Who are Kapitus business loans best for?
Kapitus business loans are best for established companies needing fast access to cash. To qualify, you must have at least $250,000 in revenue and a 650 personal credit score.
Businesses with larger loan needs and sufficient revenue might qualify for a loan with Kapitus. Companies seeking other loan products, such as business lines of credit, might also find that Kapitus is a good fit.
Who might Kapitus not be a fit for?
Companies unable to meet the minimum eligibility requirements will need to look elsewhere. Additionally, Kapitus uses a factor rate to calculate borrowing costs, which can make estimating the cost of the loan difficult. If you want a calculation that is easier to understand, a loan using simple interest or an APR might be a better choice.
Kapitus has a maximum loan term of two years, which might be hard to manage for larger loans. Businesses that can’t handle larger or more frequent daily or weekly payments might need other options.
Types of business loans available
Kapitus specializes in business financing, including business term loans and lines of credit. It also offers revenue-based financing, Small Business Administration (SBA) loans, equipment financing and other lending products.
Term loans
Kapitus offers short-term business loans of up to $5 million with repayment terms between six and 24 months. Payments can be daily, weekly or monthly, depending on what you’re approved for.
After applying, you can see up to six financing offers at once, letting you compare and choose the best option for your needs. Qualified borrowers with proper documentation might receive approval within four hours and have cash on hand within one business day.
Kapitus doesn’t charge prepayment penalties, but it might impose an origination fee when it funds your loan. Understand how this and the factor rate affect overall borrowing costs if you decide to move forward with a business term loan.
Business lines of credit
A business line of credit provides a revolving account you can draw from as needed, similar to a business credit card. Kapitus offers business lines of credit of up to $750,000 with repayment terms of 12 to 36 months. Making payments on the account increases your available credit.
Kapitus offers fast access to financing through its business lines of credit with approval in as little as one day. No interest is charged if you make your payment before the end of the payment period. While Kapitus checks your personal credit when considering your application, this product can help build business credit.
SBA loans
SBA loans are backed by the Small Business Administration, allowing more favorable loan terms. Interest rates are capped, and repayment terms are as long as 25 years. Qualifying businesses can borrow up to $5 million and repay their balance in monthly installments.
Kapitus offers access to multiple SBA loan programs, including 7(a). However, a significant barrier to obtaining SBA is that it requires exhausting all non-SBA financing options first. You also need a minimum score of 680.
Revenue-based financing
Revenue-based financing pays a lump sum of money in exchange for a percentage of future sales. In this case, you receive funding from Kapitus and pay it a percentage of your future revenue until the loan is repaid.
Loan amounts are up to $5 million with terms of six to 24 months. Payment frequency is daily, weekly or monthly. This flexible form of financing might be suitable for companies with variable revenue, such as seasonal businesses.
Equipment financing
Kapitus offers equipment financing starting at $20,000 with no set borrowing limit. Interest rates start at 7.50%, and payments are made monthly. Loans of up to $500,000 can be approved with an online-only application in some cases. Once the loan is repaid, you own the equipment.
The purchase of business equipment might be partially or totally tax deductible. Kapitus permits financing 100% of the equipment cost, and it does not require a down payment. You will need a personal credit score of 660 and a minimum time in business of two years to qualify.
Invoice factoring
Invoice factoring allows a business to sell its unpaid invoices to a factoring company, usually at a discount, in exchange for upfront cash. The factoring company then collects payments from customers.
With Kapitus, you can receive factoring lines of $200,000 to $7 million within four days. No traditional collateral is required.
Purchase order financing
Purchase order financing helps businesses fulfill large orders when they don’t have the cash to pay suppliers. The financing company pays the supplier, allowing the business to fulfill its orders. At that point, the financing company deducts a fee and the rest goes to the business.
Financing amounts are $200,000 to $7 million with funding available within four days. There is no credit score requirement for purchase order financing through Kapitus.
Kapitus business loan details
Kapitus offers many types of financing, including term loans and alternative borrowing methods.
- Loan amounts: Loan amounts depend on the product. For term loans, SBA loans and revenue-based financing, the maximum borrowing amount is $5 million. For invoice factoring and purchase order financing, it is $7 million.
- Loan cost: You must contact Kapitus directly to determine your loan cost. Many of its products use a factor rate, which might translate into a high APR.
- Business criteria: Business criteria vary by loan type. For a business term loan, you must be in business for at least two years and have $250,000 in revenue.
- Personal credit: Credit score requirements depend on the product, but you must have a personal credit score of at least 650 for a business term loan.
- Funding speed: Some Kapitus products offer funding within one day, while others, such as invoice factoring, might take longer.
- Repayment terms: Term loans and revenue-based financing have repayment terms of six to 24 months. Business lines of credit have terms of 12 to 36 months.
Pros and cons of Kapitus
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