Kapitus strategic funding options include:
- Small business loans
- Equipment financing
- Revenue-based financing
- Lines of credit
- Small Business Administration loans
- Health-care financing
This variety of financing options makes the company a flexible lending resource, as does its lenient qualification requirements. On the other hand, Kapitus provides virtually no information about financing amounts, terms or rates on its website, requiring you to contact its customer service for these details.
Consider Kapitus if you:
- Need flexible financing options
- Run a business in the health-care industry
- Have high revenue but a low personal credit score
- Have explored other financing providers
Kapitus Small Business Loans
Touted as the lender’s most popular product, Kapitus offers both short-term and long-term small business loans. The company’s short-term loans have higher repayment rates but lower overall costs. Long-term loans, on the other hand, have lower repayment rates but higher total costs.
Kapitus provides little details about its loan products on its website, but based on what the lender does disclose and what third-party reviewers have learned, these loans feature:
- Amounts of up to $750,000, according to third-party reviewers
- Term lengths of 3 months and up
- Factor rates (instead of interest rates) of up to 30% to be paid in addition to what you borrow
- Origination fees up to 2.5%, with a $395 minimum
Kapitus small business loans use factor rates rather than interest rates. Instead of paying an interest amount that varies with the amount of principal you still owe, a factor rate uses a flat fee calculated as a percentage or multiple of your original loan. For instance, if you borrowed $100,000 at a factor rate of 30% or 1.3, you would have to repay $130,000.
Kapitus Equipment Financing
Kapitus offers equipment financing with cash for equipment leases and purchases. Business owners can finance 100% of some equipment purchases with no down payment.
The lender provides no specifics about its equipment financing amounts and rates on the company’s website. According to a third-party reviewer who spoke with a Kapitus representative, equipment financing features:
- Average amounts of $80,000
- Average repayment terms of 48 months
- Average annual percentage rate (APR) of 7.5%
Kapitus Revenue-Based Financing
For companies with strong future sales projections, Kapitus offers revenue-based financing. With this option, you receive an upfront sum of cash to be repaid from your future sales, with a flat rate added on top of the amount you borrow.
The Kapitus website provides no specifics about its revenue-based financing terms, but it does mention a few general features:
- Uses factor rates
- No collateral required as future sales will cover the debt
- High approval rates, with approval based on your time in business and historical revenue trends
- Simple and quick approval process, with minimal documentation required and approval in as little as a day
One third-party reviewer who spoke with a Kapitus representative noted a few additional details:
- Average amounts of $55,000
- Average terms of 12 months
- Average factor rate of 24%
Kapitus Line of Credit
Kapitus extends lines of credit to companies seeking access to cash that can be spent on a flexible range of expenses. Similar to a credit card, a line of credit sets a fixed limit of credit you can borrow against.
The company’s website provides no specifics about credit limits or rates. According to a third-party reviewer who spoke with a Kapitus representative, the lines of credit feature:
- Amounts up to $500,000
- Average repayment terms of 12 months
Kapitus SBA Loans
Kapitus works with the Small Business Administration (SBA) to provide SBA loans. These loans receive backing from the federal agency, which imposes certain restrictions on lenders, resulting in better rates than other types of financing.
Kapitus SBA loans feature:
- A variety of loan types, from microloans for smaller expenses to 7(a) loans for bigger expenses to Certified Development Company/504 (CDC/504) loans for large purchases such as real estate and machinery
- Loan amounts from $50,000 to $5.5 million
- Varying terms and rates
Because these loans must meet standards set by the SBA, they have a stricter approval process than other types of financing and require more paperwork for applications.
Kapitus Health-Care Financing
One specialty financing product Kapitus offers is its Helix health-care financing. Designed specifically for companies in the health-care industry, Helix takes into account the specific needs of health-care financing, such as the effects of delayed insurance payouts and low insurance premiums on cash flow.
Kapitus health-care financing features:
- Amounts from $20,000 to $500,000
- Terms from 6 months to 10 years
- Options for daily, weekly and monthly repayment schedules
- No personal collateral requirements
- Expedited underwriting, with approval in as little as 3 days
Kapitus Lending Experience
The Kapitus application process begins by filling out a 10-step online form or calling customer service. The online form uses a financing matching tool to match your needs with the company’s products. It asks you:
- What you need financing for
- How much you need
- What industry you do business in
- How long you’ve been in business
- Your annual revenue
- What repayment term length you’d like
- How soon you need to obtain financing
- How often you’ll need financing
- Your personal credit score
- Your contact information and whether you’d like a financing specialist assigned to help you find the right product for you
If approved, a representative will contact you and discuss your options. You’ll then need to submit documentation. You should find out whether you’re approved within hours.
Kapitus Pros
Kapitus boasts a few important distinctions:
- Wide range of financing options, including specialty options for health-care companies
- Willingness to work with business owners with low personal credit scores
- Fast approval process
Kapitus Cons
On the negative side, Kapitus falls short on a couple of counts:
- Lack of transparency on the website regarding financing terms, forcing you to go far into the application process before you can get a fair comparison with other lenders
- High fees for some products
Kapitus Requirements
The Kapitus website doesn’t provide much specific information about its qualification requirements, which vary from one product to another. However, it does give some general guidelines to improve your odds of qualifying for financing from them or another lender:
- Have a recent history of 3 to 6 months of positive cash flow
- Have 3 months of bank statements ready
- Have your last year’s tax statements ready
- Note any recent large deposits or accounts receivable credits that could swing lenders in your favor
- Check your personal credit score, which won’t necessarily disqualify you for Kapitus products, but can impact your overall chances of getting financing
- Limit the number of lenders you work with so that you pay off one debt before taking on another
- Resolve any open tax liens
- Have 3 business references ready
- Research loan options best suited for your business
- Select and limit the lenders you contact
Kapitus Application: What You Need to Apply
To apply for Kapitus small business loans, lines of credit, revenue-based financing or health-care financing, you need:
- Your 3 most recent bank statements
- Your tax statements from last year
- Contact information for 3 business references
- Other documentation as requested
To start your application for SBA loans, you need:
- Your 6 most recent bank statements
- Your business and personal tax returns from last year
- Profit and loss statements
- A business plan
- A business debt schedule
Final Say: Kapitus Funding Review
Kapitus can represent a good option for some companies because of its flexible range of financing options, willingness to work with low credit scores and specialty products for health-care companies.
The biggest downside of working with Kapitus is that you have to commit to the application process before you can learn any specifics about terms and rates, which can require you to collect and submit a significant amount of paperwork. We recommend doing some comparative shopping with other lenders before approaching Kapitus so that you have a fair basis for comparison.
