Capify Business Loans Review 2026: Interest Rates, Fees, Eligibility & Alternatives

Fast funding always comes at a price. Capify's name comes up a lot when UK business owners search for quick finance, and for good reason: it moves fast. A bank might take weeks to say yes or no. Capify often decides the same day. But before you sign anything, you need to know what "fast" actually costs, because speed is rarely free.

This guide goes over how Capify business loans work, what they cost once every fee is sort of totaled, who qualifies, what paperwork you’ll need, and how Capify compares to iwoca and the banks. By the end, you should know if it’s the right match for your business or just a quick pass that’s maybe worth thinking twice about.

What Is Capify?

Capify is a UK alternative lender. It funds small and medium businesses that need cash quickly and don't want to wait weeks for a bank to decide. No long forms. No months of back and forth. Capify loans are built for speed: fast decisions, daily or weekly repayments, and money that can land in your account within a day or two.

It doesn't try to be a bank. It's a lender for businesses that need money now, and it's happy to look past a patchy credit history if the numbers otherwise stack up. That flexibility is the whole appeal, and it's also why the rates sit higher than what a bank would charge.

The Three Ways Capify Can Fund You

Capify runs three products, and each one suits a different situation.

1. Unsecured loans. No collateral required. Borrow £5,000 to £1,000,000 over 3 to 12 months, sometimes up to 5 years for larger amounts. Repayments come out daily or weekly, so this suits businesses with steady day-to-day income, like shops or hospitality.

2. Secured loans. Own a residential property? You can borrow £75,000 to £1,000,000 against it. Lower risk for Capify usually means a lower rate for you. The trade-off is time. Property valuations and legal charges take weeks, not days.

3. Merchant cash advances. If your business takes at least £20,000 a month in card sales, Capify can advance you a lump sum, repaid as a slice of future card takings. Quiet month, smaller repayment. Busy month, bigger one. This works well for cafes, salons, and shops where card sales are the main source of income.

Whichever route you pick, the underlying idea is the same. Capify wants to lend against cash flow it can see, not just a credit score on paper.

What Will It Actually Cost?

Capify doesn't quote a simple APR like a bank. It uses a factor rate instead, which makes the true cost harder to see at a glance. This matters most when checking Capify loans interest rates against other lenders, since headline figures rarely tell the full story.

Unsecured rates start from around 10.99% a year, but the representative APR (which includes how the factor rate compounds) typically lands between 47.9% and 67.89%. Secured loans are cheaper. Capify has quoted £300,000 secured at a fixed 7% over 12 months.

On top of interest, Capify loan fees explained simply come down to three charges: a one-off processing fee, an origination fee of up to 6%, and a monthly service fee.

Loan Amount	Processing Fee	Origination Fee	Monthly Service Fee
Up to £9,999	£249	Up to 6%	£24.90
£10,000 – £19,999	£349	Up to 6%	£24.90
£20,000 – £49,999	£449	Up to 6%	£24.90
£50,000 – £74,999	£549	Up to 6%	£24.90
£75,000 – £99,999	£649	Up to 6%	£24.90
£100,000+	£749	Up to 6%	£24.90

Figures are indicative and vary by product. Confirm exact fees before signing.

For a £20,000 loan, that's £449 upfront, up to £1,200 in origination fees, and £24.90 a month for the term. Over a 12-month loan, the service fee alone adds nearly £300. It adds up quickly, so get the full schedule in writing before you accept an offer, not after.

One bright spot: Capify early repayment carries no penalty. Clear the balance early and you won't pay extra for it, though with a factor-rate loan the interest saving may be smaller than you'd expect.

Do You Qualify?

Capify small business loans are open to UK limited companies, LLPs, partnerships, and sole traders who've been trading for at least 12 months. Unsecured loans need monthly turnover of £10,000 or more. Merchant cash advances need £20,000 a month in card sales. Secured loans need a residential property and limited company or LLP status.

Applications get a human look rather than pure automated scoring, and Capify says it considers all credit profiles. That's genuinely useful if a bank has already turned you down. You'll still need to give a personal guarantee as the majority owner, so you're on the hook if the business can't repay.

As for documents needed for Capify business loan approval, keep it simple: proof of ID, twelve months of bank statements, basic company details, and a short call with an underwriter to confirm everything checks out.

Getting the Money

Wondering how to apply for a Capify loan? The Capify loan application process runs in six steps: apply online, pass a soft credit check that won't dent your score, submit bank statements and ID, speak with an underwriter, receive your offer with rates and fees spelled out, then accept and get funded.

Capify loan approval time is quick for unsecured lending, often same-day, with money landing within 24 hours. Secured loans take longer, usually several weeks, because of the property valuation and legal work involved. If you're in a genuine cash flow crunch, that gap between the two is worth planning around.

How You'll Pay It Back

Most Capify loans use Capify daily repayment loans structures, taking small amounts daily or weekly straight from your account rather than one big monthly debit. If your income is steady, this can feel gentler. If it's seasonal or unpredictable, frequent withdrawals can catch you out during slow patches.

It's also worth understanding Capify merchant cash advance vs business loan differences before choosing. A loan is fixed: same repayment regardless of trade. An advance flexes with your card sales, so it eases off when business is quiet. Neither is automatically better. It depends on whether you'd rather have certainty or flexibility.

Is Capify Legit?

Yes. Capify has operated in the UK for over a decade and funded thousands of small businesses. It's a real, established lender, registered and regulated like any other. The concern isn't legitimacy, it's cost. Before applying, check independent Capify loans reviews and current Trustpilot scores, since experiences can vary by product and by how quickly a case moves through underwriting.

How Capify Stacks Up Against iwoca

Feature	Capify	iwoca
Loan amount	£5,000 – £1,000,000	£1,000 – £1,000,000
Rate structure	Factor rate; APR often 47.9%–67.89%	From around 1.5% monthly, varies
Repayments	Daily or weekly	Monthly, flexible overpayments
Early repayment fees	None	None
Decision speed	Often same day	Often within 24 hours

Rates vary by applicant. Always check your own quote.

Any Capify vs iwoca comparison comes down to structure. iwoca's Flexi-Loan lets you draw only what you need and pay interest on that alone, often cheaper if you don't need the full amount upfront. Capify suits businesses with strong daily takings who want speed and don't mind paying for it.

Capify Compared to Your Bank

Is Capify a good alternative to banks for business loans? For many, yes, especially if you can't meet strict bank criteria or need cash urgently. A Capify vs traditional bank loan comparison usually favours the bank on price. Banks offer lower rates but move slower and demand more paperwork and a longer trading history. Capify trades cost for speed, and for some businesses that trade is worth making.

Where Capify Wins, and Where It Doesn't

Like any lender, Capify business loans come with real strengths and real trade-offs. Weighing them properly before you apply can save you money later.

Pros

• Same-day decisions and fast funding for unsecured loans

• No early repayment fees

• Flexible with credit history

• Three product types to suit different needs

Cons

• High APRs versus banks and some fintech lenders

• Processing, origination, and monthly fees stack up

• Daily or weekly repayments can strain uneven cash flow

• Personal guarantee puts your own finances at risk

Other Options Worth Checking

• Iwoca – flexible drawdown, interest from around 1.5% monthly

• Funding Circle – fixed rates from roughly 6.9% APR, no service fees

• Your bank – usually cheapest if you qualify, but slower

• Growth Guarantee Scheme – government-backed, for eligible businesses

• Merchant cash advance from another provider – worth comparing if card sales are your main income

Final Verdict

Capify makes sense when speed matters more than price, a cash flow gap, a stock order, an urgent repair. Go in knowing you're paying a premium for that convenience. For bigger or longer-term borrowing, compare the total cost elsewhere first, since fees and interest together often outpace the headline rate.

There's no universal right answer here. A business with strong daily card sales and an urgent need might find Capify pays for itself many times over. A business with time to shop around will likely find cheaper finance elsewhere. Get the offer in writing, run your own numbers, and check the repayment schedule actually fits your cash flow before you sign.