In the world of small business financing, access to capital is both a lifeline and a strategic advantage. Whether you’re launching a startup, expanding operations, buying equipment, or covering payroll during lean periods, the availability, speed, and terms of business funding can make or break your plans.
Founded in 2006, Kapitus has emerged as one of the most prominent online small business lenders in the United States. It brands itself as both a direct lender and a financing marketplace, meaning it can issue some products directly and also connect borrowers to a network of financing partners.
This review explores Kapitus’s offerings, how it works, its strengths and weaknesses, and how to decide whether it might be the right fit for your business financing needs.
Before we proceed, I recommend you check out our rankings of the Best Equipment Financing Companies in the US.
The list will help you avoid confusions and find the appropriate company for your financing needs.
What Is Kapitus?
Kapitus is a small business financing company that provides a variety of capital products to American businesses. It caters to a wide range of industries and offers multiple loan structures designed to support diverse business needs, such as:
- Growth and expansion funding
Working capital - Equipment acquisition
- Cash flow management
- Revenue-based financing
- SBA-backed loans
- Lines of credit
- Merchant cash advances
Kapitus emphasizes fast application turnaround, flexible financing options, and a consultative approach with financing specialists to help match business owners with the most appropriate funding solutions.
Importantly, Kapitus functions not only as a direct lender but also as a financing platform that can aggregate loan offers from trusted partner lenders via its “KapitusPLUS” system. This means with one application, a business could receive multiple competing offers, simplifying comparison shopping.
Product Portfolio: What Kapitus Offers
Kapitus’s financing lineup is broad and designed to address different financing needs.
1. Business Term Loans
These are Kapitus’s core product—traditional business loans providing a lump sum that businesses repay over a set term.
- Funding amounts can range up to $750,000 for term loans, and up to $5 million via merchant cash advance and larger financing options.
- Qualification thresholds generally include a minimum of 24 months in business, $250,000 in annual revenue, and a credit score around 625–650.
- Funding can be as quick as 24 hours after approval.
Unlike traditional bank loans that charge interest, Kapitus often uses a factor rate for pricing on term loans and advances. This means borrowers repay the borrowed amount multiplied by a factor (e.g., 1.10–1.45) rather than an APR, which can make cost comparisons with bank loans more complicated.
2. Merchant Cash Advance (MCA)
Kapitus offers advances against future sales, especially for businesses with strong debit or credit card receipts.
- Amounts can go up to $5 million.
- Repayment is usually tied to daily, weekly, or automatic bank debits based on sales volume.
This structure can be powerful for high-transaction businesses thriving on regular consumer purchases, though costs can be higher and repayment schedules more frequent than traditional loans.
3. Business Lines of Credit
A line of credit provides a revolving borrowing limit:
- Business owners draw only what they need and pay interest on what’s used.
- Ideal for ongoing or unpredictable expenses such as payroll, inventory replenishment, or seasonal slowdowns.
Customers can use lines of credit to build business credit if repayments are made reliably.
4. Equipment Financing
Kapitus supports equipment purchases by financing up to 100% of the equipment’s value, with repayment structured to match the useful life of the asset (typically 12–60 months).
This product helps businesses acquire vehicles, machinery, technology, medical equipment, or other capital assets without depleting cash reserves.
5. Revenue-Based Financing
Revenue-based financing allows businesses with fluctuating income (such as seasonal sales) to access capital in return for regular percentage-based payments tied to revenue rather than fixed monthly payments.
This can reduce pressure during slow periods, though it may result in higher overall costs for borrowers with strong cash flows.
6. SBA Loans and Other Network Offers
Through its financing network, Kapitus facilitates SBA-backed loans, which typically offer long terms and competitive rates for qualifying businesses.
Other financing types available through the Kapitus platform may include invoice factoring, purchase order financing, and more, depending on eligibility and state availability.
Application Process
Kapitus places a strong emphasis on speed and simplicity.
Streamlined Application
Kapitus’s online application can be completed in minutes, requiring basic business information, financials, and supporting documentation. The goal is to reduce the time and paperwork often associated with banks.
Financing Network Comparison
Through the KapitusPLUS process, the system generates multiple financing offers with one application, allowing business owners to compare term lengths, rates, fees, and projected costs side-by-side.
Fast Decisions and Funding
Kapitus advertises fast approvals—sometimes within hours—and funding can arrive in a business’s bank account within 24–72 hours, depending on documentation and underwriting speed.
For many small businesses, where operational disruptions can occur daily, this quick access to capital is a significant advantage.
Cost and Pricing Transparency
Kapitus does not publicly list comprehensive rates or factor ranges on its website, which is common among alternative lenders but a notable drawback when comparing costs directly.
For term loans evaluated by third-party reviewers like NerdWallet:
- Typical factor rates range roughly from 1.10 to 1.45, translating into a total repayment amount 10%–45% above the borrowed principal.
- Repayment terms for many business loans tend to be 6 to 24 months.
Borrowers should carefully request a full term sheet that outlines total cost, repayment frequency (daily/weekly/monthly), any origination or administrative fees, and any prepayment considerations.
Pros of Kapitus
1. Speed and Accessibility
Kapitus excels at providing funding quickly, which is essential for urgent business needs. Reviews frequently highlight fast approvals and quick funding as a major strength.
2. Multiple Financing Options
With term loans, lines of credit, merchant cash advances, SBA loans, equipment financing, and more, Kapitus offers a broad portfolio to meet varying business objectives.
3. One-Stop Comparison via KapitusPLUS
The ability to receive multiple offers with one application streamlines the search for suitable financing, saving time and effort.
4. Consultative Support
Kapitus’s financing specialists work directly with borrowers to match them to products, which can be particularly helpful for business owners unfamiliar with financing intricacies.
5. No Prepayment Penalties
Many Kapitus loan products do not carry prepayment penalties, allowing borrowers to pay off debt early without extra cost.
Cons and Drawbacks
1. Pricing Transparency Is Limited
Kapitus doesn’t publish detailed pricing or fee schedules on its site, making direct comparison harder without a personalized quote.
2. Factor Rates Can Be Hard to Compare
Factor rate pricing (vs. traditional APR) may be confusing for some borrowers and can make apples-to-apples cost comparisons more challenging.
3. Qualification Requirements
Some products may require a credit score near 625–650, at least two years in business, and minimum revenue thresholds, which may limit access for very new or low-revenue companies.
4. Mixed Customer Experiences
While many businesses report fast, professional service, third-party review platforms also include negative feedback—such as disputes over clarity of terms or customer service experiences—highlighting the importance of carefully reviewing contract terms before signing.
Customer Feedback and Reputation
Customer reviews of Kapitus are generally positive on popular platforms like Trustpilot, where many business owners praise responsive loan specialists and quick approvals.
However, online review pages also contain critical comments regarding communication or perceived pricing issues. This polarity underscores the need for thorough due diligence when evaluating any lender.
Glassdoor data about Kapitus’s workplace culture (not customer feedback) shows mixed employee satisfaction, which doesn’t directly reflect customer experience but may indicate internal pressures in a sales-oriented environment.
A large number of customer reviews are available on Trustpilot, and they are summarized below.
#1. Our senior funding executive, Nick Regan, was an absolute pleasure to work with and provided an outstanding experience throughout the process.
#2. We worked with Braxton, who was extremely helpful throughout the process. He made every effort to secure the best possible deal for us and kept us informed at every step along the way.
Who Kapitus Is Best For
Kapitus is particularly well-suited for established small businesses that need reliable access to working capital or funding to support expansion initiatives. Companies that have been operating for at least a couple of years and generate consistent annual revenue are often in the strongest position to benefit from Kapitus’s financing model.
Because the company focuses on speed and streamlined approvals, it is an especially attractive option for business owners who prioritize convenience and fast access to funds over the longer, more documentation-heavy underwriting processes typically required by traditional banks.
Entrepreneurs who cannot afford to wait weeks for a lending decision—such as those needing to purchase inventory quickly, repair equipment, or capitalize on time-sensitive growth opportunities—may find Kapitus particularly valuable.
Kapitus is also a good fit for companies that want access to multiple financing products within one platform. Instead of approaching separate lenders for a term loan, line of credit, equipment financing, or revenue-based funding, borrowers can explore several options through a single application.
This structure is beneficial for owners who appreciate guidance in comparing offers and understanding which funding type best matches their operational needs and cash flow patterns. Additionally, businesses that generate stable and predictable revenue are more likely to qualify under Kapitus’s typical eligibility standards, making them strong candidates for approval.
Overall, Kapitus tends to serve growth-oriented small and mid-sized businesses that want flexible financing solutions delivered efficiently, without navigating the complexity and delays often associated with conventional bank lending.
Conclusion
Kapitus has built a solid reputation as a reliable small business financing partner over nearly two decades, providing billions in funding to tens of thousands of businesses.
Its strengths lie in the breadth of its financing products, the speed of its processes, and its consultative support. While pricing transparency and qualification requirements require attention, the ability to generate multiple funding offers with a single application is a clear advantage for many business owners.
For small and mid-sized businesses seeking fast access to capital with flexible options, Kapitus is a financing platform worth serious consideration—especially when compared side-by-side with peers and traditional lenders.
