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Home » Featured » The Difference between a Capify Flex Loan or Business Loan, choose the right loan for your Business?

viable financing options | Capify
  • Featured, Money & Finance

The Difference between a Capify Flex Loan or Business Loan, choose the right loan for your Business?

  • March 14, 2023

Our Capify Flex Loan is a short-term business funding option that provides flexibility and fast loan approvals. This loan option is designed to help small and medium-sized businesses get the capital they need quickly and easily. Capify Flex Loan provides a flexible and convenient way for small and medium-sized businesses to get the capital they need to grow and succeed. 

As a business owner, you may find yourself in need of funding to grow your business, invest in new equipment, or cover unexpected expenses. But with so many loan options available, it can be difficult to know which one is right for you. Capify offers two unsecured business loan catered for SME businesses the Capify Flex Loan and the Capify Business Loan. 

In this article, we’ll discuss the differences between these two products and help you choose the right loan for your business needs.

1. What is the Capify Flex Loan?

Our Capify Flex Loan is a financing solution that aims to provide fast and flexible funding to small and medium-sized businesses that may have difficulty accessing traditional finance options. Unlike traditional lenders, Capify understands the challenges faced by small business owners in securing funding, and therefore designed the Flex Loan to provide a quick and easy financing option.

The Flex Loan is particularly well-suited for businesses in industries that face challenges in accessing finance from traditional financial institutions. For example, businesses in the construction industry may face difficulties securing loans due to their often-unpredictable revenue stream. The Flex Loan addresses this issue by providing a simple and convenient financing option that allows these businesses to access the funds they need to grow and thrive..

The loan amount offered by the Capify Flex Loan ranges from $5,000 to $100,000, making it a viable option for businesses of different sizes and needs. Additionally, the loan term can be as short as three months, but can be extended up to five months, providing flexibility to business owners who need to manage their cash flow.

The application process for the Capify Flex Loan is quick and straightforward, with approvals usually provided within 24 hours of application submission. This means that businesses can receive funding quickly and without the lengthy application processes required by traditional lenders.

The Capify Flex Loan is an excellent option for small and medium-sized businesses that need quick and flexible financing options. 

Its simple application process, quick approval times, and flexibility in loan amount and term make it a go-to option for businesses that face challenges in securing finance from traditional lenders.

2. What is the difference between the Capify Business Loan?

While both the Capify Business Loan and the Capify Flex Loan are financing solutions offered by Capify Australia, they differ in several key aspects.

The Capify Business Loan is a more traditional business loan product with longer terms and higher borrowing capacity. In contrast, the Capify Flex Loan is a short-term, interim solution style loan for businesses requiring a quick cash injection, and small amounts to suit their cash flow needs.

The loan amount offered by the Capify Business Loan is higher than that of the Flex Loan, with businesses able to borrow up to $300,000 compared to a maximum of $100,000 with the Flex Loan. The loan term for the Business Loan is also longer, with businesses able to borrow for up to 12 months, compared to a maximum of 5 months with the Flex Loan.

The Capify Flex Loan is designed for businesses that require quick and easy access to short-term funding, whereas the Capify Small Business Loan is better suited for businesses that require a more traditional lending product for longer-term investments as well as short term expenses.

The Flex Loan is ideal for businesses with high turnover or those that need to cover unexpected expenses, while the Business Loan is suited to businesses that require financing for larger investments, such as purchasing new equipment or expanding operations.

The Capify Business Loan and the Capify Flex Loan are both viable financing options for small and medium-sized businesses, but differ in terms of loan amount, repayment terms, and the type of businesses they are best suited for. 

It’s essential to carefully evaluate your business’s objectives as well as speak to our specialist who will be able to assist with funding options suitable to your needs

Difference between a Capify Flex Loan or Business Loan, choose the right loan for your Business?

3. Key features of the Capify Flex Loan & Capify Business Loan

Key features of the Capify Flex Loan:

  1. The minimum time trading for business is 6 months.
  2. The loan amount will be between $5,000 and $100,000 with a term of up to 5 months.
  3. Flexible repayment options to suit your customers’ needs.
  4. A credit score doesn’t matter – at Capify, we understand that a credit score is just a number, and we work with all credit scores.
  5. Credit files with adverse listings may be accepted.

Key features of the Capify Business Loan:

  1. The loan amount will be between $5,000 and $300,000 with a term of up to 12 months.
  2. Fixed interest rates and fixed repayment terms.
  3. Credit score will be taken into account when assessing your loan application.
  4. Businesses with tax liabilities may not be accepted.

Let’s take a closer look at some of the key features of the Capify Flex Loan and the Capify Business Loan, as well as some additional factors to consider when choosing the right loan for your business.

Flexibility and Higher Approval Rate

One of the key features of the Capify Flex Loan is its flexibility. Unlike traditional business loans, the Flex Loan may offer a higher rate of application approval due to the type of loan it is. Less financial documentation is required, and less strict criteria. For example, if you need a quick cash injection for unpaid expenses or supplies for your business. This flexibility can be particularly useful for businesses with uneven cash flow, as it allows you to gain access to funding quickly without all the red tape.

The Capify Business Loan, on the other hand, also provides flexibility but requires some level of financial assessment. Though the Capify offers unsecured finance for small business with the same 24hr approval process, the criteria for this loan have additional policy restrictions depending on the loan amount and the individual’s application assessment. However, the Capify Business Loan is a great option in comparison to traditional lending as it provides the same seamless application process.

Loan Amount and Term

Another key difference between the two loan products is the loan amount and term. The Capify Flex Loan offers a loan amount between $5,000 and $100,000 with a term of up to 5 months. This makes it a good option for smaller businesses or those with short-term funding needs.

The Capify quick business funding, on the other hand, offers a higher loan amount of up to $300,000 and a longer term of up to 12 months. This makes it a good option for businesses with larger funding needs or those that require a longer repayment period.

Credit Score and Tax Liabilities

Another factor to consider when choosing between the two loan products is your credit score and any tax liabilities your business may have. With the Capify Flex Loan, your credit score doesn’t matter, as Capify works with businesses of all credit scores. 

With the Capify Business Loan, your business credit score will be taken into account when assessing your loan application. Additionally, businesses with tax liabilities may not be accepted.

Application Process and Funding Speed

Both loan products offer a streamlined application process, with quick funding available in as little as 24 hours. The application process for both loan products can be completed online, and you’ll need to provide basic information about your business, including your revenue and how you plan to use the funds.

Conclusion

Choosing the right loan product for your business is an important decision, and there are many factors to consider. The Capify Flex Loan offers flexibility and no credit score requirements, making it a good option for smaller businesses or those with short-term funding needs. The Capify Business Loan, on the other hand, offers a higher loan amount and longer repayment period, making it a good option for larger businesses or those with longer-term funding needs.

Ultimately, the best way to determine which loan product is right for your business is to speak with a Capify representative. Our team can review your application and help you determine which loan product is best suited to your unique needs and circumstances.

Considering finance but unsure where to start? Give our team a call on 1300 760 930 or click Get Started. We’re here to talk through your needs and help you access funds in as little as 24 hours.

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