Capify UK: An Overview of Business Lending in the United Kingdom
Capify UK Limited, incorporated on December 6, 2018, operates from its headquarters in Altrincham, Greater Manchester, as a key player in the United Kingdom's alternative business finance sector. The company functions under the globally recognised "Capify" brand, which boasts a rich history dating back to AmeriMerchant's inception in 2002. Its entry into the UK market began in 2008 under the United Kapital moniker before consolidating its global identity as Capify in 2015. This lineage underscores its long-standing commitment to supporting small and medium-sized enterprises (SMEs).
At its core, Capify UK’s business model revolves around providing swift and accessible online direct lending solutions. It primarily targets UK SMEs that demonstrate a solid trading history of at least 12 months and maintain a minimum monthly turnover of £10,000. This broad eligibility encompasses limited companies, sole traders, and partnerships, making its services available to a significant portion of the UK business landscape often underserved by traditional banking institutions. The company's product suite includes unsecured small business loans, secured business loans, and merchant cash advances, each tailored to address distinct financing requirements.
The leadership structure of Capify UK is anchored by its founder, David Goldin, who serves as President and CEO, overseeing the Capify Group's global operations from the United States. Key UK-based executives, such as Sam Colclough, Head of Technology, and Jamie Stewart, Director of Strategic Initiatives, appointed in 2021, drive the company's local strategy and technological advancements. This blend of global vision and local expertise positions Capify UK to effectively meet the evolving financial needs of British businesses.
Detailed Lending Products, Rates, and Terms from Capify UK
Capify UK offers a diverse range of lending products designed to cater to various business needs, distinguishing itself through flexibility in both loan amounts and repayment options. Understanding the specific characteristics of each product, alongside their associated costs, is crucial for any potential borrower.
Unsecured Small Business Loan
This popular offering provides financing ranging from £5,000 up to £3,000,000, with repayment terms stretching from a brief 3 months to an extended 5 years. A key feature of these loans is the flexibility in repayment schedules, allowing businesses to choose between daily or weekly instalments, which can significantly aid cash flow management. While the underwriting process involves human assessment to ensure suitability, a personal guarantee from the majority owner is a standard requirement. This guarantee offers the lender an additional layer of security, reflecting the unsecured nature of the primary loan.
Secured Business Loan
For businesses requiring larger capital injections, Capify UK provides secured business loans from £75,000 to £3,000,000, also with terms up to 5 years. The defining characteristic of these loans is the requirement for collateral, specifically residential property. This security allows for higher loan amounts and potentially more favourable terms. Borrowers should anticipate potential additional costs such as origination, appraisal, and closing fees associated with the process of securing the loan against property.
Merchant Cash Advance
Targeted specifically at businesses that process card payments, the Merchant Cash Advance offers funding from £5,000 to £750,000. The innovative repayment mechanism for this product involves a fixed percentage of the business’s daily card turnover. This means that repayments naturally align with a business’s sales performance: during busier periods, more is repaid, and during quieter times, less is repaid, providing an inherent flexibility that can be particularly beneficial for businesses with seasonal or fluctuating revenues.
Pricing and Fees
When considering any Capify UK product, understanding the full cost is paramount. While a representative Annual Percentage Rate (APR) is provided upon application, typical secured and unsecured rates are often observed around 20% per annum. Beyond the interest, borrowers should be aware of several fees: a processing fee tied to the loan amount, an origination fee, and a fixed monthly service fee specifically for unsecured loans. Although exact late payment fees are not publicly disclosed, standard charges apply, as is common across the lending industry. Importantly, Capify UK distinguishes itself by imposing no fees for early settlement, offering businesses the freedom to repay their loan ahead of schedule without penalty.
Collateral Requirements
As noted, unsecured loans necessitate a personal guarantee from the majority owner. For secured loans, the accepted form of collateral is strictly residential property. These requirements are fundamental to Capify UK's risk assessment and lending criteria.
Application Process, Digital Operations, and Regulatory Landscape
Navigating the application process and understanding the operational framework of a lender is crucial. Capify UK streamlines its services through a predominantly digital approach, yet it's important to note its specific regulatory positioning within the UK financial services landscape.
Application Channels and Digital Presence
The primary method for applying for a Capify UK loan is online, directly through its responsive website. This digital-first strategy allows for efficiency and accessibility. However, it is important for potential borrowers to note that Capify UK does not offer a standalone mobile application for loan applications or account management. While its website is designed to be user-friendly across various devices, the absence of a dedicated app means all interactions, from initial inquiry to managing an existing facility, are channelled through the web portal. Customer support is primarily facilitated via telephone and web forms, offering direct lines of communication for queries and assistance.
Know Your Customer (KYC) and Onboarding
Capify UK employs a robust and thorough KYC process to ensure compliance and mitigate risks. This involves automated credit and identity checks conducted through established Credit Reference Agencies (CRAs). For corporate applicants, comprehensive director and shareholder checks are also performed. The company's anti-money laundering (AML) activities are supervised by the Financial Conduct Authority (FCA), ensuring adherence to strict regulatory standards. Beyond automated checks, Capify UK distinguishes its underwriting process through a human-led approach. This involves a detailed assessment of a business's turnover, trading history, card transaction data (particularly for Merchant Cash Advances), the specific purpose of the loan, and its overall payment history. This holistic human review aims to provide a more nuanced understanding of a business's financial health and its ability to repay.
Disbursement and Collections
Once a loan application is approved, Capify UK prioritises rapid funding, with funds typically disbursed via same-day bank transfer. This quick access to capital is often a significant draw for SMEs requiring urgent financing. Repayment mechanisms are straightforward: daily or weekly instalments are collected via direct debit for unsecured and secured loans. For Merchant Cash Advances, repayments are ingeniously structured as a sweep of a fixed percentage of daily card sales, directly linking repayment capacity to business performance. In instances where repayments encounter difficulties, Capify UK employs a structured recovery process, beginning with reminders and opportunities for renegotiation. If necessary, this can escalate to the enforcement of personal guarantees or, in the case of secured loans, the enforcement of secured property.
Regulatory Status and Consumer Protection
This aspect of Capify UK’s operation is critical for potential borrowers to fully grasp. Capify UK Limited (Company No. 11715963) and Capify Limited (Company No. 10183728) are both registered with the Financial Conduct Authority (FCA) for anti-money laundering supervision only, under reference numbers 955140 and 820601, respectively. Crucially, neither entity is an FCA-authorised lender. This distinction means that customers borrowing from Capify UK do not benefit from the protections offered by the Financial Services Compensation Scheme (FSCS) for potential compensation or the Financial Ombudsman Service (FOS) for dispute resolution. These statutory protections are typically available to customers of FCA-authorised firms in the United Kingdom. While Capify UK adheres to FCA AML/CTF requirements and periodic CRA reporting, the absence of full FCA authorisation for its lending activities is a significant factor. The company does, however, maintain transparency in fee disclosure, employs human decision-making, and provides dedicated account managers, alongside a respectable Trustpilot rating of 4.5 stars. Despite these internal safeguards, the lack of formal FOS and FSCS recourse remains a key consideration for potential borrowers.
Capify UK's Market Standing, Competition, and Customer Feedback
To fully appreciate Capify UK's role in the lending landscape, it is essential to examine its competitive environment, market positioning, and the experiences of its customers.
Competitive Landscape
Capify UK operates within a highly dynamic and competitive market, vying for business from SMEs alongside a diverse range of financial providers. Its competitors include traditional high-street banks such as Barclays and HSBC, which often offer lower rates but typically have more stringent lending criteria and slower approval processes. It also competes with a new generation of challenger lenders like iwoca and MarketFinance, which share Capify UK's focus on speed and digital delivery but may differentiate on product specifics or target niches. Additionally, peer-to-peer (P2P) platforms, such as Funding Circle, represent another alternative, offering crowd-funded loans with different risk assessments. Capify UK distinguishes itself through several key differentiators: its flexible daily or weekly repayment options, its willingness to consider a broader spectrum of credit profiles, its promise of quick funding (often within 24 hours), and its emphasis on personalised customer support through dedicated account managers. These factors collectively aim to provide a more accessible and tailored lending experience than many of its rivals.
Market Share and Growth
The Capify Group, of which Capify UK is a part, has demonstrated significant growth and attracted substantial institutional funding. In 2019, the group secured a £75 million facility from Goldman Sachs, followed by a £100 million facility from Pollen Street in 2021. These significant investments underscore investor confidence in its business model and growth trajectory. While the UK entity's specific turnover remains under £1 million, the Group has funded over £1 billion globally. Furthermore, February 2025 reportedly marked a record UK deal count for Capify under its "Capify 3.0" growth initiative, indicating continued expansion and increasing market penetration within the United Kingdom. The company also fosters partnerships with broker networks and referral agreements with SME advisors to extend its reach.
Customer Experience and Reviews
Customer feedback offers invaluable insights into a company's operational performance and service quality. On Trustpilot, Capify UK holds a commendable rating of 4.5 stars based on 631 reviews, indicating a generally positive sentiment among its borrowers. The company actively engages with feedback, having replied to 42% of its negative reviews, demonstrating a commitment to addressing customer concerns. Common complaints, however, highlight areas for improvement, particularly regarding fee transparency, customer service wait times, and occasional onboarding delays. Despite these points, positive testimonials often praise the speed of funding and the helpfulness of account managers. Case studies illustrate Capify UK's impact, such as a small retail chain accessing a £250,000 unsecured loan within 48 hours for expansion, and a café franchise utilising a merchant cash advance to stabilise seasonal cash flow by repaying only during peak sales days. These examples underscore the practical benefits and flexibility Capify UK offers to diverse businesses.
Essential Advice for Businesses Considering Capify UK Loans
For any UK business contemplating a loan from Capify UK, a thorough understanding of their unique offering and careful consideration of several key factors are paramount. As a financial expert, I offer the following practical advice:
First and foremost, it is absolutely vital to comprehend Capify UK's regulatory status. As highlighted, while Capify UK is supervised by the FCA for anti-money laundering purposes, it is not an FCA-authorised lender for its lending activities. This crucial distinction means that, unlike loans from FCA-authorised banks or lenders, your business will not have access to the Financial Ombudsman Service (FOS) for dispute resolution or the Financial Services Compensation Scheme (FSCS) for protection if the firm were to fail. This places a greater onus on the borrower to conduct meticulous due diligence.
Secondly, meticulously review all interest rates, fees, and terms before committing. While Capify UK states there are no early repayment fees, ensure you understand the representative APR, processing fees, origination fees, and any fixed monthly service charges specific to your loan type. Request a clear, comprehensive breakdown of all costs involved. Given that typical secured and unsecured rates are around 20% per annum, compare this against alternatives, particularly if you have strong credit and could qualify for a lower rate from an FCA-authorised lender.
Thirdly, carefully consider the implications of the repayment structure. Daily or weekly repayments, while offering flexibility tied to cash flow, also demand consistent management. Ensure your business's cash flow can comfortably accommodate these frequent deductions without straining operations. For Merchant Cash Advances, while repayments are linked to card turnover, understand the fixed percentage and how it might impact your daily sales revenue, especially during slower trading periods.
Fourthly, if opting for an unsecured loan, fully grasp the weight of the personal guarantee requirement. This means your personal assets could be at risk if your business defaults on the loan. For secured loans, understand the valuation process for your residential property collateral and the legal ramifications should you be unable to meet your obligations.
Finally, look beyond the speed of funding. While Capify UK is lauded for its quick disbursement, this advantage should be weighed against the overall cost and the level of consumer protection. Read recent customer reviews on platforms like Trustpilot, paying close attention to recurring complaints about fee transparency or customer service. Do not hesitate to ask detailed questions about any aspect of the loan agreement or process. Explore a range of financing options available in the UK market, including those from FCA-authorised lenders, to ensure Capify UK represents the best fit for your specific business needs and risk appetite, especially given the lack of FOS/FSCS protection.
