GoKapital alternative business loans review - September 2018 | finder.com

GoKapital alternative small business loans review

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Find the funding your business needs without the worry of meeting a minimum credit score.

Traditional business loans from brick-and-mortar banks have some of the most stringent requirements an owner can come up against. High credit score and monthly revenue requirements, along with certain industries being barred from qualifying, can keep you from getting the financing you need to grow.

GoKapital was established in 2013 and has built itself up as a way to assist many different types of businesses by offering multiple financing solutions. Merchant cash advances, commercial real estate mortgages, revenue-based business loans and more make up the programs that help business owners get the funding they need. Read on to learn about GoKapital’s qualification standards, loan types and the industries it serves.

Product NameGoKapital
Min Loan Amount$10,000
Max. Loan Amount$5,000,000
Interest Rate TypeFixed
RequirementsMinimum of $10,000 average monthly revenue. At least four months of business bank account statements.
  • Business must have 4+ months of bank statements
  • $10,000+ in average monthly revenue
  • Business bank account
  • Less than 7 days with negative balances per month

First, do I qualify?

In order to be considered for a revenue-based business loan you’ll need to meet a few eligibility requirements.

  • Your business must have at least four months of bank statements.
  • Have a minimum average of $10,000 in monthly revenue.
  • Have a business bank account.
  • Have less than seven days with negative balances per month.

What makes GoKapital unique?

GoKapital has several ways of procuring loans for customers. The first way is by connecting people looking to borrow with private lenders — like a marketplace. GoKapital also funds loans in house and thus acts as a direct lender. In some circumstances a combination of the two may be used wherein GoKapital funds part of the loan and another private lender funds the other part.

Due to certain regulation and restriction issues, it can be difficult for certain industries to get loans. Two of these, one big and one that’s growing quickly, are healthcare and cannabis. Both are served by GoKapital, along with several other business types that are usually considered high risk that include:

  • Accountants
  • Auto repair
  • Cannabis
  • Construction
  • Dental
  • Healthcare
  • Restaurant
  • Retail
  • Trucking

GoKapital cannabis business loans

Regulatory discrepancies between state and federal laws around cannabis have made it particularly difficult to obtain funding for your business. Banks can be flighty due to the risk of legal action, and even some alternative lenders tend to bar applicants who need financing for their state-authorized business.

GoKapital provides an entire page of information on business development, with tips to stay within your local laws. More importantly though, it provides quick business loans to those in the cannabis industry. The qualifications are simple and much less intense than you might find with a traditional bank.

What are the benefits of borrowing through GoKapital?

  • Newer businesses welcome. Your business only needs to be in operation for four months to qualify. Given that other lenders require one to three years of history, this is an incredibly friendly option for those still getting their feet off the ground.
  • High approval rate. Of the 95% approved, about 70% of borrowers accept the loan offered.
  • Instant qualification results. Most applicants receive their results in just a few minutes, as opposed to waiting days or even weeks for an answer.
  • Tight turnaround. You can potentially get your funds in as little as one business day following approval, compared to a traditional bank’s funding time of anywhere from a week to a month.

What to watch out for

Though GoKapital offers some excellent loan services, there are a few things to keep in mind when comparing it to other lenders.

  • Your loan may not be funded by GoKapital directly. Because GoKapital acts as a marketplace for some borrowers, it may not be the one to actually fund and service your loan.
  • Pricing and terms aren’t transparent. Another downside to loan-matching is that you’re unable to get a solid grasp of potential rates and terms at a glance. Other direct lenders are able to offer their rates and terms upfront, before you apply.
  • You may be routed towards a different type of financing. The decision to offer you a merchant cash advance, invoice factoring or a line of credit instead of an unsecured general business loan may be made based on your credit risk profile.

Compare GoKapital to similar business loan providers

Rates last updated September 18th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Diamond Business Loans
Grow your cannabis business with a line of credit or fixed-term business loan.
$25,000
$150,000
Personal credit score of 680, no late payments or bankruptcies.
GoKapital
Find the funding your business needs without the worry of meeting a minimum credit score.
$10,000
$5,000,000
Minimum of $10,000 average monthly revenue. At least four months of business bank account statements.
Green Leaf Money
Connects cannabis businesses with lenders willing to work with them across the country.
$25,000
$10,000,000
Documented income and records of your business spending and accounts.

Compare up to 4 providers

What does the Internet say about GoKapital?

GoKapital only has a handful of reviews on both the Better Business Bureau (BBB) website and Trustpilot. It’s held accreditation with BBB since late 2016 and has a letter grade of A+. Because there’s only one review, and it’s a positive one, GoKapital has a composite score of five out of five stars.

Three more reviews are available on Trustpilot, all of them from late 2017. All three reviews are five out of five stars and praise the thoroughness with which GoKapital explains the loans.

How do I apply?

  1. Click the Go to Site button on this page.
  2. Fill out the loan amount you’re requesting, your personal credit range, monthly revenue and time in business, then click Get Cash Now.
  3. Fill out your first and last name, email and phone number.
  4. Read and sign the Terms of Use before clicking Continue.
  5. A preliminary decision should only take a few minutes, and your loan options will be presented shortly after. From there, if you’re approved, funding generally takes one to three business days.

Step-by-step application with screenshots

What documents do I need to apply?

  • Personal identification. In order to prove your identity, you’ll need a state or federally-issued ID, such as your driver’s license or passport.
  • Business bank statements. You’ll need to provide your last four months of business bank statements for GoKapital to confirm your average monthly income.
  • Previous year’s business tax information, if available. In order to confirm your annual income, you may need to present your business’s last tax filing.

I got the GoKapital business loan. Now what?

A GoKapital loan advisor will help you through the process of understanding the loan options available to you. Depending on the lender you work with, you may be able to set up automatic repayments in order to avoid late fees.

Bottom line

GoKapital could be a great solution for quick funding if you need it. Be aware that the type of loan you want may not be the type offered, and be mindful of what your loan will fully cost you by the end of your repayments. As with any big financial decision, be sure to compare your options to get the financing that fits your needs.

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