Finding the right business funding partner can be difficult. Many small business owners face problems when they try to get quick and flexible financing from traditional banks. This is where private lenders play an important role. Clara Capital is one of the private lenders based in New York that helps small and medium sized businesses with custom loan options.
Clara Capital has created a strong online presence and offers different types of business loans that suit many industries. Before taking any business loan, it is very important to understand the company’s terms, interest rates, fees, and reputation. You should always check if the lender is a good match for your business goals.
At Lender Radar, our goal is to help small businesses make smart financial choices. In this detailed article, we will explain everything about Clara Capital. You will learn about their loan rates, repayment terms, fees, qualification requirements, and who should apply. We will also share the advantages and disadvantages and the best alternative funding options available.
Read the full review to decide if Clara Capital is the right lender for your business.
Table of Contents
- Is Clara Capital Legit?
- Loan Options
- Clara Capital Interest Rate
- Clara Capital’s Application Process
- Clara Capital Alternatives
- Clara Capital Reviews & Ratings
- Pros and Cons
- Who Should Apply for Clara Capital Loans?
- Final Verdict – Is Clara Capital Worth It?
Is Clara Capital Legit?
When you are going to make a financial decision, the first step is to confirm that you are dealing with a real and trustworthy company. Many small business owners worry about scams in the lending market, so it is always wise to check the background of any lender before applying.
If you are asking whether Clara Capital is a legitimate company, the answer is yes. Clara Capital is one hundred percent legit. The company is officially based in Woodbury, New York, and operates across the United States and Canada.
They have a physical office address, an active website, and a verified contact number. Clara Capital also has many customer reviews from real business owners who have used their funding services. This shows that the company is genuine and has been helping small and medium sized businesses with financial support for several years.
Loan Options
According to the website Clara Capital offers different types of business loans to meet the needs of small and medium sized businesses. Each loan type is designed to provide flexible funding for various business goals such as expansion, equipment purchase, or working capital.
1) Small Business Term Loans
This the most popular funding option in the US market. Clara Capital helps small business owners grow with fast and simple term loans. If you are looking for some funding for a quick expansion, equipment purchase, renovations, marketing, or adding inventory term loan could be a good choice.
- Loan amount starts from twenty five thousand dollars and goes up to five million dollars.
- Repayment terms range from one year to five years.
- Interest rates start from Prime plus one percent to eleven percent.
- Approval is usually within twenty four hours, and funding takes one to three days.
Requirements of Clara Small Business Term Loans:
To qualify, a business should have at least one year in operation, a FICO score of six hundred twenty five or higher, and twenty five thousand dollars in monthly revenue. There is no penalty for early repayment and no hidden fees.
2) Business Line of Credit
Clara Capital offers a Business Line of Credit, which is considered one of the most flexible funding options for small and medium sized businesses. A business line of credit allows companies to borrow funds only when they need them. This flexibility is very helpful for managing short term expenses, payroll, or inventory purchases.
- Credit limits go up to one million dollars.
- Terms range from six to twenty four months.
- Interest rates start at under one percent per month.
- Approval and funding usually take two to three days.
Requirements of Clara Business Line of Credit:
To qualify for a Clara Capital Business Line of Credit, a business must have at least six months in operation, a FICO score of six hundred twenty or higher, and twenty five thousand dollars in monthly revenue.
3) Revenue Based Financing
Clara Capital’s revenue based financing is designed for growing businesses that need fast cash but prefer flexible repayment linked to sales.
- Funding goes up to five million dollars.
- Terms range from four to twenty four months.
- Approval is within twelve to twenty four hours, with same day funding in some cases.
- Factor rate usually starts at one point one five.
Requirements of Revenue Based Financing:
To qualify, a business must have at least six months in operation, a FICO score of five hundred or higher, and ten thousand dollars in monthly revenue. This option is suitable for covering unexpected expenses or bridging cash flow gaps.
4) Equipment Financing
Clara Capital offers Equipment Financing to help businesses purchase or upgrade essential equipment without large upfront costs. This type of loan is ideal for industries such as construction, manufacturing, restaurants, and healthcare.
- Terms range from two to ten years
- Interest rates start as low as four point nine nine percent
- The purchased equipment serves as collateral
- Fast approvals and minimal documentation
- No penalty for early repayment
Qualification Requirements for Clara Equipment Financing:
To qualify for an equipment loan from Clara Capital, a business must have:
- At least six months in operation
- FICO score of five hundred fifty or higher
- Ten thousand dollars in monthly revenue
- A soft credit pull
- A description of the equipment to be financed
5) Other Loan Options
Rest if term loan, LOC, MCA Clara Capital also offers Invoice Financing to access cash from unpaid invoices and SBA Loans for long term growth, expansion, and refinancing.
Clara Capital Interest Rate
Clara Capital interest rates depend on the type of loan. Here are the rates:
- Small business term loans: Prime plus one to eleven percent
- Business line of credit: Rates start below one percent per month
- Revenue-based financing: Factor rates start around 1.15
- Equipment financing: Rates start as low as 4.99 percent
- Invoice financing: Rates start below one percent
The exact rate depends on your business revenue, credit score, loan amount, and term. Clara Capital shares all rate details during the contract signing, so before signing the contract read carefully and if you have any questions on rate and terms talk to the funding advisor who work on your file.
Clara Capital’s Application Process
Like most small business lenders, Clara offers both direct loan applications and applications through partner platforms. You can visit their website and apply for a small business loan yourself. However, to save time and get free underwriting support, you can also work with a loan broker.
Clara Capital Alternatives
Small business loans are approved based on factors like monthly deposit volume, daily bank balance, month-end balance, and business industry. In some cases, your location and personal FICO score also play an important role.
If Clara doesn’t approve your application or you want better terms, you can explore other private lenders in the market. Some of the top competitors of Clara Capital include CFG Merchant Solutions, OnDeck Capital, Kapitus, Everest Business Funding, Vader Mountain Capital, and Fratello Capital.
Read More: What Lenders Really Look For in Your Application
Clara Capital Reviews & Ratings
Before choosing a lender, it’s always a good idea to check customer feedback. Clara Capital has reviews across multiple platforms. Here’s a quick snapshot of how borrowers rate them online:
| Platform | Review Count | Average Rating |
|---|---|---|
| 553 | ⭐ 5 out of 5 | |
| Trustpilot | 624 | ⭐ 4.9 out of 5 |
| BBB (Better Business Bureau) | A/A | N/A |
Pros and Cons
| Pros | Cons |
|---|---|
| Fast approval and funding (often within 24–72 hours) | Interest rates may be higher than traditional bank loans |
| Multiple loan options for different business needs | Not ideal for businesses with very low revenue |
| Flexible qualification requirements compared to banks | Limited transparency on exact fees until underwriting |
| No prepayment penalties on most loan products | Most loans require daily or weekly repayments |
| High customer satisfaction ratings | Short term loan options only |
Who Should Apply for Clara Capital Loans?
Clara Capital is ideal for small and medium-sized businesses that need fast access to working capital without heavy paperwork. It suits companies with at least $10,000 to $25,000 in monthly revenue and a business history of six months or more. Businesses that prefer short to mid-term financing, flexible repayment options, and have a fair to excellent credit score (500+) will benefit the most. Clara Capital is also a good choice for business owners who don’t qualify for or don’t want to wait for traditional bank or SBA loans. If your business generates consistent sales and you value speed, convenience, and flexibility, Clara Capital can be a strong funding partner.
Final Verdict – Is Clara Capital Worth It?
Clara Capital is a reliable option for small and medium-sized business owners who need fast, flexible funding. Their wide range of loan options, quick approval process, and high customer satisfaction ratings make them a strong choice for businesses that may not qualify for traditional bank loans. While interest rates can be higher than conventional financing and some loans require frequent repayments, the convenience, speed, and variety of funding solutions outweigh these drawbacks for many business owners. Overall, if your business meets the minimum revenue and credit requirements and you value flexibility and efficiency, Clara Capital is worth considering as a funding partner.
