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First Capital Business Finance alternative business loans review

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Working capital loans and more for all industries and credit types — though they don't come cheap.

Struggling to qualify for a business loan? If you work in a high-risk industry — like cannabis, transportation or auto repair — your options are limited. First Capital Business Finance is an alternative lender connection service that works with businesses of all sizes, industries and credit types and provides various types of financing.


Min. Amount


Max. Amount


Product NameFirst Capital Business Finance Alternative Business Loans
Min. Amount$5,000
Max. Amount$2,000,000
Loan Term3 months to 2 years
RequirementsIn business for 6+ months, make $150,000+ each year, credit score of 500+

First, do I qualify?

To qualify for a First Capital Business Finance loan, you must:

  • Be in business at least six months
  • Make at least $10,000 a month
  • Have a credit score of 500 or higher

What are First Capital Business Finance working capital loans?

First Capital Business Finance’s partner lenders offer unsecured short-term working capital loans. These work like a cross between a term loan and a merchant cash advance: Your business borrows a fixed amount, which it pays back plus a fixed fee in fixed daily repayments automatically withdrawn from your bank account.

You can start your application online and wait for a representative to call you or you can do everything over the phone. Typically it takes around seven days from start to finish.

First Capital Business Finance also offers equipment loans from $5,000 to $5 million. Unlike working capital loans, these are not forms of short-term financing. Your business can take between one and six years to pay them off. You can also apply for commercial title loans and invoice factoring through First Capital Business Finance.


First Capital determines your total loan cost by multiplying it by a factor rate of 1.9 to 3.3. So, if you borrowed $10,000, your business would be on the hook for between $19,000 to $33,000 — it’s not a cheap loan. Loan terms are short too, typically between one and six months. Loan amounts range from $5,000 to $2 million, though businesses can typically qualify for a loan equivalent to its average monthly sales.

What makes a First Capital Business Finance working capital loan unique?

First Capital Business Finance’s connection service can be helpful to business owners that typically have trouble qualifying for funding. It can be particularly helpful to cannabis businesses, which typically don’t have a lot of financing options.

Its working capital loans work slightly differently than traditional types of financing — and can be more expensive, too. Be prepared to pay at least 1.9 times the amount you borrowed — and over a short period of time.

What are the benefits of a First Capital Business Finance working capital loan?

  • Cannabis friendly. Thanks to its uncertain legal status, not many lenders are willing to work with this industry. First Capital Business Finance can put your business in touch with a lender that is.
  • Wide range of loan amounts. Loans start as low as $5,000 and go all the way up to $2 million.
  • Good credit not necessary. You only need to meet a 500 credit score minimum to qualify for a loan from one of First Capital Business Finance’s partners.

What to watch out for

  • High cost. Your working capital loan can end up costing as much as 3.3 times the amount you borrowed.
  • Automatic daily repayments. These can be difficult to afford if you don’t have a regular cash flow or if your business is seasonal.
  • Can’t save with early repayment. Since First Capital Business Finance’s lenders don’t charge interest on its working capital loans, paying off your loan early can’t help you save. Though you might not be able to afford to anyway with such short loan terms.
  • Slow turnaround time. It can take at least two business days to get approved and another five to get your funds. If you’re looking for a fast business loan, consider other providers.

Compare other alternative business loan providers

Updated April 1st, 2020
Name Product Filter Values Loan amount Starting APR Requirements
$500 – $5,000,000
Operate a business in the US or Canada, have a business bank account and have a personal credit score of 675+.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Diamond Business Loans
$25,000 – $150,000
Personal credit score of 680, no late payments or bankruptcies.
Grow your startup or cannabis business with a line of credit or fixed-term business loan.
Green Leaf Money
$25,000 – $10,000,000
Documented income and records of your business spending and accounts.
Connects cannabis businesses with lenders willing to work with them across the country.
Fundanna Cannabis Business Equity Crowdfunding
$10,000 – $1,070,000
Must own a startup in the cannabis space. You're not eligible if your company is outside of the US or already reports to the SEC.
Raise funds for your cannabis business while using a streamlined platform to communicate with investors and develop a loyal brand following.

Compare up to 4 providers

Is First Capital Business Finance legit?

It is, though there are a few things that set off our alarm bells. First, it isn’t rated by the Better Business Bureau (BBB), though it has two reviews on its BBB page. Its site links off to its Business Consumer Alliance page, however — a rogue branch of the BBB that went its own way after being accused of forcing businesses to pay for better ratings. First Capital Business Finance gets a AAA rating — the highest from the Business Consumer Alliance, though it isn’t a member.

It also doesn’t have a Trustpilot page, but several customers have reviewed it on Yelp — not uncommon for an alternative lender. It only has a few comments on both Yelp and the BBB page, most of which are positive but nonspecific. The one negative review — on its BBB page — appeared to be a complaint about its high rates and short terms for equipment loans.

How do I apply?

First, confirm you’re eligible. To qualify for a First Capital Business Finance working capital loan, you must:

  • Be in business at least six months. In other words, these loans aren’t available to startups.
  • Make at least $150,000 each year. Or on its way to making $150,000 annually.
  • Have a credit score of 500 or higher. You might be more likely to qualify for a lower factor rate if you have a higher credit score, however.

You can get started on your application by filling out a quick online form, over the phone or by downloading a PDF and sending it to First Capital Business Finance.

To apply online, go to First Capital Business Finance’s website and fill out the form in the right hand side of the page with your name, business name, phone number and email before hitting Apply Now. Then, wait for a representative to get in touch with you. They’ll explain your options and guide you through the application process with the lender. This can take around two days. Once you’ve signed your loan documents, it can take up to five days to receive your funds.

What documents do I need to apply?

First Capital Business Finance only requires business owners to submit the most recent six months of business bank statements. It uses this to evaluate your business’s cash flow and to determine how much your business is eligible to borrow.

Does my business need a bank account?

It does. First Capital Business Finance uses your bank account information to determine your business’s eligibility and loan amounts. It also only offers daily automatic repayments using ACH, which requires a bank account to work.

I got a First Capital Business Finance loan. Now what?

Since you’re paying off your loan daily, repayments will start sooner than a loan with monthly or weekly repayments. First Capital Business Finance requires businesses to enroll in autopay, so you won’t worry about making manual repayments each day.

Keep an eye on your loan balance and your bank account. Reach out to customer service by calling 888-939-1036 as soon as possible if you notice anything wrong or think you might have trouble making a repayment.

Bottom line

There’s no way around it: You probably won’t find the most competitive costs through First Capital Business Finance. But it might be one of your few options if you work in an industry that can’t qualify for traditional financing.

Still, there might be more affordable options out there for you, even if you’re running a growhouse. You can find other cannabis loan options through our cannabis business financing guide or check out other general business loans by visiting our business loans page.

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