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iCapital Review

Thursday, May 30th

2024 Canadian Business Loan Reviews

iCapital Review 3.5 Star Rating

iCapital

3.5 Star Rating
  • Borrow up to $250,000
  • Get a term loan, merchant cash advance, secured business loan, or line of credit
  • 98% approval rate
  • Funding typically within 48 hours
  • Eligibility requirements: in business for at least 6 months, over $100,000 in annual sales
  • Daily or weekly repayments
  • Backed by DC Bank
  • In business since 2007

iCapital is a digital-only lender offering business loans in Canada. In operation since 2007, the platform is backed by DC Bank and is available to companies throughout the nation. iCapital is a proud member of the Canadian Federation of Independent Business and the Ontario Chamber of Commerce.

Multiple loan types and easy-to-meet eligibility criteria

There are several lending products available to businesses here, which may include traditional term loans, merchant cash advance, line of credit, and secured (for homeowners who want to use their property as collateral). With iCapital, you can borrow up to $250,000 as long as you have been in business for at least 6 months and you bring in over $100K in annual sales. It was interesting to note that iCapital's term loans have a flat fee (that they don't disclose upfront), rather than an interest rate.

Some inconsistencies

But, there were some discrepancies as we browsed the information for iCapital's term business loans that caught our attention. For example, at the top of the page it says that these one-time loans can be repaid in a set amount daily or weekly over a period lasting up to 24 months; however, the FAQ called it a micro loan and described daily payments over terms of up to 12 months, and in yet another place it described repayments being taken five days a week.

Loan options and details can get confusing

And, when we clicked on the "More Info" button on the Line of Credit option, we were taken to a separate page (with a copyright date back in 2020) that started out describing secured loans, which wasn't what we were expecting. Unlike the term loan page, there was no FAQ or easy-to-view qualification criteria here; we had to click through the prequalification questions to determine that line of credit loans require monthly sales of at least $10,000, and after that iCapital jumps right into the application. We're not sure that line of credit is even still an option; in other places on the site, we didn't see it mentioned. Instead, iCapital described merchant cash advances and loans secured by the primary residence of the business owner. You'll want to click around and see what exactly is on offer here, when you're ready to apply for a business loan.

Best Canadian Business Loans

Where's the feedback?

We were surprised to see that, despite being in operation for over 10 years, iCapital has a "Not Rated" status with the Better Business Bureau, with the BBB saying they don't have enough information to issue a grade for the company. That tracks with what we found (or, rather, didn't find) elsewhere: not a lot of feedback from small business owners regarding their experiences getting funding via iCapital. Even the company's 50+ glowing reviews on Facebook turned out to be primarily the spammy kind (you know, the ones that talk about Forex Trading and invite you to reach out on WhatsApp...). And, on Trustpilot, the most "recent" review was back in 2022, with the rest being from 2016 and earlier.

Some big brands in the portfolio

All of that is really hard to reconcile with iCapital's list of clients, which include DQ, Jiffy Lube, Esso, Mac's, and several other big-name brands. Maybe that's because DC Bank is the actual lender behind the iCapital platform, and that financial institution does have an "A+" rating from the BBB? Still, if iCapital really is doing the kind of volume you'd expect from a business loan provider that has major companies among its clients, why aren't we seeing hundreds (or even dozens?) of reviews from small business owners?

Good but not great

We give iCapital a slightly better-than-average rating because we're sure they're on the up and up, and they very well can connect you with funding specific to small businesses (unlike some of the options on our list that rank lower). But, to move any higher here, iCapital needs to do a better job of clearing up some of the discrepancies we found throughout the process, and maybe disclosing more details (like the flat fees business owners should expect to pay when taking out a loan). And, it would help to see iCapital landing on the radar of more small business owners (or at least convincing them to get out there and leave more feedback).

Who Offers the Best Business Loans in Canada?

Whether you're a budding entrepreneur embarking on a new venture, or a seasoned business owner with a family legacy, the need for financial support is inevitable. At some point in your business journey, you will likely find yourself in need of a loan to bridge the gap between profits and expenses, address unexpected payroll issues, or capitalize on a surge in customer demand.

In recent years, applying for a business loan online has gained immense popularity for several reasons. One significant factor contributing to this trend is the accessibility and convenience offered by online lending platforms. Unlike traditional banks that often involve lengthy processes and extensive paperwork, online lenders streamline the application process, making it far simpler for business owners in need of funding.

The Best Canadian Business Loans Compare Canadian Business Loans Compare Canadian Business Loan Reviews What are the best Canadian Business Loans Best Canadian Business Loan Reviews

Canadian Business Loan FAQ

Business loans are available for just about any need: equipment financing, merchant cash advances, working capital, and much more. While you'll have to provide details about your business to apply and qualify for a business loan, once you've received the funds you can usually use them for whatever your company needs.
There are several types of lenders when it comes to business loans. You could get funding through a traditional bank or credit union, either locally or online. There are also peer-to-peer lending platforms that allow smaller financial institutions and even private investors to fund business loans.
You'll definitely pay interest on your business loan. Rates typically range from 1.5% to as high as 36% APR. You may also have origination fees of up to 6% of the loan amount, depending on the lending partner you select.
That always depends on the lender. Some providers of business loans require you to have a certain length of time in business or a minimum amount of gross annual sales to even apply. It's a good idea to determine those requirements before you begin the application, to save yourself some time and hassle.
Most of the time, you can complete the entire business loan process, from application to funds transfer, 100% online. That's a huge convenience for busy business owners like you, who might be applying outside of traditional bank hours.
Most lenders offer business loans ranging from $2,000 to $500,000. The amount you're approved for will depend on the lender you select and your business situation: naturally, the longer you've been in business and the more profitable you've been, the more likely it is that you'll be approved for a large loan.
You should have the proceeds of your business loan in your account within a week. However, if you need the money sooner, look for a lender that offers next-business-day funding. And, keep in mind that those timeframes are based on when you accept the loan offer you get, not just when you finish the application. Your business loan may require extra verification steps, like documentation of income and expenses, before you receive a funding offer.
Any time you take out a loan, you run the risk of defaulting. Be sure to only borrow what you need and maybe a little extra, and have a clear plan for making on-time loan payments. Many providers of business loans offer education and counseling at no extra charge, if you could use help in determining how much to borrow and how to use the loan wisely to maintain and grow your company.
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Continued from above...

Online platforms provide a user-friendly interface that allow business owners to easily navigate through the loan application process. This simplicity makes it easier for individuals who may find traditional financial applications complex or intimidating. With clear instructions and helpful online support, these platforms empower entrepreneurs to take control of their financial needs without being overwhelmed.

Another reason why online loans are so popular is the speed of the loan approval process. Traditional banks may take weeks or even months to approve a loan, causing delays in crucial business operations. Instead, online lenders leverage technology to expedite the evaluation process, providing swift responses to loan applications. This quick turnaround time is particularly beneficial for small businesses that may need timely financial support to address unexpected challenges.

The question then arises: where should you seek a business loan? While your first inclination may be to approach the financial institution where you already hold personal or business accounts, convenience doesn't always translate to being the best financial option. Local banks may lack the motivation to provide the most competitive rates, and smaller banks might not possess the resources for substantial loans.

Fortunately, Canadian business owners have a range of choices when it comes to securing a loan. While local banks remain a viable option, there are reputable online lenders that simplify the application process, offering the possibility of receiving funds within a business day or two. You'll want to compare offers from both local and web-based lenders to identify the loan that offers the most favorable rates and terms for your specific needs.

Determining which lender is the right fit for your business involves considering various factors:

  • Loan application process. Evaluate the ease and speed of the application process. Can you complete it online, and how long does approval and fund disbursement take?
  • Loan requirements. Check the eligibility criteria, considering factors such as business tenure, gross revenue, and the need for collateral.
  • Loan amount and rate. Understand how much you can borrow, the interest rates, and the repayment duration.
  • Reputation. Research the lender's reputation. Look for feedback from other businesses, consider the Better Business Bureau's ratings, and seek insights from the lender's clientele.

To assist Canadian entrepreneurs in navigating these considerations, Top Consumer Reviews has diligently reviewed and ranked the best business loan providers. Our goal is to equip you with the information needed to secure the funding essential for your company's growth and success. Whether you're a startup or an established business, we hope our insights guide you toward the right financial partner. Here's to your business thriving and flourishing!

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