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Small Business Loans by Kapitus

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When you run a small business,  you’ve got to be strategic about your financing to ensure that cash flows and you’re able to pay all your expenses. Kapitus Funding can help.

There may come a day, however, when your company has the opportunity to grow, and you need capital in the form of a loan to take advantage of those opportunities. In that case, you’ll need to carefully weigh your financing options. Kapitus is one to consider.

What is Kapitus?

Lender Kapitus offers a wide variety of business credit solutions, from SBA loans to revenue based financing, as well as equipment financing, lines of credit, and business loans.

How Does Kapitus Funding Work?

The process starts with you exploring the many options for small business loans that the lender offers:

  • SBA loan
  • Business loan
  • Line of credit
  • Equipment financing
  • Purchase order financing
  • Invoice factoring
  • Revenue based financing
  • Helix (for the healthcare industry)
  • PPP loans

Applying for any of these options takes just a few minutes, and you can be approved in as little as four hours. Once your funding has been deposited into your business bank account, you can use it to grow your business.

Kapitus Pros and Cons

Keep in mind that any lender will have benefits and drawbacks. Kapitus is no exception.

Pros

Kapitus is lightning-fast when it comes to processing applications for Kapitus business loan products. Being able to know within hours, not days, that you qualify for a small business loan saves you time and hassle.

Another advantage is that Kapitus, unlike many banks, offers a diverse range of small business financing options. The likelihood of you finding the right financing solution for your strategic plan is high.

Cons

On the other hand, some business owners may struggle to qualify for some of the lending products, since they require a credit score of 625 or higher, as well as 2+ years in business and $250k in annual revenue. If you don’t meet these qualifications, you may still qualify for some lending products, albeit at a higher interest rate. 

Rates start at 6.25%, which isn’t terrible (certainly better than many business credit cards), but if you have good credit, you might be better off applying for financing with a traditional bank.

Kapitus Rates, Terms, and Requirements

As I mentioned above, interest rates for Kapitus loans and business lines of credit start at 6.25%, though the site doesn’t disclose how high they get.

The site also doesn’t disclose whether it charges an origination fee, though other sites report that the lender charges 2.5%, with a minimum of $395.

While each loan specifications vary, to give you an example of what to expect, its business loan is available for $10k-500k, with repayment terms of three to 24 months.

Who Should Consider Kapitus Funding?

If your company is doing well but you need extra capital to expand your business or get through a slow period, one of Kapitus’ financing solutions could be a good fit.

If you have unpaid invoices you can use as collateral, you should consider invoice factoring. If you’re looking to purchase equipment or heavy machinery, Kapitus’ equipment financing could be the right solution. And currently, Kapitus is providing Paycheck Protection Program (PPP) loans to small businesses.

If, on the other hand, you have had a bankruptcy on your record in the past three years, you might not qualify for financing through Kapitus and might want to look elsewhere; perhaps a merchant cash advance would work.

How to Qualify for Kapitus Funding

Business loans from Kapitus aren’t for everyone, especially those with bad credit or with a high debt to credit ratio. You’ll want your company to be fairly established, having been in business for at least two years, with minimum average annual revenues of $250k and a credit score of 625 or higher.

Different lenders require different financial and legal documents as part of the application business owners are required to provide, so be prepared to supply your bank statements or access to your bank account during the application process.

It might be a good idea to take a peek at your personal and business credit scores before you apply for a loan so you know what your credit situation is and whether you’d qualify. If you’re new to having business credit, do some research on how to establish business credit before applying for any type of financing.

Nav’s Verdict: Kapitus Funding

Business owners looking for strategic funding need lending partners who are reliable and who offer great small business loan solutions to provide working capital.

Kapitus reviews are positive, with the speedy process being praised. If your company is in need of financing and has decent credit, Kapitus could be the solution you’re seeking.

This article was originally written on January 28, 2021.

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GSB focuses on social responsibility

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State-owned Government Savings Bank (GSB) has focused on providing loans to people without a record in the National Credit Bureau system or with bad credit over the last year to help those impacted by the pandemic deal with unprecedented economic hardship.

GSB president and chief executive Vitai Ratanakorn said the bank has extended loans to people with no credit history who have never borrowed from commercial banks or non-bank institutions.

He said the bank had already provided 1.5 million loans to members of this group of people.

The bank has also provided loans to 200,000 people with bad credit records.

Mr Vitai said the lending was aimed at drawing those outside the credit bureau system into the system and enabled them to get access to the loans, which was one of the main roles of state-run banks. This lending has been supported by the government.

He said this lending was not aimed at seeking profit as GSB charged a low monthly interest rate of 0.1-0.3%. For example, if the bank provided a 10,000 baht loan to a person under this scheme, it would only gain interest income of around 120 baht per year.

In addition to its objective of becoming the country’s genuine social bank, GSB’s other goal this year is to prevent loans from becoming bad debts, he said. The bank will rush to help customers in danger of accumulating bad debt to restructure before it reaches that stage.

Mr Vitai said GSB will not focus on growing its loan portfolio during the first six months of the year, but on serving the state’s policy of helping people and business operators cope with the impacts from Covid-19. Grassroots people and small and medium-sized enterprises are suffering the most from the pandemic, he said.

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How to Start Over When You’ve Lost Everything

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Upset women laying on the wood floor of her living room and petting her dog.

Image source: Getty Images

When you’re down to nothing, you have everything to gain.

People start over for many reasons, including job loss, divorce, illness, and business failure. Whatever the reason, if you’re starting anew, here are some steps to take in rebuilding.

Acknowledge the twist

Remember that you’re not starting from scratch. The fact that you’ve lost assets means that you had assets to lose. Whether that’s a retirement account, home, or business doesn’t matter. You know what it’s like to work for — and achieve — something. You did it once; you can do it again.

Establish credit in your name

If you don’t have much credit in your name, establish your own healthy credit file by taking out small amounts of credit and paying them off like clockwork each month. If your credit score has taken a hit, apply for a credit card for people with bad credit, use it to make small purchases, and pay it off each month before the bill comes due. Or you might ask someone you’re close to to add you as a user on their credit card. Your credit score gets a boost each time they make a payment, even if you never touch the card yourself.

Invest right away

The sooner you begin, the faster you can recoup losses. Maybe you can’t invest as much as you once did. That’s okay. Something is better than nothing, and you can add to your investment pot over time. The more time compound interest works its magic, the better. Every dollar helps, whether you plan to retire in 10 years or 30.

If you’re employed by a company that matches a percentage of 401(k) contributions, do whatever you can to contribute at least that much. The matching funds are basically free money.

Let’s say you earn $60,000 annually, plan to work 15 more years, and your employer matches up to 5% of your contributions. Here’s how much you’ll have put away with just your 5% on its own:

Annual Income

Percent Contributed

Amount Contributed

Average Annual Rate of Return

Time Until Retirement

Value At Retirement

$60,000

5%

$250/month, before taxes

7%

15 years

$75,387

Since your employer also matches that 5% of your income, you’ll have $150,774 instead.

If you were to raise your pre-tax contributions to 10%, here’s how it would look instead:

Annual Income

Percent Contributed

Amount Contributed

Average Annual Rate of Return

Time Until Retirement

Value At Retirement

$60,000

10%

$500/month, before taxes

7%

15 years

$150,774

Including the additional 5% contributed by your employer, you would have $226,161 at 15 years. It’s not a fortune, but could be very helpful. By the way, if you don’t touch it for 20 years, that nest egg would be worth nearly $369,000. If you don’t plan to retire for 30 years, it will be worth more than $850,000.

If you’re not with a company that matches contributions, find a brokerage firm that supplies the level of education and direction you’re looking for and get started.

Get professional help

After financial trauma of any sort, it’s tempting to invest aggressively. While in some circumstances it could be an effective way to make up for losses, it may not be the best move if you’re closing in on retirement. Consider working with a financial advisor, even if it’s on an hourly basis and you pay only for their time helping you come up with a smart investment strategy.

Postpone Social Security

One thing my husband and I (and many of our friends) have done is raise the age at which we expect to retire. We don’t see it as a sad thing. I never want to stop working, and now that my husband is in a job that tickles him, he’s not in a hurry either. The minimum age to retire is 62, but if you can wait until you’re 70, you max out your monthly Social Security payments.

Find support

Millions of people have made money, lost money, and started over. Chances are you already know a few people who’ve redesigned their lives from the bottom up. Talk to them. Ask them what they learned from the experience. If they had it to do over again, is there anything they would change?

People who experience hardship often have the best stories to tell and are often an excellent source of inspiration. It may not be easy now, but with luck, you can look back one day and say, “Hey, I did okay — despite the unexpected setbacks.”

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How Do I Sell My Vehicle With Joint Ownership?

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A joint auto loan is when two borrowers have rights and responsibility to the same vehicle and loan. If you have a cosigner, then you, the primary borrower, have all the rights to the vehicle. Here’s what you need to know when you need to sell your car with two people responsible for the loan.

Selling a Joint-Owned Vehicle

Joint owners are typically spouses or life partners who combine their income to meet income requirements or get a larger loan amount. Both co-borrowers are responsible for paying the car loan and have 50/50 rights to the vehicle, so both their names are listed on the title.

Since your co-borrower has the same rights and obligations to the vehicle as you, you must get their permission to sell the car. In most cases, they also need to be present for the sale to sign the title. This may not always be the case, though, so it’s important to know how to read your car’s title.

If you have it, take a look at your vehicle’s title for the names listed on the back where you sign to transfer ownership. For example: let’s say your name is Jane and your co-borrower’s name is Joe. You’re likely to see either:

  • “Jane and Joe”
  • “Jane or Joe”
  • “Jane and/or Joe”

If you see “and/or” or the connector “or”, this typically means only one person needs to be present for the sale of the car. But if you see “and” this means both of you need to be present to transfer ownership – this is usually the case with joint ownership.

In all three cases, you still need the permission of the co-borrower to sell the vehicle even if they don’t have to be physically present to sign the title. If you sell it without the co-borrowers consent, it may be considered a crime because it’s their property, too. Moving forward, discuss the sale with your co-borrower to avoid potential legal trouble.

Selling a Car With a Cosigner

How Do I Sell My Car With Joint Ownership?If you have a cosigner on your car loan, then things become easier. A cosigner doesn’t have any rights to the vehicle and their name isn’t on the title. Their purpose is to help you get approved for the auto loan with their credit score, and by promising the lender to repay the loan if you’re unable to. A cosigner can’t take your vehicle, sell it, or stop you from selling it yourself.

However, it’s nice to let them know if you do decide to sell the car because the auto loan is listed on their credit reports. If you can, reach out to them about your plans to sell the vehicle. The car loan’s status impacts them and could affect their ability to take on new credit when it’s active.

If you sell the vehicle and the lien is successfully removed from the title, then you’re both in the clear.

Removing the Lien From a Vehicle’s Title

If you still have a loan on your car, then your number one priority is paying off your lender. Your lender is the lienholder, and you can’t sell a vehicle without removing them from the title – they own the car until you complete the loan. This typically means paying off the loan balance until naturally during the loan term, or getting enough cash to pay it all off at once from a sale.

When you’re selling a car with a loan, you want to get an offer for your vehicle that’s large enough to cover your loan balance and to remove the lien. If you don’t get a large enough offer, then you need to pay that difference out of pocket before you can sell the vehicle. Or, you may be able to roll over the remaining loan balance onto your next car loan if you’re trading it in for something else.

Looking to Upgrade Your Ride?

Many borrowers ask for help to get the car they need. If you need more income on your loan application to meet requirements, asking a spouse or life partner to chip in can do the trick. If you have a lower credit score, then a cosigner with good credit could help you meet credit score requirements.

But what if you want to go it alone on your next auto loan and your credit isn’t great? A subprime lender could be the answer. Here at Auto Credit Express, we’ve been connecting credit-challenged consumers to dealerships with bad credit resources for over two decades, and we want to help you too.

Fill out our free auto loan request form and we’ll look for a dealer in your local area that’s signed up with subprime lenders. These lenders assist borrowers with many unique credit circumstances to help them get the vehicle they need. Get started today!

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