Capify

About Capify

Capify operates as a non-bank financial institution focused on providing alternative finance to small and medium-sized enterprises (SMEs) in the United Kingdom and Australia. The company's origins trace back to 2002, when founder David Goldin established AmeriMerchant in the United States, one of the early online alternative finance companies. Recognizing a similar need for accessible funding abroad, Goldin expanded operations to the UK in 2008 under the name United Kapital, launching during the global financial crisis when traditional bank lending to SMEs was scarce. In 2015, the company unified its international brands, including AmeriMerchant, United Kapital, and Australia's AUSvance, under the single name Capify. A significant strategic shift occurred in 2017 when Capify sold its US division to Strategic Funding Source (now Kapitus) to concentrate its efforts on the UK and Australian markets.

The company's business model centers on offering accessible working capital to established businesses, specifically those with a trading history of at least 12 months. Capify generates revenue through the provision of several tailored financial products. Its primary offerings include a Merchant Cash Advance (MCA) and a Business Loan. The MCA is designed for businesses with significant card payment volumes, such as retail or hospitality, allowing them to borrow against future card sales. Repayments are taken as a small, agreed-upon percentage of daily card transactions, creating a flexible repayment schedule that adjusts with the business's sales flow. The Business Loan offers a more traditional financing structure, with amounts ranging from £5,000 to £1 million, but differentiates itself with a repayment system of small, regular installments rather than a single large monthly sum, aiming to ease cash flow management for borrowers. Capify also provides secured business loans.

Capify has secured significant financial backing to support its lending activities. In 2019, it obtained a £75 million credit facility from Goldman Sachs, which was followed by a £100 million facility from Pollen Street Capital in 2024 to fuel further growth. These credit lines enable Capify to underwrite and distribute capital to a broad base of SMEs who may be underserved by traditional banking institutions. The company leverages a technology platform for its online application process, which aims to provide decisions in 60 seconds, complemented by human account managers to guide clients through the process.