CAN Capital Review: Straightforward Financing with Fast Funding

CAN Capital
CAN Capital

CAN Capital Review: Straightforward Financing with Fast Funding

We recommend CAN Capital to borrowers who can't qualify for financing with banks and those who want fast financing.

Good for

  • Fast financing.
  • Borrowers who have lower credit scores.
  • Borrowers who can't qualify for a loan with a bank.

Bad for

  • Cheap financing.
  • Borrowers looking for large amounts of financing.
  • Borrowers looking for a revolving line of credit.

Editor's Rating


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CAN Capital's strongest feature is its simplicity. Borrowers have the option to choose between a short-term loan or a merchant cash advance of up to $250,000. It's a relatively small level of financing, especially compared to what you can obtain from a traditional lender like a bank, but CAN Capital isn't meant for borrowers who can borrow from banks. CAN Capital is designed for those with lower personal credit scores or other weaker credentials that may prevent them from borrowing from a bank. CAN Capital offers a strong alternative to those who can't apply for financing elsewhere.

CAN Capital: Worth Applying?

CAN Capital is best for borrowers who need less than $250,000 in financing or for those who have weaker personal credit scores and can't qualify for financing elsewhere. CAN Capital offers more lenient application requirements even compared to most other online lenders, but borrowers will be limited by its relatively small financing.

  • Low credit score requirement
  • Low minimum age of operations
  • Fast funding
  • Expensive financing
  • Hard credit inquiries
  • Smaller financing

CAN Capital's Pros

Easier to qualify: CAN Capital is one of many options that small-business owners should consider when they can't qualify for a loan with a bank. Financing from a bank will usually be far cheaper, but as long as you can justify the higher cost of financing with a net positive outcome, we'd fully recommend utilizing CAN Capital.

Fast application process:Another benefit to CAN Capital is that the application process is mostly online-based and relatively quick. Going through the lending process with a bank can often takes weeks to months, while CAN Capital provides a decision and funding within a few hours or a few business days. It's a drastically different experience when applicants can fill out an online application within minutes versus repeatedly visiting a branch location in person and filling out long applications.

No prepayment penalties: If borrowers are interested in paying off their loans early, they can get a 6% rebate on the remaining loan fees if they wait until the 90-day mark to pay off the loan. Prepayment penalties are relatively common in the world of small-business lending, and many lenders disguise these by simply not offering prepayment discounts and holding all fees for the remainder of the term. CAN Capital clearly breaks out of this mold.

CAN Capital's Cons

Expensive capital:The biggest downside to CAN Capital is its high cost of financing. The only officially published rates are factor rates, and it's notoriously difficult to translate those into an APR or cost per dollar borrowed. It's important to know a loan's APR so you can draw comparisons with other financing options. However, CAN Capital does offer very lenient financing, and its rates reflect the increased risk it incurs by doing so.

Last resort financing: We also don't recommend that business owners apply for CAN Capital's merchant cash advance (MCA) financing unless they've exhausted all other options. MCA financing is notoriously expensive compared to other forms of financing. One reason is because MCA fees are calculated based on the initial sum you borrow. With a traditional interest rate, fees are based on the principal sum, which decreases as the duration of the loan goes on.

Final Verdict

CAN Capital offers fast financing that may be hard to acquire for many business owners. Applicants will need to agree to a hard credit check and will have to carefully calculate the benefit of the additional financing to ensure the loan results in a net positive even with CAN Capital's more expensive products. There are many comparable lenders to CAN Capital, listed below, but be aware that most lenders that offer lenient financing will charge higher rates to make up for the increased risk they incur. We'd recommend small-business owners apply for CAN Capital when they're sure they can't apply for cheaper financing or if they need fast cash.

Eligibility Criteria

Applicants will need the following minimum requirements to qualify for financing with CAN Capital:

  • Minimum personal credit score: 550
  • Minimum annual revenue: At least $150,000 in gross revenue
  • Minimum time in business: At least six months in business
  • Outstanding debt: Less than $175,000 in outstanding tax liens or judgements

Features, Rates and Terms

CAN Capital's terms and rates place them near the middle of the market compared to other small-business lenders. They do price their capital using factor rates, which we view as a negative since it tends to hide the true cost of capital. However, we will note that their factor rates are lower than other lenders who price their loans using factor rates as well.

Short-term loan
  • Rates: 1.15x - 1.35x
  • Loan amount: $2,500 - $250,000
  • Repayment frequency: Daily
  • Rates: 1.15x - 1.35x
  • Loan amount: $2,500 - $250,000
  • Repayment frequency: Daily

Application Process

CAN Capital makes its application process as easy as possible, and borrowers can apply online, through email or over the phone. Most borrowers reportedly receive a decision within a few hours of submitting their applications. Based on the needs of each applicant, borrowers can expect funding within a few business days.

Filling out an application to simply see if you qualify will trigger a soft credit check, which doesn't impact your personal credit score. If you do decide to move forward in the application process and utilize CAN Capital's financing, a hard credit check will be inevitable.

Prepare as much as possible so you can move through the application process quickly. At a minimum, you should have the following ready:

  • Legal business name, address and contact information
  • Funding code (optional, if you received a mailer)
  • Business date of inception and state of incorporation
  • Entity type (such as LLC or corporation) and industry/sub-industry
  • Annual revenue
  • Number of full-time employees
  • Primary loan purpose
  • Personal contact information
  • Personal citizenship status, date of birth and Social Security number
  • Personal percentage ownership in business
  • Business plan

CAN Capital Compared to Similar Lenders

CAN Capital offers flexible financing for those who can't qualify for financing with a bank. However, we'd still recommend shopping around to find financing with the best terms available.

CAN Capital vs Kabbage


Both CAN Capital and Kabbage offer relatively lenient financing compared to traditional lenders. Kabbage offers a slightly different product, a business line of credit, which is revolving and is better suited for smaller to medium-sized ongoing expenses. Both lenders provide fast application processing and only perform soft credit pulls during the application process, so we'd recommend applying for both to compare offers.

Highlights (Business Line of Credit)

  • APR: 20.00% - 80.00%
  • Amount: $2,000 - $250,000
  • Terms: 6, 12 or 18 months
  • Repayment: Monthly

CAN Capital vs OnDeck


OnDeck is similar to CAN Capital in that it also offers lenient-term loans as an alternative to lower cost, but it's tougher to qualify for term loans from banks. If you're looking for easier qualifications, CAN Capital is the better lender. If you need slightly larger financing, OnDeck would be a better fit.

Highlights (Term Loan)

  • APR: 9.30% - 99.70%
  • Amount: $5,000 - $500,000
  • Terms: 3 - 36 months
  • Repayment: Daily or weekly

CAN Capital vs BFS Capital

BFS Capital
BFS Capital

Both CAN Capital and BFS Capital offer short-term loans and MCA financing. Those looking for larger financing will be better off with BFS Capital. Since BFS Capital also doesn't publish much information about its rates, we'd recommend applying to both lenders if they're looking for short term financing or MCA financing.

Highlights (Short-Term Loan)

  • APR: 1.11x - 1.49x
  • Amount: $5,000 - $500,000
  • Terms: 4 - 18 months
  • Repayment: Varies

Comments and Questions

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