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Find A LenderJourney Capital: Overview
Journey Capital’s main goal is to provide Canadian business owners with the capital, support, and tools they need to grow their businesses. They believe that entrepreneurs should be focusing on what truly matters — running a successful business — instead of worrying about finding the financing needed. Journey Capital offers business owners responsible business loans supported by great customer service so you can get funding in as little as 24 hours.
Who Is Journey Capital?
Previously known as OnDeck, Journey Capital is an online lending platform that is designed to help business owners obtain the financing needed to start and grow their operations. Despite offering online services, Journey Capital aims to provide personalized experiences to ensure clients get the right products, tools, and guidance needed.
Journey Capital is focused on evaluating the success of your company, not only your personal credit. This means they’re able to approve more applicants so you can improve your cash flow, hire expert employees, expand to a second location, or upgrade your current equipment.
What Does Journey Capital Offer?
Journey Capital offers three different financing products.
Business Term Loan
Journey Capital’s Business term Loan is a short-term financial solution best suited for small businesses that are looking for additional funds to help grow. You’ll receive the funds via a direct deposit into your business bank account and be responsible for repaying the loan in installments. In addition, you’ll typically receive a fixed interest rate, which is much easier to calculate and budget for.
- Amount: $5,000 – $300,000
- Loan Term: 4 – 24 months
- Repayment Type: Daily or weekly installments
- Interest Rates: 16% — 25%
Business Line Of Credit
Rather than a large sum of money being directly deposited into your account, this product allows you to withdraw from a revolving credit line that replenishes according to how much you repay toward it each month. This product can be somewhat more beneficial than a loan because you may be able to make minimum or multiple monthly payments, and you would only have to pay interest on your outstanding balances.
- Amount: $10,000 — $300,000
- Available Term: N/A
- Repayment Type: Fixed or variable weekly repayment
- Interest Rate: N/A
Flex Funds Advance
Otherwise known as a ‘merchant cash advance’, the Flex Funds Advance from Journey Capital allows you to leverage a portion of your daily sales in exchange for access to additional business capital.
Repayments are flexible and are based on a percentage of your daily sales. You can adjust your repayments based on your cash flow. So, when business is good, you can make faster repayments. And when business is slow, you can make smaller repayments to protect your cash flow.
Your repayment term can potentially last longer than any loan or line of credit Journey Capital offers.
- Amount: $5,000 – $300,000
- Available Term: Flexible
- Repayment Type: Daily installments
- Interest Rate: Flex Funds have a fixed upfront lending cost. The cost is based on a factor rate of 9%-35%. Essentially, for each dollar borrowed, you’ll owe 0.09-$0.35 based on the factor rate given.
What Is Dual Financing?
Dual Financing allows you to bundle Journey Capital’s Flex Funds Advance or Business Term Loan with the Business Line of Credit. You can use the money from the cash advance or loan to pay for expected future costs while having access to the credit line to cover unforeseen expenses that often arise when running a business.
A portion of the amount you’re approved for is funded on the line of credit, and the rest is funded on either the term loan or cash advance.
How Can A Business Qualify With Journey Capital?
To qualify for a financing solution from Journey Capital, you must meet the following criteria:
- The company must be based in Canada
- You must have an active business bank account with a Canadian financial institution
- Your business must have been in operation for a minimum of 6 months
- You must have been the owner of your company for at least 6 months
- You must earn at least $100,000 in annual sales
How Can You Apply With Journey Capital?
To apply for a financing solution with Journey Capital, you must first get pre-qualified. Journey Capital will ask you three questions as part of this process, including the following:
- How long have you been an owner of this business?
- What are your business’ annual sales?
- Which product are you most interested in?
Once you answer these questions, you’ll be considered pre-qualified. From this point, Journey Capital will want to know a little more about you and your business, so you’ll need to add a few more pieces of information, including:
- Your full name
- Business Name
- Phone number
- Email address
- Requested loan amount
- Industry
Journey Capital will use this information to continue processing your application. If you’re approved, Journey Capital will work to find the right financing solution for you at no cost and no obligation.
How Much Does It Cost To Work With Journey Capital?
The main cost you’ll have to factor into your budget is the interest rate you’re charged. Or, in the case of the Flex Funds program, the biggest cost is the portion of your daily sales that you’ll be required to provide as payment and your factor rate.
Ultimately, the cost of your financing program depends on the loan amount, loan term, and interest rate. The smaller your loan amount and lower your rate, the less your financing will cost you. You’ll be able to secure a lower rate based on how much income your business generates, and the state of its credit and financial health.
Currently, Journey Capital charges between 16%to 25% on its fixed-term loan.
Are Journey Capital Products Secured Or Unsecured?
All of Journey Capital’s credit products are secured, meaning some form of collateral will be necessary in order for your business to qualify. However, none of your personal assets will be used as security. Instead, they will ask for your personal guarantee and permission to put a lien on one or more of your business’s assets (or a portion of your credit/debit card sales).
The more valuable your collateral is, the more credit you can gain access to and the better your product conditions will be. That said, always proceed with caution when it comes to secured credit products, as defaulting on too many payments would give your lender the legal right to seize your asset(s) as compensation.
Pros And Cons Of Applying With Journey Capital
It’s always a good idea to research your lender properly to confirm that they are a legitimate and well-liked company among their clients. Journey Capital is no exception, so take a look at these benefits and drawbacks of their business financing solutions:
Pros
- No personal collateral required. You don’t have to put any personal valuable asset up for collateral to back the loan. This will protect your personal assets in case you have financial trouble with your Journey Capital credit product.
- Flexible repayment plans. Choose from daily or weekly repayment options that best suit your financial situation.
- Automatic repayments. Never forget a loan payment and the negative repercussions that come with it thanks to automatic debits from your account when payments are due.
- Improve your credit score. Journey Capital reports payments to the credit bureau, as such complete payments may help build your business credit score.
- Same-day approval. Qualified businesses can get approved within the same day.
Cons
- More difficult approval for new or small businesses. Newer and smaller businesses may have difficulty qualifying because of their short or inadequate business history.
- Higher rates with lower credit. Businesses with weaker finances or a lower credit score could be subject to higher interest rates.
