Small Business Financing FinTech Kapitus has increased its financing capacity by $95 million, bringing its total debt facility to $360 million.
This increase enables the company to expand its ability to finance small business growth, according to a Tuesday (Aug. 23) press release.
“Kapitus helped small businesses navigate unprecedented economic hardship through the pandemic and resulting financial challenges, including supply chain disruptions, 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 may be in.”
PYMNTS data has underlined the urgency faced by small and medium-sized enterprises (SMEs).
“The Main Street Economic Health Survey: Navigating Economic Uncertainty,” a collaboration between PYMNTS and Melio, found that the share of businesses without available cash rose to 18% from 15% in the first quarter.
Read more: Federal Reserve Bank of Philadelphia Report Finds FinTech Loans Crucial for SMBs
The survey also found that 25% of SMEs that sell mainly through brick-and-mortar locations do not have available liquidity – a proportion that is almost double that of businesses that do most of their business online.
While announcing the increase in funding capacity, Kapitus reported record volume in 2022, with both application and funding volume setting new records each month, with the highest numbers since the company was founded in 2006.
“This additional financing capacity demonstrates the continued confidence of investors and banking partners 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 preferred user experience for SME owners, Kapitus Chief Operating Officer Ben Johnston told PYMNTS in an interview in April 2021.
Read more: SME loans reflect on the lessons of a global pandemic
Johnston said at the time: “I absolutely think the digital trend will only accelerate from here.”