Cape Town Capital: Bridging Finance

About

Cape Town Capital, an American business funder located in Cape Town, provides access to funding of between R20,000 and R1,500,000.

The company offers Bridging Finance or Working Capital loans to small business owners. You are able to get funds within 72 hours of your application’s approval. Flexible terms are provided, and each business’ funding solution is personalised, transparent, and based on your business’ needs.

The company bases their repayment schedules on a business’s projected revenue so that they are sustainable and realistic. Business owners with a poor credit record can have the following options to attain financing:

• Leveraging collateral and assets
• Pay cash down payment
• Apply for a smaller loan
• Sign a personal guarantee

Features

Type Of Funding – Bridging Finance

Qualifying Criteria – Your business should be registered and have been operational for at least three months. You also need to have an average monthly turnover of a minimum of R30,000.

Repayment Terms – Short-term funding solutions are offered; the funding term can range from six weeks to 12 months. Repayments can be made either daily, weekly, or monthly. Common methods of repayment include Electronic Funds Transfer (EFT), Split Processing through your POS, and debit orders. Your business can choose to settle the loan amount, and re-advance your contract, as it needs additional cash flow. You may qualify for a discount on early settlement should you choose to refinance with the company.

Application process – Online applications available. To complete your application, you will be required to provide the following information ‘what amount of funding are you requesting? Explain how you plan to allocate the funds and how the investments will impact your business.’ You will also have to provide information on your business such as the company registration number, type of entity, average monthly sales, and annual revenue. The funds can be deposited within 24 and 72 hours of your application being approved. A credit specialist will assess your application – they do consider credit scores, but rely more on their internal affordability assessments.

Pricing

No upfront fees are charged. Flexible repayments structures and a variety of payment methods are offered based on the individual business’s needs. Their lending process includes six- and 12-month plans. Every month you pay back sixth or 12th (depending on which plan you choose) of the total advance amount plus the monthly cost. Monthly costs are 2% – 6% of your advanced amount for the first 2 or 4 months (plan dependent) and 2% for each of the remaining months.

Pros

• It is a means to an end
• It is easier to get approved for
• It can be obtained quickly
• It prevents loss of funds during waiting periods
• It is a short term commitment
• It provides immediate working capital
• It is a small, low-risk loan
• It is obtained based on profit to be made in the near future
• Flexible repayment structures are offered. You can reapply for a loan if you are 80% settled up.

Cons

The funds can be deposited within 72 hours of your application being approved – competitors have a shorter waiting period.

Customer service

Contact the team via telephone or email.