CAN Capital began operating in 1998. Ever since, they've been helping small businesses get the working capital they need to move forward. They work to continually improve the financial services they offer to merchants in a wide variety of industries.
CAN Capital lends to small businesses in all 50 states. The company has provided over $6.5 billion in working capital to more than 185,000 small businesses. They operate out of three offices - New York City, Kennesaw, Georgia, and San Jose, Costa Rica.
The company provides both small business term loans and merchant cash advances. They use innovative and proprietary risk models, combined with daily performance data, to evaluate business performance and enable merchants to access capital quickly and efficiently.
CAN Capital makes small business term loans available to businesses through WebBank, an FDIC member bank chartered in 1997, and based in Salt Lake City, Utah. WebBank works with many different online lenders, including Lending Club, and other peer-to-peer lenders.
Merchant cash advances are made through CAN Capital's subsidiary, CAN Capital Merchant Services, Inc.
AdvanceMe Merchant Portal. This is CAN Capital's merchant destination site. It is available exclusively for Merchant Cash Advance customers, and not small business term loan customers. MCA customers can manage their loans through the portal.
Small business term loan customers can contact customer service, at (888)700-8181.
CAN Capital has the following ratings from third-party business rating services:
To qualify for a small business term loan through CAN Capital you must meet the following requirements:
The CAN Capital small business term loan application process can be completed through a broker, like Cardiff Bank. Same-day approvals are possible, as long as all required documentation is provided immediately. No collateral is required, and you can get funds for any purpose.
In order to make application, you need to provide the following documentation:
Personal guarantees are required from all owners on the loan application.
No application fee is required, nor does the company charge a document fee. The 3% origination fee will be automatically deducted from your business bank account the day after funding.
CAN Capital Underwriting Considerations. While there are consistencies among business lenders, each have their own specific approach. CAN Capital differs from some business lenders in that they don't do the underwriting on the front end. Instead, they do a preliminary review, and make a loan offer based on their findings. This will include a review of FICO scores, gross sales based on the previous year's tax return, and the industry type. From there, they use an internal tier system and calculator to determine the rate, amount and term that the merchant qualifies for.
If the merchant decides to accept the offer, they can sign the loan documents and move the process forward. A full underwriting will be done after the signed documents are received. At that point, CAN Capital will review business bank statements, obtain references from landlords or mortgage lenders, verify the existence of any outstanding loans that will need to be repaid, and verify the ownership of the business.
This does lead to a higher incidence of loan declines later in the process, than is typically the case for other lenders.
CAN Capital small business term loans are offered under the following terms:
Loan purpose. Loans must be business related. Merchant must net at least 70% of the loan proceeds, with the balance available for pay off of competitor loan balances. Will pay off up to two competitor balances. Tax liens and judgments cannot exceed $175,000.
Loan proceeds may be used for any of the following purposes:
Industries funded. Most industries are eligible for financing. Preferred industries include healthcare, dentists, veterinarians, restaurants, hotels, amusement and recreation, and printing and publishing.
Additional industries funded include:
Cautionary Industries. None. CAN Capital will consider any industry that meets their credit policy guidelines.
Buy rates. 1.15 to 1.49 - If you borrow $100,000, and the buy rate is 1.30, you'll be required to repay $130,000 ($100,000 X 1.30). That does not include the origination fee.
Origination and document fees. 3% origination on small business term loans. The fee is automatically deducted from your business bank account the day after funding. (There is a $395 Administration fee on merchant cash advances - see Merchant Cash Advance section below.)
Loan term. Six to 18 months.
Collateral required. None, but personal guarantee(s) are required from business owner(s).
Repayment frequency. Payments are made automatically each weekday. The predetermined amount is debited from the business bank account. Repayment uses simple automated ACH deductions from the business checking account.
Stacking. CAN Capital must be the first position lender. They will pay off up to two competitor loans, but must not be greater than 30% of the funded amount.
Loan Renewal Policy. CAN Capital will consider a renewal as soon as at least 50% of the original loan balance has been paid. They will also pay off stacks. A CAN Capital renewal specialist will contact you when you become eligible for renewal review.
There is also a prepayment discount available, after the first 90 days of the loan term. CAN Capital does not indicate the amount of the discount, which may be determined on a case-by-case basis.
Interest forgiveness. Not available.
Exceptions. CAN Capital will consider the following exceptions:
We've identified seven types of merchants for whom CAN Capital can be a preferred loan source:
In addition to small business term loans, CAN Capital also provides merchant cash advances. The cash advances are provided under the following terms:
Merchant Cash Advance amount. $2,500 minimum, to a maximum of $150,000 per location.
Collateral required. No assets are required, but the loan is secured by a lien on a portion of future payment card sales. A personal guarantee is also required from the applicant owners of the business.
Merchant Cash Advance term. No set term, maturity date or fixed or minimum payment amounts. This is due to the unpredictable nature of future merchant sales.
Loan Purpose. As is the case with small business term loans, proceeds may be used for just about any purpose. See the term loan section for specific purposes.
Industries funded. Same as for small business term loans.
Merchant Cash Advance Qualification. The requirements are similar to what they are for a small business term loan.
Merchant Cash Advance fees. A $395 Administration fee, but no origination fee or application fee.
Merchant Cash Advance repayment frequency. Automatic daily payments based on a percentage of gross sales. This means that daily payments will vary, based on the amount of sales for that day. Repayment uses simple automated ACH deductions from the business checking account.
Merchant Cash Advance Renewal Policy. The same as with small business term loans.
Merchant Cash Advances are best for: Merchants who might have difficulty managing a fixed monthly payment. Since MCAs are based a fixed percentage of gross sales, and collected daily, the payments will rise and fall based on sales levels. This method of repayment also eliminates the cash flow problems caused by the need for large monthly payments on more traditional loan types.
About Kevin MercadanteSince 2009, Kevin Mercadante has been sharing his journey from a washed-up mortgage loan officer emerging from the Financial Meltdown as a contract/self-employed “slash worker” – accountant/blogger/freelance blog writer – on Out of Your Rut.com. He offers career strategies, from dealing with under-employment to transitioning into self-employment, and provides “Alt-retirement strategies” for the vast majority who won’t retire to the beach as millionaires. He also frequently discusses the big-picture trends that are putting the squeeze on the bottom 90%, offering work-arounds and expense cutting tips to help readers carve out more money to save in their budgets – a.k.a., breaking the “savings barrier” and transitioning from debtor to saver. He’s a regular contributor/staff writer for as many as a dozen financial blogs and websites."