- 8 financing options for small businesses
- Business term loans up to $5 million
Originally founded as Strategic Funding Source in 2006, Kapitus is an online lender that provides a wide range of financing options for small businesses, including business term loans, lines of credit, equipment financing, and Small Business Administration (SBA) loans.
Having provided $5 billion in funding to 50,000 businesses, Kapitus seeks to provide convenient, cost-effective, and appropriate financing solutions to meet the needs of businesses.
Your business may be eligible for a Kapitus loan or line of credit if you’ve been in business for at least two years and have a minimum credit score of 625. Find out all about its business financing options in our full Kapitus review.
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About Kapitus small business loans
Kapitus provides a wide range of loan types, including traditional term loans, lines of credit, equipment financing, and invoice factoring. It also offers revenue-based financing, a type of loan that bases approval on your business’s sales rather than on your credit score.
Kapitus says it offers competitive rates, but it doesn’t disclose its rates, fees, or terms on its website. It states that its term loans come with a fixed price rather than an interest rate, which is a different structure than many other lenders use.
Kapitus gives you the option to request a free quote on its website so you can get a better sense of your offers. Click the loan type from the table below to jump to more details:
| Product | Min. credit score | Min. time open (yrs.) | Min. rev. / sales* |
| Business loans | 625 | 2 | $250K |
| Line of credit | 650 | 2 | $180K |
| Revenue-based financing | 575 | 1 | $10K / month |
| Helix® healthcare financing | 575 | 1 | $10K / month |
| SBA loans | 685 | 2 | $250K |
| Invoice factoring^ | N/A | N/A | N/A |
| Equipment financing | 675 | 3** | $10K / month |
| Purchase order financing | None^^ | Not disclosed | 1% profit margin |
*Annual unless otherwise stated, **Only 1 year required with 775+ credit score, ^Cash flow without debt, ^^Suppliers and customers must have good credit
How do Kapitus small business loans work?
Kapitus offers a variety of financing options to meet your business needs. Here’s a closer look at each loan product. Some of these options can be approved in as little as three or four hours and funded in 24 hours.
Kapitus business loans
Kapitus offers business term loans up to $5 million. You can choose repayment terms as long as five years and make monthly, biweekly, weekly, or daily payments. You can use a Kapitus loan for various purposes, including day-to-day expenses and debt refinance.
Kapitus doesn’t disclose the rates and fees for this loan, but it shares that it charges a fixed price to borrow the loan rather than a traditional interest rate.
You can submit your application on the Kapitus website in five to 10 minutes with your personal information and three most recent bank statements. After you apply, a Kapitus financing specialist will contact you to discuss your options.
- Minimum credit score: 625
- Minimum time in business: 2 years
- Minimum revenue: $250,000
Kapitus line of credit
For a more flexible approach to borrowing, Kapitus offers a line of credit between $10,000 and $250,000. The size of your credit line is based on your revenue, industry, time in business, and personal and business credit scores.
With a line of credit, you can draw on the funds as often and as many times as needed, and you’ll only pay principal and interest on what you’ve withdrawn. The funds will become available again once you’ve repaid them. Payments are most often on a weekly or monthly schedule, but daily payments are also available.
- Minimum credit score: 650
- Minimum time in business: 2 years
- Minimum revenue: $180,000 average annual revenue
Kapitus revenue-based financing
Revenue-based financing doesn’t have as strict credit requirements as a term loan. Rather than relying heavily on your credit when making an approval decision, Kapitus looks for a strong sales history and recurring annual revenue.
The application doesn’t require as much documentation as a term loan. Kapitus’s revenue-based financing charges a fixed cost and bases payments on a percentage of your sales. Common industries that use revenue-based financing include general contractors, restaurants, and retail.
- Minimum credit score: 575
- Minimum time in business: 1 year
- Minimum revenue: $10,000 in monthly sales
Kapitus Helix® healthcare financing
If you’re a doctor, dentist, or other healthcare practitioner, you may explore Kapitus Helix healthcare financing. This business financing is designed to help keep medical practices running and growing and may include various loan types, such as traditional term loans and equipment financing. The funding time is four days or longer.
- Minimum credit score: 575
- Minimum time in business: 1 year
- Minimum revenue: $10,000 in monthly sales
Kapitus SBA loans
Kapitus also facilitates SBA loans partially guaranteed by the Small Business Administration. You can apply for various loan types, including an SBA 7(a) loan, an Express loan, or a microloan.
Depending on the loan type, you might access up to $5 million with repayment terms as long as 25 years. Expect lengthier approval and funding times—around 14 days for an Express loan and three to six months for a 7(a) loan.
- Minimum credit score: 685
- Minimum time in business: 2 years
- Minimum revenue: $250,000 annual revenue
Kapitus invoice factoring
Invoice factoring involves selling your unpaid invoices to get faster access to cash. Kapitus takes five to 10 days to process your application, after which it can provide funds in 24 to 48 hours. As for fees, Kapitus charges factoring rates starting at 1.5%.
Kapitus equipment financing
If you’re looking to purchase equipment for your business, Kapitus offers equipment financing up to $150,000 with terms up to five years. Popular equipment Kapitus finances include tractors, excavators, and other trucking and construction equipment. Note that your equipment will serve as collateral for the loan.
- Minimum credit score: 675
- Minimum time in business: 3 years (only 1 year required if you have 775+ credit score)
- Minimum revenue: $10,000 in monthly sales
Kapitus purchase order financing
If you’re a manufacturer, wholesaler, distributor, outsourcer, reseller, or other B2B (business-to-business) or B2G (business-to-government) company, you may be interested in purchase order financing from Kapitus. With this short-term financing option, Kapitus will pay your suppliers directly for materials and production costs.
To qualify, your business must provide physical goods, and your suppliers and customers must have good business credit. Plus, your order has to have a profit margin of at least 1%. Purchase order financing amounts range from $200,000 to $7 million.
Is Kapitus a reputable lender?
Before borrowing from Kapitus, it’s worth checking out customer reviews to see what other borrowers have to say about their experience. Here are the average ratings borrowers gave Kapitus on three leading consumer review sites:
| Source | Customer rating (out of 5) | Number of reviews |
| Trustpilot | 4.6 | 465 |
| 4.5 | 536 | |
| Better Business Bureau (BBB) | 5 | 11 |
Kapitus fares well on Trustpilot, Google, and BBB, earning an average of around 4.5 stars out of five based on hundreds of customer reviews. In particular, customers seemed to appreciate the helpful customer service and working one-on-one with a loan advisor.
They also pointed out quick financing, transparency, and an easy application process. In the few negative reviews, customers mentioned high fees and frequent phone calls pressuring them to take out additional loans.
Check out how Kapitus compares to our other best small business loans.
Does Kapitus have a customer service team?
Kapitus offers customer support by phone, email, and live chat on its website.
- Speak with a sales representative at 800-780-7133
- Submit a message on the Kapitus contact page
Kapitus headquarters are in New York City, but it also has offices in Los Angeles, California, Arlington, Virginia, and Chennai, India.
How to apply for a Kapitus small business loan
Depending on the type of financing you want, an application for a Kapitus small business loan may only take five to 10 minutes. You can get a free quote by providing basic information and requesting a call from a sales representative.
Or you can apply online by taking these steps:
- Provide your funding request. Indicate how much funding you need and what you plan to use the funds for.
- Fill in your business information. Share the details called for in the image below. These include your business name, address, phone number, and revenue.
- Share personal information. This includes your name, address, phone number, Social Security number, credit score, and percentage of ownership in your company.
- Upload documents. You’ll need to upload your three most recent bank statements (four if you’re in California or New York).
- Sign and submit your application. Your final step is to sign and submit your application. A lending specialist will reach out to share its approval decision or, if necessary, collect additional information.
What if I’m denied a small business loan from Kapitus?
If your loan request is denied, Kapitus has a customer service team that can explain why. Work with the sales representative to find out whether there’s an alternative option you can apply for or if there are any steps you can take to get approved, such as improving your credit or increasing your business revenue.
Kapitus FAQ
What kind of small business loans does Kapitus offer?
Kapitus provides a variety of flexible business financing solutions tailored to meet the specific needs of small businesses. It offers traditional term loans, short-term loans, and lines of credit for businesses seeking immediate working capital.
Kapitus also provides specialized financing options, such as equipment financing for businesses looking to purchase or lease new equipment, as well as SBA 7(a) loans for qualifying businesses seeking lower interest rates and longer repayment terms.
Does applying with Kapitus hurt my credit?
Applying for a loan with Kapitus involves a soft credit inquiry, which doesn’t have an impact on your credit score. Once you accept a loan offer, Kapitus may conduct a hard inquiry, which can lower your credit score by a few points.
This is common in the financial industry and serves to confirm your creditworthiness before finalizing the loan terms.
What can Kapitus small business loans be used for?
You can put Kapitus’s small business loans to diverse business uses. Whether you need funds to manage cash flow, procure equipment, invest in marketing, or meet unexpected business expenses, Kapitus accommodates these needs.
All funds must be used for business-related purposes, not unauthorized or personal expenses. This ensures your borrowed funds promote business growth and profitability.
How long does it take to receive funds from Kapitus?
After applying, the approval process at Kapitus is quick and straightforward. In many cases, approval may take as little as 24 hours. Once you accept the loan offer, the lender can deposit funds in your account in a few business days, usually within 72 hours.
This time frame may vary depending on the specific loan product you choose and the amount of funding required. Overall, Kapitus aims to ensure businesses have access to the funds they need in the shortest time possible.