Our review of Spotcap
Spotcap offers a Business Line of Credit from $10,000 to $500,000 for businesses with an annual turnover exceeding $200,000. Each amount drawn down from the available Line of Credit becomes its own business loan. The line of credit has a drawdown period up to three months, and each loan has a repayment period of between one and 36 months.
Spotcap has an established reputation in the lending market. To date, the company has over 1.4 million customers and over 300 employees.
|Suitable if your business:||Suitable for businesses considering:|
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Spotcap provides a business line of credit between $10,000 and $500,000. Each sum drawn becomes a separate loan that can be paid off in weekly, fortnightly or monthly instalments. The funds can be used for any business purpose, including:
- Hiring new staff
- Launching a marketing campaign
- Purchasing inventory
- Buying new business equipment
Your business line of credit is only for business use, and cannot be used for personal purposes.
You can apply for a business line of credit with Spotcap online. Registering online takes five minutes and approvals can be made within 24 hours.
- Interest rates are based on several lending criteria
- Interest is only charged on the amount drawn down, not on the total available credit line.
- The rate of interest Spotcap charges is dependent on your risk profile. Spotcap will advise you of this rate when your line of credit is approved.
A one-time origination fee is taken when you first draw down funds from the approved credit line. There are:
- No application fees
- No maintenance fees or ongoing facility fees
- No penalties for early repayment
Spotcap Business Line of Credit Review
|Loan Feature||Loan Details|
|Approval Time||24 hours|
|Line of Credit Facility||3 months (revolving)|
|Minimum Loan Term||1 month|
|Maximum Loan Term||36 months|
|Repayments||Weekly, Fortnightly, Monthly|
Learn more about a Business Line of Credit.
How to apply for a Spotcap Business Line of Credit
You can apply for finance with Spotcap online. Approval for a line of credit can take as little as 24 hours.
Spotcap Approval Criteria
|Minimum Annual Gross Turnover||$200,000|
|Minimum Trading History||Trading in the same location for 6 months|
When applying for a line of credit with Spotcap you will first register an account. To complete the application process you can either:
- Connect your accounting and online banking accounts to Spotcap’s Systems
- Upload financial reports
How much does a Spotcap Line of Credit cost?
There are no fees for applying for a line of credit with Spotcap. You will only be charged an origination fee if you decide to draw down your line of credit, which will then become an individual loan with its own payment schedule. Interest rates are determined after the line of credit is approved.
The cost of a Spotcap Line of Credit will include:
- The principal amount - between $10,000 and $500,000
- Interest applied to the principal
- An origination fee
There are no penalties for early repayment or additional hidden fees. Loan repayments can be made weekly, fortnightly, or monthly to suit the company’s cash flow.
Spotcap Line of Credit Cost Example:
- A business applies for a $100,000 line of credit
- The customer draws down $100,000 on their line of credit
- The amount is bundled into its own business loan
- An origination fee of 1% ($1,000) is added to the total loan amount
- The total amount to repay is $101,000 plus interest
- The business agrees to a 12-month repayment term
- The business agrees to monthly payments of $9,260
- The total amount paid over the term is $111,116
- Interest paid over the term is $10,116
Want to compare business loan repayments? You can use our business loan calculator.
Money.com.au Spotcap Summary
Spotcap takes a unique approach to small business lending. By offering an extendable line of credit, businesses can draw down on what they need without being charged interest on the unused principal.
Spotcap is a specialist lender for established businesses which generate more than $200,000 a year in revenue. The company requires more documentation than other lenders due to the larger sums of money involved.
The application process can be expedited by linking your online banking and other financial accounts with Spotcap’s systems. Alternatively, you can manually upload your financial documents for review by Spotcap’s lending team.
To date, Spotcap has issued over $450 million in credit lines to small and medium-sized enterprises, and has over 10,000 intermediaries in its distribution network.
Spotcap’s headquarters is located in Berlin, Germany, and offers business finance in the UK, Netherlands, Spain, Australia, and New Zealand. Spotcap Australia and Spotcap New Zealand are a subsidiary of Zip Co, a publicly traded company on the Australian Securities Exchange.