To learn more about GoKapital and decide if it’s right for your needs, please continue reading:
Small business owners needing working capital who can’t qualify at commercial banks often turn to alternative business loan options. The alternative lending platform GoKapital offers one of the industry’s highest business loan approval rates—95%. Additionally, GoKapital provides financing options in all 50 states regardless of credit score and approves business loans within 24 hours.
The company offers six business funding options and commercial real estate investment loans. Business owners can apply online and receive a quick decision on pre-approval. GoKapital’s online application process only takes 2 minutes to complete.
However, GoKapital does have high rates on some small business loans and can carry high annual revenue requirements. This review provides what you must know about GoKapital to help you decide if the lending platform is the right fit for your business.
Specifically, we’ll answer these questions and more:
GoKapital is an online lending platform that offers a diverse range of small business loans to help entrepreneurs start and grow their businesses. The company provides a convenient, online, and streamlined application and review process with a fast turnaround on approval and funding for new and existing businesses.
The lending platform boasts a high approval rate. This is mainly because it works with a network of lenders to offer many funding options, including merchant cash advances, the most accessible business funding product.
The Miami, FL-based company was founded in 2013 to help businesses that couldn’t qualify at traditional lenders, like a local bank. To service its clients, the company combines a technology-driven platform with financing experts. It offers commercial real estate financing in addition to business loan offerings. GoKapital also provides private lender financing on residential investment and commercial properties in all 50 states.
GoKapital offers six small business financing options. GoKapital is known for its quick business loans, providing fast access to capital for various business needs. The company provides an easy online application tool.
Merchant cash advances (MCAs) have the highest approval rate of any financing product. With an MCA, you get an immediate cash advance that purchases future receivables. You repay the advance, interest, and fees with a percentage of your future sales.
GoKapital’s merchant cash advance offers funding amounts from $20,000 to $5 million and terms between 3 and 18 months. Factor rates start at 1.20. GoKapital states it can fund MCAs in 1-2 business days. MCAs are often offered to borrowers with bad credit scores.
Term loans are what most people are familiar with when they think of “business loans.” This loan structure provides a large lump sum of cash upfront, which you repay plus interest in fixed monthly payments.
GoKapital’s term loans are unsecured, meaning you are not required to put up collateral. Term loan amounts are between $30,000 – $350,000. Terms are 1-5 years with fixed interest rates between 6% – 25%. The company states it takes 1-2 weeks to finalize and fund its term loan product.
A business line of credit provides an available credit limit from which you can draw funds as needed. In some ways, a line of credit acts like a credit card but with more flexibility. It differs from a term loan because you only access funding when needed instead of a lump sum.
GoKapital’s business line of credit is an unsecured, revolving line, which means it replenishes as you pay it off (like a credit card). Line of credit amounts are between $5,000 and $55,000, with 6, 9, or 12-month terms. Rates start at 15%. The company can approve and fund lines of credit within 24 hours.
GoKapital’s startup loans include term loans and lines of credit to help entrepreneurs launch their companies. Loan amounts are between $25,000 – $500,000 with terms of 3-10 years. Rates range from 6% – 18% with monthly payments.
The lending platform offers equipment loans and leases to acquire the equipment or machinery you need for your company. There is a wide range of equipment and machinery used across multiple industries.
Small business owners can get equipment financing or leasing for amounts between $30,000 and $5 million. Terms are 1-5 years, with interest rates ranging from 6% to 35%. GoKapital’s funding time for equipment loans is 3-5 business days. This financing is ideal for acquiring equipment for various commercial properties, including offices, warehouses, and retail spaces.
The company is an approved lending platform for SBA 7(a) and SBA 504 loans. The US Small Business Administration (SBA) partially guarantees up to 85% of SBA loans. With backing from the federal government, lenders can offer high borrowing amounts with low rates and longer terms.
SBA loans through GoKapital offer borrowing amounts of up to $5 million with terms of up to 10 years. Interest rates are between 3% and 14%, regardless of the lender or lending platform. The SBA loan program has high approval requirements and lengthy approval and funding times. Closing and funding an SBA loan can take several weeks to two months.
GoKapital offers a variety of real estate financing options tailored to the needs of real estate investors and business owners. Their commercial mortgage programs provide competitive rates starting at 6.99% and flexible terms, with loan-to-value (LTV) ratios up to 80%. They cater to residential investment and commercial properties across all 50 states, with loan amounts ranging from $100,000 to $50,000,000.
For real estate investors focusing on fix-and-flip projects, GoKapital offers hard money loans with quick closings and high LTVs. These loans cover up to 80% of the purchase price and up to 100% of rehab costs, with terms between 6 to 14 months and interest rates ranging from 7% to 14%. Additionally, their rental investment property loans feature rates from 5.9% to 7.9%, terms up to 30 years, and LTVs up to 75%, making them suitable for investors seeking long-term financing solutions.
At GoKapital, they believe in transparency and fairness regarding fees and interest rates. They want their clients to clearly understand the costs associated with our loans so they can make informed decisions about their financing options. GoKapital also supports small businesses by providing fast working capital to companies owned by women, Latinos, and veterans.
Additionally, GoKapital offers cash-out refinancing for residential investment or commercial properties nationwide. One user stated they had a positive experience with GoKapital during a past transaction but later experienced problems.
By providing clear and upfront information about our fees and interest rates, we aim to build trust and ensure our clients are fully informed about their financing options.
Since GoKapital offers various loan products, the qualifications vary depending on which loan you apply for. Here are the qualifications by loan type.
Since startups don’t have a company history, GoKapital has some alternate qualifications for this loan. Applicants must have a credit utilization of 40% or less, verifiable income, 5+ active revolving accounts, a history of installment loans, and no more than 3 credit inquiries in the previous 6 months.
Most loans use a simple interest rate, except for the merchant cash advance product. MCAs use a factor rate to determine interest. GoKapital’s MCA factor rates start at 1.20. Multiply the factor rate by the cash advance amount to determine how much you’ll pay.
For example, if you received a merchant cash advance for $150,000 at a 1.20 factor rate, the formula would be:
$150,000 x 1.20 = $180,000. You’d pay $30,000 in interest to borrow $150,000.
The lending platform does not reveal its methodology for determining funding amounts. MCAs are typically based on previous sales history, but other loans can be more complicated.
Understanding the terms of the financial deal is crucial to ensure it aligns with your business goals.
The platform is a lending marketplace, meaning your loan request gets sent to multiple private lenders. Sometimes, you might get multiple loan offers with different amounts, rates, and terms from different lenders. It doesn’t have a mobile app but does provide an online portal for small businesses.
The lending platform services a more diverse range of industries than many similar lenders. Examples of industries GoKapital services include:
You can apply on the platform by following these steps. The company performs a soft credit pull, which won’t affect your credit score. Some products, such as SBA loans, may require a hard credit pull when finalizing the loan.
Fill out the required details on the simple online application. You’ll supply information about your company, including the name, location, structure, contact information, and revenue.
You’ll also supply your name, contact information, and personal credit score. You’ll state how much you’re requesting and how you intend to use the funds. Finally, you’ll e-sign the application, which allows GoKapital to send it to lenders who might require a signed application. The application process is straightforward, whether you’re seeking funding for commercial properties or other business needs.
For all GoKapital loans, you’ll need to provide the following:
Some loans, such as SBA loans, require more detailed documentation. Be prepared to provide:
GoKapital reviews your application and provides a determination on pre-approval. If approved, you’ll work with a funding advisor to select the right loan program for your needs. GoKapital provides maximum loan amounts ranging from $30,000 to $2,000,000 with terms between 6 months and 3 years. These flexible terms aim to cater to a variety of business needs.
After selecting a program, you’ll finalize the loan offer. Depending on the loan, you could receive your working capital within 1-2 business days. SBA loans take several weeks to fund.
MCAs require daily or weekly payments, which are automatically deducted from your daily sales. Term loans require monthly payments, and GoKapital offers early payment discounts.
Business lines of credit require weekly repayment once you draw funds. You can get an early payment discount and save on interest if you pay it off beforehand.
Equipment financing requires monthly repayment, but it does not indicate if there are any discounts or penalties for early repayment.
Startup loans have a monthly payment and no early repayment penalty. The platform’s website does not indicate if you can save money by paying off the loan early, but it does recommend paying it off early to free up cash flow.
SBA loan payments are monthly, and the SBA sets specific rules on early payment penalties. An SBA lender can only charge a prepayment penalty if a company pays off a loan with a 15-year or greater term in the first five years of the loan.
Small business owners who work with GoKapital benefit from a diverse line of funding products to meet their needs. The platform offers multiple products and partners with a network of lenders, boasting a very high approval rate.
The platform provides a simple online application with instant pre-approval for qualified applicants. Depending on the loan product, you can finalize a loan offer and get funding within 1-3 days.
GoKapital also offers startup financing, differentiating it from many alternative lenders. It also provides funding for high-risk industries such as cannabis businesses and gun shops – many lenders restrict these companies.
The company’s diversity of loan products also provides flexible payment options. It is also known for its exceptional customer service.
Some products, such as MCAs, can have high rates. In addition, GoKapital’s revenue requirements are on the higher end for alternative lenders and MCA providers.
The company’s rates are especially high for borrowers with bad credit or less than stellar credit. While some rates start at 6%, you’d need outstanding credit to qualify. Most business owners will be at the higher end of their interest rate ranges.
GoKapital Pros & Cons
Here’s a quick summary of the benefits and drawbacks of GoKapital.
Pros:
Cons:
Yes, GoKapital is a legitimate online lending platform. The Better Business Bureau has accredited the company since 2016, where it has an A+ rating.
While many lenders exclude real estate investment loans, the lending platform provides several financing options to service this sector. Real estate investor loan options include single-family residences, multi-family homes, apartments, offices, retail units, industrial facilities, and mixed-use buildings.
GoKapital provides financing up to 80% of the purchase price and up to 100% of rehab funds for fix-and-flip loans.
These loans are suitable for various types of commercial properties, including office spaces, warehouses, and retail locations.
Yes, GoKapital offers a business loan referral partner program for ISO affiliates and business loan brokers. Independent business loan brokers partner with the company to provide GoKapital loans to their clients.
Brokers act as an intermediary between small business owners and lenders. Some owners prefer working with brokers because they can do the legwork of shopping for the best deals.
Despite being in the industry for a decade, GoKapital has few online reviews. The company has an average rating of 4.2 out of 5 on TrustPilot on only six reviews. It has a 4.3 out of 5 rating on Google with 43 reviews. However, multiple customers have shared negative experiences regarding communication with GoKapital, including instances of rudeness. Additionally, GoKapital has been rated poorly for professionalism by some customers. Furthermore, some users have described GoKapital as a deceptive company in terms of financial transactions.
Of the available examples, positive reviews talk about excellent customer service and ease of applying and getting funding. Several reviews were from repeat customers. There are also mentions of the funding advisor finding funding for traditionally high-risk businesses such as gun shops. However, some customers report a lack of professionalism from GoKapital’s staff. A former customer also felt duped by the promises made by GoKapital, highlighting concerns about transparency.
The few negative reviews discussed unsolicited offers and aggressive sales tactics. Since GoKapital works with a network of lenders, users sometimes receive marketing offers from those companies after applying. Some users felt they received contradictory information. Additionally, several users expressed dissatisfaction with GoKapital’s handling of commission payments, which has been a recurring issue for some clients.
Here are some examples of reviews from GoKapital:
These testimonials highlight their commitment to providing top-notch service and competitive financing options. They value their clients’ feedback and strive to continuously improve services to meet their needs.
The company has high approval rates because it offers multiple products and works with numerous lenders. For example, businesses that didn’t qualify for a term loan will likely still qualify for a merchant cash advance.
However, GoKapital does have a high revenue requirement. Most products require revenue between $20,000 and $30,000 per month.
If you applied and were declined, the denial letter should explain why. Contact them directly if you need more information on the denial.
Fortunately, if you were denied or decided GoKapital wasn’t a good fit for your company, there are many business lenders to consider. Merchant cash advances are increasingly popular as they’re the most accessible form of business financing.
You shouldn’t have trouble finding lenders for business term loans, lines of credit, or equipment financing. SBA-approved lenders are more difficult to come by, but there are still multiple online lenders for SBA loans.
Startups will usually have more difficulty finding loans. One of GoKapital’s main competitive advantages is servicing this market. However, you should still be able to find startup business loans from several online lenders.
GoKapital is worth considering for small businesses needing fast working capital access. Niche industries, such as gun shops and cannabis, in particular, can benefit from the lending platform. It’s also a good option for startups or businesses seeking real estate financing.
The diverse product offerings and network of private lenders combine to increase approval odds. But beware that lower qualified businesses will likely be recommended for higher-cost products, such as merchant cash advances.
Perhaps the biggest drawback for the lender is the high revenue requirements for most products. Businesses earning less than $20k—$30k monthly will likely have to find a different lender.
In addition, businesses with a strong credit history, multiple years in business, and high yearly revenue can likely find lower-cost financing options at a traditional bank. However, the company still offers quick funding and excellent customer service.
Based on user reviews, products, and costs, we rate GoKapital at 4 out of 5.
Disclaimer: The GoKapital trademark is owned by GoKapital, Inc., and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from GoKapital, Inc.
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