Sarah George is a Bankrate writer who is passionate about helping small business owners understand the complexities of business loans. She has been featured in publications such as CBS, CNET, Finder and Reviews.com.
Most recently before joining Bankrate, Robert worked as an editor and writer at The Ascent by The Motley Fool, covering a number of personal finance topics, including credit cards, mortgages and loans.
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Founded in 2006, eCapital is an online lender that focuses on alternative business financing for small and medium-sized businesses. Its main products include asset-based financing and several types of accounts receivable financing.
Min. annual revenue
Min. time in business
Who eCapital is best for
Since eCapital focuses on high-dollar secured and alternative financing, it’s best for businesses with significant assets to guarantee loans. You can even secure an asset-based loan with intellectual property like patented designs.
When evaluating businesses, the lender looks for a steady flow of revenue, which can take at least six months to a year to establish, according to a spokesperson.
Who eCapital may not be best for
If you’re looking to quickly learn about a lender and what they offer, you’ll have better luck with other lenders. eCapital’s website doesn’t offer many details that could help small business owners make important financial decisions.
Other lenders disclose important information for its loans, such as loan amounts, interest rates and repayment lengths. This includes SMB Compass, which shows terms for all nine of its loans in one location.
Plus, eCapital doesn’t offer conventional business loans like term loans or equipment financing, instead focusing on alternatives that lenders consider riskier types of loans. You’ll need to look at other lenders if you need these types of loans. It also doesn’t work for businesses needing small loans under $250,000.
eCapital: in the details
Min. annual revenue
Min. time in business
Personal credit score
eCapital pros and cons
High loan amounts
Accepts newer businesses
Doesn’t offer conventional loans
Limited information on website
No online application
Business loan types offered
Accounts receivable financing
Additional loan options
Loan quick facts
Amounts: $1 million to $10 million
Terms: Not stated
Interest rates: Not stated
eCapital asset-based financing overview
One of this lender’s specialties is providing loans secured by assets, allowing businesses to borrow a percentage of the asset’s value. The website states that you need two years or more in business and at least $20 million in revenue to qualify.
The loan amount is determined by a formula for different types of assets, such as:
90% of accounts receivable
75% of M&E appraised value
75% of inventory (if liquidated)
50% of real estate fair market value
40% of intellectual property
On eCapital’s website, there is some discrepancy on the maximum loan amount offered. It states that its product is a good fit for businesses needing up to $50 million, while elsewhere it specifically mentions $1 million to $10 million.
Loan quick facts
Amounts: Up to 75% of equipment value
Terms: Not stated
Interest rate: Not stated
eCapital equipment refinancing overview
Your business can refinance long-term commercial equipment to lower monthly payments and tap the equity you’ve built up. eCapital will appraise your equipment based on its net orderly liquidation value (NOLV). If approved, you’ll be offered a term loan for up to 75% of the NOLV. Your equipment will need to be appraised again every two years.
Loan quick facts
Amounts: $250,000 to $25 million
Terms: Up to 90-day payment terms
Discount rates: 1% to 4% of total invoices
eCapital accounts receivable financing overview
The lender also specializes in different types of accounts receivable financing, giving you an advance on unpaid invoices. The website states that it will advance up to $30 million, though a spokesperson stated the limit is $25 million. Its accounts receivable financing includes:
Invoice factoring. Invoice factoring lets you sell outstanding invoices with payment terms of up to 90 days. eCapital will advance a portion of the invoice amount, collect payment and take out fees of 1 percent to 4 percent. A spokesperson stated that this option requires a minimum credit score of 600.
Payroll funding. Designed for staffing companies, this option lets you either sell unpaid invoices to eCapital or use the accounts receivable for an asset-based loan. You use the funds to keep employee payroll flowing.
Freight factoring. Trucking companies can get financing through unpaid invoices in exchange for an advanced amount, similar to invoice factoring. The lender also offers a platform to find new truck loads while on the road, get fuel discounts and get paid instantly to your bank account.
This lender also offers lines of credit as an add-on option for businesses already receiving financing through eCapital. The line of credit can cover operational expenses and keep cash flowing in the midst of revenue gaps. Truckers that use eCapital’s freight factoring are automatically preapproved for a credit line of $2,500 per truck.
Do you qualify?
eCapital isn’t specific about what it takes to qualify for its loans. For asset-based lending, the website states that you need two years in business and at least $20 million in annual revenue.
But a spokesperson told Bankrate that they weigh underwriting criteria other than revenue and credit score. The lender is looking for established revenue, and time in business requirements vary by the business’s industry.
What we like and what we don’t like
The alternative lender considers a variety of underwriting factors not tied to a business’s revenue or credit score. But it’s not without its downsides. What to keep in mind about eCapital:
What we like
High loan amounts. Its loan amounts reach into the millions of dollars, high maximums for an alternative lender.
Accepts newer businesses. eCapital doesn’t focus on time in business requirements, as the lender is more concerned with seeing an established revenue.
What we don’t like
Doesn’t offer conventional business loans. You can’t find conventional types of loans like business term loans, and its line of credit is an add-on product.
Not transparent about rates and terms. Unlike other fintech lenders, eCapital doesn’t post its eligibility guidelines online.
No online application. Most online lenders offer quick, online applications, but you have to call to start the process with eCapital.
How eCapital compares to other lenders
Unlike most lenders, eCapital focuses on alternative business financing and doesn’t have set requirements for credit score and time in business. How it compares to similar lenders in the market:
Both eCapital and SMB Compass offer alternative business loans, such as asset-based loans. But SMB Compass expands its products to conventional options like term loans, business lines of credit and equipment financing. It also offers lower starting loan amounts as little as $10,000, helping out the littlest businesses.
eCapital starts its loans much higher at $250,000. SMB Compass is transparent about its terms and interest rates online, while businesses need to get a quote from eCapital to understand borrowing costs.
eCapital vs. Funderial
eCapital sticks with alternative financing, while Funderial offers a variety of conventional and alternative loans. Funderial's lineup includes startup financing, term loans, merchant cash advances and accounts receivable financing.
Funderial requires at least a year in business and $10,000 in monthly income. eCapital will accept newer businesses depending on the industry, but it doesn’t base approvals on a set amount of revenue. Neither lender is upfront about its interest rates and fees.
How to apply for a loan with eCapital
You’ll need to talk with a loan specialist directly to get a loan with eCapital. You can either fill out its contact form for a callback, or talk with a representative by calling 866-525-1615.
The lender doesn’t provide a list of documents you’ll need to apply. But generally, lenders want to see:
Business formation documents
Past business tax returns
Profit and loss statements
Proof of ownership for assets
Valuation of assets
eCapital frequently asked questions
A spokesperson stated that eCapital doesn’t weigh a business’s credit score as a main factor to approve loans, but other underwriting criteria. Many of its loans rely on the client’s creditworthiness rather than the business applying for financing.
While eCapital doesn’t have minimum credit requirements, your business does have to meet specific criteria. For example, you need significant assets for asset-based financing or unpaid invoices for accounts receivable financing. For example, asset-based financing requires a minimum annual revenue of $20 million.
eCapital focuses on alternative types of financing, including:
Business line of credit
How Bankrate rates eCapital
eCapital accepts newer businesses and looks beyond credit score for eligibility. But it doesn’t offer small loan sizes.
Of the fees disclosed, eCapital keeps fees for invoice factoring within the industry standard.
It’s difficult to get loan information without calling a representative.
eCapital doesn’t offer an online application like most online lenders.
The lender offers several loans, some like invoice factoring that you can’t find everywhere. But it lacks conventional loans as well as details about repayment terms.
years in business
loan features weighed
data points collected
To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 30 lenders and gave each a rating, which consists of five categories:
Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
Affordability: This section measures interest or factor rates and fees.
Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
Customer experience: Customer service hours, online applications and app availability are considered in this category.
Flexibility: This category considers factors like the number of loan products and ability to change payment due date.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.