Kapitus Raises $45 Million to Expand Small Business Financing Options

Kapitus has closed a $45 million investment-grade corporate note financing and will use the proceeds to expand its financing options for small businesses.

The company will both expand its portfolio of financing products and make further technology investments in its funding platform, Kapitus said in a Tuesday (June 18) press release.

“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,” Andrew Reiser, CEO of Kapitus, said in the release. “By expanding the products we are able to provide and enhancing the speed in which small businesses can receive financing, we will be able to address the unmet needs of thousands of small businesses across the U.S.”

Kapitus serves as both a direct lender and a marketplace offering access to financing partners offering a variety of products, according to the release. Since its founding in 2006, it has provided over $6 billion in growth capital to about 55,000 small businesses.

Whether directly or through its partners, Kapitus offers term loans, sales-based financing, SBA loans, equipment leases, revolving lines of credit and other products tailored to the needs of small businesses, the release said.

The company’s latest capital raise diversifies its capital structure and gives it flexibility as to how and when it deploys capital to support small businesses, Anthony Rose, chief financial officer at Kapitus, said in the release.

“Despite a tight credit environment, we continue to see opportunity to provide capital to small businesses and this raise further enables us to execute our strategic plan more effectively while maintaining our focus on delivering enhanced value to small businesses,” Rose said.

PYMNTS Intelligence has found that 75% of small and medium-sized businesses (SMBs) prioritize accessibility and availability of funds when choosing borrowing tools.

In addition, 71% of SMBs prioritize financial considerations as they assess favorable payment terms, lowering borrowing costs and even the potential to boost credit scores, according to “SMB Borrowing Dynamics: Trends, Tools and Decision Drivers,” a PYMNTS Intelligence and U.S. Bank collaboration.

The report also found that 90% of SMBs have used at least one type of borrowing tool in the past year.

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