In the world of business, finding a trustworthy online lender is essential for success. CAN Capital is a prominent lending company known for having excellent reviews and offering merchant cash advances.
In our lender review series, we’ll evaluate CAN Capital’s offerings, features, pros, and cons. We’ll also assess their lending products, rates, fees, repayment period, and customer service quality.
Our goal is to help you decide whether CAN Capital is the right choice for your small business’s financial needs.
CAN Capital Review Overview
CAN Capital has been a prominent player in the alternative lending industry for over two decades. Since their establishment in 1998, they’ve become one of the longest-running companies in the field. They were among the pioneers who introduced merchant cash advances in the market.
In 2013, CAN Capital underwent a significant rebranding effort, bringing all their subsidiary brands, including Capital Access Networks, AdvanceMe, and New Logic, together under the unified name of CAN Capital Inc. This strategic move allowed them to streamline their operations and present a more cohesive image to their customers.
In 2017, CAN Capital formed an alliance with Varadero Capital, a partnership that allowed them to expand their access to capital and strategic planning capabilities.
Originally based in Georgia, CAN Capital is now registered in Georgia and New York.
While they were initially known to provide merchant cash advances, CAN Capital currently offers working capital business loans and equipment financing.
Working capital loans involve borrowing a lump sum you repay over time, while equipment financing helps you acquire new or used equipment for your own business purposes.
Working Capital Loans
Working capital business loans provide businesses with the necessary funds to cover day-to-day operational expenses. This type of loan is useful when you need to manage cash flow fluctuations, invest in inventory, hire staff, or handle other ongoing expenses that keep your business running smoothly.
Equipment financing helps businesses get the necessary equipment, like machinery, vehicles, technology, or other essential business equipment. Financing allows you to spread the cost of the equipment over time, making it more manageable for small businesses.
Interest Rates and Fees
You’ll notice that CAN Capital doesn’t list its interest rates publicly. However, they do charge a 3% origination fee on term loans. While the overall costs may be high, it’s not necessarily a dealbreaker, as many business owners expressed satisfaction with CAN Capital loans.
Regarding loan amounts, CAN Capital’s minimum limit is $2,500, while the maximum limit for term loans is $250,000. This loan amount might be enough for some businesses, but other lenders offer loans in the millions of dollars.
Funding Speed and Availability
Once CAN Capital approves your business loan application, you’ll be happy to know that the funds will enter your business bank account on the next business day.
This is great news if you need the money right away. Whether you want to seize new opportunities, cover urgent expenses, or purchase equipment, CAN Capital understands the importance of getting the loan proceeds to you as soon as possible.
CAN Capital’s terms are typically short-term, with a repayment period of up to two years. This means you’ll need to make frequent payments, possibly weekly or daily, which can impact your cash flow.
Repayment terms are longer for equipment loans – about 24 to 72 months. The longer payment schedules for equipment loans may offer more flexibility for small business owners.
When evaluating CAN Capital’s offerings, it’s essential to weigh the costs, loan amounts, and repayment terms against your specific business needs and financial situation.
Potential applicants should meet the following criteria to qualify for a loan from CAN Capital:
Minimum of 3 years in business.
A personal guarantee.
Personal Guarantor FICO score of 600 or higher.
Less than $175,000 in outstanding tax liens/judgments.
No open or dismissed personal or business bankruptcy (excluding discharge) within the last 24 months.
Pros and Cons
Here are some of the standout features of CAN Capital:
Positive Customer Reviews
One of CAN Capital’s strongest features is its outstanding customer reviews. They have an impressive rating of 4.9 out of 5 on Trustpilot, with over 90% of reviews rated great or excellent with positive reviews.
Borrowers frequently praise the speed and efficiency of CAN Capital’s services and the top-notch customer service they receive. Business owners constantly highlight how CAN Capital simplifies the process of getting small business loans.
Impressive Funding Speed
CAN Capital offers a commendable funding speed, providing timely access to funds. In most cases, you receive a loan decision within 24 hours. Once approved, they wire the funds into your business bank account on the next business day.
While there may be other faster available, CAN Capital’s 48-hour turnaround time for short-term loans and equipment financing is still noteworthy.
Flexibility with Credit Scores
CAN Capital stands out by being more inclusive when it comes to bad credit scores. Unlike other lenders that overlook borrowers with a credit score of 600 or lower, CAN Capital considers applicants with less-than-perfect credit.
This flexibility makes them a more accessible option compared to traditional banks and even some online lenders.
One significant drawback we found with CAN Capital is its lack of transparency regarding interest rates. It’s frustrating that they don’t provide this crucial information upfront.
While they’re not the only lenders that withhold interest rates, remember that interest rates play a significant role in determining the affordability of a loan. It can be challenging to make an informed decision without knowing the rates and avoid potential surprises.
Online lending companies like CAN Capital should prioritize transparency and openly disclose interest rates. Otherwise, potential applicants might waste time and effort applying for a loan they can’t afford.
Although CAN Capital has a relatively low minimum credit score requirement, there are concerns about its other loan prerequisites.
One issue is their business age requirement, stipulating that they only work with companies with an operating history of three years. This duration is higher than many alternative lenders, including some banks willing to work with businesses as young as two years old.
Consequently, this age requirement may exclude a significant number of business owners from qualifying for CAN Capital’s loans.
Another drawback of CAN Capital’s loan terms is their request for weekly or daily payments on short term loans. While it’s true that other lenders employ similar repayment schedules, it doesn’t make the situation any more favorable.
Daily or weekly payments can significantly impact your cash flow compared to the monthly payments most lenders ask for. CAN Capital’s short repayment terms, maxing out at two years for working capital business loans, mean that you’ll have to make frequent and relatively high payments within a short timeframe. This can put unnecessary strain on your small business budget.
Before committing to a full loan amount, carefully assess your financials and evaluate whether your business can comfortably manage the repayment schedule.
Is CAN Capital the Right Lender for You?
To sum it up, CAN Capital is a well-known small business lending company. They have a good business reputation and many happy customers.
CAN Capital has some strengths, like giving out money quickly, being flexible with credit scores, and providing great customer service. However, there are also things to think about, like their repayment terms, age requirements, and undisclosed interest rates.
Before deciding if CAN Capital is right for your business, carefully think about what you need and compare them with other loan options around. Understand the loan terms and see if they align with your business goals.
Overall, CAN Capital is a popular choice for small businesses looking for capital business loans. Just make sure to do your research to choose the best option for a business owner and you.
Frequently Asked Questions About CAN Capital
Is CAN Capital legit?
Yes, CAN Capital is a legitimate lending company. They’ve been operating in the alternative lending industry since 1998 and have established themselves as one of the prominent players in the field. CAN Capital has helped numerous businesses access funding and has earned a reputation for providing financial solutions to small businesses.
When considering a lending institution, conduct your own research and due diligence. However, rest assured that CAN Capital is a legitimate and well-established company in the lending industry.
What credit score do your need for working capital from CAN Capital?
CAN Capital requires a minimum credit score of 600.
Unlike traditional lenders who often require excellent credit, CAN Capital works with borrowers with poor credit. This inclusiveness in credit requirements makes them more accessible to a broader range of businesses, allowing those with low credit scores to get funding.
However, remember that applicants also need to meet other requirements to qualify for a loan.
Does a business loan affect personal credit?
No. CAN Capital conducts soft credit checks for their loan applications, so applying for a business loan with them shouldn’t affect your personal credit score. Soft credit checks don’t leave a footprint on your credit report and do not affect your personal credit score.
To be certain about the effect of a business loan on your credit rating, be sure to review the lender’s policies and understand their credit check practices.
Do you need good credit for a business loan?
The minimum credit score and requirements for a business loan can vary depending on the lender and loan type. While good credit can undoubtedly improve your chances of getting a loan with favorable terms, it’s not always guaranteed.