Kapitus Business Loans Review 2025
Kapitus provides short-term loans and merchant cash advances for established entrepreneurs with strong revenue, but factor rates may make it hard to compare loan options.
Overview
The bottom line:
Kapitus offers fast funding and high borrowing limits, but its factor rate-based pricing and frequent repayment schedule may not suit every business owner.
Loan details
Min. Loan Amount
$10,000
Min. Term Length
6 months
Max Loan Amount
$750,000
Max Term Length
24 months
Qualifications
Min. credit score
625
Min. Time in Business
24 months
Min. Annual Revenue
$250,000
Pros & Cons
Pros
Offers a variety of business financing options.
Can be used to build business credit.
No prepayment penalties.
Offers daily, weekly or monthly repayment options.
Cons
Factor rates make it difficult to compare loan options.
Qualification criteria is on the high end compared with other online lenders.
You may need to contact a representative to activate your online loan dashboard.
Editor's note: While Kapitus offers other types of business loans, this review focuses on its business term loan and merchant cash advance.
Founded in 2006, Kapitus is an online lender that offers short-term small-business loans
Its term loan provides up to $750000 in working capital to cover everyday business expenses.
Its merchant cash advance
Kapitus is best for borrowers who:
- Have an established business. Applicants must have at least 24 months in business and generate $250000 or more in annual revenue to qualify.
- Need access to large funding amounts. Kapitus offers up to $750000 for term loans and up to $5 million for merchant cash advances, making it a potentially good option for small-business owners financing big projects.
- Need fast financing. Borrowers in need of fast cash may access funding in as little as 24 hours.
- Have sufficient cash flow. Businesses that borrow a large short-term loan may struggle to meet higher repayments if their cash flow isn’t steady enough.
Kapitus loan requirements
To qualify for a term loan or MCA from Kapitus, you’ll need to meet the following minimum requirements:
- Credit score: 625.
- Time in business: 24 months.
- Annual revenue: $250000.
...
Kapitus loan features
Here’s what you can expect from Kapitus’s term loan and merchant cash advance.
Kapitus term loan
| Loan amount | $10000 to $750000. |
| Estimated factor rate | 1.10 to 1.45. |
| Fees |
|
| Terms | 6 to 24 months. |
| Repayment schedule | Daily, weekly or monthly. |
| Funding speed | As fast as 24 hours. |
Kapitus merchant cash advance
| Loan amount | Up to $5 million. |
| Estimated factor rate | Not disclosed. |
| Fees |
|
| Terms | On average, borrowers repay their advances in 6 to 24 months. |
| Repayment schedule | Daily, weekly or monthly. |
| Funding speed | As fast as 24 hours. |
» Learn more about different types of business loans
Where Kapitus stands out
Fast financing
Kapitus may approve online applications in as little as four hours and provide funding within 24 hours, making it a potential option for small-business owners in need of cash to cover emergency expenses.
High maximum funding amounts
Kapitus offers up to $750000 for its term loan and up to $5 million for its MCA, which are higher than what many other online lenders offer. These high limits may be attractive to established business owners looking to seize time-sensitive business opportunities. However, MCAs are among the costliest forms of business financing, so borrowing at this level can result in a significant repayment burden.
Where Kapitus falls short
Factor rates make it difficult to compare offers
Unlike traditional interest rates that can be used to calculate an annual percentage rate (APR), Kapitus uses a factor rate
» Convert factor rates to APRs using NerdWallet’s MCA calculator
Its MCA is difficult to qualify for
Merchant cash advances are typically seen as a last resort for small-business owners who can’t secure traditional forms of financing. However, Kapitus’s MCA has qualification criteria similar to those of traditional business loans and lines of credit, including its own term loan. As a result, business owners who qualify for a Kapitus MCA are probably better served applying for a different type of financing, either through Kapitus or another small-business lender.
Alternatives to Kapitus
iBusiness Funding
iBusiness Funding is another online lender offering term loans to businesses with at least 24 months in operation. Unlike Kapitus, it charges a traditional interest rate for its term loan rather than a factor rate, and its repayment terms go up to 60 months. However, its term loan maxes out at $500000 (lower than Kapitus’s maximum) and it requires a slightly higher minimum credit score of 660.
Forward Financing
Forward Financing offers a more accessible merchant cash advance that may be a good fit for startups and business owners with bad credit. Its MCA requires just 12 months in business and a credit score of 500. In comparison, Kapitus requires 24 months in business and a 625 credit score for its MCA. Forward Financing does cap funding at $300000 — significantly lower than Kapitus’s $5 million maximum.
» Want more options? Check out our list of best online business loans