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Kalamata Capital Review
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Kalamata Capital provides financing to small business owners, but it’s difficult to find detailed information on its flagship merchant cash advance (MCA) or other products. If you’re sure an MCA is right for you, competitors are more transparent, publicly listing financing amounts and factor rates, as well as terms and qualifications. We’ll explain how an MCA works, what we know about Kalamata Capital and a few alternatives.
What does Kalamata Capital offer?
- Merchant cash advance
- Invoice factoring
- Equipment leasing
- Line of credit
- Working capital loans
- SBA loans
- Inventory financing
- Rollover as Business Startup (ROBS) plan
Kalamata Capital offers financing up to $750,000 for terms between 9 months and 60 months with daily or monthly payment options — but it’s not clear if those terms and amounts apply to all products and at what APRs.
Merchant cash advance vs. loans
To be clear, merchant cash advances are not loans — rather, they are advances against receivables, generally credit card transactions. Advantages include fast cash and lenient credit requirements, but the tradeoffs are typically fast repayment terms and high costs, usually expressed in factor rates. Lenders may also charge other fees such as an origination or administrative fee.
Kalamata Capital: Should you apply?
Kalamta may approve your small business in 24 hours or less, an advantage if you need cash quickly. It also offers more than just MCAs — you could find loans, lines of credit, even 401(k) loans or ROBS plans. However, it doesn’t publicly offer detailed information on any of them, including possible rates you may receive or even qualifications necessary to get financing. The company also declined to provide specifics when contacted with an interview request.
There are three complaints against Kalamata with the Better Business Bureau detailing poor customer service, with a specific mention that the company was hard to reach when needed.
Do you qualify for Kalamata Capital?
Small to medium-sized businesses may qualify for merchant cash advance, even if their credit is poor; however, Kalamata doesn’t specify a minimum credit score needed or if there is a required minimum time in business or monthly or annual revenue. Kalamata also notes that it does not offer products in all U.S. states, while not specifying the states where it does operate. You would need to contact the company to determine whether you’re eligible.
How to apply for Kalamata Capital
It’s possible to start your Kalamata Capital application online. You’ll need to provide your contact information, the amount of money you wish to borrow and how long your business has been in operation. You can also apply over the phone if you prefer by calling 800-200-4071.
Kalamata Capital versus other merchant cash companies
Kalamata Capital offers several financing options for small business owners, but as we’ve mentioned, there are few public details about any of them. A merchant cash advance is one of the easiest to qualify for, but it’s also among one of the most expensive forms of borrowing. However, if you don’t qualify for a traditional small business loan or even alternatives for those with bad credit, an MCA could be a solution for a short-term cash crunch that you’re able to repay quickly.
These competitors may provide more information about their MCAs than Kalamata Capital:
Kalamata Capital vs. Credibly
Unlike Kalamata Capital, Credibly provides details of its MCA as well as business loans on its website. For example, it requires a minimum of six months in business, a 500 credit score and $15,000 in average monthly deposits. You could receive a decision within 24 hours and, if approved, up to $400,000 with factor rates starting at 1.15. Credibly also charges an underwriting fee and monthly administrative fee.
Kalamata Capital vs. CAN Capital
While Kalamata Capital offers several different types of financing, CAN Capital offers only business loans and merchant cash advances. Can Capital also requires a minimum personal credit score of 600 and at least $150,000 in annual revenue. Eligible businesses could receive an MCA between $2,500 and $250,000 for APRs between 16.00% and 36.00%. Time to funding may not be as fast as rivals, as it could take two business days or longer.
Kalamata Capital vs. Principis Capital
Principis Capital has lenient credit requirements, and says that a portion of its borrowers have personal credit scores of 500 or lower. However, your business should be at least a year old with $20,000 in total monthly sales or $4,000 in total monthly credit card sales. Funding can take seven business days or less. If approved, you may receive an advance up to 2.5 times your business’s average monthly credit card sales, though maximum amounts are not disclosed. Like Kalamata, Principis does not publicly disclose its rates.