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Kapitus Review: Easy, and Fast, Access to Funding

Kapitus has been building a reputation as the provider of fast, easy funding in its current form since 2018; although, its inception dates back to 2006. You’ll find generous borrowing limits, reasonable rates, and a dedicated customer service team.

Kapitus review
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    Written by Anthony Edmundson, updated on 10/20/2021
    Financially Reviewed by
     Thomas J. Brock, CFA, CPA on 7/1/2021

    Kapitus used to be known as ‘Strategic Funding’; however, it had a less than stellar reputation as a lender, which is why it underwent a total rebrand and change of management in 2018. Since then, the platform has been working hard to build a reputation as a reliable and trusted lender and has expanded its loan offering since then – now providing eight different types of funding, along with a business support concierge service. 

    What Is Kapitus?

    Kapitus is a direct lender that offers a wide range of small business loans. It’s known for being able to provide easy, and fast, access to funding. In addition, it serves a number of niche industries that are often neglected by other lenders, and you’ll find a specialist loan designed for medical practices specifically. On top of this, Kapitus customer service agents are on hand to provide advice on how its loans can stabilize your cash flow, help consolidate debts, hire more employees and expand your operations.  

    Advantages and Disadvantages of a Kapitus Business Loan

    Kapitus Advantages

    • Wide range of loan options - From long-term lending to quick injections of funding, borrowers are well catered for at Kapitus
    • Medical loans available - It’s rare to see medical loans offered by alternative and online lenders, so it’s great to see so many options available here
    • Efficient application process - With most applications completed in minutes, and funding being available the next day, Kapitus comes out on top for efficient service
    • No prepayment penalties - You’ll never be charged for settling your loan early, and you may in fact be offered discounts to your rate
    • Reasonable credit requirements - While credit score criteria are a little higher than other lenders, the vast majority of borrowers will still be able to apply. Plus, Kapitus has several options that place greater importance on income

    Kapitus Disadvantages

    • Unclear rates and terms - Since Kapitus doesn’t disclose any information on its rates and terms it can be very difficult to know what you’re getting into before you actually apply
    • High origination fees - In certain instances, you may be subject to steep origination fees
    • High income requirements - For some types of lending, in particular medical practice loans, you’ll need income levels significantly higher than those at rival platforms

    Kapitus Loan Features

    With an impressive eight loan types to choose from, there’s a lot of flexibility when it comes to Kapitus small business loans. The platform offers relatively high borrowing amounts and a respectable range of terms. However, it’s difficult to find detailed information on exact rates before you apply. It’s common for online lenders like this to not share interest rate details as each application will be considered on its own merits.

    That being said, we’ve found through our research that across all loan types you’ll generally be paying around 5.99% to 18.00% interest on average. 

    Small Business Loan

    This offering from Kapitus works like a traditional term loan. Borrowing limits are quite generous here, but eligibility criteria are a little higher than other lenders. 

    Loan type

    Small business loan

    Term length

    Not disclosed

    Repayment period

    Monthly

    APR range

    As low as 6.25%

    Min - Max amount

    Up to $5 million

    Equipment Financing

    This funding will be used to purchase a specific piece of equipment. You’ll need to provide proof that you’ve either leased or purchased the kit, or plan to do so, and the asset will be used to secure your loan. Kapitus equipment loans come with the added benefit of being eligible for a section 179 tax deduction, too. 

    Loan type

    Equipment financing

    Term length

    Not disclosed

    Repayment period

    Monthly

    APR range

    Not disclosed

    Min - Max amount

    Up to $150,000

    Helix Healthcare Financing

    Helix loans are specifically geared towards funding medical practices. Often considered a high-risk industry by other lenders, Kapitus has no issue offering a range of different loan products under its helix umbrella. However, you’ll need very high monthly revenues and proof of your medical license to apply. 

    Loan type

    Helix healthcare financing

    Term length

    6 months to 10 years

    Repayment period

    Monthly

    APR range

    Not disclosed

    Min - Max amount

    Not disclosed

    Invoice Factoring

    A popular choice for businesses with cash flow issues. Invoice factoring allows you to borrow against your unpaid invoices. You receive cash now and will repay the loan when your customers pay their invoices. 

    Loan type

    Invoice factoring

    Term length

    30 - 90 days

    Repayment period

    On receipt of payment from your customers

    APR range

    Not disclosed

    Min - Max amount

    Starting from $10,000

    Line of Credit

    Probably the most flexible type of small business loan, a line of credit allows borrowers to draw from a pot of money whenever they’d like. You’ll only ever pay interest on the amount you borrow, but will usually pay an administration fee to keep the account open. 

    Loan type

    Line of credit

    Term length

    Not disclosed

    Repayment period

    Not disclosed

    APR range

    Not disclosed

    Min - Max amount

    Not disclosed

    Purchase Order Financing

    This is a very specialist type of lending where Kapitus will pay your suppliers directly for inventory and materials, or any other vital goods needed to keep your operation going. It’s intended to be used to cover short-term emergencies or times when you might have an increase in orders, but don’t have the cash flow to cover the materials needed to fulfill those orders. 

    Loan type

    Purchase order financing

    Term length

    Not disclosed

    Repayment period

    Not disclosed

    APR range

    Factor rates from 1.25%

    Min - Max amount

    $200,000 to $7 million

    Revenue-Based Financing

    Revue-based financing works a little bit like a merchant cash advance, although instead of taking a percentage of your credit and debit card sales, Kapitus will take a percentage of all revenue, including cash-based transactions too. This usually means you’ll be able to borrow more, but interest rates could still be high. 

    Loan type

    Revenue-based financing

    Term length

    Not disclosed

    Repayment period

    Not disclosed

    APR range

    Not disclosed

    Min - Max amount

    Starting from $10,000

    SBA Loans

    An incredibly popular choice for small businesses, SBA loans are backed by the federal government and come with impressively low interest rates. However, eligibility criteria tend to be strict, you’ll need to provide a lot of documentation. Plus, it could take up to three months to get funding.  

    Loan type

    Purchase order financing

    Term length

    Not disclosed

    Repayment period

    Not disclosed

    APR range

    As low as 6.25%

    Min - Max amount

    Up to $5 million

    Kapitus Interest Rates and Fees

    Kapitus keeps its fee and interest rate information confidential, and won’t disclose any exact numbers until you actually apply. This is becoming more common among lenders as the criteria used to determine rates and charges can vary between different customers. However, borrowers have noted that you’ll tend to find origination fees between 2.5% and 5% and a number of additional administrative charges on certain loan types. 

    If you’d like to know more we recommend you get in touch with the Kapitus customer service team, but you may not be able to get a detailed answer until you apply. 

    How to Qualify for a Kapitus Loan?

    Kapitus has very clear qualifying criteria set out for each of its loan types. Credit score requirements are a little higher than those found at competitor lenders, so it’s not the best platform if you have a chequered credit history. In addition, some loans have very high-income requirements, especially those in high-risk industries like the medical profession. Kapitus doesn’t cater for brand new businesses either, and most of its loans require at least two years of business experience. 

    Small Business Loan

    Criteria

    Small business loan

    Minimum credit score

    625

    Minimum annual revenue

    $250,000

    Minimum time in business

    Two years

    Equipment Financing

    Criteria

    Equipment financing

    Minimum credit score

    650

    Minimum annual revenue

    Not disclosed

    Minimum time in business

    Three years

    Helix Healthcare Financing

    Criteria

    Helix healthcare financing

    Minimum credit score

    600-625

    Minimum annual revenue

    $120,000-$250,000

    Minimum time in business

    Six months

    Invoice Factoring

    Criteria

    Invoice factoring

    Minimum credit score

    Not disclosed

    Minimum annual revenue

    Not disclosed

    Minimum time in business

    Not disclosed

    Line of Credit

    Criteria

    Line of credit

    Minimum credit score

    650

    Minimum annual revenue

    $180,000

    Minimum time in business

    Two years

    Purchase Order Financing

    Criteria

    Purchase Order Financing

    Minimum credit score

    Not disclosed

    Minimum annual revenue

    Not disclosed

    Minimum time in business

    Not disclosed

    Revenue-based Financing

    Criteria

    Revenue-based financing

    Minimum credit score

    625

    Minimum annual revenue

    $250,000

    Minimum time in business

    Two years

    SBA Loans

    Criteria

    SBA loans

    Minimum credit score

    685

    Minimum annual revenue

    $250,000

    Minimum time in business

    Two years

    The Kapitus Application Process

    Applying for a Kapitus small business loan is pretty straightforward. The platform states that the online application form can usually be completed in just five minutes, and approvals for most loan types will take between four and 24 hours. Once approved, funding is often deposited to your business bank account the next business day. In some instances, for example, SBA loans, this process may take much longer due to the additional checks and documentation required. 

    In terms of documentation, Kapitus notes that exact requirements will be assessed when you apply. Once you’ve entered your details and chosen your loan type, you’ll be given a tailored list of information to provide. Generally, this will include:

    • Three months of business bank statements
    • Your most recent personal and business tax returns
    • Details of three trade references

    How Does Kapitus Determine the Loan Amount? 

    As Kapitus doesn’t disclose any of its rates and terms publicly, neither does it share how your borrowing amounts will be calculated. However, by reviewing the eligibility criteria we can see that your credit score will play a major role in the calculation, followed by your annual income. Contacting customer service may give you a better idea of what to expect. 

    Since its rebranding in 2018, Kapitus has massively improved customer service, and the platform is becoming increasingly popular. To date, the lender has disbursed more than $2 billion and funded more than 25,000 businesses. 

    Customer Support

    Kapitus offers a fairly standard customer service solution, operating a helpline and an email account. The platform encourages borrowers to ask any question they’d like, and agents are on hand to help you deal with issues throughout the lifetime of your loan. In addition, you’ll find a helpful blog packed with information on all topics lending-related. Including how to save a small business on the brink of closure, optimizing revenue streams and general tips to grow your business.

    Kapitus Loan Reviews

    Kapitus has a respectable 4.4 stars out of 5 on Trustpilot and 4.3 out of 5 on Google reviews. Between the two platforms, there are around 330 reviews in total which gives us a fairly representative view of borrower’s opinions.

    Customers are impressed by the performance of individual service agents, the quick and easy application process and the advice provided on specific loan types. Others appreciate the speed at which funding was disbursed and the help provided at every step of the process. 

    In rare instances of criticism, customers have complained about the lack of transparency when it comes to rates and terms, high fees and unsolicited calls after submitting personal details. 

    Positive Reviews

    Negative Reviews

    Customer service tailored to each loan type

    Unclear rates and terms

    Fast funding times

    High fees

    Informative customer service

    Unsolicited contacts

    Final Thoughts

    If you’re looking for a lender with a simple, straightforward application process, high borrowing limits and a growing reputation for good customer service, Kapitus might be the one for you. Plus, credit score requirements aren’t too onerous and you can qualify for several loan types based on income criteria. 

    However, it can be difficult to know the full cost of your loan before you apply. Rates and terms are a little opaque and you’ll need to contact the customer service team to find out more details. Still, it’s free to apply and your credit score won’t take a hit for simply looking at offers, so you might want to give it a try.