Sourcing finance can be a challenge for businesses of any size. Got Capital’s managing director Alex Afek explains why his company’s model stands out from the crowd

got-capital.jpgCompany Got Capital

Managing director Alex Afek

Profile The company provides finance to retailers and other businesses with repayments taken as an agreed percentage of future turnover. 

Latest news Got Capital has helped businesses nationwide, including independent convenience stores and newsagents, particularly as bad weather hit some stores’ winter sales.

RN What are the current trends in business financing? Are banks still wary of providing finance to many small businesses?

AA Raising working capital is important in any business growth plan. Since the banking crisis of 2008 and new rules being imposed, raising finance has become more difficult and more of a hassle.

RN What makes Got Capital a different kind of financing option?

AA Unlike banks or other finance companies, Got Capital requires no personal guarantee or collateral – the funding is sales-based and approvals are based on an overall business performance review, rather than a credit score or assurance assets.​​​​​​​

Got Capital offers ‘royalty investments’. The royalty is an agreed percentage of the business’s gross sales. In exchange for Got Capital’s investment, the specific royalty percentage is directed out of the business revenue back to Got Capital until the agreed payback is fulfilled. 


RN What are some of the typical uses for the finance Got Capital makes available?

AA Got Capital does not limit the use of the funds – they can be used for any business purpose – but some of the typical uses include helping with low cash flow or an unexpected expense, expanding the business, and seizing unexpected opportunities.​​​​​​​

RN Can you provide an example of a great business you have worked with?

AA A newsagent contacted us after several banks and funding companies denied him finance. He had only just started his business and had a ‘below average’ credit score. After speaking with him and looking at his sales to date, we saw an opportunity to invest in a passionate business owner and we approved a £10,000 investment that was funded on the same day.

RN What effect did this investment have?

AA He has since grown his business into a small empire. After recognising an opportunity in vaping, he purchased a nearby shop that was going out of business and turned it into a successful vape store.

His sales grew from £15,000 a month to close to £180,000 each month, and he now has a credit line of £150,000 with us. 

RN In contrast, are you finding that many retailers are struggling with rising overheads and need short-term financing?

AA Another retailer we’ve worked with, established for more than 20 years in his community, had a worse winter than expected and when he was hit by the increased taxes on tobacco products, he urgently needed £5,000 to continue to operate.​​​​​​​

RN How do you work with these businesses directly to ensure they remain viable?

AA We believe that a long-term personal relationship is a key factor in any business’s success.

Driven by a genuine commitment to each of our clients, we match every customer with an experienced account manager.

RN What is the typical length of repayment?

AA A popular misconception about royalties is that the repayments never stop. They do – as soon as the agreed payback amount is fully paid or if the business has ceased to trade. 

The length of an account is typically six to nine months, but it varies, simply because our responsible approach in approving an investment amount and a flexible payment schedule corresponds to the business’s overall performance and specific needs, to the benefit of its success and growth.