Kapitus Review

Revenue Based Financing

Revenue-based financing differs from a term loan in that the lender uses your business’ monthly revenue to determine how much you can borrow. Instead of making fixed monthly payments over a set repayment term, your business makes ACH payments or connects its credit sales to the lender. Payments are made as a percentage of your sales for a specific period—with Kapitus, you can choose payments that are either daily, weekly, or bi-weekly.

Evaluation

Applying for revenue-based financing with Kapitus could be a good move for companies that have a consistent stream of revenue. This is not an option for startups, since eligible businesses must be around for at least one year. Plus, you’ll need to show multiple months’ worth of bank statements to demonstrate you have the revenue to cover repayments. Companies that meet these requirements could be a good fit for fast financing with large amounts available.

Expedited Turnaround Time for Financing

Kapitus revenue-based financing can get your money in place within 24 hours depending on how quickly you submit your paperwork and review the loan agreement. This is much faster than traditional bank loans. Plus, the actual approval process takes only four hours, so you know whether or not you can count on the funding, even if it takes an extra day to get the cash in your bank account.

A Range of Fees to Consider

Revenue-based financing from Kapitus comes with a few different sets of fees that may apply, depending on the amount your company borrows. 

• Either a $20 ACH fee or a $50 wire transfer fee
• A flat $395 origination fee for contracts under $15,000 
• An origination fee of 2.5%, if the funded amount is over $15,000 
• A $35 fee to pay off an existing loan product from a competitor

That origination fee is subtracted from your funding before it’s deposited into your account.

Requirements to Get a Loan

Because Kapitus ACH financing is based on revenue, you’ll need a solid business in place. Personal credit, however, isn’t weighted as strongly, so you don’t have to let that deter your ability to gain financing for an income-producing business. In fact, the minimum credit score required to apply is 575. That’s considered “fair” and is below the average American’s credit score of 698.

Your business does need to be pretty established for Kapitus revenue-based financing—the minimum time in business is one year and monthly revenue must reach at least $12,000 (or $240,000 annually). So while this isn’t an ideal arrangement for start-ups, it’s a great option for companies that already have customers and are consistently bringing in business.

Flexible Repayment Options 

Kapitus offers daily, weekly, or bi-weekly payments. The amount isn’t fixed. Instead, you have a few different options for how to repay the funds.

• Set up fixed ACH payments that deduct a percentage of your anticipated sales directly from your bank account. You can choose daily, weekly, or bi-weekly payments with this option. 
• Split credit card payments with Kapitus as a percentage of sales. This option only allows for daily payments.
• Enroll in variable ACH payments based on daily revenue. 

For some businesses, such frequent payments may restrict their cash flow and ability to cover operating expenses. But if you have solid revenue with customers paying regularly (whether daily or weekly), then it may be worth considering revenue-based financing from Kapitus.

Excellent Customer Reviews 

Kapitus reviews on third-party websites are glowing. On TrustPilot, the lender has earned 4.7 out of 5 stars. Individual comments include praise for the great communication process and fast funding times. 

Are you inspired by this Kapitus review to learn more? If so, compare multiple financing offers to find the best small business lender using Lendio.

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*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (October 25, 2022). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.