Kapitus
Revenue-based financing and business loans up to $5,000,000. Factor rate not published (~28.5% APR at 1.15 over 12 months). 650 credit, 2 years, $250K revenue; funds in as little as 24 hours.
Rates & Cost
What the financing costs, normalized so lenders can be compared.
Repayment Terms
How and how fast you pay it back, and how flexible it is.
Eligibility & Access
Who qualifies and what you have to put on the line.
Speed & Service
How fast you get funded and how the lender treats you.
Company Verification
Who actually stands behind the lender: legal entity, registration, and how long the business and its website have existed. Checked against public registries.
Best for: U.S. businesses with two or more years of history, $250,000+ in annual revenue and a 650+ credit score that need a large sum, up to $5,000,000, within about a day.
Not for: Startups, owners below 650 credit, or anyone who wants a published price or a discount for paying early. A bank line or SBA loan will usually cost far less if you qualify.
Lender List verdict: Kapitus is a 20-year direct funder with unusually high limits and terms to 24 months, and one application can also surface network offers. It does not publish factor rates: at its own example rate of 1.15 over 12 months, the cost is about 28.5% APR, and far more if you repay faster.
Kapitus at a glance
Kapitus funds up to $5,000,000 through business loans and revenue-based financing, and sources other products from a financing network.
| Kapitus | |
|---|---|
| Lender type | Direct funder (loans, revenue-based financing) plus a referral network |
| Founded | 2006, as Strategic Funding Source |
| HQ | Arlington, VA |
| Parent/owner | Strategic Funding Source, Inc. d/b/a Kapitus; Pine Brook-backed since 2014 |
| Products | Revenue-based financing, business loans, line of credit, equipment, PO, SBA (network), factoring |
| Amounts | $5,000 to $5,000,000 (minimum per Finder) |
| Cost (headline) | Factor rate not published; third parties report 1.10 to 1.45 |
| Term | 6 to 24 months; daily, weekly or monthly debits |
| Funding speed | Approval in as little as 4 hours; funds in as little as 24 hours |
| Status | Active (2026-10-27) |
What is Kapitus?
Kapitus is an Arlington, Virginia small-business funder, founded in January 2006 as Strategic Funding Source, that had provided more than $5 billion in financing by March 2024. It funds deals itself, refinanced through asset-backed securitizations (its eighth closed in 2025), and Kapitus Servicing, Inc. handles collections.
KapitusPLUS can return up to six offers from Kapitus and partners on one application; SBA loans come only from network members, and your agreement names the lender.
How Kapitus funding works: revenue-based financing
Kapitus funding through revenue-based financing buys a fixed amount of your future sales, up to $5,000,000, for a smaller lump sum now, priced with a factor rate instead of interest.
- Application: About 10 minutes online, 3 to 6 months of bank statements, then a call with a financing specialist.
- Payments: A set share of receipts, debited daily, weekly or monthly; the share is not published.
- Term: Usually 6 to 24 months, with no fixed end date; slow months shrink payments and lengthen the term. Business loans share the ceiling but use fixed payments.
Kapitus rates and fees: what it really costs
Kapitus does not publish factor rates; its own illustration uses 1.15, NerdWallet estimates 1.10 to 1.45 on term loans and Finder reports 1.12 to 1.26.
- Charged: the factor rate; NerdWallet reports a 2.5% to 5% origination fee plus a wire fee on term loans
- Not charged: an early payment penalty
- No early-payoff savings: Finder says the full factor fee stays owed
- Collateral: no personal assets for revenue-based financing; some larger loans need collateral, and Finder cites a borrower who got a UCC lien on a $7,000 deal
Worked example: a $50,000 advance at a 1.15 factor means repaying $57,500, a $7,500 cost. Over 252 daily debits (about 12 months), each payment is $228.17, roughly 28.5% APR. A 2.5% origination fee lifts that to about 34%; repaying in 6 months, about 57%. Finder's 1.12 to 1.26 range spans about 23% to 48% APR over 12 months.
Kapitus requirements
Kapitus requires two years in business, $250,000 in annual revenue and a 650 credit score, and it does not fund startups.
| Requirement | Kapitus minimum |
|---|---|
| Personal credit score | 650 (NerdWallet: 625 for term loans) |
| Time in business | 2 years |
| Annual revenue | $250,000 |
| Bank account / integrations | U.S. location; 3 to 6 months of business bank statements |
| Credit check | Soft pull on personal credit, hard pull on business credit; network lenders may hard-pull personal credit |
| Collateral / guarantee | None for revenue-based financing; some larger loans; guarantee terms not published |
Merchant cash advance rules that protect you
Kapitus holds California finance lender licenses and was on Virginia's 2024 list of registered sales-based financing providers.
- Reconciliation: Payments track receipts, but Kapitus publishes no formal adjustment process; ask before signing.
- Stacking: Financing elsewhere does not automatically bar a Kapitus deal.
- Confession of judgment: Not addressed publicly; a 2017 Kapitus settlement with Epazz contained one, so read your contract.
- Collections: Kapitus Servicing sues in Virginia courts on defaulted agreements, usually naming the owner as well as the business.
Pros and cons
Kapitus's strengths are limits up to $5,000,000 and terms to 24 months; its weaknesses are hidden pricing and no early-payoff savings.
Pros
- Up to $5,000,000, ten times Forward Financing's and National Funding's $500,000
- Terms to 24 months with daily, weekly or monthly payments
- Soft pull on personal credit to apply
- Up to six offers from one application
- In business since 2006; 4.4 on Trustpilot from 802 reviews
Cons
- No published factor rate, fees or holdback
- Paying early saves nothing on the fee
- Stiffer bars: 650 credit, 2 years, $250,000 revenue
- F rating on both BBB profiles, with unanswered complaints
- Network offers mean the funder and terms can vary
Kapitus vs. Forward Financing vs. National Funding
Kapitus reaches $5,000,000 against $500,000 at Forward Financing and National Funding, but demands stronger credit and revenue.
| Kapitus | Forward Financing | National Funding | |
|---|---|---|---|
| Max amount | $5,000,000 | $500,000 | Up to $500,000 (working capital) |
| Pricing | Factor rate not published (NerdWallet: 1.10 to 1.45) | Factor rate not published (UCS customer-reported 1.3 to 1.5) | Not disclosed (Bankrate: factor from 1.1) |
| Min FICO | 650 | 500 | None stated; most customers 600+ |
| Min time in business | 2 years | 1 year | Not stated for working capital (NerdWallet: 24 months) |
| Min annual revenue | $250,000 | $10,000 a month | Not stated (Bankrate: $250,000) |
| Repayment | Daily, weekly or monthly, 6 to 24 months | Daily or weekly, 3 to 18 months | Daily or weekly ACH, 4 to 24 months |
| Early payoff | No penalty; no discount (Finder) | No extra charge; discount may be offered | May offer early payoff discounts |
Forward Financing and National Funding figures are from their own sites (third-party where marked), checked 2026-10-26.
Choose Kapitus above $500,000, Forward Financing for 500s credit, National Funding for a payoff discount.
Kapitus alternatives on Lender List
Kapitus's nearest alternatives are Forward Financing, National Funding, OnDeck and Lendio.
- Forward Financing — revenue-based financing from a 500 credit score
- National Funding — daily or weekly working capital up to $500,000
- OnDeck — term loans with a published average APR, 625+ credit
- Lendio — one application, many funders
- Browse all merchant cash advance providers on Lender List
Frequently asked questions about Kapitus
Kapitus is a legitimate Virginia funder operating since 2006.
Is Kapitus Legit? Yes. Kapitus has funded businesses since 2006, holds California lender licenses and has completed eight securitizations. Kapitus reviews average 4.4 on Trustpilot from 802 reviews, yet both BBB profiles show an F, largely for unanswered complaints. We found no attorney-general or regulator action against it as of October 2026.
What Is Kapitus Servicing, Inc.? It is Kapitus's New York-registered servicing company, which collects payments and files collection suits. New York's appellate court ruled in 2023 and 2024 that it may sue in its own name on agreements it services, even when another funding company holds the deal.
Is Kapitus a Direct Lender or a Broker? Both, depending on the product. Kapitus funds its business loans and revenue-based financing itself, backed by securitizations. SBA loans and some other offers come from network members, and WebBank funds some loans, so check which company your agreement names as lender.
Who Owns Kapitus? Kapitus is the trade name of Strategic Funding Source, Inc., led by founder Andrew Reiser as chairman and CEO. Private equity firm Pine Brook has backed it since a $110 million equity commitment in 2014. We found no sale or acquisition of Kapitus as of October 2026.
Has Kapitus Been Sued? Kapitus is usually the one suing. Kapitus Servicing filed ten collection suits in Virginia courts in August 2026, each seeking about $156,000 to $383,000 from a business and its owner over a defaulted agreement. We found no regulatory case against Kapitus.
What Happens If My Sales Drop? On revenue-based financing, payments are a share of receipts, so they fall with sales and the term stretches; the total owed does not change. Kapitus publishes no formal reconciliation process, so call servicing before you miss a debit and get any change in writing. Fixed-payment loans do not adjust.
Can I Pay Off Kapitus Early? Yes. Kapitus charges no early payment penalty, but it publishes no fee reduction for early repayment, and Finder reports the full factor fee is still owed, so paying early saves nothing. Request a payoff letter and get any discount in writing before sending funds.
Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.
Best for: U.S. businesses with two or more years of history, $250,000+ in annual revenue and a 650+ credit score that need a large sum, up to $5,000,000, within about a day.
Not for: Startups, owners below 650 credit, or anyone who wants a published price or a discount for paying early. A bank line or SBA loan will usually cost far less if you qualify.
Lender List verdict: Kapitus is a 20-year direct funder with unusually high limits and terms to 24 months, and one application can also surface network offers. It does not publish factor rates: at its own example rate of 1.15 over 12 months, the cost is about 28.5% APR, and far more if you repay faster.
Kapitus at a glance
Kapitus funds up to $5,000,000 through business loans and revenue-based financing, and sources other products from a financing network.
| Kapitus | |
|---|---|
| Lender type | Direct funder (loans, revenue-based financing) plus a referral network |
| Founded | 2006, as Strategic Funding Source |
| HQ | Arlington, VA |
| Parent/owner | Strategic Funding Source, Inc. d/b/a Kapitus; Pine Brook-backed since 2014 |
| Products | Revenue-based financing, business loans, line of credit, equipment, PO, SBA (network), factoring |
| Amounts | $5,000 to $5,000,000 (minimum per Finder) |
| Cost (headline) | Factor rate not published; third parties report 1.10 to 1.45 |
| Term | 6 to 24 months; daily, weekly or monthly debits |
| Funding speed | Approval in as little as 4 hours; funds in as little as 24 hours |
| Status | Active (2026-10-27) |
What is Kapitus?
Kapitus is an Arlington, Virginia small-business funder, founded in January 2006 as Strategic Funding Source, that had provided more than $5 billion in financing by March 2024. It funds deals itself, refinanced through asset-backed securitizations (its eighth closed in 2025), and Kapitus Servicing, Inc. handles collections.
KapitusPLUS can return up to six offers from Kapitus and partners on one application; SBA loans come only from network members, and your agreement names the lender.
How Kapitus funding works: revenue-based financing
Kapitus funding through revenue-based financing buys a fixed amount of your future sales, up to $5,000,000, for a smaller lump sum now, priced with a factor rate instead of interest.
- Application: About 10 minutes online, 3 to 6 months of bank statements, then a call with a financing specialist.
- Payments: A set share of receipts, debited daily, weekly or monthly; the share is not published.
- Term: Usually 6 to 24 months, with no fixed end date; slow months shrink payments and lengthen the term. Business loans share the ceiling but use fixed payments.
Kapitus rates and fees: what it really costs
Kapitus does not publish factor rates; its own illustration uses 1.15, NerdWallet estimates 1.10 to 1.45 on term loans and Finder reports 1.12 to 1.26.
- Charged: the factor rate; NerdWallet reports a 2.5% to 5% origination fee plus a wire fee on term loans
- Not charged: an early payment penalty
- No early-payoff savings: Finder says the full factor fee stays owed
- Collateral: no personal assets for revenue-based financing; some larger loans need collateral, and Finder cites a borrower who got a UCC lien on a $7,000 deal
Worked example: a $50,000 advance at a 1.15 factor means repaying $57,500, a $7,500 cost. Over 252 daily debits (about 12 months), each payment is $228.17, roughly 28.5% APR. A 2.5% origination fee lifts that to about 34%; repaying in 6 months, about 57%. Finder's 1.12 to 1.26 range spans about 23% to 48% APR over 12 months.
Kapitus requirements
Kapitus requires two years in business, $250,000 in annual revenue and a 650 credit score, and it does not fund startups.
| Requirement | Kapitus minimum |
|---|---|
| Personal credit score | 650 (NerdWallet: 625 for term loans) |
| Time in business | 2 years |
| Annual revenue | $250,000 |
| Bank account / integrations | U.S. location; 3 to 6 months of business bank statements |
| Credit check | Soft pull on personal credit, hard pull on business credit; network lenders may hard-pull personal credit |
| Collateral / guarantee | None for revenue-based financing; some larger loans; guarantee terms not published |
Merchant cash advance rules that protect you
Kapitus holds California finance lender licenses and was on Virginia's 2024 list of registered sales-based financing providers.
- Reconciliation: Payments track receipts, but Kapitus publishes no formal adjustment process; ask before signing.
- Stacking: Financing elsewhere does not automatically bar a Kapitus deal.
- Confession of judgment: Not addressed publicly; a 2017 Kapitus settlement with Epazz contained one, so read your contract.
- Collections: Kapitus Servicing sues in Virginia courts on defaulted agreements, usually naming the owner as well as the business.
Pros and cons
Kapitus's strengths are limits up to $5,000,000 and terms to 24 months; its weaknesses are hidden pricing and no early-payoff savings.
Pros
- Up to $5,000,000, ten times Forward Financing's and National Funding's $500,000
- Terms to 24 months with daily, weekly or monthly payments
- Soft pull on personal credit to apply
- Up to six offers from one application
- In business since 2006; 4.4 on Trustpilot from 802 reviews
Cons
- No published factor rate, fees or holdback
- Paying early saves nothing on the fee
- Stiffer bars: 650 credit, 2 years, $250,000 revenue
- F rating on both BBB profiles, with unanswered complaints
- Network offers mean the funder and terms can vary
Kapitus vs. Forward Financing vs. National Funding
Kapitus reaches $5,000,000 against $500,000 at Forward Financing and National Funding, but demands stronger credit and revenue.
| Kapitus | Forward Financing | National Funding | |
|---|---|---|---|
| Max amount | $5,000,000 | $500,000 | Up to $500,000 (working capital) |
| Pricing | Factor rate not published (NerdWallet: 1.10 to 1.45) | Factor rate not published (UCS customer-reported 1.3 to 1.5) | Not disclosed (Bankrate: factor from 1.1) |
| Min FICO | 650 | 500 | None stated; most customers 600+ |
| Min time in business | 2 years | 1 year | Not stated for working capital (NerdWallet: 24 months) |
| Min annual revenue | $250,000 | $10,000 a month | Not stated (Bankrate: $250,000) |
| Repayment | Daily, weekly or monthly, 6 to 24 months | Daily or weekly, 3 to 18 months | Daily or weekly ACH, 4 to 24 months |
| Early payoff | No penalty; no discount (Finder) | No extra charge; discount may be offered | May offer early payoff discounts |
Forward Financing and National Funding figures are from their own sites (third-party where marked), checked 2026-10-26.
Choose Kapitus above $500,000, Forward Financing for 500s credit, National Funding for a payoff discount.
Kapitus alternatives on Lender List
Kapitus's nearest alternatives are Forward Financing, National Funding, OnDeck and Lendio.
- Forward Financing — revenue-based financing from a 500 credit score
- National Funding — daily or weekly working capital up to $500,000
- OnDeck — term loans with a published average APR, 625+ credit
- Lendio — one application, many funders
- Browse all merchant cash advance providers on Lender List
Frequently asked questions about Kapitus
Kapitus is a legitimate Virginia funder operating since 2006.
Is Kapitus Legit? Yes. Kapitus has funded businesses since 2006, holds California lender licenses and has completed eight securitizations. Kapitus reviews average 4.4 on Trustpilot from 802 reviews, yet both BBB profiles show an F, largely for unanswered complaints. We found no attorney-general or regulator action against it as of October 2026.
What Is Kapitus Servicing, Inc.? It is Kapitus's New York-registered servicing company, which collects payments and files collection suits. New York's appellate court ruled in 2023 and 2024 that it may sue in its own name on agreements it services, even when another funding company holds the deal.
Is Kapitus a Direct Lender or a Broker? Both, depending on the product. Kapitus funds its business loans and revenue-based financing itself, backed by securitizations. SBA loans and some other offers come from network members, and WebBank funds some loans, so check which company your agreement names as lender.
Who Owns Kapitus? Kapitus is the trade name of Strategic Funding Source, Inc., led by founder Andrew Reiser as chairman and CEO. Private equity firm Pine Brook has backed it since a $110 million equity commitment in 2014. We found no sale or acquisition of Kapitus as of October 2026.
Has Kapitus Been Sued? Kapitus is usually the one suing. Kapitus Servicing filed ten collection suits in Virginia courts in August 2026, each seeking about $156,000 to $383,000 from a business and its owner over a defaulted agreement. We found no regulatory case against Kapitus.
What Happens If My Sales Drop? On revenue-based financing, payments are a share of receipts, so they fall with sales and the term stretches; the total owed does not change. Kapitus publishes no formal reconciliation process, so call servicing before you miss a debit and get any change in writing. Fixed-payment loans do not adjust.
Can I Pay Off Kapitus Early? Yes. Kapitus charges no early payment penalty, but it publishes no fee reduction for early repayment, and Finder reports the full factor fee is still owed, so paying early saves nothing. Request a payoff letter and get any discount in writing before sending funds.
Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.
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