Frequently Asked Questions
Questions about Spotcap
What is Spotcap?Spotcap is a provider of business financing in the UK, mainland Europe and Australia. We use a combination of a unique proprietary credit algorithm and expert underwriters that permits us to make a quick yet rigorous assessment of a firm’s financial condition. This allows us to approve unsecured loans to qualifying firms.
Spotcap was founded in 2014 and is led by Founder and CEO Dr. Jens Woloszczak and MD Niels Turfboer. Spotcap is headquartered in Berlin, with local offices in Madrid, Amsterdam, Sydney and London.
How is Spotcap different from other lenders?Spotcap uses a unique proprietary credit algorithm that gives us deep insight into the financial condition of a business. This enables us to make quick, sound decisions about offering loans.
We evaluate your real-life business and cash flow data and not just your backward-looking credit score.
How much can I borrow?Spotcap provides credit lines between £10k and £250k to UK businesses with an annual turnover of at least £250k.
What is a line of credit?A line of credit is a business loan arrangement giving you flexible access to the finance your business requires. Once your application has been thoroughly assessed, and if the line of credit is approved, the funds are available to draw down. You only take what you need, as you need it.
The term of your line of credit is typically three months. During this time, you can draw down, and repay, as often as you like, up to your approved limit. Each sum drawn down becomes repayable in monthly instalments, usually spread over 7 to 15 months.
Once the initial line of credit period of up to three months is over, you will continue to repay the funds borrowed in monthly instalments. You will only pay interest on the funds you borrow.
Questions about signing up and qualifying for finance
What can I use my Spotcap finance for?Because it’s your business, you choose how to use the finance we make available through a line of credit. You can use the funds for any purpose related to your business, such as, for example, upgrading business equipment, running a marketing campaign or hiring staff.
How do I apply for a credit line?The Spotcap application process is entirely online. We ask for basic information about the business and its owners. Financial information is provided by the upload of financial reports, bank statements and tax documents. None of these need to be prepared specially for the application.
Our unique credit assessment algorithm evaluates this data and advises how much you are able to borrow.
How much does it cost to apply?There is no charge to apply for a Spotcap business loan, and no charge for having an approved line of credit which you then decide not to use.
Who can apply for finance from Spotcap?The minimum eligibility criteria for a Spotcap loan are that your business is based in the UK, has been trading for at least 24 months, has a UK business bank account and has a yearly turnover of at least £250k.
How long does it take to be approved for Spotcap finance?Our application process is entirely online, and comprises of giving some basic information and uploading documents your business should already have to hand. Once your application is complete, the approval process usually takes no more than one working day.
Do you check if I’ve previously defaulted on a loan?Our rigorous credit assessment process looks at the current financial condition of your business, along with other relevant aspects of your credit record, including any previous repayment history.
Questions about the Spotcap product
What is the Spotcap business loan product?Spotcap´s product is a credit line under an agreement regulated by the Consumer Credit Act.
The Spotcap business loan is a modern financial solution for the needs of today’s businesses.
You apply online by supplying key information and uploading a set of financial documents. Your application is processed by our expert underwriters and our unique, proprietary credit assessment algorithm.
Once your application has been approved, you are granted a credit line which we will commit to remain available for a period of up to three months. After the end of this period, you can ask us reassess your financial circumstances in order to offer you a new credit line. A credit line is a sum of money you can choose to draw down as you require it, in amounts of your choice.
Each drawdown is treated as a separate loan, which is given its own repayment schedule of up to 15 months. The first time you draw down funds from the credit line, you pay an arragement fee based on the full amount of the credit line. There is no fee on subsequent drawdowns against the same credit line.
The rate of interest you are charged is based on your risk profile. It is only charged on your outstanding balance, meaning you are not penalised for making early repayments.
If I have a credit line but don’t borrow, are there any costs?No. There is no charge to apply for or being granted a Spotcap credit line. We only charge interest on funds you borrow, and an arrangement fee the first time your draw funds down. If you need the assurance of having business finance available, but don’t want to pay for what you don’t use, a Spotcap credit line could be the solution.
How often can I draw down from my credit line?Your credit line expires after one month. Within this time period, you can withdraw as often as you like.
Do you take my credit score into consideration?Yes, business and personal credit scores are included in our assessment. However, current business performance is also taken into consideration.
Where can I have my Spotcap loan deposited?Once your Spotcap credit line is approved, you can draw down funds into your business bank account. Funds are transferred into the bank account you specified on your application for the credit line. We initiate the transfer immediately after you request it and it is usually with you by the next working day, depending on your bank.
How much will a Spotcap loan cost me?If you are approved for a Spotcap line of credit but do not draw down any funds, you pay nothing. When you first draw down funds from the credit line, you are charged a one time arrangement fee. This fee is a percentage of your full credit line amount, and this fee is taken when you first draw funds down.
You are charged interest on any outstanding loan balance. The interest rate is based on your risk profile and you will be advised of this rate when your line of credit is approved.
Questions about repayment
Will I be charged extra for repaying a loan early?No, you are not charged any extra fees when you repay early. We don’t penalise you for early settlement.
How do you calculate my monthly repayment?Our model calculates the amount of the monthly payments, based on your duration, instalments and interest rate. We handle an annuity structure that results in a fixed monthly sum. During the outstanding period, the repayment component will increase and the interest component will drop until the full loan is repaid.
What happens if I miss making a repayment?If you find yourself in a situation that prevents you from making a scheduled repayment of your loan, please contact us immediately in order to make us aware of your situation.
A number of consequences may arise should you fail to make payment in accordance with your obligations. For example:
(i) you may be liable for default charges, statutory interest and the amount you owe us will grow;
(ii)you may be liable for the contractual interest from day of default until such default is cured;
(iii) your credit rating may be impaired making it more difficult or expensive for you to get credit in the future;
(iv) (pre-)legal action may be taken against you to recover amounts owing and you may have to pay any associated (extra-)judicial costs;
(v) an application may be filed to declare you bankrupt
If I have more than one loan, do I have different payment dates?The repayment schedule for each loan is set up separately, meaning that should you have more than one loan outstanding with us, you could find yourself making more than one repayment per month, on different dates.
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.
We may use and disclose your personal information for any of these purposes. We may also use and disclose your personal information for secondary purposes which are related to the primary purposes set out above, or in other circumstances authorised by the Data Protection Act. Sensitive information will be used and disclosed only for the purpose for which it was provided (or a directly related secondary purpose), unless you agree otherwise or an exemption in the Data Protection Act applies.
Is my personal and business information safe with Spotcap?Spotcap abides by the Data Protection Act 1998 (‘Data Protection Act’) and all other relevant UK and European data protection and privacy laws, and complies with rules laid down by the Financial Conduct Authority (FCA).
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.