Our Take
4.1
NerdWallet rating
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.
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.
Full Review
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 and merchant cash advances for business owners with at least
24
months in business and $250000
in annual revenue.Its term loan provides up to $
750000
in working capital to cover everyday business expenses.Its merchant cash advance (MCA) allows business owners to access up to $5 million in funding, with repayments based on a percentage of future credit or debit card sales. However, Kapitus’s MCA is relatively difficult to qualify for compared with other MCAs, making alternative financing options more attractive.
Kapitus is best for borrowers who:
- Have an established business. Applicants must have at least24months in business and generate $250000or more in annual revenue to qualify.
- Need access to large funding amounts. Kapitus offers up to $750000for 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:24months.
- Annual revenue: $250000.
Kapitus loan features
Here’s what you can expect from Kapitus’s term loan and merchant cash advance.
Kapitus term loan
4.1
NerdWallet ratingLoan 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.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 for both its merchant cash advance and term loan. While common for an MCA, this is an unusual pricing model for a term loan and makes it harder to compare the true cost of financing against lenders that use APRs.
» 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
iBusiness Funding - Online term loan
NerdWallet Rating
4.2
Min Credit
660
Read Review
Apply now
with Fundera by NerdWallet
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 7 years. 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
Forward Financing - Merchant cash advance
Min Credit
500
Read Review
Apply now
with Fundera by NerdWallet
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.
Apply now
with Fundera by NerdWallet
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