Kapitus closes $160M securitization to provide quick loans and financing for small businesses with no collateral requirements
Kapitus, a fintech startup and a provider of revenue based financing to small and medium-sized businesses, today announced that it has closed its second asset-backed securitization (ABS) for $160 million. The facility, which has 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). Guggenheim Securities served as sole structuring advisor and sole initial purchaser of the notes.
Founded in 2006, the New York City-based Kapitus provides small businesses with the working capital they need to take advantage of opportunities and grow. Since its founding, Kapitus has provided small businesses over $3.0 billion in funding.
“The execution of our second securitization saw a significant increase in size over our inaugural $105 million issuance in June of 2018,” said Andrew Reiser, Chief Executive Officer of Kapitus. “This upsize demonstrates the sustainability of the asset class and reflects the market demand for our technology platform and funding processes.”
Through its proprietary technology, risk and underwriting models, Kapitus has provided small businesses with fast and efficient funding alternatives for nearly 14 years.
“The world of fintech is evolving to provide a larger suite of products to a more diverse group of businesses,” said Chief Operating Officer of Kapitus, Ben Johnston. “Our latest securitization allows us to grow with our customers while expanding the financing options available to them.”