Capify to provide SME alternative financing platform across UK, US, Australia, Canada

The creation of Capify comes at a time of significant growth in the UK alternative financing sector. According to research by Nesta and the University of Cambridge, the alternative finance market in the UK grew by 161% from 2013 to 2014, with the market estimated to be worth GBP 1.74 billion in 2014. This marries with the growth of the UK client base for Capify, which now totals just over 5,000 fundings to companies, who have received approximately GBP 75 million in financing. The international group has provided over GBP 320 million to businesses and more than 24,000 fundings in all four countries, across 550 different industries ranging from retail, bars, restaurants and health services to manufacturer, distributors, ecommerce companies and service businesses. The industry in the UK alone is expected to be worth around GBP 4.4 billion in 2015.

Following the announcement, Capify will serve as the international brand for a conglomerate of alternative financing solutions. This includes merchant cash advance and business loans and other working capital products to small and medium-sized businesses. Existing customers of United Kapital and Capiota will see no change in their existing financing deals.

Capify’s merchant cash advance service works by providing capital to businesses that derive the majority of their income via credit card and debit card sales, which acts as an alternative to traditional business loans. It works by a business selling a share of future credit card and debit card sales for a merchant cash advance (between GBP 3,500 and GBP 500,000). Repayments are made on an agreed fixed percentage of each credit or debit card transaction the business makes.

Capify also provides business loans (between GBP 3,500 and GBP 500,000), but allows SMEs to repay loans daily in small increments, rather than facing large weekly or monthly repayments.

Capify (formerly United Kapital, Capiota, AmeriMerchant, AUSvance and True North Capital) is a global alternative financing company that leverages a proprietary underwriting platform to provide working capital solutions to small and medium-sized businesses in the UK, US, Australia and Canada, including merchant cash advances, business loans and inventory purchase programs.