Kapitus Business Loan Review

Pros Explained

• Easy application: You can complete your online application and upload your three most recent bank statements in just a few minutes.
• Fast turnaround: The estimated time for loan approval is three to four hours. Upon approval, you can expect to get funding within 24 to 48 hours.
• Lots of loan and financing options: Whether you prefer a short-term loan for a quick infusion of cash, need to finance equipment, or prefer to rely on your revenue or invoices as borrowing leverage, Kapitus can help.

Cons Explained

• New businesses or those with low revenue won’t qualify: If you don’t have much revenue or have a newly launched business, you won’t be eligible for any of Kapitus’ products.
• Rates, fees, and terms are not fully disclosed on website: Kapitus is not transparent about these major details, not even offering general ranges in most cases. You’ll have to go through the application process or request a quote in order to get more clarity.

Types of Business Loans Offered by Kapitus

Kapitus has a number of business loans and financing options depending on what you need for your business.

• Small business loans: Kapitus small business loans are for businesses that have been operating for at least two years and have a minimum annual revenue of $250,000. Your personal credit score also needs to be at least 625. Loan terms range from three months to five years. Repayment options vary depending on the loan but could include bi-weekly, weekly, or daily payments. 
• Business line of credit: If you want access to a revolving credit line that you can tap into as needed, this product may be a good fit for you. You’ll need a 650 credit score, at least two years in business, and an average annual revenue of $180,000. There is no origination fee on this product, and lines of credit range from $10,000 to $250,000.
• Equipment financing: If you’re looking for a quick and easy way to finance the purchase of new equipment, Kapitus offers terms up to 60 months. You’ll need a 675 credit score and three years in business to qualify, however. If you have excellent credit (above 775), you can get approved with only one year in business. Financing can go up to $150,000, and you’ll need your equipment invoice when you apply.
• Invoice factoring: Invoice factoring is not a loan, but it can give you access to capital by leveraging your outstanding invoices. It’s like getting an advance on what your customers owe you, and then paying it back to Kapitus with a factor rate added on. Factoring lines range from $200,000 to $7 million, but there is a longer underwriting and approval process than with other products. Once invoices are approved, you can receive funds within two days.
• Purchase order financing: For businesses that need cash to pay their suppliers, this financing option can be a good fit. Factor rates start at 1.25%, and you can fund up to the total cost of goods. It’s a short-term solution that allows you to keep accepting orders as your business grows.
• Revenue-based financing: If your credit isn’t the best, this type of financing, based on your ongoing sales, can help you get approved more easily, and possibly with less cost. To qualify you’ll need a credit score of 575 or higher, at least a year in business, and at least $10,000 in monthly sales. You’ll repay the loan by committing a percentage of future sales to paying it off.
• SBA loans: SBA loans are government backed, and therefore have slightly more stringent qualifications. You’ll need a 685 personal credit score, at least two years in business, and $250,000 average annual revenue. Rates for these loans start as low as 6.25%, and you’ll have a longer repayment period.

Time to Receive Funds

Kapitus offers a quick turnaround time for both application approval and receiving funds. Getting approved can happen in just a few hours, but almost always within 24 hours. Once approved, within the next 24 hours, you should receive funds to your bank account.

The only exception is for invoice factoring, which has a longer approval process of one to two weeks.

Borrower Requirements

Depending on the type of borrowing you wish to do, credit score requirements range from 625 to 675. Business revenue and time in business are also important qualifications for Kapitus business loans, with slight variations between products. 

Revenue requirements range from $180,000 to $250,000 in annual revenue, and you’ll need two or three years in business to get approved. With excellent credit, you may be able to qualify for certain financing with just one year in business.

Kapitus Business Loan Features

• Shorter timeline: Kapitus has a fast application process and you can generally receive funds within two business days.
• A wider loan size range: Because there are several types of financing, businesses can borrow small amounts up to millions with Kapitus.

Can You Refinance a Business Loan With Kapitus?

Kapitus does list business debt refinancing as one of the main reasons to consider applying for one of its business loans. No other specific information is offered regarding refinancing.

Customer Service

Kapitus has a phone, email, and live chat available for customers to get in touch and ask questions. Here’s how to get in contact:

• Phone: 800-780-7133
• Email form
• Live online chat

Customer Satisfaction

Kapitus has a strong BBB rating of A-, and mostly positive customer reviews on Trustpilot, where it is rated 4.4 out of 5. Reviews focus on the personalized customer service, simple process, and being able to get funding after being rejected by traditional lenders.

Applying for a Kapitus Business Loan

1. Fill out an online application form. You’ll answer some basic questions about your business (annual revenue, etc.) and about how much funding you need and why.
2. Upload documents. When you fill out the form you will also be asked to upload your last three business bank statements.
3. Discuss your options. Once you submit your application, a Kapitus representative will contact you to discuss your options and provide additional details. From there, if you want to move forward, the representative will walk you through the rest of the process.
4. Access your funds. Once approved (which is usually within a few hours), you can have your funding in as little as two business days. Note that in some cases, such as for invoice factor loans, the underwriting process may take longer.

Alternative Business Loan Lenders

Final Verdict

Kapitus offers a big selection of business financing options for people who have good credit and at least a couple of years of business history with ample revenue. With a simple application process and fast funding, it has strong customer ratings despite not having the most transparent website. If you want to take the time to get on the phone with this lender and meet its minimum lending requirements, you can likely find a financing solution with Kapitus.  

Is Kapitus a Direct Lender?

Kapitus is a direct lender, but it also works with external financing providers for some of its loans and financing. 

What Credit Score Do You Need for a Kapitus Business Loan?

Kapitus business loans require a minimum personal credit score of 625, which is in the “fair” range of credit. Other Kapitus products have slightly higher score requirements.

Does Kapitus Pull a Hard Report for a Business Loan?

Yes, Kapitus does do a hard credit pull when you submit an application for a business loan. A hard credit pull will slightly affect your credit score.

What If Kapitus Denies My Business Loan Request?

If a business loan request is denied, like all lenders, Kapitus must provide you with an explanation as to why. You may be able to work with a financing specialist to see if there is an alternative option for you, or to find out what you can do to meet qualifications.