Kapitus

Kapitus Reviews

Kapitus Reviews
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About Kapitus

Kapitus is a direct lender offering a wide array of loan products to small businesses. Established in 2006, it’s most known for approving loans in as little as four hours. It specializes in solutions like term loans, lines of credit, equipment financing and SBA loans, and also has special loan programs for independent medical practices. The biggest downside is that it doesn’t list sample rates or fees on its website.

Pros & Cons

Pros
  • Wide range of loan options
  • Eligibility requirements clearly listed on website
  • Quick application process and approval times
  • Serves businesses in all 50 states
Cons
  • Each loan product has its own eligibility requirements
  • Not all loan products are available in every state
  • Fees and rates not clearly listed on website

Our editor’s take on Kapitus

Kapitus takes a straightforward, get-it-done approach to business funding. It offers a wide range of loan products that can meet just about any financing need, from working capital to equipment purchases. What sets it apart is rapid funding — some loans can be approved in just a few hours.

Kapitus also clearly lays out the eligibility requirements for each of its loan types, which is a major win. But like many business loan lenders, it lacks transparency on interest rates and fees. This makes it difficult to compare the total cost of borrowing.

Kapitus products

Kapitus has a variety of loan products to fit almost any business need.

Small business loans

A small business loan is the most common type of business loan. Also known as a working capital loan, these loans come with quick funding times and flexible repayment schedules. You can use them for almost anything, including business emergencies, slow seasons and new purchases.

  • Loan amount: $10,000 to $5 million
  • Loan terms: Up to five years
  • Repayment schedule: Daily, weekly, bi-weekly, monthly
  • Funding speed: As quick as 24 hours
  • Minimum eligibility requirements: 625 credit score, two years in business, $250,000 in annual revenue
Business line of credit

A business line of credit works much like a business credit card — it’s a revolving line of credit, and you only pay interest on what you use. But unlike a credit card, a line of credit often comes with lower interest rates. It’s best for expenses that require cash on hand, like payroll and other operational expenses.

  • Loan amount: $10,000 to $250,000
  • Loan terms: Only pay interest on the amount you use
  • Repayment schedule: Daily, weekly, monthly
  • Funding speed: As quick as 24 hours
  • Minimum eligibility requirements: 650 credit score, two years in business, $180,000 in annual revenue, established business credit
Equipment financing

Equipment financing can be a good option if you need to purchase equipment without dipping into savings. You can use it for everything from new farming equipment to new computers for your office. It’s ideal for those in fields like medical care, construction, manufacturing, agriculture, transportation and restaurants.

  • Loan amount: Up to $150,000
  • Loan terms: Up to 60 months
  • Funding speed: As quick as 24 hours
  • Minimum eligibility requirements: 675 credit score with three years in business (or 775 credit score with one year in business), equipment invoice
Health care financing

The Kapitus Healthcare Financing Program is for independent medical practices that need cash to keep their practices running smoothly. Kapitus offers a variety of medical care financing options, including equipment loans, working capital loans and lines of credit.

  • Loan amount: Varies
  • Loan terms: Varies
  • Repayment schedule: Daily, weekly, monthly
  • Funding speed: As quick as three days
  • Minimum eligibility requirements: 600 credit score, six months in business, $120,000 in monthly revenue, licensed practitioner
Revenue-based financing

If you have a lower credit score but still need a business loan, revenue-based financing might be a good option. Not only does it have a lower credit score requirement than traditional business loans, but Kapitus gives more weight to your sales history when evaluating your approval odds.

  • Loan amount: Starts at $10,000
  • Loan terms: None
  • Repayment schedule: Based on a percentage of daily or weekly sales
  • Approval speed: As quick as four hours
  • Minimum eligibility requirements: 575 credit score, one year in business, $10,000 in monthly sales
Purchase order financing

If your business produces physical goods, there may be times when you’re forced to turn down orders because you don’t have enough money on hand to cover your suppliers’ costs. Purchase order (PO) financing gives you a cash flow boost so you can continue saying yes to new sales.

There’s no personal credit requirement for PO financing, but your suppliers and customers must have good credit. Manufacturers, wholesalers, distributors, and other business-to-business (B2B) and business-to-government (B2G) companies often use this type of financing.

  • Loan amount: $200,000 to $7 million
  • Approval speed: As quick as four hours
  • Minimum eligibility requirements: Must be a B2B or B2G company that provides physical goods; suppliers must have good business credit; customers must have good business credit; order profit margin must be at least 1%
SBA loans

You can get SBA 7(a) loans and SBA Express loans through Kapitus.

SBA 7(a) loan amounts go up to $5 million. You can use them for everything from partner buyouts to commercial real estate purchases. The downside is that they have the slowest funding speed, usually three to six months.

SBA Express loans work much like 7(a) loans but can be closed in as little as 14 days. The downside is that loan amounts only go up to $350,000.

  • Loan amount: $100,000 to $5 million for 7(a) loans; up to $350,000 for express loans
  • Loan terms: Up to 25 years
  • Funding speed: Three to six months for 7(a) loans; as quick as 14 days for express loans
  • Minimum eligibility requirements: 680 credit score, two years in business, established business credit, U.S.-based business, proof of profitability
Invoice factoring

Invoice factoring isn’t a business loan. Rather, you sell your outstanding invoices to a lender, and it pays you cash upfront. There’s no monthly payment schedule and no credit pulls.

  • Loan amount: $200,000 to $7 million
  • Loan terms: You choose which invoices you’d like to factor
  • Repayment schedule: None
  • Funding speed: One to two weeks
  • Minimum eligibility requirements: No credit check for business owners, but their commercial clients must have credit in good standing

Kapitus rates

Kapitus doesn’t list interest rates on its website, mainly because the range can vary so much depending on your credit score, revenue, industry and the loan type you choose.

Kapitus fees

Generally, Kapitus doesn’t disclose fees on its website. For some loan types, like invoice factoring, it says fees can be as low as 1.5%. It also states that business lines of credit have no origination fee, but it isn’t clear if other fees apply. SBA loans have a guarantee fee that goes directly to the Small Business Administration (SBA).

How to apply for a Kapitus loan

You can apply for a Kaptius loan online. The application process takes anywhere from five to 15 minutes. Once you submit an application and any required paperwork, a Kapitus funding specialist will contact you with a decision.

Eligibility requirements, including minimum credit scores, time in business and annual revenue, vary by loan type. If you have questions during the application process, you can call Kapitus customer service.

How does Kapitus compare?

As a direct lender, Kapitus offers a lot of business loan products, each with varying loan amounts and eligibility criteria. Here’s how its business line of credit compares to other direct lenders like Bluevine and American Express.

Kapitus FAQ

What does Kapitus do?

Kapitus is a direct lender of small business loans. Its product line-up includes term loans, lines of credit, equipment financing, factoring, SBA loans and even specialty financing for independent health care providers.

What is the minimum credit score for Kapitus?

Kapitus’s minimum credit score requirements vary by loan product. It can be as low as 575 for revenue-based factoring and as high as 680 for SBA loans. Some programs, like invoice factoring and purchase order financing, have no credit score requirements, although your suppliers or clients may need to have credit that’s in good standing.

Who is the CEO of Kapitus?

Andy Reiser is the CEO and chairman of Kapitus. He founded the company in 2006.

Is Kapitus legit?

Kapitus was founded in 2006 under the name Strategic Funding Source. Since then, it says it has funded over $5 billion in loans to more than 50,000 businesses. It is headquartered in Arlington, Virginia.

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Kapitus Company Information

Company Name:
Kapitus
Website:
kapitus.com