Turned away by banks and credit unions? Journey Capital (www.journeycapital.ca) can be a solid choice for small to medium-sized businesses looking for flexible funding solutions. They offer several business financing options, including term loans, lines of credit, and flexible repayment options such as Flex Funds.
Brief Overview of Journey Capital:
- Name: Journey Capital (formerly known as OnDeck Canada)
- URL: https://www.journeycapital.ca/
- Rates offered: they vary widely, from 8% to 29% in general. During our interview of this company, they said they can currently offer 6 months term at 11% or lower. They said their rates can go lower than 11% if the credit file is good and the business has a solid history.
- Minimum credit score: 600 and above.
- Google Reviews: 4.7/5 stars (134 Google reviews)
- TrustPilot Reviews: 4.9/5 stars (93 reviews)
Based on our research, Journey Capital seems to have received some very positive reviews about their service, which is encouraging.
Application Requirements for Journey Capital:
- The merchant has been in business for at least six months.
- The merchant has a gross annual revenue of at least $100,000.
- The merchant has a personal credit score of at least 600 (lower than what most banks and financial institutions would require).
- Financing amount requested has to fall between $5,000 – $300,000
- The company must be looking for one of the following: Business Term Loan, Merchant Cash Advance (MCA), Flex Funds Advance and/or a Business Line of Credit
- Length: 4 – 24 months
- Loan type: Unrestricted and Unsecured (Unlike others like BDC that are secured)
- Businesses are eligible for 100% of monthly total gross (15k = 15k)
Pros & Cons
No lender is perfect. It’s important to understand the pros and cons of the company you plan to get financing from. Based on our review, here are the pros and cons of using Journey Capital:
Pros:
- Fast Funding: This is where they shine. Journey Capital typically provides funding within 24 to 72 hours, making it ideal for businesses needing a quick capital injection.
- Lower Credit Requirements: They offer financing options for businesses with less-than-perfect credit (minimum 600) making them accessible to a wider range of small businesses.
- Diverse Financing Options: Journey Capital provides multiple products, including merchant cash advances and term loans, allowing businesses to choose based on their needs.
- Simplified Application: The application process is straightforward and often requires less paperwork compared to traditional banks.
Cons:
- Higher Interest Rates: Just like with any other alternative business lender, interest rates can be significantly higher than traditional loans, particularly for businesses with lower credit scores or no credit history.
- Shorter Repayment Terms: This can either be good or bad, depending on what you are looking for. Their business loans often come with short-term repayment schedules, which may create pressure on cash flow.
- Potential for High Fees: Some businesses report additional fees, including late fees and non-sufficient funds (NSF) fees, which can increase the overall cost of borrowing. Check with them, ask about all their fees and make sure you get everything in writing.
What You’ll Need to Apply:
- Filled Application Form: Ensure it’s signed and dated.
- Bank Statements: The last 3 months of business account bank statements.
- Documents Required for Funding:
- A voided cheque.
- A valid government-issued ID (driver’s license, passport, or provincial ID).
- Proof of business premises (commercial lease or building ownership document).
Key Details About Their Loans:
- NSF (Non-Sufficient Funds): Having more than 5 NSFs in a month may automatically trigger a decline for your business.
- Deposit Frequency: Your business account must show at least 8 deposits per month.
- Financial History: Ensure you have no bankruptcies, foreclosures, collection accounts, or civil judgments in the past 2 years.
- Other Loans: If you have an outstanding balance from other lenders, you’ll need to provide those statements.
- Large Financing Requests: For amounts over $100,000, you must present financial statements, including a balance sheet and income statement.
Journey Capital’s Financing Products:
- Financing Range: $5,000 to $300,000.
- Products Available: Business Term Loan, Flex Funds Advance, Line of Credit.
- Loan Term: 4 to 24 months.
- Funding Speed: In as little as 24 hours.
Typical Journey Capital Customer:
We asked them about their typical customer, and this is what they have provided as far as their typical customer goes:
- Time in Business: 4+ years.
- Gross Annual Revenue: $500,000.
- Credit Score: 650+.
Journey Capital’s Detailed Review:
- Loan Types:
- Business Term Loans: You can borrow between $5,000 and $300,000, with fixed, predictable repayments. This option suits businesses needing a more structured loan.
- Business Line of Credit: Offers flexibility, allowing you to borrow up to $300,000 and only pay for the amount you use, making it ideal for fluctuating cash flow needs.
- Flex Funds Advance: Tailored for businesses with seasonal revenues, this option provides variable terms that align repayments with business ebbs and flows.
- Fast Funding: Journey Capital prides itself on quick funding, with approvals in as little as 24 hours. Upon approval, you can transfer funds instantly, which is a major plus for businesses needing immediate cash flow solutions.
- Credit Requirements: They offer relatively accessible credit options, with a minimum credit score of 600, making it easier for businesses with average credit to qualify.
- No Hard Credit Pull to Apply: Initial applications only involve a soft credit check, which does not impact your credit score, providing a low-risk way to explore funding options.
- Customer Feedback: Journey Capital has a strong reputation, with excellent customer reviews on platforms like Trustpilot, indicating high levels of customer satisfaction and reliability in their services.
Last Considerations:
With Journey Capital, just like with any other alternative financing company, interest rates for business term loans can range widely, from 8% to 29%, which can be on the higher side for businesses with weaker credit scores.
We strongly recommend that you improve your credit score to access the best loan terms. However, for businesses with strong credit, they can offer competitive rates.
This business lender focuses on serving Canadian businesses, so it isn’t an option for those outside of the country.
Overall, if you’re a Canadian business looking for fast, flexible funding, and you’ve had no luck with your local bank or credit union, Journey Capital is a great second option. This is especially true if you have moderate credit and need a quick infusion of capital to grow your business.
Lastly, we want to remind you that it’s important to compare their interest rates and terms with other lenders to ensure you’re getting the best deal. For instance, you can compare rates and terms with other lenders, such as Merchant Growth, Alterfina, the RBC, BDC or others.
See if you qualify with JC
If you want to learn more about what rate and terms you would qualify for with Journey Capital, visit this page: https://www.journeycapital.ca/
Lauren has over 13 years of experience in wealth management and financial planning. She is a CFA charterholder and holds a Bachelor's degree in Finance. Lauren has worked with several asset management firms, offering wealth advisory and portfolio management services to high-net-worth clients.
