spending while enjoying the benefits and security features of Visa's global network.

Reasons for Getting Rejected for eCapital Funding

1. Insufficient Financial Documentation. eCapital requires borrowers to provide comprehensive financial documentation, including balance sheets, income statements, cash flow statements, and accounts receivable aging reports. If the business fails to provide accurate or complete financial information, it may hinder the underwriting process and lead to a rejection.

2. Inconsistent Cash Flow. Cash flow is a critical consideration for lenders when evaluating funding applications. Businesses with inconsistent or unpredictable cash flow may be deemed higher risk, as they may struggle to meet repayment obligations during periods of financial volatility.

3. Inadequate Collateral. For certain types of financing, such as asset-based lending, borrowers are required to pledge collateral to secure the loan. If the business lacks sufficient assets or the collateral offered is deemed insufficient or of low value, it may increase the risk for the lender and result in a rejection.

4. Industry Risk. Some industries are inherently riskier than others, and lenders may be more cautious when considering funding applications from businesses operating in high-risk sectors. Factors such as market volatility, regulatory challenges, or economic downturns may influence eCapital's decision to reject a funding application.

5. Limited Business History. Startups or businesses with limited operational history may face challenges securing funding, as lenders may prefer to work with established businesses with a track record of success and stability. Without sufficient business history and performance data, eCapital may be unable to assess the borrower's creditworthiness accurately.

6. Unsuitable Use of Funds. eCapital may reject funding applications if the intended use of funds does not align with its lending criteria or if the proposed business activities are deemed too risky or speculative. Borrowers must demonstrate a clear and viable plan for utilizing the funds responsibly and achieving measurable business objectives.

How to Repay eCapital Funding?

1. Review Funding Agreement. Carefully review the terms and conditions outlined in the funding agreement provided by eCapital. Pay attention to details such as the repayment schedule, interest rates, fees, and any other relevant terms.

2. Understand Repayment Terms. Understand how repayment will be structured, whether it's through fixed periodic payments, flexible repayment schedules based on cash flow, or other arrangements. Clarify any questions or concerns with eCapital's customer support team.

3. Maintain Accurate Records. Keep accurate records of all transactions related to the funding, including payments made, outstanding balances, and any correspondence with eCapital. This ensures transparency and facilitates smooth communication with eCapital.

4. Set Up Payment Method. Set up a reliable payment method to ensure timely repayment of the funding. Depending on the agreement, payments may be made through automatic withdrawals from a designated bank account, electronic transfers, or other accepted payment methods.

5. Communicate with eCapital. Maintain open communication with eCapital's customer support team regarding any changes in financial circumstances or challenges that may impact repayment. If facing difficulties, proactively discuss potential solutions or alternative arrangements with eCapital.

Alternatives

Express Business Funding

Express Business Funding is one of the prominent factoring companies based in Canada that specializes in non-notification factoring services tailored to Canadian businesses. Catering to the needs of large-scale enterprises, Express Business Funding offers factoring amounts ranging from $100,000 to $5,000,000. Their fee structure is transparent, employing a daily rate model based on the value of invoices. Depending on the perceived risk, these fees typically range between 0.03% and 0.075% per day.

Accord Financial Corp.

Accord Financial Corp., a renowned finance company operating in the United States and Canada, delivers a diverse range of working capital solutions tailored to small and medium-sized enterprises. Accord stands out for its credit facilities, offering amounts between $500,000 and $2 million, with a swift offer letter turnaround of 48 hours. Notable pros of engaging with Accord include the absence of setup or application fees, the flexibility of single debtor factoring, and the availability of credit facilities for businesses with capital requirements exceeding $2 million.

REV Capital

REV Capital emerges as a prominent player in the area of full-service factoring solutions, serving businesses across Canada and the United States through its extensive network of eight offices scattered throughout North America. REV Capital boasts flexibility, offering facilities with funding amounts ranging up to an impressive $25 million. Their fee structure, ranging from 1% to 3%, reflects a commitment to providing competitive and transparent pricing to their diverse clientele.

1st Commercial Credit

1st Commercial Credit stands as a formidable presence in Canada's factoring landscape, extending its services to businesses across North America. With funding amounts ranging from $10,000 a month to credit line facilities reaching up to $10 million, 1st Commercial Credit caters to businesses of varying sizes and scales. Their competitive financing rates, ranging from 0.69% to 4%, coupled with the accessibility of funds up to $350,000 with no financials required, make them an attractive choice for businesses seeking efficient and hassle-free financing solutions.

Editorial Opinion

Important

How to Choose a Lender

1. Verify that the lender is registered with the appropriate regulatory authorities in Canada, such as the Financial Consumer Agency of Canada (FCAC), or is licensed to operate in your province.
2. Check if the lender is a member of reputable industry associations in Canada, such as the Canadian Bankers Association (CBA) or the Canadian Lenders Association (CLA).
3. Thoroughly review all terms and conditions outlined in your loan agreement. Understand the repayment schedule, interest rates, fees, and any penalties for late payments or defaults.
4. Ensure that the contract clearly states the annual percentage rate (APR) and the total cost of borrowing, including any administrative fees or additional charges.
5. Familiarize yourself with your rights regarding loan cancellation or early repayment. Canadian consumers have the right to cancel a loan within two business days after signing the agreement, without penalty.
6. Research the lender's reputation by checking customer reviews, complaints, and feedback on reputable online platforms, as well as through resources provided by organizations like the Better Business Bureau (BBB).

Methodology

At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional Resources

Sources

• www.ecapital.com