From the news sources I pay attention to, there is a crisis brewing in the SMB community. One reason is the tariffs, but consumer sentiment and other factors are impacting cash flow. It seemed serendipitous when I was asked to interview Ben Johnston, COO of Kapitus.
For those who are as much in the dark as I am, Kapitus is a financial services company focused on mid-size and small U.S.-based companies looking for capital. Kapitus has access to over $5 billion.
I would like to reference the “Yes Man” with Jim Carrey, but the reality is there are lot of “Nos” that need to be said quickly. On a monthly basis Kapitus receives 45,000 requests for funding. Using AI, it is able to make decisions on offers within two hours.
That’s pretty impressive when you think about it. However, the AI has a strong criterion and, in the end, Kapitus adds about 6,000 clients per year for the half-million requests.
If you are accepted, in some cases, loans can be available within 24-72 hours. Many loans have short cycles, with 3-, 6- and 9-month horizons. Kapitus may choose to fund projects itself, or use other partner lenders to work with. I am used to looking at angels and start-pp investment opportunities, but the financial services companies don’t take equity in stock or warrants. (That means they and their clients aren’t going to appear on “Shark Tank.”) Their goal is to invest in the market and help the companies they work with succeed and pay back monies with interest.
Some of the reasons for the loans include managing transitional cash flow (as in a merger) or funding new projects or expansions. Some clients are “underbanked,” and the banks are not aware of the opportunities to collaborate with them.
If you are lucky enough to collaborate with Kapitus, the company has a history of working with the same companies many times.
Going back to Chennai, India, Kapitus is expanding its SaaS solution with AI improving customer service, HR, marketing, and vendor management.
An old boss of mine used to say, “Repetition is reputation.” If Ben is any indication of the rest of the company, I think it’s a great company to talk to about your financial needs, but know that Kapitus relies on its criteria supporting companies that have proven success. If you are such a company, it might be worthwhile to apply for a loan to build the relationship.
Edited by
Erik Linask
