GoKapital Review - Small Business Loans and Connection Services Explained

GoKapital offers the benefits of both a loan marketplace and a direct lender. Its unique business model means you can utilize multiple lenders at once to fund your business.

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    Financially Reviewed by Gordon Scott

    GoKapital has been around since 2013 and has established itself as one of the more reliable alternative lenders. It’s both a direct lender and a loan marketplace, and it stands out from the crowd by allowing customers to borrow loans from multiple sources at once. For example, GoKapital could fund a percentage of your loan but allow it to be part-funded by another lender in addition. This means borrowers have a near-limitless choice of loan types and offers. 

    What Is GoKapital?

    GoKapital’s founder, Chris Moreno, was frustrated with the traditional business lending sector. He intended GoKaptial to be a fast, flexible alternative to the banking industry. Unusually for alternate lenders, the platform not only offers its own funding but acts as a loan marketplace. While this might be a conflict of interest elsewhere, GoKapital is more than happy for you to go to another lender if you’ll receive better rates there. 

    GoKapital

    Advantages and Disadvantages of a GoKapital Business Loan

    GoKapital Advantages

    • Wide range of loan offers - With seven types of loans, and dozens of different lenders to choose from, you’ll almost certainly find the right product for you
    • Simple application process - No matter your credit history, business experience or income level, the application process has been tailored to match you with the best results. All you need to do is provide some personal details and GoKapital will do the work for you
    • Startups welcome - It’s not often we see startup loans offered at alternate lenders so it’s good to find the option available here
    • High approval rates - With more than 95% of loan applications accepted, the odds are definitely in your favor to find funding
    • Instant pre-approval - There’s no waiting around to see what rates and terms you might get, the provider is able to offer instant results
    • Attentive customer service - The GoKapital customer service team works hard to ensure you get matched with the right loan product and are on hand to answer any queries

    GoKapital Disadvantages

    • Limited information - With so many lenders and options to choose from it can be difficult to get reliable information on rates and terms before you apply
    • Some tough credit requirements - With certain loan types, you’ll find quite strict credit score requirements. For example, startup loans require a score of 700 to apply meaning many will be excluded.

    GoKapital Loan Features

    The platform’s unique business model means that generating an easily comparable list of rates, terms and features before you apply is problematic. Because you could be receiving your funding from multiple platforms at once, the  rates and terms offered could be completely unique to you. 

    There are seven different loan products available and GoKapital is able to give you a general idea of rates and terms which we’ve outlined below. However, you need to bear in mind that your final offer could be quite different from the rates below. 

    Merchant Cash Advance

    This is one of GoKapital’s most popular and most accessible funding options. A merchant cash advance is a promise of a lump sum of cash now in exchange for a percentage of your future credit and debit card sales.  

    Loan type

    Merchant cash advance

    Term length

    3 - 18 months

    Repayment period

    Daily

    APR range

    Factor rates from 1.20

    Min - Max amount

    $20,000 - $5 million

    Business Line of Credit

    This is a very flexible type of GoKapital small business loan that works a bit like a credit card. You’ll have access to a designated funding limit that you can draw on when you need it. You’ll pay a small fee to take out cash and only pay interest on the money you actually withdraw. 

    Loan type

    Business line of credit

    Term length

    6 - 12 months

    Repayment period

    Not disclosed

    APR range

    3% - 18%

    Min - Max amount

    $20,000 - $250,000

    Startup Business Loans

    Designed to get your business off the ground. It can be used for renting your first property, buying equipment, purchasing inventory and more. 

    Loan type

    Startup business loans

    Term length

    3 - 10 years

    Repayment period

    Monthly

    APR range

    6% - 18%

    Min - Max amount

    $25,000 - $500,000

    Small Business Loan

    The most traditional loan type available, a small business loan can be used for just about any purpose across any industry. Borrowing limits are generous and applications are open to those with bad credit.

    Loan type

    Startup business loans

    Term length

    Not disclosed

    Repayment period

    Monthly

    APR range

    Not disclosed

    Min - Max amount

    $20,000 - $5 million

    Unsecured Loans

    Similar to a small business loan, unsecured options differ in that you’ll generally need a higher credit score and borrowing limits are lower. 

    Loan type

    Unsecured loan

    Term length

    1 - 4 years

    Repayment period

    Monthly

    APR range

    9% - 20%

    Min - Max amount

    $100,000 - $350,000

    Equipment Financing and leasing

    A very easy-to-understand type of lending in which you purchase a piece of equipment that will then be used to secure the loan. GoKapital will usually be able to fund between 80% and 100% of the asset’s value.

    Loan type

    Startup business loans

    Term length

    Not disclosed

    Repayment period

    Monthly

    APR range

    Not disclosed

    Min - Max amount

    $20,000 - $5 million

    SBA Loan

    A good type of funding if you’re looking for low rates. This type of borrowing is backed by the federal government, making it less of a risk for lenders. However, it requires a relatively higher credit score and you’ll need to factor in long wait times before you receive your cash. 

    Loan type

    SBA loan

    Term length

    3 - 25 years

    Repayment period

    Monthly

    APR range

    5% - 9%

    Min - Max amount

    $200,000 - $10 million

    GoKapital Interest Rates and Fees

    Unfortunately, you won’t be able to find any information on fees before you apply. That’s because  you could be matched with one or more of the dozens of lenders available.. Each one will have different charges, so you’ll need to check your loan agreement carefully before you sign. 

    There’s a strong likelihood that you’ll need to pay origination fees and late charges, but most alternative lenders don’t have any penalties for repaying your loan early these days. 

    Interest rates can vary considerably too and will be dependent on the type of lending you choose, your credit score, your time in business and how much annual revenue you make. 

    GoKapital

    How to Qualify for a GoKapital Loan

    To qualify for GoKapital funding, you’ll generally need to meet the same criteria across every loan type. However, there are some minor differences depending on the loan type and how much you’d like to borrow. The good news is that those with poor credit scores are welcome, and even brand new businesses are able to apply. Simply fill in your details during the application stage and you’ll automatically be matched with the best offers. 

    Even though GoKapital states on its website that loans can be applied for regardless of credit score, the reality is that credit scores do matter for most loans.

    So while GoKapital doesn’t disclose all of its qualification criteria, we’ve outlined the basics below.

    Merchant Cash Advance

    Criteria

    Merchant cash advance

    Minimum credit score

    Not disclosed 

    Minimum annual revenue

    Not disclosed 

    Minimum time in business

    One year

    Business Line of Credit

    Criteria

    Business line of credit

    Minimum credit score

    630

    Minimum annual revenue

    Not disclosed 

    Minimum time in business

    Six months

    Startup Business Loans

    Criteria

    Startup business loans

    Minimum credit score

    700

    Minimum annual revenue

    No minimum 

    Minimum time in business

    No minimum

    Small Business Loans

    Criteria

    Small Business Loans

    Minimum credit score

    Not disclosed 

    Minimum annual revenue

    $360,000

    Minimum time in business

    One year

    Unsecured Business Loans

    Criteria

    Between $100,000 - $199,999

    Between $200,000 - $350,000

    Minimum credit score

    660 

    720

    Minimum annual revenue

    Not disclosed 

    Not disclosed

    Minimum time in business

    One year

    Five years

    SBA Loans

    Criteria

    SBA loan

    Minimum credit score

    680

    Minimum annual revenue

    Not disclosed 

    Minimum time in business

    One year

    The GoKapital Application Process

    The application process is incredibly simple and can be completed online in about 10 minutes. Simply fill in some personal details, how much you’d like to borrow, and your business information and you’ll be presented with offers that best match your credit score and personal circumstances. With so many loans on offer, approval rates are quite high at around 95%, and around 70% of borrowers accept the terms. 

    In the vast majority of cases, you’ll get your loan offers in just a few minutes, and final approval in just a few hours. Plus, funding can be with you the next day. However, depending on how complex your application is, this could take longer. 

    Document requirements vary between each GoKaptial funding type, but you’ll typically be asked for:

    • Personal identification
    • Three to six months of business bank statements
    • Personal and business tax returns
    • Evidence of no recent bankruptcies
    • Your profit and loss statement

    GoKapital

    How Does GoKapital Determine the Loan Amount?

    GoKapital doesn’t reveal how loan amounts and rates are determined. Not only does the platform have its own methods, but each individual lender will also apply different criteria too. This can get even more complex if you’re offered funding from two different platforms at the same time. If you’ve got any questions, we’d recommend getting in touch with GoKapital customer service to find out more. 

    GoKapital offers free consultations to anyone that’s even thinking about getting a loan. You’re under no obligation to submit an application or accept an offer either. Feel free to give the customer service team a call to find out more. 

    Customer Support

    You can get in touch with GoKapital customer service over the phone or via email. The platform offers a Spanish language application service too which you can request when you get in touch. Operating hours are between 9 AM and 6 PM ET, Monday through Friday.  

    The service is generally very good and the agents go out of their way to get you matched with the best loan product. You’ll need to bear in mind that should you choose an offer from a lender other than GoKapital, you’ll need to direct any loan-specific queries to that lender. 

    GoKapital Loan Reviews

    It’s quite difficult to find online reviews of GoKapital, despite it being an industry veteran. Trustpilot only has six reviews in total with an average rating of 3.1 out of 5. However, this small pool of reviews isn’t really enough to get a representative opinion. 

    The platform is better served on Google reviews where 38 customers have voiced their thoughts leading to an average score of 4.1 out of 5. Borrowers appreciated the lengths GoKapital goes to in order to understand its customers’ needs, including consideration of different credit scores and backgrounds. Others have commented on the professionalism of staff and the straightforward application process.

    Some borrowers have complained about high fees, contradictory information on certain loan types and unsolicited contacts. However, these instances are rare and are often due to the practices of the partner lenders. 

    Positive Reviews

    Negative Reviews

    Straightforward application process

    Contradictory information on offers

    Consideration for different backgrounds and credit scores

    High fees from some lenders

    Excellent customer service

    Receipt of unsolicited emails

    Final Thoughts

    GoKapital small business loans offer borrowers an opportunity to get funding where they may have been rejected by other institutions in the past. Its unique business model opens users up to a world of different funding possibilities and the excellent customer service will ensure you get matched to the right product.

    We’d always advise caution when using a connection service though. It’s difficult to get concrete information pre-application and you could be stuck with high fees and interest rates. Make sure to thoroughly read your loan agreement to make sure you can afford the repayments.