Small Business Lender Review - Spotcap
Spotcap is an innovative online lender for small and medium-sized businesses.
They offer a line of credit business loan of between $10,000 and $250,000, with repayment schedules of up to 2 years, and the possibility of funding within just 24 hours.
They work with established business that have been trading for at least 18 months and have a minimum annual turnover of $200,000.
- Hybrid business loan / line of credit product
- Initial draw down period of 1 – 3 months, during which you can draw, repay and redraw funds up to your credit agreed limit
- Possibility to renew the facility at the end of each draw down period
- $10,000 and $250,000 unsecured loans
- Fast application – facility could be approved within 24 hours
- No penalty for early repayment after the first month
- Pay interest only on the amount you draw down
|Name||Spot On Business Loan|
|Min Loan Amount||$10,000|
|Max. Loan Amount||$250,000|
|Minimum Loan Term||1 month|
|Maximum Loan Term||24 months|
|Interest type||Only on balance drawn down|
|Repayments||Weekly, fortnightly or monthly|
|Minimum turnover||$200,000 per annum|
|Minimum trading period||18 months|
There are no charges for setting up a Spot On line of credit, so it could be a useful option if you want the security of having funds at hand but don’t want to pay for a facility you may not need.
You can draw down between $500 and your credit limit. Each sum you draw down will be treated as a separate business loan which you’ll repay in instalments over 6 – 24 months.
Each time you access funds from your loan account you’ll pay a draw down fee (a percentage of your credit limit). You’ll also pay interest at a rate based on the perceived risk level – but only on the outstanding loan balance, not on the full credit limit.
After the first month you can repay your loan early without penalty.
How to apply
Spotcap has a fast, online application process which can take just a few minutes. You’ll need to provide basic information about your business, and then either upload your financial reports or connect your accounting software and online bank account to Spotcap’s systems.
They will use their unique credit assessment algorithm to evaluate your data and decide if, and how much, much you are able to borrow.
Spotcap will evaluate your business loan application within 24 hours. If approved you can begin drawing funds from your line of credit right away. When you want to draw down funds, Spotcap will immediately initiate a funds transfer so the cash could be in your account by the next working day, depending on your bank.
How Does Spotcap Compare?
|Lender||Product||Term||Loan Range||Interest Type||Fees||Security||Repayments|
|Spot On Business Loan||1 – 24 Months||$10k – $250k||Percentage, but only on balance drawn||Drawn on fee (% of credit limit)||Unsecured||Weekly, fortnightly or monthly|
|Prospa Business Loan||3 – 24 Months||$5k – $300k||Simple interest rate||Establishment fee||No asset required up to $100k||Weekly or fortnightly|
|GetCapital Flexible Business Loan||6 – 24 Months||$5k – $500k||Percentage||2% Draw down fee, plus $3.85 direct debt fee per week||Unsecured||Weekly|
|Flexible Business Loan||6 – 24 Months||$5k – $500k||From 0.87% per month||2% Draw down fee, plus $3.85 direct debt fee per week||Unsecured||Weekly|
|OnDeck Small Business Loan||6 – 24 Months||$10k – $250k||Percentage||Establishment fee of 2.5%||Unsecured||Daily or weekly|
|Beyond Merchant Capital Unsecured Business Loan||9 – 12 Months||$10k – $500k||Factor Rate||None||Unsecured||Daily or weekly|
|Moula Business Loan||6 – 12 Months||$5k – $250k||0.75% to 2% per fortnight||None||Unsecured||Fortnightly|
|Business Fuel Business Loan||3 – 18 Months||$5k – $250k||Factor Rate||None||Secured or Unsecured||Weekly or monthly|
|Max Funding Unsecured Business Loan||1 – 12 Months||$2k – $300k||From 1.8% per month||Fees are laid out in loan agreement||Unsecured||Weekly or tailored|