Uplyft Capital is a cash advance company that offers business owners fast access to working capital.
The Miami.-based company started in 2012 as an alternative to traditional bank financing. Uplyft Capital operates online, digitally accepting and approving applications from all types of business owners. Funding is typically deposited in business owners’ accounts in one day.
But that fast cash could cost you. Uplyft Capital’s financing product is different than a business loan. A merchant cash advance is a speedy funding option that doesn’t come with a fixed repayment schedule or interest that accrues over time. Instead, a cash advance provider like Uplyft Capital hands over a lump sum of money in exchange for a portion of a business’s future receivables, such as credit card sales. The cash advance provider typically takes a percentage of those receivables each day until the advance is paid back. The speedy funding and repayment schedule often creates a debt cycle where a company is struggling to keep up with payments and therefore resorts to a second merchant cash advance to cover the first, a process known as “stacking” which can lead to a downward spiral.
A merchant cash advance could give you access to cash as soon as you need it. However, the fast repayment terms and overall cost could have a lasting effect on your business.
If you’re considering taking on a merchant cash advance to cover business expenses, we’ll walk you through the details of Uplyft Capital’s financing programs to help you determine if the company is the right option for you.
Uplyft Capital financing details
Business owners can choose from several tiers of merchant cash advance programs to obtain the amount of financing they need. Funding options range from $3,000 to $150,000. Here are the basics of what Uplyft Capital offers:
Uplyft Capital’s Starter program provides $3,000 to $30,000 to qualifying business owners. Repayment is due in 2 to 5 months.
Uplyft Capital uses factor rates to communicate the cost of a cash advance. A factor rate is written as a decimal figure. You would multiply the amount of your cash advance by the factor rate to calculate the cost of the advance. Uplyft Capital advertises a factor rate of 1.40 for its Starter cash advances.
To give you an idea of how much a Starter cash advance would cost, say you need an infusion of $25,000 for your business. At a factor rate of 1.40, that advance will cost you $35,000. If you make daily payments of $500 over 70 days, your effective APR is well over 300%.
The Standard program offers cash advances between $5,000 and $75,000 with a factor rate of 1.34. The repayment term is 2 to 7 months.
The Premier tier provides $10,000 to $150,000 with a 1.30 factor rate. Full payment is due in 3 to 8 months.
Uplyft Capital’s top-tier program provides $30,000 to $150,000 to business owners with larger capital needs. Uplyft Capital advertises a 1.24 factor rate and terms spanning 3 to 10 months.
What businesses are eligible for Uplyft Capital financing?
Uplyft Capital serves businesses that may have trouble qualifying for traditional bank financing. Small- to mid-sized companies with just six months in business would be eligible for a cash advance from Uplyft Capital. You must also deposit at least $12,000 in your business account on a monthly basis to qualify.
Businesses in a variety of industries can apply, including retail, restaurants, construction, medical fields, trucking, wholesale, manufacturing and auto repair.
The pros and cons of Uplyft Capital
- Fast time to funding.
- Simple application process.
- Cash advances available in a range of amounts, starting at $3,000.
- Potentially high cost.
- Quick repayment could impact cash flow.
- Advance amount dependent on sales.
Application process and requirements
Uplyft Capital’s application process takes place online. You would start by telling the company how much funding you’re looking for, your monthly business revenue and how you plan to spend the cash advance. You can choose from the following options as the purpose of your funding:
- Fund an existing project
- Pay outstanding debt
- Start a new venture
- Improve cash flow
When applying for a cash advance from Uplyft Capital, you would also need to submit the following documents:
- Driver’s license
- Void check
- Proof of business ownership
- Bank validation
The amount of your advance would ultimately depend on your monthly deposits. The more your business deposits, the more money you could receive from Uplyft Capital. The same goes for your credit score. A better personal credit profile could allow you to obtain a larger cash advance.
The fine print
Your cash flow could take a hit. To collect repayments, Uplyft Capital takes a percentage of your credit card receivables. Or, the company would debit your business account on a daily or weekly basis. Either way, you’ll be making regular payments, which would reduce the cash you have on hand. Make sure your business can support the repayment structure before taking on a cash advance.
Details of your cash advance may vary from what’s advertised. Your offer from Uplyft Capital may be different than what the company shows on its website, as Uplyft Capital tailors offers to each business’s specific circumstances. Be prepared for differences, such as a higher factor rate or lower advance amount than you anticipated.
The bottom line
Uplyft Capital provides solutions for business owners who perhaps can’t qualify for traditional financing or need money fast. The maximum amount for a cash advance is $150,000, making Uplyft a good fit for businesses who need to cover relatively small expenses.
Uplyft Capital could approve your application and deposit funds into your account in as little as one day. If you need emergency financing, Uplyft Capital could quickly help you out of a pinch.
However, be aware of the cost of the advance. Uplyft Capital uses factor rates, which vary from traditional interest rates. You would need to multiply the factor rate by the amount of your advance to see how much you would owe. Because merchant cash advances aren’t regulated in the same way that business loans are, they are notoriously expensive, so make sure you understand Uplyft Capital’s pricing structure before accepting an offer.
Merchant cash advances are also known to have unmanageable repayment terms. Because payments are based on your future receivables, it could be difficult to budget and plan around the daily deduction from your sales.
Uplyft Capital shares a fair amount of information about its cash advance offerings on its website, which would be helpful when comparing financing options from various companies and lenders. To find out how much you could qualify for and the rate you would receive, you would need to submit an online application.
After applying, Uplyft Capital could have an offer ready for you in the same day. If you are comfortable with the amount and total cost of the advance, Uplyft Capital’s merchant cash advance could provide a fast way to cover immediate expenses and keep your business running smoothly.
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