Information
About Company
CAN Capital offers a variety of financing solutions to cater to the diverse needs of small business owners. Their services include capital business loans, merchant cash advances, and equipment financing. Small businesses can access working capital through CAN Capital, supporting their operational needs and business development initiatives. The flexible funding solutions provided by CAN Capital, such as working capital loans and equipment financing, are tailored to assist small business owners in managing cash flow, purchasing equipment, and addressing other financial requirements.
Features
Equipment Financing and Working Capital Loans. CAN Capital provides a range of financing options, including equipment financing and working capital loans. This versatility allows small businesses to secure funds for specific needs, whether it be purchasing essential equipment or ensuring a healthy working capital for day-to-day operations.
Quick Application. One of the standout features of CAN Capital is its user-friendly and efficient online application and approval processes. Small business owners can easily apply online for financing through the company's website, streamlining the initial steps in securing the capital needed for their business.
Quick Approval. Recognizing the urgency that small businesses often face, CAN Capital offers a quick approval process. This allows businesses to receive timely decisions on their financing applications, enabling them to address their financial needs promptly.
Over 20 Years of Experience. With over two decades of experience, CAN Capital has established itself as a reputable and reliable player in the alternative lending industry. This extensive experience signifies a deep understanding of the challenges faced by small businesses and a proven track record of providing effective financial solutions.
Pros and Cons
Pros
Quick and Easy Application Process. CAN Capital offers a streamlined and user-friendly online application process, making it convenient for small business owners to apply for financing without unnecessary complexity.
Low Credit Score Requirement. A notable advantage of CAN Capital is its flexibility regarding credit scores. The company accommodates small business owners with lower credit scores, providing an opportunity for those who may face challenges with traditional lenders.
Fast Funding. Speed is a significant benefit with CAN Capital. The potential for fast funding, often within 48 hours, allows businesses to swiftly address their financial needs, seizing opportunities or resolving urgent matters promptly.
Cons
Daily or Weekly Payments. One of the drawbacks of CAN Capital is the frequency of payments. While equipment financing offers a different arrangement, other financing options may require daily or weekly payments, which could be challenging for some businesses to manage.
Equipment Financing Only Goes Up to $250k. For businesses with substantial equipment needs, the maximum amount for equipment financing is capped at $250,000. This limitation may be a drawback for larger enterprises requiring more significant investments in equipment.
Charges an Origination or Administration Fee. CAN Capital imposes an origination or administration fee, adding an additional cost to the financing. While common in the lending industry, businesses should factor in this fee when assessing the overall cost of the loan.
How to Get a CAN Capital Loan?
Complete Online Application. Begin the process by completing CAN Capital's one-page online application. This initial step requires you to furnish basic information about your business. Additionally, you'll need to provide the company with business bank statements from the previous three months. This information helps CAN Capital assess your eligibility and financial health.
Finalize Application. Upon submission, CAN Capital will review your application to determine if you prequalify for a loan. If you choose to do so, you can collaborate with a CAN Capital representative during this stage. Following the assessment, the company will present you with a loan offer, or potentially multiple offers, if you meet the eligibility criteria.
Get Funded. Upon successful approval, CAN Capital swiftly disburses the funds to your business bank account. The funding is typically processed and transferred on the next business day, ensuring a prompt and efficient delivery of the capital you need to support your business activities.
Requirements and Conditions
Requirements
Credit Score. CAN Capital requires a minimum credit score of 600 for term loans and equipment financing. Notably, there is no specific credit score requirement for the merchant cash advance, providing flexibility for businesses with varying credit histories.
Time in Business. Businesses applying for a term loan through CAN Capital need to have a minimum of three years of operating history. In contrast, merchant cash advances may require a shorter time in business, potentially as little as 6 months.
Revenue. Qualifying small businesses must have a minimum annual revenue of $175,000. Loan amounts typically go up to 70% of the annual revenue, but the specific amount is contingent on the details of your application. This revenue requirement ensures that businesses seeking financing through CAN Capital have a certain level of financial stability.
Debt and Bankruptcy. CAN Capital sets limits on tax liens or judgments, only working with businesses that have less than $175,000 in such obligations. The company is willing to consider applicants with a personal or business bankruptcy on their credit history, provided it was discharged at least 12 months prior to applying.
Business Bank Account. All applicants must have a business bank account. CAN Capital reviews the bank statements to assess the business's revenue and cash flow, crucial factors in determining loan eligibility.
Conditions
Working Capital Loans
Funding Amount. CAN Capital offers small business loans ranging from $2,500 to $250,000. This flexibility allows businesses to secure the amount they need to support various aspects of their operations.
Terms. The repayment terms for small business loans with CAN Capital typically range from 6 to 24 months. This provides businesses with options to choose a repayment period that aligns with their financial capacity and needs.
Fast Decisions. CAN Capital aims to provide fast decisions on loan applications, allowing small businesses to promptly know their eligibility and move forward with their financial plans.
Funds Disbursement. If approved, funds can be deposited as fast as the next business day. This quick turnaround time ensures that businesses can access the capital they need without significant delays.
Automated ACH Deduction. Repayments for small business loans with CAN Capital are facilitated through automated ACH (Automated Clearing House) deductions. This automated process streamlines the repayment process for customers.
Equipment Financing
Funding Amount. CAN Capital's equipment financing allows small businesses to finance new or used equipment with funding ranging from $5,000 to $250,000.
Terms. The terms for equipment financing are more extended, ranging from 24 to 72 months. This provides businesses with the flexibility to spread out their payments over a more extended period.
Monthly Payments. Unlike other products offered by CAN Capital, equipment loans come with monthly payments. This monthly payment structure may be beneficial for businesses that prefer a more extended repayment period and fixed monthly costs.
Products
Working Capital Loans. CAN Capital offers loans ranging from $2,500 to $250,000 with terms of 6 to 24 months. Fast decisions and next-day funding are available, with repayment through automated deductions.
Equipment Financing. CAN Capital provides financing from $5,000 to $250,000 for new or used equipment, with terms of 24 to 72 months and monthly payments.
Other Loans
Ways to Receive the Money
Upon approval, CAN Capital swiftly disburses the borrowed amount directly to your business bank account. The funds are typically transferred on the next business day, ensuring a quick and efficient delivery process. This streamlined approach allows you to access the approved capital promptly, providing timely financial support for your business needs.
Things to Pay Attention To
Can Capital Merchant Services. Be aware of the range and quality of merchant services offered by CAN Capital, understanding how these services align with your business needs. This includes considerations related to payment processing, technology integration, and customer support.
Capital's Underwriting Process. Familiarize yourself with CAN Capital's underwriting process. Understanding the criteria and steps involved in the underwriting process is crucial for anticipating the likelihood of loan approval and ensuring a smooth application experience.
Working Capital Loan. Pay attention to the details of CAN Capital's working capital loans. This includes the specific terms, interest rates, and repayment structures associated with these loans. Assess whether these align with your business's financial requirements.
Weekly Payment Schedule. Note the weekly payment schedule for loan repayments. Understanding the frequency and consistency of payments allows you to plan your budget and cash flow effectively.
Capital Review. Explore reviews and feedback about CAN Capital. Utilize sources such as Trustpilot reviews and other customer testimonials to gain insights into the experiences of other businesses. Look for patterns in feedback related to customer service, loan processes, and overall satisfaction.
How to Repay a CAN Capital Loan?
For a CAN Capital Term Loan, repayments are made automatically on each weekday. The predetermined repayment amount is debited directly from the business account, streamlining the process and ensuring timely and consistent loan payments.
Reasons for Getting Rejected for a CAN Capital Loan
Lower Borrower Qualifications. If the borrower's qualifications do not meet CAN Capital's standards, such as insufficient revenue or time in business, the application may be denied.
Hard Credit Check. A hard credit check may reveal unfavorable credit history or a low credit score, leading to a higher denial rate for loan applications.
High Rates. If the borrower's creditworthiness is perceived as high risk, CAN Capital may offer unfavorable terms or deny the loan application altogether due to the risk associated with lending to individuals with bad credit.
Insufficient Business History. A lack of sufficient business history or a short operational track record may lead to rejection. CAN Capital may prefer businesses with a longer history to assess their stability and financial performance over time.
Qualification. Various factors, including a combination of lower borrower qualifications, income, and unfavorable credit history, may contribute to the rejection of a loan application.
Alternatives
Bank of America offers a range of business financing options, including term loans, lines of credit, and equipment financing. As a traditional bank, it provides access to capital for small businesses with varying needs and credit profiles.
BlueVine is an online lender specializing in providing working capital solutions to small businesses. It offers lines of credit and invoice factoring services, catering to businesses looking for flexible funding options.
National Funding is a direct lender offering small business loans and equipment financing. It provides fast and flexible funding solutions with simplified application processes, making it suitable for businesses seeking quick access to capital.
PNC Bank offers a variety of business financing options, including term loans, lines of credit, and SBA loans. With a focus on personalized service and relationship banking, PNC Bank provides tailored financial solutions to support the growth and development of small businesses.
Loans like CAN Capital
OnDeck
OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.
Funding Circle
Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.
Credibly
Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.
Fundbox
For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.
Editorial Opinion
CAN Capital, with its emphasis on cutting-edge technology and customer-focused delivery, presents itself as a viable option in the business lending landscape. The company's short-term loan offerings, coupled with an online application process, facilitate quick access to capital, allowing businesses to apply and qualify efficiently. However, potential borrowers should be aware of aspects like an origination fee and personal guarantees, common in the industry. The company's Trustpilot and Better Business Bureau rating showcase varying experiences, emphasizing the importance of thorough research and understanding the borrowing amounts cap. As with any financial institution, the decision to engage with CAN Capital should be made after careful consideration of one's business needs, financial capabilities, and the terms associated with the loans offered by the company.
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
Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
Carefully review all the terms and conditions of your payday loan contract.
Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Methodology
At Finanso, we've carried out a comprehensive analysis of over 50 business 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
- CAN Capital Account Review
- How to Apply for CAN Capital Loan
- How to PayOff CAN Capital Loan
- CAN Capital Mobile Apps
- CAN Capital Reviews
