Knight Capital Funding Reviews - Financial Lender Pros & Cons
With available funding amounts ranging from $5,000 to 250,000, Knight Capital Funding specializes in merchant cash advances for small businesses. With repayment terms contingent on future earnings, this lender is a good fit for businesses with good revenue and poor credit. While personal credit score is relevant to bank loans and other online lenders, Knight Capital only requires that businesses be operational for at least 6 months and have a monthly turnover exceeding $10,000.
- 72 hour funding decision
- Flexible amounts
- No personal credit requirements
- Fast and easy application process
- Rates can be high
- Additional fees
- Only short term length options
Knight Capital Funding provides merchant cash advances (MCAs) to small businesses to help them realize their growth potential. MCAs differ from traditional loans. Instead of making regular monthly payments plus interest, businesses that take out an MCA will pay the lender a percentage of sales revenue until the amount is repaid.
This structure lets Knight Capital finance businesses that may not be eligible for a standard bank loan. Since Knight Capital has no personal credit requirement, it is easier for small businesses to secure working capital.
Knight Capital differentiates its services from banks and other short term lenders by waiving the standard minimum personal credit score requirement. Since cash advances are repaid from daily credit card sale revenue, Knight Capital is more concerned with potential business growth than with credit profiles. To be considered for an MCA with Knight Capital, a business must meet the following criteria:
- In business for at least 6 months
- Maintain a minimum of $10,000 in monthly revenue
- Demonstrate solid growth potential
Businesses meeting these criteria will receive offers based on estimated potential future sales. Knight Capital is a good option for small businesses looking for capital to scale but that have been turned down by banks or other lenders.
Knight Capital determines advance amounts, term length and origination fees according to criteria assessing revenue potential. In certain situations, businesses may negotiate longer terms or larger amounts than what is initially offered. Knight Capital repayment schedules can be daily, weekly, or biweekly, giving borrowers greater flexibility in terms.
Knight Capital will not advance capital to businesses in certain high risk industries. Because these businesses tend to have less consistent cash flow, the revenue based repayment structure is too volatile for the lender.
- Financial services
- Law firms
- Mobile businesses, such as taxis, limo services and food trucks
Businesses in these sectors should look for other short term lenders that do provide financial services to high risk industries.
Cash flow is one of the biggest hurdles for small businesses. Without working capital, it can be challenging to expand operations and many small businesses aren't eligible for a bank loan because of poor credit history or don’t have the time to wait—merchant cash advances are a viable alternative. Knight Capital focuses on industries that often have irregular cash flow and may need extra money to purchase equipment, hire staff, move locations, and other business expenses.
Knight Capital specializes in funding small businesses in the following industries:
- Auto shops
- Medical practices
- Salons and spas
- Wholesale and distribution
Since Knight Capital’s financial services are limited to MCAs, the basic expected repayment term range is short, but this turn will be calculated according to projected business income. Businesses will pay off the advance with automatic daily, bi weekly, or weekly percentage deductions from sales. The term length of cash advances from Knight Capital range from 3 to 13 months. Longer terms aren’t available with this lender, but if the anticipated revenue projections are incorrect, businesses will be likely be able to negotiate different terms.
What’s Required to Apply
Knight Capital has several basic qualification criteria to determine a merchant’s eligibility for a funding. The site’s prequalification form asks simply:
- Have you been in business at least six months?
- Does your business’s monthly revenue equal or exceed $10,000?
- Does your business have solid growth potential?
Applying for funding from Knight Capital doesn’t require a minimum credit score, making the application process simpler than that of banks or other lenders. For businesses that have struggled in the past, it may be difficult to secure a traditional loan, but merchant cash advances are a good alternative.
Businesses interested in applying for a Knight Capital advance can access the form easily on the company’s website under the ‘Get Started’ button. The application form requests some basic business details to assess eligibility:
- Applicant’s name
- Applicant’s phone number and email address
- Registered business name
- Total monthly business revenue
- Cash advance amount requested
- 3 months of business bank statements
- Digitally or manually signed application form
Applications can also take place by contacting Knight Capital directly by phone. Once all of the necessary documents are submitted, funding amounts, rates, and repayment terms are determined accordingly. This is generally a very fast process with approved businesses receiving funds within three days of application.
A factor rate determines how much borrowers will repay on a cash advance. Unlike standard loans that express interest as a percentage, buy rates are decimal figures. To understand the total amount to be repaid, multiply the buy rate by the advance amount. Knight Capital offers buy rates between 1.25 to 1.37.
One of Knight Capital's unique offers is stacking loans. Very few lenders give businesses approval on additional loans or funding if they have already secured these from other lenders. However, despite the increased risk to Knight Capital, businesses can be approved for an advance even if they have already accepted two loan offers. Stacked loans mean higher repayment amounts, fees, and combined interest, so unless a business has a strong financial base it may not be approved. For businesses struggling with cash flow, a stacked loan can be a bad idea.
Applying for a cash advance with Knight Capital is free. The company doesn’t charge any fees for receiving or processing applications.
Knight Capital charges a 3% origination fee on all approved amounts. This fee covers handling and processing the cash advance.
Businesses that receive an MCA from Knight Capital can apply for more funds even before the end of a current repayment term. Renewal requests can go as high as 50% of the advance that has been repaid. Renewal will involve additional fees and can result in hefty payments that impact business cash flow.
Knight Capital doesn’t offer interest forgiveness since the structure of the MCA is turn-based and fees are charged at a standard flat rate. However the benefit of this type of financing product is there are no fees or penalties involved in early repayment.
Knight Capital is a business lender offering merchant cash advances. This means that all funds must be used exclusively for business expenses. The main industries that Knight Capital serves commonly have one off expenses that can be covered by a short term cash advance. These may include:
- Expanding to new locations
- Purchasing equipment
- Onboarding new staff members
- Investing in more inventory
- Renovations or repairs
- Implementing new technology
Aside from dedicating all funds secured from Knight capital to business expenses exclusively, there are no further limitations.
One way for consumers to better understand whether a lender is reliable or not is to check online reviews. Knight Capital receives mostly positive feedback on review websites:
- Google: 4.5 out of 5
- Trustpilot: 7.4 out of 10
- BBB: 4.1 out of 5
Licenses & Accreditations
Knight Capital doesn’t have any current accreditations or licenses. Lending from Knight Capital is available to businesses in all 50 U.S. states
Company Contacts Details
Address: 110 SE 6th street
Ft Lauderdale, Fl 33316