Our new pricing structure Our new pricing structure

Our new pricing structure

Starting May 2023, Capchase GROW's cost of capital will be split into a Platform Fee and a Financing Fee. This is the first step in granting you greater flexibility in choosing which features you want to access.

Importantly, this structural change does not come with an inherent increase to your current cost of capital and is separate from any changes in pricing you may experience as part of our ongoing pricing analysis. The Platform Fee gives you access to our Grow Platform and its features, including financing, analytics, cash flow modeling, and customized benchmark metrics.

How much is the platform fee?

The Platform Fee can vary between 1-4% depending on the terms of your financing. But in most cases, the Platform Fee will be 3%. Keep in mind that your total cost of capital will remain the same as with the previous structure, and that the Financing Fee will be determined by taking the difference between your total fees and the Platform Fee.

For example, if your discount rate is currently 11% over 12 months, you may have a Platform Fee of 3% and a Financing Fee of 8%, yielding no change to your total cost.

Why is this fee being introduced?

We are always working to provide additional value outside of the capital we provide. This fee will allow customers to access features like analytics, cash flow modeling, and customized benchmark metrics, even if they don’t receive funding from Capchase. 

Will this impact the amount of cash I receive?

There is no impact on the net amount of funding you receive from Capchase. Initially, you'll receive a slightly larger amount that includes the Platform Fee, and we'll debit the Platform Fee approximately 6 days after the draw. After day 6, the net amount in your bank account will be the same as with the previous structure. You'll be able to see the repayment and debit schedule on the platform.

When will I be charged the platform fee?

This change will apply to all new draws made on or after May 3, 2023. Any draws made before this date will continue to be subject to the previous fee structure. Moving forward, any additional funding you receive from Capchase will have the platform fee charged a few days after your funding offer has been extended.

If you have any questions about these changes, please don't hesitate to contact your Growth Advisor.