Kapitus Review – A Reliable Small Business Lender
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Every business needs cash to operate and fund ambitious projects. While some businesses generate enough revenue to cover their expenses and investments, many business owners rely on financing to fill in the gaps.
Kapitus makes business loan financing more accessible and offers competitive rates and terms. This Kapitus review will explain how the lender serves business owners and what you can expect.
In this article
What is Kapitus?
Kapitus is a small business lender that provides business loans, short-term loans and additional business funding offers through its partners. Kapitus offers same-day funding on various loans. The requirements vary for each type of loan.
While a 700 FICO score makes you eligible for any Kapitus small business loan, you can get a small business term loan with a 625 credit score. The small business lender also offer financing to business owners who do not have the best credit scores. Invoice factoring and purchase order financing do not have FICO score requirements.
Kapitus has a 4-star rating on TrustPilot for customer reviews but is not accredited with the Better Business Bureau (BBB).
Big Think Capital provides business borrowers with a straightforward and transparent funding platform.
- Business lines of credit from $10k – $1m
- Term as long as 5 years
- Rates as low as 7%
- Decisions as fast as 24 hours
- Quick access to your funds once approved
- Applying won't affect your credit score
How does Kapitus work?
Kapitus operates as a financial services provider specializing in offering funding solutions to businesses. Business owners can receive loans from Kapitus directly or through one of the lender’s partners.
The process begins with business owners submitting an application to Kapitus, typically requiring details about the company's financial standing, credit history, and funding requirements. You need a 625 credit score or higher for most of Kapitus’ business loans. You must also have at least two years of business experience and generate at least $250,000 in average annual revenue. Kapitus then thoroughly reviews the business's financial health, including evaluating factors like credit scores, revenue, and cash flow.
Based on this evaluation, Kapitus presents you with a selection of funding options, ranging from business loans and lines of credit to merchant cash advances and equipment financing. These offers outline the financing terms, including the approved amount, interest rates, repayment terms, and associated fees. Once you accept an offer, they proceed with the financing agreement, often involving signing legal contracts and providing necessary documentation. Kapitus subsequently disburses the funds, allowing the business to utilize them for various purposes, such as working capital, expansion, or equipment purchases. The business then assumes responsibility for repaying the financing based on the agreed-upon terms, typically involving regular payments.
Throughout the financing period, Kapitus offers ongoing customer support to address any inquiries or concerns, providing a comprehensive financial solution tailored to the specific needs of the business seeking capital.
Kapitus makes it easy to obtain a free quote and compare your choices. The application process only takes five minutes, and you can receive approval in as little as four hours. It is possible to receive same-day funding.
Kapitus has provided over $5 billion in capital to over 50,000 businesses. The lender offers flexible terms for your business. You can start paying back the loan each month or start with interest-only payments. The lender makes it easy to end up with optimal loan terms for your company.
How much does Kapitus cost?
Kapitus is a reputable financial services company specializing in funding solutions to businesses. The cost of obtaining funding through Kapitus can vary widely depending on several factors, such as the type of financing, the amount borrowed, the repayment terms, and the business's creditworthiness. Kapitus offers a range of financing options, including business loans, lines of credit, and merchant cash advances, each with its cost structure. Generally, the cost of financing may include interest rates, fees, and other associated charges. To get a precise estimate of the costs associated with a specific financing option, it's best to reach out to Kapitus directly, as they can provide tailored information and discuss the terms that suit your business's financial needs.
Kapitus features
Same-day funding
Kapitus aims to streamline the application and approval process, often providing quick decisions and funding disbursement. This can be particularly valuable for businesses in need of rapid access to capital. You can receive funding in as little as 24 hours after submitting your application. Many business lenders can take up to a week to provide financing. Business owners who need money immediately may benefit from working with a lender like Kapitus.
Business loans
You can get financing with a credit score as low as 625. Kapitus offers monthly, bi-weekly, weekly, and daily payment options for up to five years. Business owners can borrow up to $5 million with Kapitus.
Business lines of credit
You only pay for a business line of credit when you borrow money against the limit. This resource is useful for companies that may need to borrow money in the future and want to be prepared. Business lines of credit have lower interest rates than credit cards.
You only need $180,000 in average annual revenue to get a line of credit from Kapitus. That’s lower than the $250,000 revenue requirement for some of Kapitus’ other loans. You must also have a 650 FICO score or higher and at least two years of business experience.
Equipment financing
Get the capital you need to acquire important equipment for your company. You must have a 675 credit score, an equipment invoice, and at least three years of experience. Business owners can receive funding within 24 hours and up to a five-year term. If you have an excellent credit score (775+), you only need one year of business experience.
Invoice factoring
There is no credit score requirement for this financing option. You can turn your accounts receivable into cash and receive anywhere from $200,000 to $7 million. Get approved in as little as 24 hours.
Invoice factoring gives you extra cash without waiting for clients to pay invoices. It reduces risk and doesn’t leave you with any debt.
Purchase order financing
Purchase order financing occurs when a lender gives you enough money to fulfill a customer’s order. Kapitus lets you borrow $200,000 to $7 million for this product and has monthly factor rates as low as 1.25%. Business owners can fund up to 100% of the total cost of goods, and there is no credit requirement for this type of financing.
Revenue-based financing
Kapitus will look at your revenue history for reliable and recurring revenue. Funding starts at $10,000 and requires a 575 credit score, at least one year of business experience, and at least $120,000 in annual revenue.
It only takes a few minutes to complete an application, and you can receive same-day funding for this type of financing. You can get good financing even if you do not have the best credit score if your sales meet the standard.
SBA loans
SBA loans have the most competitive rates but have the most difficult requirements and wait times before you receive funding. It can take up to 90 days to receive capital. Kapitus helps business owners obtain SBA 7(a), Express Loans, Micro Loans, and other types of SBA financing.
Kapitus offers quicker SBA approval than other lenders and lets business owners borrow up to $5 million. The term lengths vary but can go as high as 25 years.
Diverse industry support
Kapitus serves a wide range of industries, making their financing solutions accessible to businesses in various sectors, from retail and hospitality to healthcare and construction.
Big Think Capital provides business borrowers with a straightforward and transparent funding platform.
- Business lines of credit from $10k – $1m
- Term as long as 5 years
- Rates as low as 7%
- Decisions as fast as 24 hours
- Quick access to your funds once approved
- Applying won't affect your credit score
Who is Kapitus best for?
Business owners who want extra capital
Kapitus has many business financing products available. You can borrow up to $5 million and get competitive rates. Kapitus offers same-day funding for many of its loans. Kapitus issues loans and works with partners to give business owners additional flexibility.
Business owners with low credit scores
Some of Kapitus’ financing options do not require good credit scores. Invoice factoring and revenue-based financing give companies with bad credit enough flexibility to access capital.
People who need quick funds
Business owners can work with many lenders, but not all offer same-day funding. If you submit a Kapitus application right now, there is a good chance you receive capital within 24 hours.
Who shouldn’t use Kapitus?
Business owners with credit scores below 625
Yes, you can get business financing from Kapitus even if your score isn’t good. However, you need a 625 credit score or higher to qualify for small business loans and lines of credit. You need a good credit score if you want traditional small business financing.
Business owners who are okay with invoice factoring and revenue-based financing can get financing from Kapitus even if their scores aren’t the best.
Business owners who can wait for financing
You might get better rates and terms working with a large financial institution. The downside with these institutions is that it can take much longer to receive funding. Kapitus still offers competitive rates, but some lenders have higher rates for offering same-day financing. SBA loans take the longest to obtain but tend to have the lowest rates.
Business owners who are just getting started
Most Kapitus loans require at least two years of experience and $250,000 in annual sales. Most startups and business owners do not fulfill those parameters. Small business owners just starting may have to get financing from a different lender.
Pros and cons
Pros
- Same-day funding: Conveniently access capital when you need it for your company. You don’t have to wait several days or weeks to get the capital that you need.
- Competitive rates: Kapitus offers competitive rates and terms for its business financing options.
- Credit score flexibility: You will need a 625 credit score or higher for traditional business financing. However, Kapitus also offers invoice factoring, purchase order financing, and revenue-based financing, which offer more flexibility.
- Customized loans: Business owners can choose from many types of loans and access various term lengths and payment plans.
Cons
- Possible higher rates: Lenders that offer same-day funding usually have higher rates than lenders that can take over a week to give you funding.
- Credit score requirement for traditional financing: If you want a small business loan or a line of credit, you will need a 625 credit score or higher.
- Business experience: You typically need at least two years of business experience and $250,000 in annual sales to get financing. Not every business owner hits those benchmarks.
Kapitus vs. competitors
Kapitus offers several business financing options, but how does the lender compare with other choices? These are some of Kapitus’ top competitors.
Lending Marketplace | Price | Type of Loans | Funding time |
Kapitus | Free | Only business loans | As little as 24 hours |
Lantern by SoFi | Free | Personal and business | As little as 24 hours |
Lendio | Free | Only business loans | As little as 24 hours |
Lantern by SoFi
Lantern by SoFi offers a few business financing options. However, the lending marketplace focuses more on personal financing. You can find personal loans, auto loans, mortgages, student loans, and credit cards on the platform. Lantern by SoFi connects business owners with some of the top business lenders.
Lendio
Lendio is a direct lender offering several business loans, including commercial mortgages. Business owners can borrow up to $5 million through the lender. Lendio also offers business credit cards with credit limits as high as $150,000. Lendio advertises its interest rates for each loan, with many of those rates starting as low as the single digits.
FAQs
Is Kapitus a direct lender?
Kapitus is a direct lender. However, it joins forces with other lending partners to give business owners more choices.
Does Kapitus require a personal guarantee?
Kapitus often requires a personal guarantee for its business financing options.
What is the minimum credit score for a Kapitus loan?
You can get financing from Kapitus if you have a 625 credit score and fulfill the other requirements. Some financing options on Kapitus’ platform have lower credit score requirements. You can use a personal credit score to obtain business financing from Kapitus.
Big Think Capital provides business borrowers with a straightforward and transparent funding platform.
- Business lines of credit from $10k – $1m
- Term as long as 5 years
- Rates as low as 7%
- Decisions as fast as 24 hours
- Quick access to your funds once approved
- Applying won't affect your credit score
The bottom line
Kapitus gives business owners many financing options. Generous credit score requirements and same-day funding make the business lender more convenient than most. Kapitus issues loans but can connect you with top business lenders, giving you more flexibility.
Kapitus has been a reliable small business lender since 2006, giving out over $5 billion. The lender can help you cover operating costs or fund ambitious projects.
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Writer
Marc Guberti is a business freelance writer who specializes in personal finance, digital marketing, and entrepreneurship. His award-winning book "Content Marketing Secrets" teaches readers how to create, promote and optimize content for growth and revenue. Marc also hosts the "Breakthrough Success Podcast," where listeners learn how to master content marketing and get more clients.
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