Lender
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

iCapital Review

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About Lender

iCapital is a well-established Canadian financial company that has been providing quick business loans and other financing products since 2007. Operating as one of the oldest and most reputable online lenders in Canada, iCapital's secure platform delivers funding solutions tailored to individuals and small businesses (salons, wholesalers, manufacturing, auto repair, and retail businesses) across the nation, spanning from Nanaimo to St. John’s.

iCapital facilitates access to alternative investment opportunities for 96,000 financial advisors and their affluent clientele, including hedge funds, private equity, private credit, and real estate funds. These opportunities feature minimum investment thresholds as low as $25,000. The introduction of the iCapital Marketplace in June 2023 has streamlined the process for esteemed firms such as Blackstone and Carlyle to offer their funds to advisors. Furthermore, iCapital's collaboration with Morningstar, announced in January, extends access to iCapital’s marketplace and additional features to the 170,000 users on its Advisor Workstation. Additionally, iCapital serves 219 white-label partners, empowering them to construct customizable alternatives platforms for their clients using iCapital’s technology.

iCapital distinguishes itself by offering swift approval processes, with loans approved in as little as 5 minutes and a 98% approval rate within 48 hours.

iCapital

Key Features

  1. Efficiency. With a streamlined application process and quick approval turnaround times, iCapital offers unparalleled efficiency in accessing funds for individuals and small businesses. The ability to secure loans in as little as 5 minutes and receive approval within 48 hours significantly reduces the time and effort required compared to traditional banking institutions.

  2. Security. Partnering with a Schedule 1 Canadian chartered bank, DC Bank, iCapital ensures top-notch security for its clients' funds. This partnership offers peace of mind to customers, knowing that their finances are protected by bank-level security measures and regulatory oversight from the Office of the Superintendent of Financial Institutions.

  3. Accessibility. iCapital's online platform provides 24/7 access to account information, allowing customers to monitor their transactions and manage repayments conveniently. The user-friendly interface of the online customer portal enables seamless navigation and easy access to essential financial data at any time.

  4. Flexibility. Whether it's a business term loan or a line of credit, iCapital offers flexible financing options tailored to meet the diverse needs of its customers. The ability to choose repayment terms and access pre-qualified capital through a line of credit provides businesses with the flexibility they need to navigate varying financial circumstances effectively.

  5. Customer Care. iCapital's commitment to exceptional customer service is evident in its 7-point promise to customers. From a simplified application process to responsive support and personalized care from assigned customer care representatives, iCapital prioritizes providing a positive customer experience throughout the lending process. Additionally, the company's dedication to responsible lending ensures that businesses are not overextended, promoting long-term financial stability and success.

Pros and Cons

Pros

Speedy Funding. One significant advantage of iCapital's service is the rapid disbursal of funds. Unlike traditional lenders that may take weeks to process applications, iCapital's quick approval process ensures that businesses can access the funds they need within a short timeframe, often as little as 48 hours. This speed is particularly beneficial for businesses facing urgent financial needs or unexpected expenses.

Transparent Terms. iCapital prides itself on transparency, offering clear and understandable terms for its financing products. Unlike some lenders that may bury hidden fees or obscure terms in fine print, iCapital maintains transparency throughout the lending process. Customers can trust that they are fully informed about the terms of their loans, including interest rates, repayment schedules, and any associated fees, enabling them to make informed financial decisions.

Personalized Solutions. Another advantage of iCapital's service is its ability to provide personalized financing solutions tailored to the unique needs of each customer. Whether a business requires a small business loan, a line of credit, or other financing options, iCapital works closely with clients to understand their specific requirements and offer customized solutions that align with their goals and financial circumstances. This personalized approach ensures that businesses receive the support they need to succeed.

Community Engagement. iCapital's commitment to giving back to the community sets it apart from other financial institutions. Through sponsorships of sports teams, children's organizations, and annual campaigns in support of autism research and services, iCapital actively contributes to the betterment of Canadian communities. This community engagement not only demonstrates iCapital's corporate social responsibility but also fosters goodwill and strengthens its relationships with customers and stakeholders.

Cons

Potentially Higher Interest Rates. While this clients existing infrastructure platform offers quick access funds and flexible financing options, some customers may encounter higher interest rates compared to traditional lenders. This could result in increased borrowing costs over the repayment period, particularly for businesses with less-than-perfect credit scores or higher risk profiles. It's essential for customers to carefully consider the overall cost of borrowing and explore alternative financing options to ensure they make financially prudent decisions.

Limited Funding Amounts. Although iCapital provides financing solutions up to $250,000, some businesses may find this limit restrictive, especially if they require larger sums of capital for significant investments or expansion projects. Customers with extensive funding needs may need to seek additional financing sources or explore alternative lenders that offer higher borrowing limits to meet their financial requirements adequately.

Potential for Overreliance on Short-Term Financing. While iCapital's quick approval process and flexible repayment terms can be advantageous for addressing immediate financial needs, businesses must be cautious not to overextend themselves with short-term financing. Relying heavily on short-term loans or lines of credit without a long-term financial strategy in place could lead to cash flow challenges or increased debt burdens over time. It's essential for businesses to carefully assess their financial needs and consider the long-term implications of their borrowing decisions.

Risk of Misunderstanding Terms. Despite iCapital's commitment to transparency, some customers may encounter challenges understanding the terms and conditions of their loans, particularly if they are unfamiliar with financial terminology or industry-specific terms. Misinterpreting loan terms could result in unexpected fees, penalties, or other financial consequences down the line. It's crucial for customers to thoroughly review and seek clarification on all loan documents before proceeding to ensure they fully understand their obligations and responsibilities as borrowers.

Reliability

The reliability of iCapital is a topic of nuanced discussion. Despite garnering a modest 2-star rating on Trustpilot based on 9 reviews, indicating some customer concerns, the company boasts significant partnerships with industry giants like Esso, Panago, Cora, and Wendy's. These high-profile endorsements suggest a level of trust within the business community, balancing occasional negative feedback with notable endorsements from established brands. Additionally, iCapital's recognition as "Best in Canada, 2020" by Smarter Loans underscores its commitment to providing top-notch service since its establishment in 2007. However, it's crucial for potential borrowers to conduct thorough evaluations before committing to any loan, ensuring alignment with their financial needs and capabilities, regardless of the lender.

How to Apply for a iCapital loan?

  1. Visit the iCapital Website. Start by visiting the official website of iCapital. Navigate to the loan application section, which is typically prominently displayed on the homepage.

  2. Complete the Online Application. Once you've accessed the loan application section, you'll be prompted to fill out an online application form. The form will require you to provide basic information about yourself and your business, including your name, company name, contact information, and annual gross sales. This information helps iCapital assess your eligibility for a loan.

  3. Submit Required Documentation. Depending on the type of loan you're applying for and your individual circumstances, iCapital may request additional documentation to support your application. This documentation could include financial statements, tax returns, bank statements, business plans, or other relevant documents. Make sure to gather and submit all required documentation promptly to expedite the application process.

  4. Review and Accept Terms. After submitting your application and supporting documentation, iCapital will review your information and assess your eligibility for a loan. If your application is approved, you'll receive loan offers detailing the terms and conditions, including the loan amount, interest rate, repayment schedule, and any associated fees. Take the time to carefully review these terms and ensure you understand and agree to them before proceeding.

  5. Accept Loan Offer. If you're satisfied with the loan offer and agree to the terms and conditions, you can accept the offer electronically. This typically involves signing a digital agreement or electronically confirming your acceptance of the loan terms. By accepting the loan offer, you're committing to repaying the loan according to the agreed-upon terms.

  6. Receive Funds. Once you've accepted the loan offer, iCapital will finalize the loan agreement and disburse the funds to your designated bank account. Depending on the loan type and the specifics of your application, you may receive the funds within as little as 48 hours.

  7. Manage Repayments. After receiving the loan funds, it's essential to manage your repayments responsibly. iCapital typically offers automated repayment options, where loan repayments are deducted directly from your bank account according to the agreed-upon schedule. Make sure to maintain sufficient funds in your account to cover the scheduled repayments and avoid any potential late fees or penalties.

Conditions and Requirements

Conditions

  1. Repayment Adherence. Borrowers must adhere to the agreed-upon repayment schedule and terms.

  2. Compliance with Regulations. Businesses must comply with all applicable laws and regulations.

  3. Communication Requirement. Regular communication with iCapital regarding any changes in business status or financial circumstances is necessary.

  4. Prompt Notification. Borrowers are required to promptly notify iCapital of any issues or difficulties in meeting repayment obligations.

  5. Documentation Provision. Agreement to provide necessary documentation and information as requested by iCapital for loan processing and monitoring is mandatory.

Requirements

  1. Sales. Annual gross sales of over $100,000 are required to qualify for a loan.

  2. Maturity. No start-ups accepted; your business must have a history of at least 6 months of operation to be eligible for a loan.

Ways to Receive the Money

  1. Direct Bank Transfer. iCapital can transfer the approved funds directly to the company's designated bank account, providing quick access to capital for business needs.

  2. ACH Transfer. Automated Clearing House (ACH) transfers offer a secure and efficient way for companies to receive funds electronically, typically within a few business days.

  3. Check Issuance. For companies preferring traditional methods, iCapital can issue a physical check, which can be deposited into the company's bank account or cashed at a bank branch.

  4. Wire Transfer. Companies seeking expedited fund transfers may opt for a wire transfer, which enables same-day or next-day delivery of funds to the designated bank account.

  5. Digital Wallet Transfer. iCapital may offer the option for companies to receive funds via digital wallet platforms, providing a convenient and secure alternative for accessing capital.

  6. Escrow Account. In certain cases, iCapital may utilize an escrow account to hold funds securely until specified conditions are met, ensuring peace of mind for both the company and the lender.

Products

  1. Small Business Term Loan. A one-time loan with set daily or weekly repayments over up to 24 months. Fees are determined by creditworthiness and other factors. Suitable for various business needs such as inventory purchase, payroll, equipment replacement, etc.

  2. Recurring Term Loan. Receive cash injections every quarter and repay with fixed weekly payments. Provides liquidity, helps manage cash flow, and keeps borrowing costs in check amid uncertain business environments.

  3. Secured Business Loan. A loan option for homeowners using property as collateral, offering lower rates and better term lengths. No restrictions on fund usage, suitable for borrowers with less-than-perfect credit.

Other loans

Reasons for Getting Rejected for a iCapital loan

  1. Insufficient Revenue. The company's revenue may not meet the minimum threshold required by iCapital for loan approval.

  2. Limited Operational History. iCapital may reject loan applications from businesses with a short operational history, as they prefer companies with a track record of at least 6 months.

  3. Unstable Financial Performance. Companies experiencing financial instability or inconsistent revenue may face rejection due to concerns about their ability to repay the loan.

  4. High Debt-to-Income Ratio. Companies with a high debt-to-income ratio, indicating a heavy debt burden relative to their income, may be deemed high-risk borrowers by iCapital.

  5. Inadequate Collateral. If the company is unable to provide sufficient collateral to secure the loan, it may result in rejection, especially for certain types of loans offered by iCapital.

  6. Non-compliance with Regulations. Failure to comply with relevant laws and regulations, such as tax filings or business licensing requirements, may lead to rejection of the loan application.

  7. Incomplete or Inaccurate Documentation. If the company's loan application is incomplete or contains inaccuracies, it may be rejected by iCapital due to concerns about the reliability of the information provided.

  8. Unsuitable Industry or Business Type. Certain industries or types of businesses may be deemed ineligible for loans by iCapital due to higher risk factors associated with those sectors.

  9. Previous Loan Defaults. Companies with a history of defaulting on previous loans or financial obligations may face rejection due to concerns about their creditworthiness and ability to repay the loan.

  10. Failure to Meet Specific Loan Requirements. If the company's loan application does not meet the specific requirements or criteria set forth by iCapital for a particular loan product, it may be rejected accordingly.

How to Repay an iCapital loan?

  1. Adhere to Repayment Schedule. Companies should ensure timely adherence to the agreed-upon repayment schedule established with iCapital.

  2. Maintain Financial Records. Maintain accurate financial records to track loan payments and ensure consistency with the repayment plan.

  3. Allocate Sufficient Funds. Allocate sufficient funds to cover loan repayments, prioritizing them as a critical financial obligation.

  4. Utilize Automated Payment Systems. Take advantage of automated payment systems offered by iCapital for convenient and seamless loan repayments.

  5. Monitor Cash Flow. Regularly monitor cash flow to anticipate any potential challenges in meeting repayment obligations and take proactive measures to address them.

  6. Communicate Any Issues. Promptly communicate with iCapital client support in case of any financial difficulties or unexpected challenges that may impact the ability to repay the loan.

  7. Consider Early Repayment. Evaluate the possibility of early repayment to reduce interest costs and potentially improve the company's financial position.

  8. Review Loan Terms. Periodically review the terms of the loan agreement to ensure compliance and address any questions or concerns that may arise.

  9. Seek Guidance if Necessary. Seek guidance from financial advisors or iCapital's customer support team if assistance is needed in managing loan repayment or addressing financial challenges.

  10. Plan for Future Financial Needs. Strategically plan for future financial needs to ensure that loan repayments do not hinder the company's ability to pursue growth opportunities or maintain operational stability.

Alternatives

CIBC

CIBC's business loans, supported by the Government of Canada, offer invaluable support for small businesses. With the opportunity to access funds of up to $1 million, businesses can invest in essential assets like land, buildings, vehicles, or equipment crucial to their operations. Eligibility extends to small businesses or startups in Canada with gross annual revenues of $10 million or less under the CSBFP. What sets CIBC apart is the ease of application, guided by their dedicated business advisors who offer support every step of the way. The flexible financing terms and competitive interest rates provided ensure that businesses receive the financial assistance they need to thrive and grow.

RBC

The Canada Small Business Financing Loan from Royal Bank offers essential government-guaranteed loans to bolster the growth of small businesses across Canada. With loan options of up to $1,000,000, including $500,000 allocated for equipment, leasehold improvements, intangible assets, and working capital (with an additional $150,000 specifically for intangible and working capital), this program is a lifeline for businesses in need of financial support. One of the standout features of this loan is its guarantee by the Federal government, covering 85% of the loan amount, instilling confidence in both lenders and borrowers alike. Additionally, businesses can benefit from flexible repayment options tailored to their needs, including floating or fixed-rate options, along with terms of up to 15 years to match various asset classes.

Merchant Growth

Merchant Growth offers a range of business financing options designed to meet the diverse needs of both traditional and e-commerce businesses, with funding available in as little as 24 hours. With minimum requirements including $10,000 in monthly sales, 6 months or more in business, and a credit score of at least 550, the company provides accessible financing solutions for small businesses. Borrowers can access amounts ranging from $5,000 to $800,000, with fixed and flexible repayment options available. Despite being more expensive than traditional banks, Merchant Growth stands out as an established lender with more flexible eligibility requirements. Founded in 2009 by David Gens, the company has garnered recognition and accolades, further cementing its legitimacy in the industry. With a commitment to providing timely funding and reliable service, Merchant Growth remains a trusted partner for businesses seeking financial support.

Editorial Opinion

iCapital emerges as a dependable avenue for businesses seeking alternative investments in Canada, offering swift business loans and financing options since 2007. With an impressive 98% approval rate within 48 hours and loans sanctioned in as little as 5 minutes, iCapital streamlines the lending process, providing essential support to individuals and small businesses nationwide. Furthermore, their commitment to unmatched security, demonstrated through partnerships with reputable Canadian institutions like DC Bank, instills confidence in their services. However, while iCapital's streamlined approach and dedication to customer service are commendable, potential borrowers should carefully consider their unique financial needs and explore all available options before committing to any loan agreement.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

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

FAQ

What does the iCapital do?

iCapital specializes in private market investing, offering access to hedge funds and other alternative investments. They provide a platform for individuals and businesses to explore and invest in a wide range of alternative assets, tailored to their unique investment objectives and risk tolerance. Through strategic partnerships and cutting-edge technology, iCapital facilitates seamless access to the world of alternative investing, empowering investors to diversify their portfolios and pursue their financial goals with confidence.

Is iCapital a good company?

iCapital demonstrates strong management capabilities and expertise throughout the investment lifecycle. With a focus on private market investing, the company offers a robust platform for investors to access a diverse range of alternative investment opportunities. By providing comprehensive support and guidance at every stage of the investment process, iCapital ensures that investors can make informed decisions and navigate the complexities of alternative investing with confidence. Overall, iCapital's commitment to effective management and comprehensive investment solutions positions it as a reputable and reliable company in the financial industry.

How much does iCapital cost?

The cost of using iCapital's global platform assets varies depending on the specific investment products and services selected by investors. iCapital offers access to a wide range of investment opportunities, including private equity and structured investments, which may entail different fee structures and expenses. While iCapital strives to provide competitive pricing and value to its clients, the cost associated with investing in alternative assets such as private equity can vary based on factors such as fund management fees, performance fees, and administrative expenses. Therefore, investors should carefully review and consider the fee structures and costs associated with each investment opportunity before making any decisions.

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Quick business loans & other financing products done better

© iCapital
Financial products
iCapital
Small Business Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$5,000 - $250,000
Rate
i

Effective interest rate on the product

set individually
Term
i

Loan term for the financial product

up to 24 months
iCapital
Secured Business Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$5,000 - $250,000
Rate
i

Effective interest rate on the product

from 9.99%
Term
i

Loan term for the financial product

up to 24 months
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Borrowell
Business loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$50,000
Rate
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Effective interest rate on the product

up to 39.99%
Term
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Loan term for the financial product

up to 84 months
Lending Loop
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Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$1,000-$500,000
Rate
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Effective interest rate on the product

up to 24.93%
Term
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Loan term for the financial product

up to 60 months
Driven
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Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$300,000
Rate
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Effective interest rate on the product

set individually
Term
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Loan term for the financial product

up to 24 months
Farm Credit Canada
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Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
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300
650
1000
Spring Financial
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Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
up to $1,500
Rate
i

Effective interest rate on the product

from 18.99%
Term
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Loan term for the financial product

up to 12 months
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