To learn more about Kapitus and decide if it’s right for your needs, please continue reading:
Small business owners who need quick funding for business loans might be interested in Kapitus. The lender offers a fast approval process, quick funding, and a wide range of financing products.
However, it might not be the right fit for every business. In this review, we’ll help you decide if Kapitus is a good option for your business needs by going over how its loans work, the costs involved, and their benefits and drawbacks.
Specifically, we’ll answer these questions and more:
Kapitus is a financial services company that has been providing a range of financing solutions for small businesses since its inception in 2006. Originally founded as Strategic Funding Source, the company rebranded to Kapitus in 2019 to unify its business funding and service brands under one name. Over the years, Kapitus has built a solid reputation as a reliable lender, offering various financing options to support business growth and operational needs.
Kapitus specializes in catering to the unique needs of small businesses, offering a diverse array of financing solutions. These include business term loans, lines of credit, equipment financing, and revenue-based financing. Each of these options is designed to help small businesses manage cash flow, invest in necessary equipment, and expand their operations effectively.
One of the standout features of Kapitus is its commitment to providing personalized service to small business owners. The company’s team of experienced professionals works closely with clients to understand their specific needs and tailor financing solutions accordingly. This personalized approach has earned Kapitus a reputation as a trusted partner for small businesses seeking financing.
To qualify for a Kapitus loan or line of credit, small businesses must meet certain requirements, including a minimum credit score of 625. Additionally, businesses need to have been in operation for at least two years and demonstrate good business credit. Kapitus also offers financing solutions for businesses with varying credit profiles, making it a viable option for small business owners who may not qualify for traditional financing.
Kapitus has established itself as a leader in the small business financing industry, with a strong track record of providing financing solutions to businesses across various sectors. The company’s dedication to supporting small business growth has earned it a reputation as a trusted and reliable partner for entrepreneurs seeking financing.
In addition to its financing solutions, Kapitus also provides valuable resources and support to small business owners, including educational materials and expert advice. This comprehensive approach has helped the company build a loyal customer base, with many small business owners returning to Kapitus for their financing needs.
Overall, Kapitus is a reputable lender that offers a wide range of financing solutions for small businesses. With its commitment to personalized service, flexible financing options, and support for business growth, Kapitus has firmly established itself as a trusted partner for entrepreneurs seeking financing.
Small business owners can find a loan to cover just about any operational or strategic need with Kapitus. The lender provides access to many business loans and financing products. Kapitus also offers financing options tailored for business-to-business (B2B) companies, such as manufacturers and wholesalers.
Here are the details on the different lending products available.
Kapitus offers business term loans up to $5 million with repayment terms as long as five years. Working capital loans to help cover everyday expenses like payroll or covering rent. Instead of an interest rate, Kapitus charges a flat factor rate between 1.12 and 1.26. To find the interest on a factor rate, multiply the loan amount by the factor rate. For example, if you borrowed $500,000 at a 1.15 factor rate, the total repayment amount is $575,000. That means you’d pay $75,000 in interest.
Kapitus working capital loans are short-term, meaning they must be repaid within 18 months. Terms start at 4 months. The factor rate and term length you receive depend on your loan amount, credit profile, and business financials.
Kapitus offers funding for equipment financing up to $150,000 with terms of up to five years. You can use a Kapitus equipment loan to acquire various business equipment for a wide range of industries, such as farming, construction, manufacturing, medical and dental practices, restaurants, retail shops, and more.
Before applying, you need an invoice or official quote from an equipment vendor. You’ll include the invoice with your application. Kapitus sends the funds directly to the vendor to purchase the equipment if approved. Once it’s delivered, you pay Kapitus until it’s paid off.
Unfortunately, Kapitus does not provide rates on equipment financing. It lists its rates as “competitive,” but our research couldn’t determine if they use an APR, simple interest, or a factor rate. Ensure you check the cost of financing before signing an equipment loan agreement.
The Helix Healthcare Financing Program from Kapitus refers to various business financing options available for healthcare and dental practices. It includes term loans, equipment financing, business lines of credit, and more. Because of the different financing structures, the available loan amounts, rates, and terms differ.
Kapitus offers a line of credit between $10,000 and $250,000 based on revenue, industry, and credit scores.
Kapitus provides revenue-based financing that considers a business’s sales history rather than relying heavily on credit.
SBA loans are the gold standard of small business financing and a popular small business loan option. Kapitus provides access to SBA 7(a) loans, the most common loan type in the SBA loan program.
The US Small Business Administration (SBA) partially guarantees SBA loans, allowing lenders to offer large borrowing amounts at lower interest rates and longer repayment terms. The drawback is that it’s challenging to qualify, and the application process is arduous.
Kapitus attempts to streamline the application process to expedite approval and funding and take some of the guesswork out of applying. However, SBA loans always take longer to approve and fund than alternative loan structures.
In addition, Kapitus provides access to several alternative financing products, such as:
Like many online lenders, Kapitus cares more about your business performance and financials than traditional loan requirements like a credit score. However, you will still need to meet minimum credit score, time in business, and revenue requirements.
The minimum qualifications depend on the specific loan product. Here is the breakdown of the minimums you need to meet for each lending product available.
Working Capital Loans:
Equipment Finance:
Helix® Healthcare Financing:
Invoice Factoring:
Line of Credit:
Purchase Order Financing:
Revenue-Based Financing:
SBA Loans:
In addition to meeting the minimum qualifications, your business must have the cash flow to support repayment.
The diversity of their loan products means that you can get financing for essentially any business purpose. However, the lender’s most versatile and beneficial loans have the highest approval requirements. Kapitus provides purchase order financing for businesses to pay suppliers directly for production costs.
Invoice factoring and revenue-based financing have the easiest approval requirements, but financing costs are usually higher than other loan products. While Kapitus provides access to long-term loans through the SBA loan program and medium-term loans, most financing products it offers are short-term loans.
All Kapitus loans carry an origination fee of 2.5% or $395, whichever is higher. However, the lender does not charge documentation fees. Companies engaged in business-to-government (B2G) contracts can explore specific financial services like purchase order financing.
Kapitus does not allow “stacking,” which is carrying multiple business loans simultaneously. If you currently have a business loan with another lender, you won’t qualify for a Kapitus loan.
Due to the number of loans available and the use of factor rates, it’s difficult to compare the costs of Kapitus business loans to other business lenders. The company claims its rates are competitive, but it’s challenging to verify how competitive they are without concrete numbers. Carefully read any loan agreement before signing it to ensure your business can handle repayments.
Kapitus conducts a soft credit inquiry when you apply for a loan, which doesn’t impact your credit score. You can get a free quote from Kapitus by providing basic information on their website.
While Kapitus accepts businesses in most industries, it does restrict companies in the following sectors:
Kapitus offers a business loan affiliate program. ISOs and business loan brokers can partner with the financial services provider to offer small business funding to their clients.
Kapitus allows you to submit your loan application online in five to ten minutes. Follow these steps to apply.
You can either complete the Kapitus application form online or call them to apply over the phone. Per the website, completing the online application only takes about 5 minutes for most lending products.
You might need to provide some documentation when you apply. It would be best if you were prepared to provide the following:
SBA loan applications will likely involve more in-depth documentation.
Depending on the loan product, you can get approval in as little as four hours after you apply. SBA loans will take considerably longer, usually a few weeks.
Funds from Kapitus can often be deposited into your account approximately 72 hours after approval. Some products like invoice factoring and PO financing take longer because of the extra parties involved.
Depending on the loan product, your repayment schedule will be daily, weekly, biweekly, or monthly. Monthly payments only occur for equipment financing and SBA loan products.
Kapitus funds some loans directly, while other loans go to one of their lending partners. If Kapitus financed the loan, you’d pay them directly. If the loan goes to one of its partners, you’ll pay that lender.
You’ll usually make scheduled payments via an automated clearing house (ACH) transfer. For invoice factoring, your customers pay the factoring company directly. You can set up revenue-based loan repayments as a daily percentage of your sales.
Kapitus does not charge prepayment penalties for loans it funds directly, but it doesn’t offer any interest forgiveness for early repayment. Its lending partners might have a different policy, so ensure you check the repayment process before signing a loan agreement.
Renewals are easy with Kapitus, and you can usually renew your loan once you’ve paid at least 50% of the current loan.
One of the main benefits of working with Kapitus is the company’s range of products. Because it combines direct lending and network lending, the company can facilitate most forms of business financing.
Small business owners can complete a loan application in about five minutes. The lender can approve some applications as quickly as four hours and fund some loans within 24-72 hours. The ease of the application process and funding speed help businesses needing urgent financing. Kapitus offers customer support by phone, email, and live chat on its website.
Some Kapitus loan products accept business owners with low credit scores. Regardless of your credit score, you should be able to find at least one financing product that works for you.
While Kapitus provides some information on interest rates and fees, it doesn’t provide costs upfront. The only way to compare the costs of different loan options through the company is to apply and see what offers you get.
The origination fees for its loans are high compared to other lenders. Most short-term loan structures carry higher costs than more traditional long-term loans.
Kapitus loans typically require a personal guarantee from anyone who owns a majority share of the business. The lender also places a UCC blanket lien on business assets for loans over $5,000.
Pros:
Cons:
Yes, Kapitus is a legitimate lending platform. The Better Business Bureau (BBB) does not accredit the business but has an A- rating with the watchdog organization. It also has a 4.3 out of 5 customer rating on BBB. The company is rated 4.8 out of 5 on TrustPilot, with more than 375 reviews.
Kapitus is rated “Excellent” with 4.7 / 5 on Trustpilot. 86% of the reviews for Kapitus are positive.
Positive reviews talk about the ease of the application process and how quickly Kapitus secured funding. Some customers said they could get financing even with a low credit score.
The customer service was excellent according to multiple customers. Multiple business owners mention their service representative by name and talk about how easy they made the process. Kapitus provided emergency funding quickly for a childcare center.
Like many lenders, reviews tend to be polarized depending on whether users love or hate them. The company’s positive reviews far outweigh its negative, but let’s cover some negative comments.
Some users who rated the company low said that the cost of financing was too much. Most short-term and revenue-based financing structures are more costly than traditional loans.
Other users said they had trouble getting in touch with customer service or complained about being moved to one of the company’s lending partners. One of the more common complaints was that the company didn’t make its fees and rates clear.
One of the benefits of working with Kapitus is that the lender can usually provide a financing product for business owners with a low credit score. However, some of its products will require a higher credit score.
Also, you must meet the time in business and revenue requirements. Other issues that could trigger a denial include being in a restricted industry, cash flow issues, or already having a business loan.
If you applied to Kapitus and were rejected, the denial letter should explain why. If not, you could call them for more information.
Fortunately, there are plenty of lenders that offer similar small business loans. You could find lenders that provide any of the following:
Kapitus is a decent fit for small business owners with fair credit scores who need urgent financing. In addition, healthcare and medical practitioners can benefit from their unique healthcare financing program.
If you have a good to excellent credit score and can wait for financing, you can find less costly small business lending options. However, if you need fast funding and want to work with a lender that offers multiple loan products, Kapitus is a solid option.
Based on the diversity of loan products, customer reviews, and speed of approval and funding, we rate Kapitus as a 4 out of 5. The lender might not be the best option available, but it’s far from the worst.
Disclaimer: The Kapitus trademark is owned by Strategic Funding Source, Inc. and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from Strategic Funding Source, Inc.
Fraud Disclosure:
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