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Understanding Business Capital

Starting a small business can be an overwhelming experience. There are many things to consider at the start of a new venture, one of which is how you are going to finance your new business and all of the associated costs. Finding the right business capital lender should be on the top of your to do list.

So what is business capital?

There are two main sources of capital that a small business can draw on; debt and equity.


Debt can be anywhere from a business loan to a credit card that your company can obtain by securing your assets. As your company grows and money starts to come in you can pay off your loan with cash flow. Interest rates are likely to be higher with a debt loan as there is more risk for the lender if a business fails.


Equity is when your company brings on investors in return for an amount of ownership. This is negotiated based on the funds invested and the expected value of your business. Unlike a debt loan, investors will try their best to obtain the largest share of your business for the least amount. Some investors will also want to be involved in the decision making process which can slow the launch of your start up.

How much capital do I need?  

The amount of business capital you will need is determined by the lenders finance lending criteria and factors relating specifically to your company such as store fit out, website and ecommerce build, staff salary requirements and stock levels required to trade. This will vary from business to business, so the best way to calculate how much capital you will need is to sit down and work out a realistic 12 month plan for your business.
Financially, what it will take to keep your business afloat for this period of time? Keep in mind that there are always unforeseen expenses so a good tip is to add a 10% contingency buffer to your total.

How do I acquire a capital loan

With Capify, acquiring a business capital loan is a stress-free process. After your application is received, your loan is generally approved the very same day, with much less paperwork than your usual bank loans. Once approved, you will have access to the funds within 24 hours.
Capify work with small businesses to provide tailored repayment schedules to suit your individual business needs. For Seasonal business, Capify offer a ‘flex’ repayment option, where your repayments are flexible based on your cash flow.
Offering business capital loans from $5,000 – $250,000 your business will have the very best start!
To learn more about Capify Business Capital Loans or our other products including Unsecured Small Business Loans contact us and speak with one of our specialists today.


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  • Trade and labour services
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  • Automotive and Car Services
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