Small business financing FinTech Kapitus has increased its funding capacity by $95 million, bringing its total debt facilities to $360 million.
This increase enables the company to expand its ability to fund small business growth, according to a Tuesday (Aug. 23) press release.
“Kapitus helped small businesses navigate unprecedented financial difficulty through the pandemic and resulting economic challenges, including the supply chain breakdown, record inflation and labor shortages,” Kapitus CEO Andrew Reiser said in the press release. “Today, we are poised and ready to help businesses through their next chapter, whatever stage of growth they might be in.”
PYMNTS data has underscored the urgency that small and medium-sized businesses (SMBs) have been facing.
“The Main Street Economic Health Survey: Navigating Economic Uncertainty,” a PYMNTS and Melio collaboration, found that the portion of businesses with no available cash rose to 18% from 15%, in the first quarter.
The survey also found that 25% of SMBs that sell mostly through physical locations have no available liquidity — a share that’s nearly double that of firms that conduct most of their business online.
While announcing its funding capacity increase, Kapitus reported it has seen record volume in 2022, with both application and funding volume setting new records each month, with the highest numbers seen since the company’s founding in 2006.
“This additional funding capacity demonstrates continued investor and bank partner confidence in the Kapitus platform, which helps small businesses grow and prosper through individualized financing solutions,” the company said in the press release.
Digital-first is increasingly the user experience of preference for SMB owners, Kapitus Chief Operating Officer Ben Johnston told PYMNTS in an April 2021 interview.
Johnston said at the time, “I absolutely believe the digital trend will only accelerate from here.”
Cap Expand Partners sharing news from: www.pymnts.com