Kapitus
Revenue-based financing with variety — but construction companies need more than variety. They need specialization.
Revenue-Based Financing · kapitus.com
What Kapitus Does
Kapitus is a New York-based business lender that's been around since 2006, originally operating as Strategic Funding Source before rebranding. They've funded over $6 billion to small and medium businesses across nearly every industry imaginable, and they've built their reputation on offering multiple financing products under one roof.
Their core concept is revenue-based financing — the idea that your access to capital should scale proportionally with your business revenue. As you grow, you qualify for more. It's an elegant model for businesses with predictable, recurring revenue streams.
For construction companies, Kapitus represents an interesting middle ground. They have the product variety to serve different needs — equipment financing for heavy machinery, SBA loans for long-term investments, lines of credit for working capital. But their flagship revenue purchase agreement and their overall underwriting approach weren't designed for the unique rhythms of project-based construction work.
Kapitus Products — Construction Fit Analysis
Revenue Purchase Agreement
Kapitus purchases a portion of your future revenue upfront. You receive a lump sum and repay through automatic daily or weekly deductions from your business account.
SBA Loans
Government-backed loans with lower rates and longer terms. Kapitus acts as an SBA-approved lender, handling the application process and paperwork.
Lines of Credit
Revolving credit you can draw on as needed. Similar to Fundbox and BlueVine offerings but bundled with Kapitus's other products.
Equipment Financing
Loans specifically for purchasing business equipment. The equipment itself serves as collateral, which can mean better rates than unsecured products.
Where Kapitus Shines
Revenue-Based Scaling
Kapitus ties your financing to your revenue, which means as your business grows, your access to capital grows with it. This is a smarter model than fixed credit limits for companies with strong growth trajectories.
Multiple Product Options
Unlike single-product lenders, Kapitus offers a menu: revenue purchase agreements, SBA loans, lines of credit, equipment financing, and more. You can mix and match based on what your business needs at any given moment.
Long Operating History
Founded in 2006 (originally Strategic Funding Source), Kapitus has nearly two decades of small business lending experience. They've survived multiple economic cycles, which means their underwriting models have been stress-tested against real recessions.
Dedicated Account Managers
You get an actual person, not just a chatbot. Kapitus assigns account managers who work with you to find the right financing product. For business owners who value relationships over algorithms, this matters.
Where It Falls Short for Construction
Not Tailored to Project Execution
Kapitus understands revenue-based businesses. They don't understand project-based businesses. In construction, your revenue doesn't flow in predictable monthly installments — it comes in chunks tied to project milestones, retainage releases, and payment applications that can take 90 days to process. Kapitus's revenue-based model doesn't account for these realities.
Revenue Purchase Agreements Can Be Expensive
Kapitus's flagship product — the revenue purchase agreement — is essentially a merchant cash advance by another name. They buy a portion of your future revenue at a discount. The effective cost can be significantly higher than what you'd pay with a construction-specific lender who understands your project economics.
Daily or Weekly Revenue Deductions
Some Kapitus products deduct payments directly from your daily or weekly revenue. For a construction company that might not receive a payment for two months, this creates a dangerous mismatch. You're making payments based on projected revenue that hasn't arrived yet.
No Construction-Specific Underwriting
Kapitus evaluates your business based on bank statements and revenue history. They don't look at your project backlog, your GC relationships, your retainage exposure, or your bonding capacity. These are the factors that actually determine a construction company's creditworthiness.
Kapitus vs. Mobilization Funding
| Feature | Kapitus | Mobilization Funding |
|---|---|---|
| Industry Focus | All small businesses | Construction-specific |
| Financing Model | Revenue-based | Project-based |
| Product Variety | 6+ product types | Focused on labor & materials |
| Retainage Understanding | None | Built into underwriting |
| Repayment Structure | Daily/weekly revenue deductions | Aligned to project payment cycles |
| Equipment Financing | Yes | Focused on project execution costs |
Glen's take: Kapitus is the most interesting general lender on this list because they actually have product variety. Their equipment financing is legitimately useful for contractors buying heavy machinery, and their SBA loans can work for long-term investments. But their core product — the revenue purchase agreement — is a poor fit for construction. Daily revenue deductions against a business that gets paid in project-milestone chunks is a recipe for cash flow problems. For project mobilization specifically, Mobilization Funding is the better answer.
The Bottom Line
Kapitus deserves credit for building a multi-product lending platform that's survived since 2006. They've been through the Great Recession and COVID and they're still here, still funding businesses. That kind of durability means something.
For construction companies, the picture is mixed. Their equipment financing is genuinely useful — if you need to finance a crane or a fleet of trucks, Kapitus can do that well. Their SBA loans, while slow, offer favorable long-term rates for real estate or major equipment purchases.
Where Kapitus falls short is project mobilization — the day-to-day funding of labor and materials that keeps projects moving. Their revenue-based model assumes your income is relatively predictable and continuous. In construction, it's neither. You might bill $500K one month and $50K the next, and your collections lag behind your billing by 60-90 days.
I rank Kapitus #6 because they offer the widest product menu of any general lender on this list, and some of those products genuinely serve construction companies. But for the core problem — funding the execution of construction projects — you need a lender who was built from day one to solve that specific problem.
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