Kapitus, one of the largest and most “reliable” providers of small business financing, recently announced the closing of a $200 million asset-backed securitization (ABS).
This financing positions Kapitus for steady growth after a solid year in 2021, which saw the firm’s highest funding volume in its 16-year history as the business continued to support and fund small businesses during the COVID -19 crisis.
Andrew Reiser, CEO at Kapitus, stated:
“It is our mission to provide every small business owner with the financing they need, when and how they need it. This substantial new funding provides us with greater capability to meet the demands of today’s small businesses, many of which are facing unprecedented economic uncertainty.”
The securitization indicates confidence in the strength of the Kapitus platform, which helps small business grow and prosper by providing financing solutions to meet their unique requirements. The financing will “allow Kapitus increased flexibility to meet the needs of even more businesses, by allowing for longer duration repayment terms for its customers.”
The facility, which has a 3-year revolving period and is reportedly expandable to $600 million, was “issued in three classes with the senior class earning a rating of “AA (sf)” by Kroll Bond Rating Agency (KBRA).” Guggenheim Securities “served as sole structuring advisor and sole initial purchaser of the notes,” according to an update shared with CI.
Established in 2006, Kapitus claims to be one of the most experienced and trusted names in small business financing.
As a direct lender and a marketplace built with an expansive network of lending partners, Kapitus has offered more than $3.6 billion in growth capital to 50,000+ small businesses. Kapitus provides multiple financing products to small businesses “including term loans, revenue-based financing, SBA loans, equipment financing and revolving lines of credit.”
Headquartered in New York City, Kapitus provides one application to business owners who can save time and money, while “eliminating the stress that comes with applying to different lenders.”
At Kapitus, they believe that business owners should be able “to focus on running their business, while we take care of the financing.”
Kapitus, a U.S.-based small and medium-sized business financing provider, had closed its second asset-backed securitization (ABS) for $160 million in December 2019. Kapitus reported that the facility, which had a 3-year revolving period, a 5-year legal final, and is expandable to $500 million, was issued in three classes with the senior class earning a rating of A (sf) by Kroll Bond Rating Agency (KBRA).