Kapitus (formerly Strategic Funding Source) has been a direct funder of merchant cash advances and small business term loans since 2006. They offer a wide product mix including MCAs, small business loans, equipment financing, and SBA loans. Westline focuses specifically on merchant cash advances. Both companies fund from their own balance sheet — neither is a broker.
The honest side-by-side, with attention to where Kapitus is the better fit.
Where Kapitus Wins
- Equipment financing. Kapitus does this; we don't. If you're buying a $80K piece of restaurant equipment or a $250K truck, Kapitus equipment financing is structurally cheaper than an MCA used for the same purpose.
- SBA loan applications. If you qualify for SBA financing (700+ FICO, 2+ years in business, full financials available), Kapitus is a preferred SBA lender. SBA rates are dramatically cheaper than MCAs.
- Larger term loans for established businesses. Kapitus term loans go to $5M for businesses with 2+ years history.
Where Westline Wins
- Speed. 24-48 hours vs. 2-3 days at Kapitus. For emergency capital, this difference is the deal.
- Less paperwork. Kapitus often requires tax returns and full financials. Westline underwrites on three months of bank statements alone for most advances.
- No origination fees. Kapitus charges 2-5% origination. On a $100K advance, that's $2K-$5K of upfront cost we don't charge.
- Lower revenue + time-in-business minimums. Kapitus typically requires $25K/mo revenue and 2 years in business for their best products. Westline accepts $15K/mo and 6 months.
- No FICO floor for MCA. Kapitus MCA requires 550. Westline funds sub-500 with strong cash flow.
A Worked Example
Owner-operator trucking company: $35K/month revenue, 540 FICO, 9 months in business, blown transmission needs $15K cash today.
Kapitus: 540 FICO is below their 550 MCA minimum. 9 months is below their typical 2-year preference. Likely declined. If approved at the edge, expect 2-3 day funding.
Westline: Approved on cash flow. $15K advance at 1.28 factor rate ($19,200 total, no origination). Wired in 24 hours. Truck back on the road by Tuesday morning.
The Bottom Line
Kapitus is a strong choice for established businesses (2+ years, 650+ FICO, $25K+/mo revenue) needing equipment financing or SBA loans. For those scenarios, Kapitus often beats us on cost and product fit.
Westline is the better fit for newer businesses, owners with imperfect credit, situations where 2-3 days is too slow, and any case where origination fees would price the deal out of reach.
If you need equipment or SBA, talk to Kapitus first. If you need fast working capital and don't want to surface tax returns or pay origination, apply with Westline.
Sources & References
- Bank denial and small business credit access figures cited in this piece are derived from the Federal Reserve Small Business Credit Survey. Approval rates for small business credit applications at large banks have ranged from approximately 13%-31% across recent survey years, depending on bank category and reporting period.
- Small business finance landscape and lending program data: SBA Office of Advocacy.
- Merchant cash advance industry standards and disclosure practices: Small Business Finance Association (SBFA).
- Commercial financing disclosure regulations referenced (NY FAIR Act, CA SB 1235/666/362, VA, UT) are summarized from the published statutes; consult counsel for specific compliance application.