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How To Get a Loan Through CAN Capital: Part 1

Robyn Parets

Robyn Parets

Contributor at Fundera
Robyn Parets is a personal finance and business writer based in Boston. A former writer for Investor's Business Daily and NerdWallet, Robyn is also the founder and owner of Pretzel Kids, a children's fitness brand and online training course. You can follow her on Twitter @RobynParets or reach her via email at robynparets@gmail.com
Robyn Parets

If you’re considering a small business loan for your growing company, it can be hard to know where to start looking for funding—especially when your business doesn’t have a long track record and you can’t qualify at a traditional bank. That’s where alternative online lenders can step in and make things easier for you.

Enter: CAN Capital, an alternative lender that’s been funding small businesses since 1998. CAN aims to help small- to medium-sized businesses access funding fast through its technology-driven online application process. CAN Capital’s Daily Remittance Platform, for example, allows the lender to forecast your risk based on the strength of your business. This, in turn, leads to a higher approval rate and more financing options for you.

CAN Capital is particularly adept at customizing loans based on the type of business you operate, your industry, your company’s sales volume, and where your business is located. Using this information, gathered online, “we can triangulate the level of risk and then determine how much money we can provide you with and at what price,” says Jason Rockman, VP of brand and partner marketing.

To help you better understand how to get a loan through CAN Capital, we’re giving you a snapshot look at this lender and answered some basic starter questions. But in case you want even more, we took it a step further and broke down the actual application process so you know what to expect.

The Nuts and Bolts of CAN Capital Loans

Funding Amounts: Typical loans range from $2,500 to $150,000 for a single location, according to CAN Capital. The average loan amount is about $40,000 to $60,000 and the company has funded up to $350,000 for a single business, says Rockman.

The Cost to Fund: 15% to 45% APR range. The APR, however, can go higher depending on your risk factor and the loan period. The shorter the loan term, the higher the APR, explains Rockman.

The Average Loan Term: 8 to 14 months.

Minimum FICO Score: About 550.

Average Borrower FICO Score: Between 670 and 690.

Approval Time: More than 50% of all loans are processed and out the door the same day or the next. It can sometimes take longer, depending on the specifics of your business and type of loan, says Rockman.

What Are the Prerequisites for Applying for a Loan?

At the very basic level, you have a good chance of qualifying for a loan if you meet the following criteria:

  • Your business has monthly gross revenue of at least $4,500.
  • Your monthly sales are relatively stable.
  • You’ve been in business for at least 4 months.

What Are Other Benefits of Funding Through CAN Capital?

There are a few other reasons to consider CAN Capital, too.

  • Once you’ve got a loan, a small fixed amount will get deducted from your bank account daily, eliminating the need to pay larger monthly amounts.
  • You don’t need to provide personal collateral.
  • An online loan application can be completed in 10 minutes.

“We make funding easy for small businesses short on two things: time and money,” says Rockman.

The Actual Application Process

Now that you’ve determined that CAN Capital is a good fit for your business’s funding needs, let’s walk through the quick and easy online application process—step by step.

Step #1: Enter Your Basic Business Information…

You’ll input your name, your company name, email address, phone number, the amount of time you’ve been in business, and your company’s gross monthly sales.

Step #2: …And Your Own Personal Information

Once you’ve entered your basic information, the system will populate the information into the next screen which asks for the following additional information: the last four digits of your social security number, your date of birth and your address. This information is necessary to verify your identity and help determine your loan eligibility, according to CAN Capital.

Step #3: Give Some More Business Specifics

Next, you’ll be asked to provide more business details. For example, you’ll need to provide your company name and the industry in which you operate. You’ll also be prompted to enter in the following information:

  • Your legal entity type
  • Your business tax identification number
  • The amount you’d like to borrow
  • How you wish to use the loan proceeds
  • The business address where you’ll use the funding
  • Your sales volume for the previous 3 months
  • Whether you own or lease your business space
  • If you do lease, you’ll need to provide your monthly payment amount

“We need this information to verify that your business is up and running,” says Rockman.

For the most part, business owners should be able to readily answer all of this necessary information right away. The only caveat, he says, might be the business tax ID, as some business owners don’t have this number at their fingertips and might have to look it up.

Step #4: Confirm Your Identity

As a final preliminary step, the system will then direct you to  a list of security questions to answer. These questions are based on the previous information you provided and your credit check, automatically run through CAN Capital. Once you confirm your identity by answering the questions correctly, you’ll need to wait just a few minutes while the system automatically processes your loan application for prequalification.

Step #5: You Receive Your Conditional Approval

Within minutes—as long as you meet the basic prerequisites listed above—CAN Capital will provide you with a conditional approval. You’ll also be given a phone number for a customer service representative. This preliminary approval is good for 30 days and, within that timeframe, you can call CAN Capital with the following information ready to submit:

  • Your tax ID number or social security number
  • 3 months of business bank statements or credit card processing statements
  • The first page of last year’s business tax return

What’s Next?

Once you’ve decided to call the representative with the necessary information, your loan moves along to the underwriting process. We’ll discuss underwriting in the second of our three-part series.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
Robyn Parets

Robyn Parets

Contributor at Fundera
Robyn Parets is a personal finance and business writer based in Boston. A former writer for Investor's Business Daily and NerdWallet, Robyn is also the founder and owner of Pretzel Kids, a children's fitness brand and online training course. You can follow her on Twitter @RobynParets or reach her via email at robynparets@gmail.com
Robyn Parets

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