iCapital Review (December 2022) – Pros, Cons, Features, & Pricing

If you’re seeking funding for your business from an alternative lender, this iCapital review is for you. As one of the oldest digital lenders in Canada, iCapital has funded several businesses. Therefore, they may have the financing solution you require to keep your business running.

Alternative lenders like iCapital change several businesses’ ability to obtain financing. They achieve this by simplifying the process. Unlike traditional lenders, iCapital doesn’t require perfect credit to lend to you. Also, you won’t have to wait weeks to receive approval. iCapital boasts a quick application and approval process. Therefore, they’re your best bet if you urgently need funds.

Getting financing through iCapital is convenient and hassle-free. By using its service, you can say goodbye to jumping through hoops to get the financing your business requires.

In this iCapital review, you’ll discover the various financing solutions offered by the lender. We’ll also look at the benefits and drawbacks of getting funding from iCapital. And we’ll walk you through the sign-up process.

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Last Updated: Nov 25, 2022

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iCapital

  • 5-minute application & 24-hour approval
  • 98% of applications get approved
  • Get up to $250,000 in 48 hours

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What Makes iCapital a Good Option?

As a business owner, you may go to a bank or credit union when your company needs capital. However, you may find that it’s challenging to get your business funded. The bank or credit union may require a high credit score. Or they may require documentation and information that’ll take weeks to gather.

The stringent requirements traditional lenders set can prevent you from accessing the capital required. That’s why you should opt for an alternative lender like iCapital.

Many Canadian business owners choose iCapital because of its simple application process. In fact, their previous customers have commended their easy and quick application process in online iCapital small business loan reviews.

Icapital Review - Comparewise

All you have to do to apply for iCapital business funding is complete a 2-minute application. You won’t have to submit T1 Generals or your company’s financial statements. And while they run a credit check, you don’t need perfect credit to qualify.

In addition, iCapital doesn’t do appraisals, and they don’t charge legal fees. And they finance industries traditional lenders don’t lend to. They also give small business owners access to various forms of financing, including merchant cash advances and secured business loans.

You can receive funding of up to $250,000 in as little as 24 hours. This is convenient if you must make emergency repairs to your business’s premises. Or if you have overdue salaries to pay.

iCapital is dedicated to serving Canadian businesses. They offer competitive rates for their financing solutions and high-quality service. Additionally, unlike other lenders, they don’t restrict you from using your funds as you intend.

Therefore, you will be free to make any business-related payment or purchase. Let’s look at the benefits and drawbacks of their service in the next part of this iCapital review.

Pros and Cons of iCapital

This section of our iCapital review covers the advantages and disadvantages of their funding solutions.

The Pros of iCapital

High Lending Amount

You can receive up to $250,000 for a merchant cash advance, secured business loan, and business term loan.

Simple Application Process

You can apply for iCapital business funding online. The application process has four steps, which you can complete in as little as five minutes. Therefore, you don’t have to spend hours applying for the financing your business needs.

Short Turnaround Period

Getting financing from a traditional lender can take weeks. With iCapital, the entire process, from applying to receiving your funds, takes about 72 hours. They approve your financing solution within 24 hours, and you receive the borrowed funds in your bank account within 48 hours.

No Collateral Required

iCapital offers three funding solutions that don’t require collateral. Therefore, you won’t have to secure your loan with property such as your home or vehicle.

Less-than-perfect Credit Accepted

Your credit score is a significant determinant of whether you can take out a loan in Canada. They may turn you away if you apply for financing from a traditional lender with less-than-perfect credit. iCapital accepts low credit scores. However, you must not have an open bankruptcy.

Icapital Business Loan - Comparewise

The Cons of iCapital

Administration Fees

iCapital charges administration fees, which depend on various factors. These include your business type, credit history, and annual revenue.

Limited Industries Served

While iCapital caters to various industries, including retail businesses, grocers, and salons, they don’t offer financing to some sectors. These include construction, furniture stores, funeral homes, and online businesses. Also, since the business must have a storefront or professional offices to qualify, specific companies, like start-ups, aren’t eligible for funding.

Short Term for Business Term Loan

When you receive a business term loan from iCapital, you can make repayments for up to two years. This can result in large repayments, especially if you borrowed a high amount. And since repayments are deducted daily or weekly from your bank account, it can tremendously affect your business’s cash flow.

High Sales & Revenue Qualification Criteria

Your business should make $5,000 in monthly credit and debit sales to qualify for a merchant cash advance. In addition, you must make $100,000 per year to qualify for a business loan.

iCapital Products and Services

In this section of our iCapital review, we’ll briefly explore the lender’s products and services available to Canadian small businesses. iCapital offers various financial solutions. These include:

  • Business lines of credit
  • Merchant cash advances
  • Business term loans
  • Secured business loans

These financial solutions are available to many businesses, including bars and cafes, wholesalers, transportation companies, and auto shops. Let’s explore each solution further below.

Business Line of Credit

A business line of credit is ideal if your business requires flexible capital. It allows you to borrow a fixed amount of money, which you can access easily to execute plans without delay.

A business line of credit keeps your business liquid. This means you’ll have a source of cash to tap into whenever you need it. Therefore, you can quickly handle unexpected costs.

With an iCapital business line of credit, you can increase the credit limit anytime for your business needs. Their proprietary underwriting software will oversee your business’s sales volume to ensure you get access to the capital you need.

Merchant Cash Advance

A merchant cash advance grants you a once-off advance without the risk of collateralizing assets. It’s an ideal financing solution if sales are low or your business is closed due to repairs. And it’s suitable for businesses operating in the hospitality, food service, and retail industries.

There are several reasons an iCapital merchant cash advance is a great financing option:

  1. You don’t need perfect credit to be approved
  2. The approval rate is high
  3. You can use the money for any purpose

Repayments for a merchant cash advance are a percentage of your daily credit and debit sales. This means you won’t make monthly payments. Instead, your business bank account will be debited daily with the repayment amount.

iCapital offers up to $250,000 in merchant cash advances per location. You can receive more funding once you’ve paid between 75% and 80% of the principal.

Business Term Loan

A business term loan is another once-off advance available to Canadian small businesses through iCapital. It’s ideal if you need to replace broken equipment or pay salaries to your employees.

Unlike other forms of financing, term loans don’t have interest rates. Instead, you’ll pay a fee determined by your credit score, business’s operational duration, and other factors. And such a loan is repaid daily or weekly over a predetermined number of months.

iCapital business term loans have a term between 3 and 24 months. Additionally, you can repay the loan in advance without incurring prepayment penalties.

Secured Business Loan

A secured business loan is your best bet if you’re searching for capital that doesn’t come with high-interest costs. It carries lower interest rates than other business financial solutions because you use your assets as collateral. Therefore, you risk losing your collateralized property if you don’t repay your loan.

iCapital secured business loan interest rates start from 9.99%. And you can borrow between $5,000 and $250,000 for a term of up to 5 years. Furthermore, there aren’t specific requirements for using the funds.

Icapital Business Funding - Comparewise

iCapital Product and Service Quality

iCapital has been operational for several years. As a result, they’ve dealt with several Canadian small businesses during their time in business. That’s why for this iCapital review, we assessed the reputation the lender has built since its incorporation.

The ethos of iCapital is that quality service entails several factors. These include their team’s knowledge and the security and support they offer customers.

iCapital’s team comprises accounting, finance, and human resources experts. Furthermore, iCapital manages automated repayments through DC bank. This offers customers a higher level of security compared to other digital lenders.

Regarding their support, they make it a point to respond quickly to emails and calls. They are also committed to providing customers with financial tips and best practices through e-newsletters.

Based on iCapital reviews from Trustpilot and Google My Business, we deduced that iCapital remains true to its philosophy. Their customers commended them for their simple and quick application process.

In addition, other customers who wrote an iCapital small business loans review found their service reliable and responsive. And they claim their team was friendly and knowledgeable. In the next section of this iCapital review, let’s look at the application process.

How to Get Started with iCapital

In this section of our iCapital review, we’ll walk you through the application process for their financial solutions. Applying for iCapital business funding is clear-cut. As a result, you can receive funding for your business within 48 hours.

According to iCapital, you can complete the application in as little as five minutes. Here are the steps you’ll need to follow:

  1. Visit the iCapital website.
  2. Click the green ‘Apply Now’ button in the upper right-hand corner of the screen.
  3. Answer the pre-qualification questions.
  4. Enter the details about your business (years of operation, industry, required funding amount, etc.).
  5. Complete the form with your personal information, including your full name, residential address, and social insurance number.
  6. Answer the additional questions and grant iCapital permission to perform a credit check.
  7. Complete your account verification.

Once you submit your application, an iCapital team member will contact you within 24 hours to discuss the loan details. Also, during the iCapital business loans review process, you will determine the repayment schedule.

Required Documents and Information

As we were compiling this iCapital business loans review, we came across specific documentation requirements. Remember that these conditions apply to some but not all iCapital business funding solutions. You’ll need the following:

  • 3 months of business bank statement to assess whether you meet the annual or monthly income criteria
  • Articles of incorporation to verify that you meet the years of operation requirement
  • Government-issued ID to confirm your identity
  • Business plan to show your plans for the borrowed funds, although it’s not a strict requirement
  • Void cheque

Alternatives to iCapital

While iCapital boasts a superior service and serves multiple industries with several funding solutions, you may want to weigh your options. Perhaps you need access to more funds, or iCapital doesn’t serve your industry. For either case, the following sections of this iCapital review explore other alternative lenders.

Growth Street Capital

Growth Street Capital is a Canadian alternative lender that’s been in business since 2016. They have funded millions to over 250 businesses through business lending, secured loans, unsecured loans, and merchant cash advances.

Furthermore, Growth Street Capital serves more industries than those stated in this iCapital review. These include construction, medical, and fitness.

Also, they serve all provinces in Canada. Therefore, you can apply for their funding solutions whether you live in New Brunswick or Quebec.

Fast approval is Growth Street Capital’s selling point, as with iCapital. They approve loans within 24 hours. And you can get up to $300,000 in less than seven business days.

Forward Funding

Forward Funding is another alternative lender worth considering. The Canadian Fintech company finances small and medium-sized businesses, offering various funding programs.

These include merchant cash advances of up to $500,000 to businesses older than a year. And the forward solution provides rapid funding without an excessive amount of paperwork.

Each funding program has specific requirements. For example, your business must be older than six months to qualify for the forward solution. Therefore, ensure you review the qualification criteria before applying.

Forward Funding accepts online applications. And they can approve your application within 24 hours and fund your loan within as little as 12 hours.

iCapital Review Conclusion

Business emergencies that require financial resources can arise at any time. A pipe may burst in your building, causing water damage, or equipment may break while completing a sales order. You may also need capital if you have payroll to handle or inventory to buy.

These occurrences require quick funding, and that’s where iCapital comes in. As one of the oldest online lenders in Canada, they have funded several businesses. They specialize in business term loans, merchant cash advances, business lines of credit, and secured business loans.

Their straightforward application process is the highlight of this iCapital review. You can complete an application online and receive an approval within 24 hours. Additionally, you don’t need excellent credit to be approved for any of their financial solutions.

You can apply for financing of up to $250,000 with iCapital. And you can receive the borrowed funds within 48 hours. This turnaround time makes iCapital the ideal lender for your business.

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FAQs about our iCapital Review

What is Capital?

Capital refers to anything from which the business owner derives benefits or value. This can be a building. Or the money a firm has to cover day-to-day expenditures and finance future growth. Every business needs to have capital. You can use the funds on hand to buy the inventory required to keep the production of goods going. And you can use it to expand your business to a different city or province.

Is iCapital funding legit?

Yes. iCapital was founded in 2007 and has provided financing to several Canadian businesses. In addition, they are partnered with the Canadian Federation of Independent Business, Ontario Chamber of Commerce, and DC Bank.

What are the qualification criteria for a business loan?

To qualify for iCapital funding, you must:

  • Be the age of majority in your province (i.e. at least 18 years old or 19 in some provinces)
  • Own a business operating in Canada for more than six months
  • Earn at least $100,000 in annual revenue for a business loan or $5,000 in monthly sales for a merchant cash advance
  • Have no open bankruptcies
  • Have a storefront or professional office space

Do I have to use my loan for a specific purpose?

No. Unlike traditional lenders, iCapital allows you to use your borrowed funds for any business need. Therefore, you can hire more employees, expand to a new location, or buy equipment.

How do I repay my iCapital loan?

Your iCapital loan will be automatically paid. This means they'll deduct a predetermined amount from your bank account daily until the loan is repaid in full. In some cases, you may repay your loan based on sales.

June 9, 2022
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