CAN Capital specializes in offering small business and working capital loans.
As an entrepreneur, solopreneur, or small business owner you may have noticed it can be difficult to obtain funding through traditional banks.
This is because smaller business endeavors are associated with higher risk margins for the lender.
But with the explosive growth of entrepreneurship following the Great Recession, there has been an increase in the number of lenders who are working exclusively in this market.
CAN Capital Reviews – An Impressive History
When choosing a lending institution, it is important to find one that has a solid reputation and is well known in the industry.
CAN Capital has been in business for nearly two decades and has helped nearly 200,000 businesses during that time.
Incorporated in April of 1998, in Delaware, their headquarters are now located in Kennesaw, Georgia and since then they’ve provided more than $6 billion in working capital to more than 175,000 small business owners.
A Mixed Reputation
While the scores from the BBB and Trust Pilot are high, there were many complaints about customer service experiences which may be due to poor organization and internal communication structures.
CAN Capital Review: Eligibility & Application Process
One of the benefits of owning your own business is the ability to live anywhere you want.
In many cases, these small businesses are located in rural areas without direct access to a large number of lenders.
Fortunately, the digital age provides tremendous access to lending institutions throughout the country.
If the online application process is done right, it can be quick and easy for small business owners to obtain the funding they need.
The application process for CAN Capital loans begins by filling out the application on their website which includes providing personal and business information, plus what the loan will be used for.
After filling out the application, the system will automatically provide an estimated interest rate and the phone number for customer service.
Borrowers who wish to continue the application process will need to provide documentation of course, including:
- the borrower’s social security number or tax ID
- previous three months of credit card or bank statements
- a voided business check
- a copy of the owner’s driver’s license
- and the previous year’s business tax return.
Customer service representatives will help determine the loan product which best fits your business needs and will then send information to the underwriting department.
The underwriting department will look for red flags like overdraft fees, inaccurate estimates of annual sales, or inflated revenue.
Once the underwriting department verifies all documentation, a loan offer will be made.
Upon acceptance of the loan terms, loan funds are automatically deposited into the business checking account.
The entire process usually takes about 48 hours for short term loans and up to 30 days for term loans.
How to Qualify for CAN Capital Loans
CAN Capital requirements vary depending on the type of loan, whether it be a term loan, an installment loan, or a TrakLoan.
For example, borrowers must have been in business for a minimum of 4 months with a credit score of at least 550 and monthly revenue of $4,500 for short-term financing.
On the other hand, you’ll need to produce a business history of 7 years, a minimum credit score of 680, and an annual revenue of $350,000 for a term loan.
However, CAN Capital won’t usually issue loans resulting in repayments that exceed 10% of the gross annual business revenue, but for businesses with high margins, they may make an exception.
Specifically, this online lender offers three small business financing products to choose from: Term Loans, TrakLoans, and Installment Loans.
Term Loans from CAN Capital
CAN Capital’s term loan offers borrowers low daily payments at a fixed rate that are automatically withdrawn and will not change over time.
Funding is available for loan amounts between $2,500 and $150,000 for this product with funds available within days and a term period of between 3 and 36 months.
Term loans have an established maturity date and there is actually a discount for pre-payment.
They do not require personal collateral for term loans, but the performance of the business and average cash flow is looked at.
TrakLoans from CAN Capital
The TrakLoan from CAN Capital offers borrower’s flexible daily payments that are automatically withdrawn daily which is similar to a merchant cash advance from other lenders.
Daily payments are automatically calculated and withdrawn based on a percentage of the daily revenue of the business.
CAN Capital offers funding between $2,500 and $150,000 for this product with funds available within days.
Installment Loans from CAN Capital
The Installment Loan from CAN Capital offers borrower’s a fixed monthly payment structure with fixed terms and interest rates which range between 12.9% and 24.9%.
Funding is available for loans in the amount of between $50,000 and $100,000 for this product per location, funds are available within days, and fixed monthly payments are automatically withdrawn from your business checking account.
Is CAN Capital Right for Your Business?
With 3 different loan products to choose from, CAN Capital loans can be used for virtually any part of a business, including operating expenses such as taxes, payroll, staffing, inventory, or technology upgrades.
They have an established presence in the alternative lending industry, and despite some customer service issues have an overall positive reputation helping borrowers determine which is the best fit for their business.
Interest rates are higher than with traditional lender loan products such as a bank lines of credit, traditional bank loans, or SBA loans, but they are very convenient and often easier to qualify for.
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You can devote time researching different terms, interest rates, and the pros and cons of different lenders and financing options yourself.
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