In the ever-evolving world of small business financing, one name that’s been making waves lately is Kapitus. The company recently announced it has raised $45 million in funding, a move aimed at expanding its ability to support small and mid-sized businesses (SMBs) across the U.S.
But while this headline grabs attention, it raises a key question: Is Kapitus the right funding partner for your business — or are there better, more personalized alternatives?
Let’s break down what this funding round means, what Kapitus offers, and what business owners should consider before choosing a lender.
Who is Kapitus?
Kapitus, formerly known as Strategic Funding Source, is a well-established player in the alternative lending space. The company provides a wide range of financing options to small businesses — from revenue-based financing and merchant cash advances (MCAs) to equipment financing and line-of-credit solutions.
With over $5 billion deployed since its founding, Kapitus has become a go-to lender for businesses that may not qualify for traditional bank loans.
The $45 Million Investment: What’s It For?
According to their latest announcement, Kapitus secured $45 million in investment-grade corporate notes, led by Guggenheim Securities. This capital infusion is intended to strengthen the company’s balance sheet and expand its capacity to fund more small businesses.
In simple terms: Kapitus is gearing up to lend more, to more businesses, and more quickly.
The timing couldn’t be better. As interest rates fluctuate and inflation challenges persist, many small businesses are struggling to access reliable working capital. Kapitus hopes to fill that gap with flexible funding options.
Is Kapitus a Direct Lender or a Broker?
This is where things get interesting. Kapitus positions itself as a direct lender, but it also partners with other funding sources, which may create confusion for business owners.
Some deals are funded directly by Kapitus, while others may be brokered or syndicated, depending on the applicant’s profile and loan type.
If you’re a small business owner, you may prefer a true direct lender — one who keeps everything in-house, offers consistent terms, and has full control over underwriting, approvals, and disbursements.
What to Consider Before Applying with Kapitus
Kapitus offers a strong product lineup and a relatively streamlined application process, but here are a few things to weigh before choosing them:
Loan terms may vary depending on funding source.
You might not always know who’s backing your funding.
Approval may still depend on factors like credit score, business age, and revenue history.
Prepayment penalties or higher rates could apply depending on the financing product.
Looking for a More Transparent, Direct Alternative?
If transparency, fast approvals, and a personal touch matter to you, you might consider Capital Express LLC — a direct MCA lender known for:
Same-day funding
Low documentation requirements
No brokers or middlemen
Custom-tailored funding plans for every business
As a true direct lender, Capital Express eliminates unnecessary red tape and puts control back in the hands of business owners.
Final Thoughts
Kapitus raising $45 million is a strong signal that the MCA and small business lending space is growing — but bigger doesn’t always mean better for your business.
Ask yourself:
Do you want a personal relationship with your lender?
Do you prefer speed and clarity over complexity?
Are you looking for direct answers without third-party involvement?
If yes, then Kapitus might be a good option — but not the only one. Be sure to explore alternatives like Capital Express LLC to find the right funding partner that truly fits your needs.
