Frequently Asked Questions
Questions about Spotcap
What is Spotcap?Spotcap provides business finance in Australia, New Zealand, the UK, Spain and the Netherlands. We supply unsecured loans to qualifying firms, on the basis of a quick yet rigorous credit assessment of a firm’s financial condition, using a combination of a unique proprietary credit algorithm and expert underwriters.
Spotcap was founded in 2014 and is led by Founder and CEO Dr Jens Woloszczak and MD Lachlan Heussler. Spotcap is headquartered in Berlin, with local offices in Amsterdam, Sydney and London.
How is Spotcap different from other lenders?Spotcap makes quick, sound decisions when offering loans, based on a proprietary credit algorithm that provides us with deep insight into the financial condition of a business.
We don’t just rely on a backward-looking credit score - we also evaluate your real-life business and cash flow data.
How much can I borrow?Spotcap provides credit lines of between $10k and $250k to businesses in Australia with an annual turnover exceeding $200k.
What is a line of credit?A line of credit is a business finance arrangement giving you flexible access to funds you can borrow as a loan. Your application is assessed thoroughly and if a line of credit is approved, funds are made available for you to draw down. You need only borrow what you require, as it is needed.
Your line of credit typically has a term of between one and three months, with the ongoing possibility to renew. During this term, you can draw down and repay as often as you like, up to your approved limit. Each sum you draw down becomes a separate business loan repayable in weekly, fortnightly or monthly instalments, usually spread over 6 to 12 months.
When the initial line of credit term of up to one month is completed, you continue to repay, in monthly, fortnightly or weekly instalments, the funds you borrowed. Interest is only charged on the amounts you draw down, not on the total value of the credit line.
Questions about signing up and qualifying for finance
How can I use a loan from Spotcap in my business?You can use the funds you borrow from us for any purpose related to your business. This can include hiring new staff, launching a marketing campaign, purchasing inventory or buying new business equipment.
How do I apply for a credit line?You apply online and the entire process can take just a few minutes. You give us basic information about the business and its owners, and financial information is provided by connecting your accounting software and online bank account to our systems. Alternatively, you can upload financial reports.
We evaluate your data with our unique credit assessment algorithm, which advises how much you are able to borrow.
What does it cost to apply for a Spotcap loan?There is no fee for applying for a line of credit from Spotcap. When your application is approved, there is still no charge until you begin borrowing from the line of credit.
Who can apply for a Spotcap business loan?We consider applications from businesses that are registered in Australia, have been operating for at least 18 months with an annual turnover of at least $200k and have an Australian online bank account.
How quickly can I be approved for a Spotcap loan?It can take just five minutes to complete our online application process. Once it’s submitted, we notify you of the outcome within 24 hours.
Will you check whether I have previously defaulted on a loan?We will look at all relevant information relating to your credit record, including any previous repayment history, however we’re more interested in your recent business performance and financials.
Questions about the Spotcap product
What business loan product is available from Spotcap?The Spotcap product is a hybrid of a credit line and a business loan, designed to meet the needs of today’s businesses. It is managed entirely online.
You apply by giving us key information about the business and its finances. The application is processed by our expert underwriters and our unique, proprietary credit assessment algorithm.
When your application is approved, we grant you a line of credit up to a specified amount, which is available for up to three months. At the end of this period, you can apply for a new credit line by asking us to reassess your financial situation. A credit line is a sum of money you choose to draw down as you require it, in amounts of your choice.
Every time you draw down from your credit line, the amount you borrow is treated as a separate loan, with its own monthly repayment schedule. Each draw down against the line of credit will attract a drawdown fee, calculated as a percentage of the borrowed amount.
You are charged interest on the funds you draw down. Interest is charged only on your outstanding balance. You can choose to repay early without incurring any penalty fee. The rate of interest we charge is based on your risk profile.
If I’m approved for a credit line but don’t borrow from it, are there any costs?No. Our only charges are interest on the amount you borrow, and a drawdown fee which is paid when you borrow against your credit line. If you’re approved for a credit line that you do not use, there is no charge. If you need the assurance of having funds available, but don’t want to pay for a facility you don’t use, a Spotcap credit line could be the answer.
How often can I draw funds down from my credit line?There is no limit as to how often you can draw down funds. The minimum withdrawal amount is $500 and the sum of your drawings can’t exceed the total value of the credit line. Our credit lines are for between $10,000 and $250,000.
Do you take my credit score into consideration?We include both business and personal credit scores in our assessment of risk. However, we also take current business performance into account.
Where can my Spotcap loan be deposited?As part of the credit line application process, you give us details of a bank account. This is the account into which you can draw down funds. We initiate a funds transfer immediately after you request it and it will usually be in your account by the next working day, depending on your bank.
How much will a Spotcap loan cost me?When you draw down from your credit line, you are charged a drawdown fee. This is a percentage of the credit line amount.
We also charge interest on the outstanding amount you have borrowed, at a rate based on your risk profile. We advise you of this rate when your line of credit is approved.
There are no charges other than the drawdown fee and interest. If you make early repayments, we do not charge any penalty fees.
Questions about repayment
If I repay a loan early will I be charged extra?No. We don’t penalise you for making early repayment. We want our loans to be as flexible and convenient as possible.
How do you calculate my monthly repayment?The amount you repay each month will be the same. We calculate these repayments based on the duration of your loan, the number of repayment instalments and the rate of interest. While the amount remains the same, the repayment element increases each month while the interest element drops until the loan is fully repaid.
What happens if I miss making a repayment?If, for whatever reason, you are unable to make a scheduled repayment of your loan, please get in touch with us right away to let us know.
Will I have different payment dates if I have more than one loan?Because the repayment schedule for each loan is set up separately, if you have more than one loan with us, you could be making repayments on more than one day each month.
Questions about privacy
How does Spotcap use my data?We collect and hold personal information about you so that we may provide you with our products and services; review and meet your ongoing needs; provide you with information we believe may be relevant or of interest to you; let you know about other products or services we offer; send you information about special offers or invite you to events; consider any concerns or complaints you may have; comply with relevant laws, regulations and other legal obligations; and help us improve the products and services offered to our customers and enhance our overall business.
Is my personal and business information safe with Spotcap?Spotcap adheres to all data protection and privacy laws. In addition when Spotcap connects to your bank account or accounting platform, we only have temporary read only access and never see your login details or password. Finally, all data electronically transferred between you and Spotcap is encrypted, using one of the strongest forms of encryption available commercially. We are committed to keeping your data safe.