The Zip Business Capital 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.