When you run a small business, you’ve got to be strategic about your financing to ensure that cash flows and you’re able to pay all your expenses. Kapitus Funding can help.
There may come a day, however, when your company has the opportunity to grow, and you need capital in the form of a loan to take advantage of those opportunities. In that case, you’ll need to carefully weigh your financing options. Kapitus is one to consider.
What is Kapitus?
Lender Kapitus offers a wide variety of business credit solutions, from SBA loans to revenue based financing, as well as equipment financing, lines of credit, and business loans.
How Does Kapitus Funding Work?
The process starts with you exploring the many options for small business loans that the lender offers:
- SBA loan
- Business loan
- Line of credit
- Equipment financing
- Purchase order financing
- Invoice factoring
- Revenue based financing
- Helix (for the healthcare industry)
- PPP loans
Applying for any of these options takes just a few minutes, and you can be approved in as little as four hours. Once your funding has been deposited into your business bank account, you can use it to grow your business.
Kapitus Pros and Cons
Keep in mind that any lender will have benefits and drawbacks. Kapitus is no exception.
Kapitus is lightning-fast when it comes to processing applications for Kapitus business loan products. Being able to know within hours, not days, that you qualify for a small business loan saves you time and hassle.
Another advantage is that Kapitus, unlike many banks, offers a diverse range of small business financing options. The likelihood of you finding the right financing solution for your strategic plan is high.
On the other hand, some business owners may struggle to qualify for some of the lending products, since they require a credit score of 625 or higher, as well as 2+ years in business and $250k in annual revenue. If you don’t meet these qualifications, you may still qualify for some lending products, albeit at a higher interest rate.
Rates start at 6.25%, which isn’t terrible (certainly better than many business credit cards), but if you have good credit, you might be better off applying for financing with a traditional bank.
Kapitus Rates, Terms, and Requirements
As I mentioned above, interest rates for Kapitus loans and business lines of credit start at 6.25%, though the site doesn’t disclose how high they get.
The site also doesn’t disclose whether it charges an origination fee, though other sites report that the lender charges 2.5%, with a minimum of $395.
While each loan specifications vary, to give you an example of what to expect, its business loan is available for $10k-500k, with repayment terms of three to 24 months.
Who Should Consider Kapitus Funding?
If your company is doing well but you need extra capital to expand your business or get through a slow period, one of Kapitus’ financing solutions could be a good fit.
If you have unpaid invoices you can use as collateral, you should consider invoice factoring. If you’re looking to purchase equipment or heavy machinery, Kapitus’ equipment financing could be the right solution. And currently, Kapitus is providing Paycheck Protection Program (PPP) loans to small businesses.
If, on the other hand, you have had a bankruptcy on your record in the past three years, you might not qualify for financing through Kapitus and might want to look elsewhere; perhaps a merchant cash advance would work.
How to Qualify for Kapitus Funding
Business loans from Kapitus aren’t for everyone, especially those with bad credit or with a high debt to credit ratio. You’ll want your company to be fairly established, having been in business for at least two years, with minimum average annual revenues of $250k and a credit score of 625 or higher.
Different lenders require different financial and legal documents as part of the application business owners are required to provide, so be prepared to supply your bank statements or access to your bank account during the application process.
It might be a good idea to take a peek at your personal and business credit scores before you apply for a loan so you know what your credit situation is and whether you’d qualify. If you’re new to having business credit, do some research on how to establish business credit before applying for any type of financing.
Nav’s Verdict: Kapitus Funding
Business owners looking for strategic funding need lending partners who are reliable and who offer great small business loan solutions to provide working capital.
Kapitus reviews are positive, with the speedy process being praised. If your company is in need of financing and has decent credit, Kapitus could be the solution you’re seeking.
This article was originally written on January 28, 2021.