Our rates are in fact very competitive. Consider the following:
Capcito compared to factoring:
In factoring you pay a fee that is usually significantly higher than the interest you pay Capcito.
In factoring, you usually pay a fixed fee irrespective of when the invoice is paid. Therefore, solving a very short cash need with factoring is expensive. With invoice financing from Capcito you only pay for the time period you need the money. An example: if you need the money during 5 days, you only pay interest rate for 5 days.
Capcito compared to a bank loan:
Bank loans (if you can get them) often have a lower interest rate than Capcito. However, with a bank loan you pay interest for the full loan amount. With Capcito you can increase or reduce the loan amount as often as you like. You pay interest only on what you have borrowed at every point in time. Therefore, your cost for using Capcito is generally lower than for a bank loan, even if the nominal interest rate is higher.
Capcito compared to other invoice financing offerings:
All other invoice financing players we know of require their customers to borrow on all their invoices (or a pre-defined category of invoices), and borrow a pre-determined percentage of the invoice value. No matter if you need the money or not! Therefore, as a borrower you end up paying interest on cash you do not need.
With Capcito you can increase or reduce the loan amount as often as you like.
You pay interest only on what you have borrowed at every time point. Therefore, your cost for using Capcito is lower than for other invoice financing, even if the nominal interest rate is similar.
Capcito compared to an overdraft facility:
On an overdraft facility (if the bank allows you to have one) you pay interest only when you need it, much like with Capcito. However, you also pay a fixed fee for the facility itself, irrespective of whether you utilize it or not. There are no fixed fees for Capcito, and therefore the total cost of using Capcito is usually lower than using an overdraft, even if the nominal interest rate of the overdraft is lower than Capcito's.