CAN Capital is an online lender that offers a small business working capital loan and merchant cash advance to borrowers unable to secure financing elsewhere. Its loans have low minimum qualifications and no stated minimum credit score. Average rates are 50% AIR, for up to 18 months and $250,000 in funding.
CAN Capital and 6 Top CAN Capital Alternatives
|CAN Capital||Businesses with fair to excellent credit needing up to $250,000.|
|OnDeck||(Best Overall) Businesses needing $500K with terms up to three years and weekly repayment.|
|BlueVine||Companies needing a small business line of credit up to $250K.|
|LoanBuilder||Business owners needing flexible terms on working capital up to $500K.|
|Fundbox||Businesses needing a line of credit up to $100K with no minimum credit score.|
|Paragon Financial||Business owners with outstanding B2B or B2G invoices needing up to $10 million.|
|National Funding||Businesses needing a merchant cash advance up to $250K with minimal qualification requirements.|
How CAN Capital Works
CAN Capital offers a small business loan and a merchant cash advance (MCA) that are both available to businesses that are having trouble securing financing elsewhere. Both services provide financing up to $250,000, with daily repayment, for up to 18 months and 2-5 day funding.
CAN Capital considers your personal credit score in addition to your business history to evaluate your application. You will also need annual revenues greater than $150,000 to qualify, which can be difficult to meet for smaller businesses. Unlike many fast business loans offered by CAN Capital alternatives, your application will require you to work with a sales agent at the company.
Who CAN Capital Funding is Right For
CAN Capital is best for small businesses with fair to excellent credit and they may also consider businesses with outstanding tax liens or judgments. You might choose it over a bad credit business loan alternative if you receive significant revenue from credit card transactions.
How Much CAN Capital Costs
CAN Capital small business loans carry an origination fee and interest rate. Interest is calculated on the entire loan amount at origination, which means even if you repay it early, you will end up paying the same amount. In addition to interest, there is an origination fee up to 3%. However, CAN Capital provided us with information that 50% of their clients get a lower fee, resulting in an average fee of 2.5%.
Some costs of a CAN Capital small business loan are:
- Estimated Average AIR: 50% for 12-month term loans
- Origination Fee: Up to 3% of the principal, automatically deducted the next day after funding
CAN Capital does not disclose the interest rates they charge on term loans. Fortunately, we were able to get an average AIR (annualized interest rate), which is roughly 50% and does not include fees. This is slightly higher than you would expect from an average term loan, for example, OnDeck’s published weighted average term loans rate is roughly 48% AIR.
What Terms CAN Capital Offers
With CAN Capital you can borrow up to $250,000 for up to 18 months with daily repayments. The lack of payment options offered by it can be a drawback, however, your business does have the option of borrowing for an extended term of 18 months. An alternative like BlueVine offers less frequent monthly payments, however, your business will only be able to borrow money for up to 12 months.
The loan terms that you can expect with CAN Capital are:
- Loan Amount: $2,500 — $250,000 (Up to $150,000 per location)
- Repayment Term: 6-18 months
- Repayment Schedule: Daily payments debited from your business bank account
- Collateral: Likely, blanket UCC filing on business assets
- Personal Guarantee: Required
- Time to Funding: As little as 2 business days
Similar to other unsecured business loans, CAN Capital does not require collateral for its loans but does file a blanket UCC filing on all business assets, like all the other alternatives.
How to Qualify for CAN Capital Funding
CAN Capital considers your credit score in addition to your business performance, like Fundbox. This allows business owners with a fair (estimated at 580 or better) personal credit score to qualify. Furthermore, its time in business requirement of only 6+ months is low compared to other easy business loan options.
The CAN Capital loan qualifications you will need to meet are:
- Personal Credit Score: No stated minimum, fair to excellent credit expected
- Time in Business: 6+ months
- Annual Revenue: $150,000+ gross revenue
- Outstanding Tax Liens and Judgments: Less than $175,000
- Personal Guarantee: Required
CAN Capital is also willing to fund businesses that have outstanding tax liens and judgments, which will typically make getting financing more difficult. However, you may want to consider an alternative such as Fundbox if your business does not generate much revenue, as the minimum annual revenue requirement to qualify for CAN Capital is $150,000+.
What Other Products CAN Capital Offers
In addition to a small business loan, CAN Capital offers a merchant cash advance, which is based on your business’s credit card revenue. Payments are deducted daily at a set percentage of credit card transactions, and loans are typically repaid in full within 13 months.
The typical CAN Capital merchant cash advance costs, terms, and qualifications are:
- Estimated APR: 35% — 230%; customized for each borrower based on a set percentage of your batched credit card sales
- Loan Amounts: $5,000 — $250,000
- Repayment Term & Schedule: Up to 13 months & payments automatically deducted based on a set percentage of your credit card sales each time they are batched
- Personal Credit Score: No stated minimum, fair to excellent credit expected
- Time in Business: 6+ months
- Annual Revenue: $150,000+ gross revenue
- Speed to Funding: Quick online application with approval as soon as the same day and funding in 2-5 days
An MCA can be a very expensive financing option, and it is strongly recommended trying other alternatives first. CAN Capital does not disclose the interest rates charged with its MCA, however, we expect it to be in line with other providers at roughly 35% — 230% APR.
What CAN Capital is Missing
CAN Capital lacks repayment options besides daily debits from your business bank account. For businesses that experience seasonality or unpredictable revenue, this can be very difficult. Furthermore, they charge an origination fee up to 3%, which is higher than most other providers. However, they have lower overall minimum qualifications, which may explain the more rigid loan terms.
CAN Capital Reviews
CAN Capital received generally positive reviews from its customers about its products and services. Users that left positive reviews noted they received great rates and were approved when other lenders turned them away. Some negative reviews of CAN Capital mentioned isolated issues with funding, rates, and fees. To learn more about what users think, read our CAN Capital reviews page!
How to Apply for CAN Capital
Applying with CAN Capital can be done in a few minutes online with funding available in as little as two days. Its small business loan up to $250,000, with an average AIR of 50%, for up to 18 months, is accessible to borrowers that have had trouble qualifying for financing elsewhere.
How We Evaluated CAN Capital Alternatives
When evaluating the top CAN Capital alternatives for small business owners we considered total cost, loan terms, qualification requirements, and the application process, to ensure that small business owners find an alternative that fits their needs.
Based on the needs and wants of small business owners, the criteria we used to evaluate the top CAN Capital alternatives include:
- Total Cost: How much each alternative will cost you, including rates, fees, and APR.
- Loan Terms: How much money you can borrow, how long you will have to repay it, and how often you will be making payments.
- Qualification Requirements: Minimum qualifications including your personal credit score, time in business, and annual revenue.
- Application and Funding Speed: Length of application, approval, and when funding is available.
Taking these criteria into consideration we selected OnDeck as the best alternative to CAN Capital for small business working capital. Its offer loans with weekly and daily repayment over the course of 36 months, and have a low minimum credit score requirement of 500. Its quick online application process, can get you qualified and funded at rates starting at 9.99% in just 1-3 days after applying.
OnDeck: Best Alternative to CAN Capital
OnDeck loans are the best overall alternative to CAN Capital because they offer businesses more flexible and longer loan terms up to three years, for up to double the capital ($500,000), with the lowest starting rates of 9% for prime borrowers. Additionally, OnDeck offers a $100K line of credit to cover any financing gaps.
OnDeck vs CAN Capital
OnDeck and CAN Capital small business loans have similar average costs of roughly 50% AIR, and both charge an origination fee. OnDeck also offers borrowers greater flexibility with loan limits and terms that are twice as high as CAN Capital at $500,000 and 36 months respectively. Qualifying for OnDeck requires a minimum credit score of 500+ which is very low. However, CAN Capital has no stated minimum, but typically looks for fair to excellent credit.
The costs of an OnDeck capital loan are comparable to CAN Capital with similar average AIR at 50% and an origination fee. However, with, OnDeck you may receive a lower origination fee on subsequent loans, whereas CAN Capital does not typically offer discounts to repeat customers. Borrowers with personal credit scores of 700+ can get lower rates starting at just 9.99% AIR.
For a loan with OnDeck, your daily cost of capital for every $10,000 you borrow, including the origination fee will range between $2.70 and $27.40.
OnDeck Loan Terms
OnDeck sets its small business loan limit at $500,000 and maximum repayment term at 36 months, which are both twice as high as CAN Capital. In addition to a daily repayment option which CAN Capital also offers, they have a weekly repayment option, which gives businesses additional flexibility for loan repayment.
Unlike CAN Capital, OnDeck does have a stated minimum credit score of 500+. However, this is a low requirement compared to other alternatives like BlueVine and LoanBuilder. OnDeck’s one year in business requirement is twice as long as CAN Capitals, but they require $100,000 in annual revenue compared to CAN Capital’s $150,000 requirement.
What OnDeck is Missing
OnDeck doesn’t offer borrowers the opportunity to save money by repaying the small business capital loan early like Fundbox. Additionally, like CAN Capital, they charge an origination fee on the loan, which most of the alternatives we evaluated do not do. Finally, unlike CAN Capital, Fundbox, and National Funding, they have a stated minimum credit score.
OnDeck has many positive reviews from its customers. Many of these positive reviews noted that its loan process was quick and easy and that they received great support from customer service. Some users noted that its fees were costly compared to other providers, which is typically the case if applicants have below average qualifications. You can learn more about OnDeck on our OnDeck reviews page.
How to Apply with OnDeck
OnDeck offers a small business capital loan up to $500,000 with three-year terms and starting rates of 9.99%. You can apply online in just ten minutes, and receive an approval decision in a few hours. After connecting your business checking account to verify revenues funding happens in just 1-3 days.
BlueVine: Best CAN Capital Alternative for a Business Line of Credit
BlueVine is best for businesses needing a line of credit up to $250,000. BlueVine offers lower costs than CAN Capital, with an APR of 18%-86% and terms up to 12 months.
BlueVine vs CAN Capital
Unlike CAN Capital, BlueVine offers borrowers the opportunity to borrow more funds, once they repay its original loans. BlueVine also offers monthly repayment to borrowers, unlike the daily payments offered by CAN Capital. However, qualifying for a small business loan with BlueVine can be more difficult due to its 600+ minimum credit score requirement.
BlueVine Rates & Fees
BlueVine rates start at 4.8% for its line of credit, and unlike CAN Capital there are no origination fees. Similar to OnDeck if you want the best rates, you will need to have strong credit, and high annual revenues.
BlueVine was transparent in providing its rates and the resulting APR’s. Based on that information we determined that for every $10,000 you borrow with BlueVine you can expect to pay between $4.90 and $23.60 in daily interest while the invoice is outstanding.
BlueVine Loan Terms
BlueVine offers a small business line of credit up to $250,000, which is the same maximum loan amount offered by CAN Capital. If you need more financing than an alternative like Fundbox can offer, than BlueVine’s line of credit can be a strong choice. You will have the option of monthly or weekly repayment, however meeting the qualifications to be eligible for terms up to 12 months with monthly payments is more difficult.
BlueVine offers qualifications, that may be difficult to meet for smaller businesses or business owners with poor credit. If you can meet the high requirements set by BlueVine you can get the best terms on your line of credit, however, it may be easier to qualify for other alternatives.
In addition to completing BlueVine’s online application, you will also need to provide BlueVine with a connection to your checking account or three months of your most recent bank statements. This is much faster and more simplified than applying with CAN Capital which requires contacting a sales agent and submitting the information manually.
What BlueVine Is Missing
The high minimum credit score and annual revenue requirements can make BlueVine inaccessible for many small and new businesses, unlike Paragon Financial. Additionally, unlike OnDeck they only offer financing up to $250,000 which can be insufficient for businesses that need a large amount of capital up front but can’t take advantage of its invoice factoring facility.
BlueVine has had many customers that were happy with its services, however, users did note some things that BlueVine can improve. Positive reviews left by users noted that its customer service team were helpful throughout the application process and afterward. As with most lenders, users were sometimes unhappy about being denied financing. To read these, and other reviews visit our BlueVine reviews page!
How to Apply with BlueVine
BlueVine has an online application that takes just 10 minutes. After you’re approved you can get funded in as soon as 24 hours, for up to $5 million based on your outstanding invoices. You will receive up to 90% of your invoice value, less a weekly fee of 0.25% charged while the invoice is outstanding.
LoanBuilder: Best Alternative to CAN Capital with Flexible Terms
LoanBuilder is best for businesses that need the flexibility of selecting their loan terms when applying. They offer up to $500,000, double what CAN Capital offers, with repayment terms up to a year and weekly payments. APR’s start at 12%, lower than CAN Capital and funding is available within 24 hours.
LoanBuilder vs CAN Capital
The total cost of your loan with CAN Capital and LoanBuilder is calculated up front, however, LoanBuilder only offers terms up to one year, compared to the 18 months offered by CAN Capital. With LoanBuilder you also have the added flexibility of selecting your terms and matching them to your business needs, as well as weekly repayment.
LoanBuilder has single fixed fee loan pricing like CAN Capital and does not offer any discount for early repayment. Its starting interest rates are 2.9% for prime borrowers, with an APR in line with other top CAN Capital alternatives of 12%-136%. However, the flexibility of selecting your loan term allows business owners to better manage their cash flows.
Unfortunately, LoanBuilder does not disclose its rates to borrowers until after they have applied and are offered to evaluate their terms. Based on our estimated APR of 12% to 136% you will need to pay between $3.30 to $37.30 in daily interest for every $10,000 you borrow through LoanBuilder.
LoanBuilder Loan Terms
LoanBuilder offers small business loans up to $500,000, which is twice as much as CAN Capital. Like OnDeck they offer weekly repayment, but no daily repayment option. Its loan term of one year compared to providers like BlueVine but lower than CAN Capital and OnDeck.
The minimum time in business requirement of nine months puts LoanBuilder’s small business loan in the middle of our top CAN Capital alternatives. Its personal credit score requirement of 550+ is higher than OnDeck. Finally, smaller businesses can take advantage of LoanBuilder’s low annual gross revenue requirement of $42,000+ which is three times smaller than CAN Capital’s $150,000 requirement.
Unlike CAN Capital, LoanBuilder explicitly states that your business is not eligible if it has filed for bankruptcy. Furthermore, to qualify for a LoanBuilder loan you will need to be located in the 50 United States and have an active business record with your local Secretary of State.
What LoanBuilder is Missing
Similar to OnDeck and CAN Capital you don’t save any money by repaying your small business loan early with LoanBuilder. Additionally, some businesses may find that one year is an insufficient working capital loan term, compared to OnDeck’s 36 months, or CAN Capital’s 18 months.
LoanBuilder customers are typically happy with the level of service they receive. In many of the LoanBuilder reviews on the web, users noted the quick application process. However, some of the reviews noted that LoanBuilder pricing can be expensive. To read more positive and critical reviews of LoanBuilder, visit our LoanBuilder reviews page!
How to Apply with LoanBuilder
LoanBuilder offers a small business loan up to $500,000 that you can apply for in just 10 minutes. You can customize your terms for up to 52 weeks, with weekly repayment. Your interest rate will range from 6.49% to 19.3%, and funds are made available in as little as 24 hours.
Fundbox: Best Alternative to CAN Capital with no Minimum Credit Score
Fundbox is best for businesses requiring a line of credit without a hard credit check based on outstanding invoices. They offer smaller loans than CAN Capital at $100,000 and repayment terms up to 24 weeks at starting APR’s of 10%. Approval takes 3 minutes and funding follows in as soon as 24 hours.
Fundbox vs CAN Capital
Fundbox offers small business loans based on outstanding invoices, and like CAN Capital they don’t have a stated minimum score, although we expect both providers to require at least fair credit. They offer lower loan limits of only $100,000 than CAN Capital and repayment terms up to 24 weeks. The lower limits and short repayment terms are offset by simplified minimum qualifications, requiring only six months in business.
Fundbox charges a weekly fee starting at 4.66% on all draw amounts from the line of credit. This gives borrowers the opportunity to save money through early repayment, unlike CAN Capital. There is also no origination fee, and its estimated APR is slightly lower than the range you would expect from CAN Capital at 10% to 82%.
Like Bluevine, Fundbox is transparent about its rates and provided us with the APR range for its loans. Based on this APR range, we determined that the daily interest cost for a $10,000 draw on your credit line would range between $2.70 to $22.50.
Fundbox Loan Terms
With 12 or 24-week repayment terms, Fundbox is the shortest working capital loan we evaluated. Like LoanBuilder they offer a weekly repayment option, but no daily option. Its maximum loan amount is also the lowest we evaluated, at only $100,000 compared to CAN Capital which lets you borrow up to $250,000.
Fundbox’s minimum qualifications are even more accessible than CAN Capital’s. Like CAN Capital they don’t have a stated personal minimum credit score requirement, and only require 6+ months in business. However, they target a minimum annual revenue requirement of $50,000 compared to CAN Capital’s $150,000 to qualify for a small business loan.
Fundbox requires a business to have invoices to B2B, B2G, and/or B2C customers that are due in 90 days or less to qualify for a small business loan. This is because your loan amount and ultimate repayment terms are based on the value of those future payments. You can read our guide on the best accounts receivable financing companies for more information.
What Fundbox is Missing
The smaller working capital loan limit of $100,000 is the biggest drawback with Fundbox and is best suited for smaller financing. Additionally, the short repayment term of 12 or 24 weeks, may be insufficient time for larger projects or businesses that are looking to purchase inventory ahead of its busy season.
Fundbox users generally leave good reviews concerning its experience with the lender. These positive reviews often cite the simple application process and helpful customer service as major benefits to doing business with them. However, some users may have missed a key piece of information that Fundbox clearly discloses, and were disappointed that they were unable to change its repayment terms to longer options after drawing on its line of credit. For more reviews like these, read our Fundbox reviews page!
How to Apply with Fundbox
Fundbox offers small business working capital up to $100K in the form of a revolving line of credit. Fees start at just 4.66% and 8.99% of the amount that you draw, with terms of 12 or 24 weeks respectively. Its online application takes just 10-minutes, with funding available in 1-3 business days.
Paragon Financial: Best Invoice Factoring CAN Capital Alternative
Paragon Financial is best for businesses that need invoice factoring up to $10 million based on its outstanding B2B and B2G invoices. Paragon Financial has lower overall costs than CAN Capital with an APR ranging from 11% to 60% on average. Funding is typically available in as little as three days, and its application can be completed entirely online.
Paragon Financial vs CAN Capital
Both Paragon Financial, CAN Capital address businesses that typically have difficulty getting financing due to outstanding legal issues and low credit scores. Unlike CAN Capital, however, Paragon Financial has a high minimum annual revenue requirement of at least $300,000 which can be difficult for businesses to meet. However, if you need the option that offers the highest loan amount, Paragon financial can lend up to $10 million to your business.
Paragon Financial Rates & Fees
With Paragon Financial you can assign invoices that are due in 90 or fewer days, and are owed by other businesses and governments. While the invoice is outstanding you will be charged between 0.9% to 2.5% for every 30 days, which results in an APR that is one of the lowest on our list of 11% to 60%+, and significantly lower than CAN Capital.
The typical Paragon Financial invoice factoring rates and fees are:
- Discount Rate: 0.9% – 2.5% per 30 days
- Estimated APR: 11% to 60% on average
- Origination Fees: Small, one-time fee when you accept its factoring offer
In addition to this APR, Paragon Financial will charge a one-time origination fee, which they do not disclose. Based on this estimated APR, you can expect to pay between $3.00 and $16.50 per day in fees for every $10,000 you factor.
Paragon Financial Loan Terms
Paragon Financial offers the highest loan amounts available on our list, at $10 million. If you are receiving large orders regularly, but a term loan from OnDeck up to $500,000 is insufficient to cover your expenses, then Paragon Financial invoice factoring is a great option. Rather than making payments regularly like CAN Capital, Paragon Financial takes its repayment directly from the invoices you factor.
The loan terms you can expect on an invoice factoring facility from Paragon Financial include:
- Loan Amount: $25,000 – $10 million per month
- Advance Rate: 80% – 90%
- Repayment Term & Schedule: Repaid as your invoices are paid
- Personal Guarantee: Most likely required
- Speed of Funding: Generally 3 – 10 business days the first time, and less than 24 hours for subsequent invoices factored
Paragon Financial Qualifications
Similar to National Funding, your credit score may not be considered when you are being considered for funding. This makes it a great option if you have poor credit. Additionally, Paragon Financial will consider businesses that have just started and doesn’t have a minimum time in business requirement.
The qualifications Paragon Financial will use to evaluate you for invoice factoring include:
- Personal Credit Score: Not a factor
- Time in Business: Not a factor
- Annual Revenue: Must factor at least $25,000 in invoices per month or $300,000 in invoices per year
However, Paragon Financial does require that you factor at least $25,000 in invoices per month, which is the highest annual revenue requirement we evaluated. If your business doesn’t have very much revenue, but you are unable to get funding due to poor credit, you may want to consider Fundbox or National Funding.
What Paragon Financial Is Missing
Paragon Financial has a high minimum annual revenue requirement, compared to other options on our list which can be prohibitive to many smaller businesses. Additionally, you will have to assign your invoices to Paragon Financial, which means that they will take over the relationship with your customers. This can be difficult for some businesses in industries where this isn’t standard practice.
Paragon Financial Reviews
Paragon Financial customers leave mostly positive reviews both while they are customers and afterward. The most noted positive aspect of Paragon Financial was its customer service, in particular, how responsive and helpful they were both before the application and after approval. However, some businesses were disappointed when they found that they had insufficient invoice volume to qualify. You can read more reviews on our Paragon Financial reviews page!
How to Apply with Paragon Financial
Paragon Financial’s online application takes just 15 minutes. After approval, you can get funded in just 3 to 10 business days, for up to $10 million based on outstanding invoices. Rates start at 0.9% for every 30 days your invoices are outstanding, and you can get up to 90% of the invoice value upfront.
National Funding: Best Merchant Cash Advance Alternative to CAN Capital
National Funding is best for businesses that need a merchant cash advance (MCA) alternative to CAN Capital for up to $250K. An MCA can be very expensive, up to 230% APR, however, if you are unable to qualify elsewhere, you can get terms up to 18 months, with funding available in just 1-3 days.
National Funding vs CAN Capital
Both National Funding and CAN Capital offer loan limits up to $250,000 and repayment terms up to 18 months on its MCA. You can expect the overall costs to be similar between the two providers. However, National Funding has a lower minimum annual revenue requirement of just $36,000 compared to $150,000 from CAN Capital.
National Funding Costs
National Funding merchant cash advances are designed for high-risk borrowers that are unable to get access to credit anywhere else. This is offset by the high factor rate charged by National Funding. Unfortunately, National Funding does not disclose rates, to get a rate for your business you need to contact them directly for a customized quote.
Based on the estimate National Funding APR you can expect a daily interest cost of $9.60 to $63.00 for every $10,000 you borrow. It’s important to note that one of the reasons this estimation is so high is because you have no control over how quickly the loan is repaid. Rather, as your credit card revenue comes in payments are deducted on a daily basis.
National Funding Loan Terms
National Funding and CAN Capital both offer a merchant cash advance up to $250,000 with daily repayment made as a percentage of your credit card sales over as long as 18 months. A difference in terms between the two is that CAN Capital may fund you a day or two slower than National Funding.
National Funding Qualifications
Both National Funding and CAN Capital don’t have a stated minimum personal credit score requirement. However, National Funding requires one year in business, compared to CAN Capital which requires only six months. Additionally, National Funding only requires $36,000 in annual credit card revenue, compared to the $150,000 annual revenue requirement from CAN Capital.
What National Funding is Missing
National Funding offers a merchant cash advance to businesses with poor credit, that can be a very expensive source of small business working capital. In addition to the high costs, its minimum time in business requirement is twice as long as CAN Capital making them more difficult to qualify for if you are a newer business needing a business capital loan.
National Funding Reviews
National Funding is a lender of last resort for many borrowers. For this reason, many National Funding reviews reflect its high-interest rates and additional fees, understandably its customers are unhappy with this. This is one of the reasons we recommend exploring other options first, even though its reviews note that its application process is very quick and easy. You can read more reviews like these on our National Funding reviews page!
How to Apply with National Funding
National Funding has an online application, that can get you funded in just 24 hours for up to $250,000. Due to the high cost of a merchant cash advance, we recommend that other small business working capital options are exhausted before getting an MCA.
CAN Capital offers borrowers with fair to excellent credit business loan and merchant cash advance financing. Both go up to $250,000, have average costs of 50% AIR, and have daily repayment terms. You should consider an alternative if you need longer terms, additional capital, or less frequent payments.
OnDeck is the best overall alternative to CAN Capital. It offers loans up to $500,000, with terms up to three years, and both weekly and daily repayment. Giving borrowers the additional flexibility they need to finance their business. Its online application takes 10 minutes, with funding available in just 1-3 days.