Spotcap business loans review

With headquarters in Berlin, and local offices in Madrid, Amsterdam, Sydney and London, Spotcap is an online direct lender (not a broker) providing business financing across the UK, mainland Europe and Australia.

Spotcap bases its loan decisions on recent business performance and credit scores, rather than on plans and forecasts. This means that business owners don’t need to give a personal guarantee or take on unnecessary risk.

Key features of Spotcap business loans at a glance

Spotcap offers tailored financing to small and medium-sized businesses with an annual turnover of more than £500,000. Its fast and flexible line of credit typically lasts for 1 month up to 24 months. This means you won’t start paying interest until you actually need the money, you’ll only have to borrow what you need, and if for some reason you don’t end up needing to draw down funds, you won’t pay a penny.

• Quick decisions. Receive a decision within one working day and have immediate access to your funds.
• Flexible line of credit. During the term of your line of credit (usually 1 month) you can withdraw and repay, up to your limit, as often as you like.
• Borrow £50,000 to £350,000. A company’s credit limit will depend on factors like the size of your business, its performance and creditworthiness.
• Duration. Spotcap offers unsecured business loans for up to 15 months, or 24 months if your business operates longer than 8 years.
• Arrangement fee. There’s no charge to arrange the facility, but the first time you draw down, Spotcap will charge an arrangement fee. If you don’t use the facility, you won’t pay a penny.
• Loan repayment. Spotcap’s model calculates the amount of the monthly payments, based on your duration, instalments and interest rate. Spotcap handles an annuity structure that results in a fixed monthly sum.
• Security. Spotcap’s business loans are unsecured, meaning you don’t have to put down assets as collateral.
• Repay your loan early at any time. Spotcap won’t charge you for settling early. You’ll only pay interest on any outstanding balance.

Interest rates are fixed for the duration of your repayment period. However, the rate you’re offered will depend on factors like the amount you apply for, the term of the loan, the performance of your business and its credit rating. This may differ from the advertised “representative APR”.

Is my company eligible for a Spotcap business loan?

You should only apply for a Spotcap business loan if you’re certain you can afford the monthly repayments. The company must also:

• Be a UK-based business
• Have a minimum annual turnover of £500,000
• Have been trading for at least 3 years
• Be a profitable business

How do I apply?

1. Go online and tell Spotcap about your business. Answer a few questions and provide some financial information about your business.
2. Spotcap will review your application. Its team of credit experts will check your details, perform a credit check and be back in touch with a decision within 1 working day.
3. Accept your offer. Once approved, you can review and accept the offer. Your funds will be available in one or two working days.

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Spotcap customer reviews

Spotcap has received positive reviews from customers according to review platform Trustpilot, where it currently has an “excellent” rating of 4.9 out of 5, based on over 130 reviews (updated May 2022).

Over 90% of customers on Trustpilot gave Spotcap an “excellent” review, with people highlighting their professional customer service, fast turnarounds and simple application process.

Alternative sources of funding

There are several types of business loan out there. The right one for your business will depend on how much you need and how long you want to borrow for. You should consider your options carefully before taking out a business loan.

• Government startup loans. If you have a new business, you could borrow up to £25,000 at a low interest rate. You may also be eligible for a government grant.
• Bank loans. Banks and building societies can lend you up to £350,000 over a term of 1 to 15 years. These loans are usually unsecured.
• Short term loans. These are offered over a few weeks or months and typically come with a higher interest rate than other types of borrowing. You could get a loan of up to £200,000.
• Peer-to-peer loans. This is when your business borrows money from investors instead of from a financial institution. You could get a loan of up to £1 million.
• Invoice discounting. Invoice discounting lets you borrow against your outstanding invoices and repay the lender once the client pays you. It is an ongoing service with loans that you can pay back in an agreed period.
• Invoice factoring. Here, you sell your invoices to a third-party for a percentage of the invoiced amount. You don’t get the full value of your invoices – this is the more expensive of the two invoice options explained here – but you won’t have to worry about credit control (chasing-up repayments). Don’t forget that with this option, the factoring company will have contact with your clients.

Frequently asked questions

• What can I use my Spotcap loan for?

  Because it’s your business, you choose how to use the funding Spotcap makes available through a line of credit. You can use the funds for any purpose related to your business, including managing cash flow, bridging receivables, refreshing your inventory or purchasing new equipment.

• What is a line of credit?

  A line of credit is a business loan arrangement giving you flexible access to the finance your business requires. Once your application has been thoroughly assessed, and if the line of credit is approved, the funds are available to draw down. You only take what you need, as you need it.

• How often can I draw down from my credit line?

  The term of your line of credit is typically one month. During this time, you can draw down, as often as you like, up to your approved limit. Each sum drawn down becomes repayable in monthly instalments. You will only pay interest on the funds you borrow.

• Does Spotcap take my credit score into consideration?

  Yes, business and personal credit scores are included in the assessment. However, current business performance (financials and bank accounts) is also taken into consideration.