Kapitus Raises $45 Million to Expand Small Business Financing Options
Kapitus has successfully closed a $45 million investment-grade corporate note financing. This new funding will be used to expand various financing options available to small businesses. The company plans to widen its range of financial products and invest in technology to make its funding platform even better.
Making Business Financing Easier
According to Andrew Reiser, CEO of Kapitus, "Recent research continues to show that businesses are finding it more and more difficult to access capital as both bank and non-bank lenders pull back. By expanding the products we can provide and speeding up the financing process, we will address the unmet needs of thousands of small businesses across the U.S."
Various Financing Options
Kapitus has been active since 2006, providing over $6 billion in growth capital to about 55,000 small businesses. Kapitus serves as a direct lender and a marketplace that offers access to various financing partners. The company provides several product options:
- Term Loans
- Sales-Based Financing
- SBA Loans
- Equipment Leases
- Revolving Lines of Credit
Diversifying and Strategizing
The recent capital raise helps Kapitus diversify its financial resources. Anthony Rose, Chief Financial Officer at Kapitus, stated, "Despite a tight credit environment, we continue to see opportunities to provide capital to small businesses. This fundraise enables us to execute our strategic plan more effectively while maintaining our focus on delivering enhanced value."
Small Businesses Need Financing
Research has shown that 75% of small and medium-sized businesses (SMBs) prioritize the accessibility and availability of funds when choosing their borrowing tools. Moreover, 71% of SMBs look at financial considerations, such as finding favorable payment terms, lowering borrowing costs, and potentially boosting credit scores.
An impressive 90% of SMBs have used at least one type of borrowing tool in the past year. This indicates a strong demand for accessible, flexible financing solutions.
With this new $45 million investment, Kapitus is well-positioned to help more small businesses achieve their financial goals.
