Kapitus

Kapitus: small business financing in the United States

Kapitus is a commercial financing company that presents itself as a provider of working capital solutions for small businesses. Its offering is built around a process called KapitusPLUS, through which applicants complete a single application and can receive up to six competing offers from different lenders. The company states that offers may come from Kapitus and/or members of its financing network.

Financing products

The product catalog includes business loans, lines of credit, revenue-based financing, equipment financing, purchase order financing, SBA loans, and invoice factoring. According to published information, available amounts range from $5,000 to $5 million. The company states that lines of credit offer better rates than the average credit card, and that revenue-based financing is calculated based on the business's recent sales history.

• Business loans
• Lines of credit
• Revenue-based financing
• Equipment financing
• Purchase order financing
• SBA loans
• Invoice factoring

The KapitusPLUS process

The method of working is described in three stages. In the first, the client submits a single application for multiple financing solutions. In the second, they receive up to six offers and can compare type, size, terms, fees, and total cost of each. In the third, they use the funds for purposes such as renovations, equipment purchases, hiring staff, opening new locations, or acquiring inventory. The company states that a team of seasoned financing specialists works with each client to craft a personalized package.

History

The company was founded in January 2006 by Andy Reiser along with ten employees, under the name Strategic Funding Source. In its first two years, it opened a second office in Williamsburg, Virginia, to house a growing customer service department that served more than 400 small businesses. During the 2008 recession, the company refined its underwriting process and was able to fund more than $118.5 million to more than 2,200 businesses, remaining profitable. In 2012, it obtained its first senior bank line from Capital One, and in 2014 it secured a $110 million line of equity with Pine Brook Investment, enabling it to fund 10,000 businesses with more than $550 million. By 2018, 25,000 small businesses had accessed over $2 billion in financing through Kapitus. The company also mentions the addition of a Chief Revenue Officer, Chief Risk Officer, Chief Product Officer, Chief Financial Officer, and General Manager during the second half of the 2010s.

Partnership with Experian and educational resources

Kapitus has partnered with Experian so that small business owners can access products and plans that help them establish, monitor, and improve their business credit score. It also maintains an educational resource center with articles on topics such as comparing traditional banks and alternative lenders, small business loan application checklists, options for acquiring expensive equipment, and grants for minority-owned businesses.

Legal structure and licenses

The company operates under Strategic Funding Source, Inc., holder of the Kapitus trademarks. Loans made or brokered in California correspond to Kapitus LLC, license number 60DBO-198798, or Kapitus Equipment Finance LLC, license number 60DBO-210433. Loans may be funded by WebBank, and the specific lender is identified in the contract.