Kapitus Logo

Loan Amounts


$5,000 - $5,000 000

Loan Term


3 months - 10 years

APR Range


5.99% – 18% (medium term loans)

Min. Credit Score



Editorial Rating

Kapitus Review: 2021 Edition

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Loan Amounts


$5,000 - $5,000 000

Loan Term


3 months - 10 years

APR Range


5.99% – 18% (medium term loans)

Min. Credit Score





Between 2.5% and 5% origination fee

Funding Time


48 hours

Min. Revenue


$100,000 per year

BBB Rating



Kapitus Logo

Editorial Rating

Finding the right financing option for your small business can be tough. Banks and traditional finance companies make you jump through so many hoops that it takes forever to get your money. Non-traditional lenders offer a faster alternative but may charge exorbitant interest rates.

Kapitus claims to be different, offering businesses access to financing quickly and easily. Do they deliver? We’ve scoured thousands of Kapitus reviews and put the firm through its paces. Read on for a comprehensive review of the company and its financing options.

What Is Kapitus?

Kapitus is a US-based private lender catering to small businesses. It’s had a rocky past. The firm, formerly known as Strategic Funding, was the subject of a $5,000,000 class-action suit in 2018. The plaintiffs claimed that it practiced predatory lending practices and charged exorbitant interest. The matter was settled out of court.

Since then, the firm has undergone a complete rebranding process. While still under the umbrella of the Strategic Funding Source Inc, it changed its trading name to Kapitus. They’ve since worked hard to establish a reputation as the best lender in the United States.

Who Is Kapitus Best For?

Companies looking for fast, easy credit will appreciate the secure options the company offers.

Kapitus serves small to medium businesses, many of whom have a good credit history. The range of products that the company offers is extensive, meaning that there’s a financing option for almost everyone.

If we look at Kapitus reviews, the company allows some low credit lending but may require collateral in such cases.

They don’t specifically market a bad credit loan. Businesses with FICO scores of under 600 won’t qualify for most products. They may, however, qualify for revenue-based financing or invoice factoring.

The company serves a wide range of industries. These include:

  • Agriculture
  • Contractors
  • eCommerce
  • Hotels
  • Manufacturers
  • Medical
  • Restaurants
  • Wholesalers
  • Automotive
  • Construction
  • Transportation
  • Towing

Terms & Requirements

Buckle in. This section is long. The company only caters to borrowers in the United States. The loan requirements and terms differ for each type of loan. The company offers both secured and unsecured lending. Which one your loan falls under depends on your credit rating.

The company typically offers loans between $5,000 and $5,000 000. You’ll need to discuss this with your loan consultant before finalizing everything.

The repayment terms range from 3 months to 10 years, depending on the product. Clients may opt to pay weekly or monthly. Funds are typically drawn directly from your business bank account.

According to the Kapitus news and site, the requirements for each individual finance product are as follows.

Revenue-Based Financing

Anyone may apply for revenue-based financing, irrespective of their credit history. The company doesn’t require you to have many assets either. They may ask for collateral if your FICO rating is low.

There are no set limits on this option – your revenue determines how much you may borrow.

Your business has to:

  • Been running for a year
  • Have a good revenue history
  • Have a business checking account
  • Display the potential for good sales going forward

The process is fast, making this an excellent way to borrow money online. You’ll usually have an answer within one business day. You’ll get the money within one week. The repayment terms are flexible.

Helix Healthcare Financing

This funding gives those in the healthcare industry ready access to working capital. It’s designed to provide bridging finance for practitioners waiting for insurance payments. The funds are available within three days.

You may borrow from a minimum loan amount of $20,000 to a maximum loan amount of $500,000. You may repay your loan over a period of 6 months to 10 years, weekly or monthly.

Business Loans

The company offers several types of business loans. They don’t, however, provide unsecured loans for bad credit. They offer short-term or long-term loans, fixed installment loans, or revenue-based repayments. The rates are based on your business score, revenue, and whether or not you need collateral.

They have a handy tool that allows you to narrow down the types of business loans you need.

SBA Loans

The government-backed SBA loans go from $100,000 to $5,000,000. They’re not the same as business loans for bad credit, because businesses must prove their creditworthiness. The terms range from 6 months to 25 years. The process is long and involved because of the paperwork required. You’re looking at a minimum of 14 days to get your money.

The interest rate ranges from Prime plus 2.7% to Prime + 3.7%. You can use the loan for anything that you need. Businesses may use it as bridging finance for debt consolidation, working capital, equipment, or commercial property financing.

With favorable loan terms and a government guarantee, an economic injury disaster loan is difficult to get. You’ll have to meet the following criteria to qualify:

  • Be an established, US-based business
  • Not be a not for profit organization
  • Have a personal FICO score of at least 680
  • Already have established a credit record for your company
  • Have been running for two years or more
  • Running a profitable business

Business Lines of Credit

A line of credit is a revolving credit facility that works in a similar way to credit cards. You’ll have to service the interest and make the minimum monthly payments as with any other loans. The difference between a line of credit and a typical installment loan is that here you can draw down money as and when you need it.

Kapitus only charges you interest on the outstanding balance. They’re less stringent about your credit history with this product. They’ll determine how much you can borrow by looking at your credit history and your business’s average revenue.

Approval is quick, with funds being available within a couple of days.

Invoice Factoring

Invoice factoring is essentially selling off your outstanding commercial invoices. It’s designed to help small business owners ease cash flow problems or raise emergency funding. This financing differs from your typical loan because you don’t pay interest. Instead, Kapitus advances you a percentage of the invoice value.

In exchange, you sign over the rights to collect on the invoice. When your client pays, the full amount of the invoice goes to Kapitus.

Factoring might be a good option for businesses with poor credit. Here Kapitus pulls the credit rating of your commercial client rather than your own.

You’ll have to provide:

  • Your accounts receivable or payable aging report
  • Business registration papers denoting ownership
  • Your personal or corporate tax return and financial statement

Equipment Financing

This is the only type of startup business loan that the company offers. Established businesses may also apply for equipment financing.

The company doesn’t specify minimums or maximums with this financing. Your personal credit score plays a significant role in whether or not you may access financing. Depending on the loan amount, you need a minimum credit score of 600.

The company finances most types of equipment, except, for the time being, trucks. You may have to make a down payment, depending on your average credit score and business history.

The application process is straightforward. If you’re applying for less than $150,000, you may use the app. All you’ll need to do is complete the application form and upload a copy of the invoice from your supplier. On approval, Kapitus will pay the funds directly to your supplier.

The requirements differ depending on the loan amount. Getting approved loans isn’t that hard if you meet these criteria.

Startups may apply for up to $45,000. They must be incorporated, and the owner must have a minimum credit score of 600. There is no minimum business requirement.

Established businesses applying for $150,000 or less must have been in business for 2 years or more. The owner’s FICO score must be 600 or over.

Established businesses applying for over $150,000 must have been in business for 2 years or more. The owner’s FICO score must be 675 or higher.

Purchase Order Financing

Purchase order financing is a good funding source for business when you want to expand and take on new clients. You must use the money to pay for your suppliers. It’s an alternative to seeking investor financing and allows you to take on new clients without worrying about how to service your current orders.

The credit requirements are not as strict as for installment loans, but the amount you qualify for depends on your gross margin. If your gross margin exceeds 25%, you may be eligible for 100% of supplier costs. All the other expenses, such as payroll and advertising, are for your account.

Getting Started With Kapitus

Head over to the website, or download the app. You’ll fill out a free application form. Unlike most lenders, this application form is quite comprehensive. Most lenders ask three or four questions to prescreen you before getting the primary information.

Kapitus uses a more comprehensive prescreening process so that loan approval is faster. By doing so, they don’t waste much of your time if you don’t qualify.

They ask you:

  • What your contact info is
  • The type of business you have
  • How long your business has been running for
  • You estimate of your credit score
  • What, if any, loans you already have
  • Your gross annual sales
  • Choose the loan amount
  • Why you want a loan
  • The information about the owner

You submit your application and wait for a consultant to call you. The consultant will then discuss your loan eligibility and options. Once you’ve confirmed which financing option you prefer, they’ll complete the application process.

The supporting documents depend on the type of loan. You’ll usually need to provide your three latest bank statements, the previous year’s tax return, and the details of three trade references.

The company provides a Small Business Financing Checklist to ensure that you have all the requisite documents. Upon final approval, you’ll get the loan agreement laying out the terms.

User Reviews

Formerly called Strategic Funding, now Kapitus, reviews of the company are at both ends of the spectrum.

The Kapitus BBB rating is A+. The BBB has received a total of 7 complaints over the last three years, so that’s encouraging. Trustpilot rates the company lower at 4.3 out of 5.

Users generally fall into one of two categories – they either love the service or hate it. When we started our research, the class-action suit filed against the Strategic Funding Group raised red flags. We didn’t find any mention of exorbitant interest rates in the reviews, however.

Some reviewers stated that bank loans offered better rates, but that’s normal with faster financing options. It seems as though Kapitus learned from its mistakes. If we look at Kapitus Glassdoor reviews, it becomes clear that employees have mixed feelings about the company.

While employees said the company was good, they mentioned a high staff turnover and a lower pay rate. A high staff turnover could account for clients not receiving consistently excellent service.

Most customers found the service excellent and commented on the speedy turnaround time. The majority of complaints were from clients disappointed that the company wasn’t more flexible with its financing options. Considering the range of products, we found these comments a little unfair. Reading between the lines, these clients probably didn’t qualify.

Kapitus servicing reviews are positive on the whole. Some clients were unhappy because the company changed its loan terms over time. That, too, is normal with any finance company.

Where we were concerned is that some clients felt harassed by cold calls. Again, in business today, cold calls are a normal part of doing business. We do believe that the company could improve its sales processes, however.

In the end, the Kapitus customer service is reasonably good.


Let’s go through some main features of Kapitus.

Rates & Fees

This is where we do have a problem with Kapitus. They’re not upfront about their rates and fees for most products. The only rates they publicize are the Prime plus 2.7% to Prime + 3.7%.

If you speak to the consultants, they’ll explain that your APR will range between 5.99% and 18% on most installment loans.

The origination fee for Kapitus funding is 2.5% and 5%. There is no flat fee on the amount funded, but the minimum charge is $395. You’ll pay whichever price is higher – the $395 or the percentage. The company doesn’t mention anything about a fee for SBA guarantees. Still, it’s common for lending companies to charge an extra percentage or two as a professional service fee once-off for an SBA loan. The company also doesn’t clarify the late payment fees. It’s best to clarify these issues with your consultant if they might apply to you.

Your loan consultant will explain the estimated annual percentage rate of the loan rate when they present your offer. We recommend reading the offer carefully before you accept it so that you know what you’re getting yourself into.

Privacy & Security

As with many financial services, the site uses a gateway provider, so that transaction information is neither stored nor processed on the company servers. They protect your data with secured networks and good encryption codes. Any sensitive information is further protected via SSL technology.

Employees only have access to systems that they need to do their job. The company limits access to the system as much as possible.

Clients requesting and signing in for a loan have minimal access to the resources on the website.

Customer Support

You may contact Kapitus via phone or by email. They also have pages on LinkedIn, Twitter, Instagram, Facebook, and YouTube. The app also has a contact function.

Once you’ve applied, you simply need to contact the consultant assigned to your case for queries.

Kapitus Alternatives

Kapitus vs Fundera

Kapitus is a direct lender, so you’ll only get one loan offer from them. If you think peer-to-peer lending might suit you better, Fundera is a good option. Read any lending platform review, and you’re bound to find Fundera listed.

The company is popular because it offers different financing options, and is more transparent about its fees. They work with a large network of reputable partner lenders. Their lending criteria are slightly less strict – you only need a FICO score of 550 here.

Kapitus vs BlueVine

The number of Kapitus funding options blows BlueVine out of the water. Offering a more straightforward range does allow BlueVine to save on fees, however, and their customers benefit as a result. They don’t charge an origination fee, have a fast turnaround time, and also offer unsecured lending.

Kapitus vs Kabbage

Kabbage reviews highlight the company as being a good lender for those with bad credit. The company offers lines of credit, invoice factoring, and PPP loan options.

Final Verdict

The company went through a rough patch. They’ve since cleaned up their offers and rebranded themselves with technology-powered financial services. On the upside, they offer a broad loan range. They’re not as strict as a bank tends to be and has a better turnaround time.

Their specialist healthcare product and flexible loan repayment options make them an innovative lender. Businesses may also access SBA loans through them.

Are they the best option? If your business has strong credit, possibly not. Kapitus doesn’t offer the best rates. If you need funding fast or have some credit issues, it’s worth applying. The company charges reasonable rates on low credit loans.

Overall, Kapitus reviews are positive, so we’ll give them a thumbs up.


  • Offers SBA loans
  • Fast turnaround time
  • Many different options
  • Easy application process
  • No penalties for settling early
  • They have some unsecured loans
  • Bad credit won’t necessarily disqualify you
  • A steady stream of income counts for more than your FICO score in some cases


  • More expensive than banks
  • The site doesn’t tell you much about the fees
  • You won’t know the interest rate until you apply
  • Kapitus reviews for 2020 are still mixed where service is concerned
Kapitus Logo

Editorial Rating


Is Kapitus legit?

Yes. The company is registered and has a California Finance Lenders License. It doesn’t score as highly as some of its competitors on TrustPilot, but that’s not everything. If you look at Strategic Capital reviews, for example, Strategic Capital Partners scores higher on Trustpilot. They’re not, however BBB-rated.

Is Kapitus safe?

Yes. Based on some of the negative Kapitus reviews, we advise borrowers to do their due diligence, however. The less stringent lending criteria makes it a lot easier to get loans. Firms should borrow only if essential as it’s easy for them to overextend themselves.

What kind of financing does Kapitus provide?

Kapitus funding products include:

Revenue Based Financing
Helix Healthcare Financing
Business Loans
SBA Loans
Line of Credit
Invoice Factoring
Equipment Financing
Purchase Order Financing

Is Kapitus linked to Strategic Funding Source (SFS)?

Yes. SFS changed its name to Kapitus.

Is it easy to get a loan from Kapitus?

That depends on whom you ask. If you look at Kapitus reviews on Reddit or on other sites, opinion is divided. Well-managed businesses with reasonable turnovers will usually find it easy. The Kapitus requirements for credit are less strict, so business owners with credit mistakes also find it simpler to get loans.

Has Kapitus overcome the Strategic Funding furor?

Yes. The media coverage made the company take stock and revise its lending practices. However, to be fair, we can’t lay the blame there solely at the company’s door. The rates they offered then were higher, but no one forced the business owners to take up the Kapitus loans.

Does Kapitus offer personal loans?

No. If you need personal loan services, this is not the right site.

Does the application have a potential impact on your credit score?

The company does a soft pull with the initial application. They also do a soft pull on your clients if you opt for invoice factoring. These soft pulls don’t impact your credit score. If you miss payments, this will show on your credit record. The implications of non-payment extend beyond late payment fees.

Are the company’s business loan requirements excessive?

No, but our research and Kapitus reviews indicate that they do sometimes ask for collateral with factoring. That’s not a standard practice in the industry.