The Capital tab in your Melio account lets eligible business owners apply for business financing and draw funds when they need them. The financing is provided by Bizcap.
In this article:
- How it works
- Who provides the service
- What it costs
- Who can use it
- How to get started
- What to know before you apply
How it works
This service gives you an approved financing limit, which is the most you can draw at any time. You don't receive the money or owe anything until you draw.
- Draw funds when you need them. Choose an amount up to your available financing. Bizcap sends it to your bank account.
- Each draw has its own payment schedule. No payments are automatically collected for the first 30 days. After that, Bizcap collects weekly payments automatically from your connected bank account. These payments are spread approximately across 16 weeks. You can pay the full amount back manually at any time.
- Your financing refills as you pay. Every payment that reduces a draw makes that amount available to draw again.
- You can take more than one draw and settle a draw early. You can take more than one draw, and you can have several active draws at the same time, as long as you have available capital.
Who provides this service
Our partner Bizcap provides this service, and Bizcap makes the final decision on your application. They are also sending your draws and collecting the payments.
What it costs
- Applying and opening your financing is free.
- Each draw has a one-time draw fee of 1%, deducted from the amount you draw (for example, if you draw $10,000, $9,900 will land in your bank account).
- If you pay a draw in full within 30 days, the draw fee is the only cost: 1% taken at the time of the draw.
- If you hold a balance longer than 30 days, additional costs apply:
30-60 days: 1% + 4.9%
60-90 days: 1% + 9.8%
90-120 days: 1% + 18%
120-140 days: 1% + 24.9%
You always see the exact amounts before you confirm a draw. For details, see Capital FAQs: drawing funds and payments.
Who can use it
The Capital tab appears in the left menu only for eligible Melio account Owners. If you don't see Capital, your account isn't eligible right now or your role is not the Owner.
- You must be the Owner on the Melio account.
- You need to connect a bank account. See How to connect your bank account for Capital.
- Some industries aren't eligible.
Meeting these requirements doesn't guarantee approval. Bizcap makes the final decision, and your limit depends on its review of your business. Connecting multiple bank accounts can qualify you for a higher limit.
How to get started
1 - Log in to Melio as the Owner and select Capital in the left menu.
2 - Read how it works, then select Get my offer.
3 - Connect your bank account. See How to connect your bank account for Capital.
4 - Enter your business details and confirm each owner's name and ownership percentage. In some cases, the details will bee pre-filled and you just need to confirm it.
5 - It can take a few minutes to check the information you provided and prepare the offer (in case it’s approved).
6 - Review your offer. If you accept, sign the agreement.
7 - After approval, your Capital dashboard shows your financing limit, available financing, draws, and payment schedule.
If you leave the application before you finish, you can come back to Capital and continue where you left off.
What to know before you apply
- Applying doesn't affect your credit score. Bizcap doesn't report data to the credit bureaus.
- You can have one application at a time. If your application is declined, you can't re-apply at this time.
- You can't change your connected bank account or request a higher limit.
- New draws can take a few moments to appear on your Capital dashboard.