Published By Janet Gershen-Siegel at March 24, 2018
CAN Capital (CC) is one of many online lending companies. They offer working capital and small business loans. We look at the specifics and drill down into the details about CAN Capital. CAN Capital had every chance to communicate with us about the following review.
CAN Capital (CC) is online here: https://www.cancapital.com/. Their physical addresses are in New York, NY; Kennesaw, Georgia; and also San José, Costa Rica. You can call them at: (877) 550-4731.
Their contact page is here: https://www.cancapital.com/contact-us/. They have been in business since 1998. So this is far longer than a lot of the other players in the online lending space.
With no listed APR, a comparison tool will have to do. See: https://www.supermoney.com/reviews/business-loan.
Funds are sent in days. CAN Capital wants daily fixed payments with automatic withdrawals. The funding is $2,500 – 150,000 per location. Their terms are 6 – 18 months. There is no personal collateral required.
Minimum annual revenue seems to be $54,000, according to: https://www.supermoney.com/reviews/business-loan. It also (per that link) appears to be that the minimum required personal FICO score is 640. So there is a four year minimal time in business requirement as well.
A CAN Capital term loan comes with a 3% origination fee. In addition, CAN Capital will offer a prepayment discount. But this is only in the first 90 days after the term for the loan starts. There is no APR on the website but Super Money calculates it as ranging from 16% to 70%.
Funds are sent to you in days. Also, funding works out $2,500 – 150,000 per location. There are variable daily payments and there is no maturity date.
A CAN Capital merchant capital advance comes with a $395 administrative fee.
Advantages include no prepayment penalty. In fact, there is a prepayment discount. The funding is provided quickly and with no personal collateral requirement. Plus this online lender’s experience provides an assurance that the company, or some form thereof, will be around tomorrow.
Disadvantages include administrative and origination fees. Variable daily payments for merchant capital advances mean that budgeting becomes that much more difficult.
APR is not listed for term loans. However, it is here: https://www.supermoney.com/reviews/business-loan. Per that site, the APR runs from 16% – 70%. Therefore if Super Money is correct, then the APR at CAN Capital is outrageously high.
Companies will do best with CAN Capital if they can pay their debts off early. Therefore not only will they not get a prepayment penalty, they will also, potentially, avoid the worst APR.
CAN Capital’s time in business may also be a factor. This is particularly at issue if you have business partners or a Board of Directors who are skeptical of online lending. With its two decades in the business, CAN Capital’s experience should help to alleviate those sorts of objections.
However, for companies expecting payments later, CAN Capital’s fees and exorbitant maximum APR – and the fact that they make it very hard to calculate the latter – should give borrowers pause. Business owners would do better with unsecured business loans or building business credit. Or they might do better with crowdfunding or angel investing, versus using this particular online lender.
And finally, as with every other lending program, read the fine print and do the math. So go over the details carefully, and decide if this option will be good for you and your business. Also consider alternative financing options that go beyond lending, including building business credit, to best decide how to get the money you need to help your business grow. Check out how this will help your company decide how best to get financing.