What to Expect
Loan Amounts
Repayment Terms
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Business loans are a type of commercial financing that provides you with the working capital you need to cover the costs of running and growing your business. Through Kapitus, you can access a range of business loans, all with customizable terms and payment options designed to fit your unique needs. From covering daily operations to expansion, our loans are here to help your business thrive.
Submit your application and one of our financing specialists will reach out shortly afterwards to start the process of building you the best financing package for your business needs. Once you’re approved, you’ll be provided with up to six options to choose from, each varying in amount, terms, and repayment schedules.
Select your ideal loan package and receive a lump sum of cash in as little as 24 hours.
Because we respect your time, the Kapitus business loan application process is straightforward and built for real-world small business owners who need capital fast.
Our user-friendly application and minimal required documentation mean that you can get your capital and return your focus on what truly matters — growing your business.
Kapitus takes the stress out of your financing decisions.
With one application, you can access up to six financing offers, giving you the flexibility to explore your options and make an informed decision that works best for you and your business.
Time is money, and you need your cash quickly.
With our streamlined process and the expertise of our financing specialists, you can receive your working capital in as little as one day after the finalization of your loan agreement.
Our team is dedicated to securing loans for small businesses at terms that work best for their budgets. Our unwavering commitment to seeing your business succeed has earned Kapitus one of the highest satisfaction ratings in the industry.
Before we can get started with your business loan, we request that some basic minimum qualifications are met. These business loan requirements allow our financing specialists to better evaluate your eligibility and individual situation to find you the perfect financing solution for your needs.
Navigating risks is all part of being a small business owner, and we recognize that as well. This is why we must consider some important factors to assess the health of your business and determine if it’s the right time for you to take on additional debt. Here are the crucial factors we must consider and why:
Personal credit scores provide us insight into how you handle debt on a personal level, which often reflects how you manage debt in your business. If you have bad credit, reach out to one of our financing specialists to see what other options might be available to you.
Lenders prefer businesses with at least two years of operation since this demonstrates a stronger likelihood of success. With two years of operating history, lenders are able to see trends in your sales cycle which helps them to determine what amount, terms and repayment arrangements will benefit your business.
Consistent annual revenue is important to demonstrate your business’s financial stability and ability to make payments. We would never want you to take on financing that could lead to financial strain or a negative impact on your business.
Of course, these criteria are only a small part of what is considered when assessing loans for small businesses. A more comprehensive set of criteria that considers the business behind the numbers may be used as final financing decisions are made.
Speak with a Kapitus Small Business Financing Specialist to learn more.
Business loans through Kapitus are flexible to meet the needs of small businesses in various industries, but they aren’t the best type of financing for everyone. To determine whether a business loan is right for you, compare financing options, evaluate your business’ needs, and compare lenders to find the right loan for you.
If you’re wondering whether your business might be a good fit for a business loan, compare loans to other types of financing is the best place to start. Then, based on your needs, determine which type of financing might work best for your business.
A business line of credit allows you to borrow up to a predetermined limit, repay, and borrow again. Interest is only charged on the amount you borrow, not the total credit limit. This is a more flexible option than business loans, though business lines of credit can often come with higher rates and lower total borrowable limits than business loans.
Revenue-based financing provides flexible financing in exchange for a percentage of ongoing revenue. Unlike a business loan, revenue-based financing does not come with fixed monthly payments, making it suitable for businesses with less consistent cash flow.
Businesses that need to purchase new equipment but require financing to do so may benefit from equipment financing. Equipment financing uses the equipment as collateral and has businesses make regular payments. Businesses loan provide similar fixed payments but allow small businesses to use the financing for more than just equipment.
Every small business is unique, so to determine the best type of loan for your business consider your industry, revenue, time in business, cash flow flexibility, and planned uses for financing. Compare business loans with other options to find the best fit for your business’s needs.
A business loan won’t meet the needs of every small business. Weigh the advantages and disadvantages of a business loan to help decide whether this is the best type of financing for you.
Advantages of a Business Loan
Disadvantages of a Business Loan
Small business loans are offered through brick-and-mortar institutions and non-bank online lenders, though you can get connected with small business loan options by going directly to the source or through brokers and online marketplace platforms.
Traditional banks and credit unions offer competitive rates and personalized service, making them a popular choice for small business loans. Credit unions may also have extensive experience working with local businesses. However, their application processes can be lengthy and require substantial documentation.
Non-bank and online lenders provide quicker access to funds with more flexible qualification criteria. While they often have higher interest rates than banks and credit unions, their streamlined application processes and faster approval times make them an attractive option for businesses that want quick solutions.
SBA loans are offered lenders vetted and approved by the Small Business Administration, which can provide lower interest rates and longer repayment terms. These loans are ideal for businesses looking for substantial funding but may involve a rigorous approval process.
Business loan brokers can help you navigate the complex loan market by matching you with lenders that fit your small business’s needs. They could save you time and effort but may charge fees for their services.
Marketplaces are online platforms that connect business owners with a number of lenders and other financing companies that would best fit that business’s needs.
Before You Apply for a Business Loan
Before beginning any applications, make sure you’re choosing the right type of financing, that you’re eligible, and that you have all documentation ready. Once you’re set, apply to multiple lenders to compare their offers.
Assess your business’s financial health and prioritize your funding needs before beginning a business loan application. A thorough evaluation will help you determine how much financing your business needs and the type of loan that fits your business. Also consider how quickly you might need the funds to maintain operations.
Each lender has specific criteria for loan approval, including credit score, revenue, and business history. While specific requirements vary by lender, all lenders will require this information from businesses during the application process. Ensure your business meets these minimum requirements before applying.
Researching and comparing lenders is an important step to take before applying for financing. It involves looking at interest rates, repayment terms, fees, and customer reviews. Taking the time to compare different options will help you find the best lender for your needs.
When comparing lenders, look at:
Gathering all necessary documentation before starting an application is crucial for a smooth loan application process. Being prepared can expedite approval and demonstrate your business’s credibility.
Required documents for a business loan often include:
After You Apply for a Business Loan
After applying with different lenders, you’ll begin to receive multiple loan offers. Compare them carefully by looking at interest rates and repayment terms. Pay close attention to any additional fees as these costs can quickly add up. Selecting the best offer requires a thorough analysis to ensure it aligns with your financial goals.
After securing a loan, it’s essential to use the funds strategically to maximize growth and ensure timely repayment. Proper financial management and planning can help your business achieve its goals without overextending its resources. However, poor planning could result in cash flow restraints without appropriately addressing the original need for the financing.
Business owners concerned about irregular repayment terms should strongly consider fixed-term financing like business loans. Fixed repayments can be easier to plan for.
If your loan application is declined, don’t be discouraged. Assess the reasons for denial, improve your personal and business credit score, and consider alternative financing options to strengthen your business’s position for future applications.
Whether you’re looking for funds to run, grow or secure your business, Kapitus can help! With financing options for virtually any business need combined with our knowledgeable financing specialist, business owners can quickly secure the funds they need to meet their short and long-term business goals. Schedule a free consultation today to discuss your current needs and the financing options that are available for you and your business.
How long does it take to get a business loan?
Applications can be approved in as little as 4 hours. To ensure that your loan application can be reviewed as quickly as possible, have all the information and documentation you need ready to go before you start your loan application, at minimum you should have 3-6 months-worth of your business bank statements ready to upload as part of your application. The number of statements required is dependent on the state in which your business is located.
How can I use my business loan?
Business loans through Kapitus are built to be just as flexible as the business owners themselves. Your small business loan can be used for any expenses related to running your business, whether it’s covering day-to-day operations or seizing growth opportunities. Working capital is just that: capital that helps keep you working!
Can I get a business loan as a startup?
Kapitus does not provide startup loans. However, there are a number of organizations out there that help small business owners with startup costs – from grants to credit cards to startup loans.
Do I have to put up collateral for my small business loan?
Each business loan through Kapitus is as unique as the small businesses they support.
While some larger loans may require collateral, some may not. Our financing specialists will work with you to find you your ideal loan with conditions and terms that best fit your business.
How do business loan payments work?
Our system is designed with your needs in mind. When you select your capital delivery method, you will also assign your business bank account to set up recurring payments. If you ever need to update your account information, our team is here to assist you every step of the way.
How much will a business loan cost?
The interest rates for our business loans are determined after careful consideration through our underwriting processes in tandem with federal interest rates. Each loan’s rates are based on a business’s specific profile, so interest rates will vary.
However, if you take out a loan through Kapitus, we can assure you that the total payback amount will align with your means and expected ability to repay, guaranteeing a personalized and fair financing experience that works for you.
Are business loans the only financing option I can get through Kapitus?
Not at all. Kapitus, along with our financing network, offers a rich collection of financing products, all with the aim of helping to make the lives of small business owners easier. Choosing Kapitus as your financing partner gives you access to a wealth of options from lines of credit to equipment financing. We are ready to work directly with you to find out what financing product best suits your needs.
What is KapitusPLUS
KapitusPLUS is the premier method for comparing your best financing options not only with Kapitus, but with several industry-leading lenders and financing companies in our extensive network. KapitusPLUS allows you a full and unbiased picture of your financing options, plus the guidance of a financing specialist who can help talk you through your best-fit options.
Will applying with Kapitus impact my personal credit?
Impact on your personal credit score depends on the type of financing you apply for. Some options WILL impact your personal credit score while others will not. Business loans will typically have some type of impact on your score, either through a hard credit pull and/or regular reporting to credit agencies once a loan has been secured.
Will applying with Kapitus impact my business credit?
Impact on your business credit score is dependent on the type of financing you apply for. Some options WILL impact your business credit score while others will not.
Will a business loan help me build my business credit?
Yes. Responsible financing is always a proven strategy to improve your business credit. Demonstrating your ability to repay debt on time shows creditors and credit establishments that your business is reliable, honest, and creditworthy.
Are there any early payment penalties with a Kapitus Business Loan?
No. Early repayment is a sign of a strong business, and we celebrate your business success. Our renewals team is more than ready to continue financing partnerships with businesses who have demonstrated their ability to manage their financing.
I have financing through another lender. Can I still get a business loan through Kapitus?
Yes. We understand that small business owners use financing at all sizes and points of their journey. We look at more than just a business’s existing financial obligations and are more than comfortable financing qualified businesses with existing loans through other lenders.
I am already a Kapitus customer. Can I obtain additional financing through Kapitus?
Of course! As a valued client, we already have a deep understanding of your needs and the intricacies of your business, making the process for an additional loan even easier. Schedule a call to learn more about our robust renewal options and other resources.
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Copyright 2024 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc. Loans made or brokered in California are made or brokered pursuant to California Finance Lenders License No. 603-G807.
