Fora Financial vs Kapitus (Strategic Funding): Comprehensive breakdown
Weighing your options between Fora Financial and Kapitus (Strategic Funding)? Our detailed comparison helps you pick the perfect provider.
Key Metrics Comparison
#1 Fora Financial
6+ months in business; $12k monthly revenue; 500+ credit score; No collateral required (UCC lien may be filed)
2.5% origination fee (waived if early payoff)
#5 Kapitus (Strategic Funding)
2+ years in business; $250k+ annual revenue; 630+ credit; no loan stacking
Origination fee $395 or 2.5%
| Metric | Fora Financial | Kapitus (Strategic Funding) |
|---|---|---|
| MCA Rank | #1of 27 Score: 88/100 | #5of 27 Score: 82/100 |
| Factor Rate | 1.10 - 1.40 | 1.10 - 1.40 |
| Funding Amount | $5k - $1.5m | $10k - $5m |
| Repayment Term | 4 - 18 months | 6 - 18 months |
| Additional Fees | 2.5% origination fee (waived if early payoff) | Origination fee $395 or 2.5% |
| Requirements | 6+ months in business; $12k monthly revenue; 500+ credit score; No collateral required (UCC lien may be filed) | 2+ years in business; $250k+ annual revenue; 630+ credit; no loan stacking |
Fora Financial
Overview
Provides "Revenue Advance" up to $1.4M with flexible repayment tied to sales. Offers early payoff discounts
Repayment Structure
Fixed % of daily or weekly receipts (no fixed term)
Kapitus (Strategic Funding)
Overview
High funding amounts (up to $5M) with flexible repayment schedules (can do weekly or monthly, unlike typical daily). Well-rated by customers.
Repayment Structure
Daily, weekly, or monthly payments (flexible)
How We Rank MCA Providers
We evaluate each provider based on key factors that matter most to businesses seeking funding:
High Impact Factors
Lower rates score significantly better. We look for competitive rates that minimize your total cost.
Higher funding limits score better, giving you more flexibility for larger investments.
Medium Impact Factors
Flexible terms and payment options improve scores. Platform-dependent providers receive penalties.
More lenient qualification criteria score better. We reward accessibility for newer businesses.
Additional Factors
Fewer fees score better. When fee information isn't available, we assign a neutral score.
Faster funding improves scores, with same-day and 24-hour funding scoring highest.
Important Notes
- Providers requiring specific platforms (like Shopify or PayPal) receive significant penalties due to reduced flexibility.
- When information about fees isn't available, we use a neutral score to ensure fair comparison.
Industry Context
As businesses seek flexible financing options, merchant cash advances have emerged as a popular alternative to conventional loans.
Analyzing provider differences reveals crucial factors that impact the overall cost of funding.
Our Analysis
The ranking system analyzes multiple aspects of each provider's offering.
Align provider selection with your business's cash flow patterns and revenue cycle.
Frequently Asked Questions
How do factor rates affect total cost?
Factor rates directly determine your total repayment amount. For example, a factor rate of 1.2 means you will repay 120% of the advance amount. Lower factor rates result in lower total costs.
What makes a good repayment term?
The ideal repayment term should align with your business cash flow cycle and revenue patterns. Shorter terms often mean higher daily payments but lower total costs, while longer terms offer more manageable payments but may cost more overall.
How important are qualification requirements?
Qualification requirements indicate how accessible the funding is for your business. While stricter requirements often come with better rates, more lenient criteria can be valuable for newer businesses or those with challenging credit histories.
Should I consider additional fees?
Yes, additional fees can significantly impact the total cost of funding. Look for transparent fee structures and consider both the factor rate and any additional fees when comparing providers.
Expert Tips for Choosing an MCA Provider
What to Look For
- Clear, transparent factor rates and fee structures
- Flexible repayment terms that match your business cycle
- Funding amounts that align with your needs
- Reasonable qualification requirements
Watch Out For
- Hidden fees or unclear cost structures
- Inflexible repayment schedules
- Excessive early repayment penalties
- Aggressive sales tactics or pressure to decide quickly
Ready to Make Your Decision?
Compare more providers to find your perfect funding match.