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
17 User Reviews
Aug 9, 2019 8:44 AM
Great merchant cash advance providers! The terms are short and financing is made within 1 to 2 days! Excellent customer service as well!Reply
May 20, 2020 4:42 PM
I run a consulting firm in San Jose. Been in the business successfully for more than a decade until recently when my firm suffered from low cash flows due to the global pandemic. Years and years of successful consultations earned me the trust of so many executives of big companies in the Financial District and a couple of businesses in Silicon Valley but apparently this wasn’t enough to qualify for a short term finance loan by these people. After completing all the process and fulfilling every requirement, they declined my application later. And that too after three days, saying my line of business was too volatile as they followed a revenue-based payback model. Firstly, my business had never had to face volatility until just now when the covid 19 hit the markets. And secondly, it’s all right if they didn’t serve a certain industry, I get that but they should do this sort of screening before and not after the entire application had been processed! This is such a waste of time and very sloppy on their part!Reply
Jul 8, 2020 12:27 PM
My construction company in Nashville needed cash flow to start working on a couple of projects. Got a merchant cash advance of $250K for a term of 13 months. The term was pretty short but later I was able to negotiate and get a longer term as the monthly income was not as they had anticipated. I would not have been able to complete the business loan and keep the projects running without hindrance if it were not for this option. Most lenders just deduct a certain amount every week or month without caring much about the health of the revenue but that is not the case with Knight Capital! They deduct a percentage of income if it matches what they initially anticipated. The flexibility in terms of payback amount per month is truly appreciable.Reply
Sep 30, 2020 6:50 PM
Ours is a manufacturing business in texas. We produce wooden furniture, decorative items, containers, utensils and whatnot. Contacted a couple of sba lenders to borrow 150k dollars to buy latest equipment and tools and to hire two new carpenters as well. Knight Capital offered us the money at 1.26 for 13 months. Business loans from other lenders like Prinicpis or Rapid Advance had higher rates so we had to pass. The new equipment is on the way from the merchant and we have already shortlisted a couple of candidates to hire from. The repayments are made on a monthly basis which are debited from our account in accordance with the revenue projections set by the lender. I must say we are very much satisfied with the service!Reply
Oct 2, 2020 12:31 PM
hey! i am just finishing my application for a merchant cash advance from knight capital. need $125,000 at the earliest and these guys said they’d process the capital as soon as the application is complete and through which best should take 2 to 3 days. my brother in law and i are running a furniture manufacturing business as well. we need newer equipment too and i had been looking for merchants that could purchase my old equipment too. what equipment and tools did you buy? i am looking for a drum sander, four sided planer, a couple of die grinders and mortisers. where did you buy from?Reply
Oct 6, 2020 3:38 PM
Hello there… I bought them from a friend of a friend in texas who was moving his business to Detroit. So, he sold his equipment to me at good rates. Although I did sell my old stuff to The Coast Machinery Group and got reasonable rates. You can check from CMG, https://www.coastmachinery.com/used-machinery/woodworking-machinery-dallas-texas/ and see if that works for you? They also sell equipment so, you can check if you could find what you need there!Reply
Oct 7, 2020 1:41 AM
thank you so much! my loan has been approved and the deal i have got is $125 for 1.30. i need the money but now i’m not too sure because the buy rate is really high for me. i have tried to negotiate but this is what they can offer. you have got a pretty reasonable rate and you and have almost the same business. then why such huge difference? i am actually disappointed.Reply
Oct 8, 2020 5:43 PM
Yeah, that is too much! How long have you been in business? And what about your credit history? I have a pretty smooth credit timeline and maybe that is why they offered me this deal.Reply
Oct 8, 2020 7:36 PM
i took a loan some year and half back from loanbuilder and i was not able to make the repayments on time because sales were almost zero for 4 to 5 months straight but they kept making deductions and by the end of the said loan term, i owed a great deal to the bank who temporary suspended my account. long story short, i got it back working but that took me some time. but currently my business is going pretty well which is why i was able to return what i owed to the bank and apply for a loan again.Reply
Oct 8, 2020 10:36 PM
Well my friend, a bad credit history does scare away lenders and banks just simply don’t accept mostly. I suggest you talk to these people and negotiate a little on the buy rate. I am sure they would accommodate you given your business is doing good nowReply
Oct 10, 2020 12:46 PM
i tried to negotiate and got a new offer at 1.29 which is the best they could give me, they said. not too good but i guess it still is better than 1.30. i must say they were really understanding and listened to me attentively. just accepted the offer and i hope i can complete the deal easily.Reply
Oct 12, 2020 4:23 PM
1.29 is definitely better than 1.30. Good luck!Reply
Oct 9, 2020 3:29 AM
Applied for a business loan for my distribution company. We distribute office supplies to businesses from Portland, Oregon to 21 other states. A year back, we could only supply to 9 states. With Knight Capital’s business financing backing our company, we were able to expand our distribution circle. Got the MCA in just 2 days and the application process was pretty straightforward as well. There was no documentation fee, thank you but the origination fee at 3% was a little too much, imo. Other than that the instant cash flow in the business through the working capital loan we got from these guys proved to be really useful in expanding our services.Reply
Jan 11, 2021 1:52 PM
Worked with a couple of lenders before like Marlin and Cardiff but I must say knight capital funding was just equally great if not more! Especially during the pandemic when my company’s revenue literally came to a halt for about six months, knight capital stuck with us. With the short term mca offered by these people, I was able to replenish the cash flows and hence improve my business’s health. The short term finance not only helped by the instant influx of money in the company but also I didn’t feel stuck in a deal for years. Oh and the rate was all right too at 1.26. the 3% origination fee definitely bothered me but gladly there were no other hidden fees!Reply
Mar 6, 2021 1:28 AM
aint too knowledgeable about business financing and lenders but knght capt definitely was a great choice. flexible and changebale payback amounts every week… worked really well for my auto shop in raleigh uptown…. as there are times we don’t get too much work. thanx to these guys i paid arrears and salaries of the two helpers who work with me.Reply
May 27, 2021 3:36 PM
Got the best small business loan on a short term from knight capital! Got a $25000 loan for my small nail salon in Tampa. I needed this merchant cash advance to restock my inventory and to order new acrylic nail package from London. It was a huge order as acrylics are in fashion these days and people are crazy about it. I will get my order in a week or so and I have already paid the supplier. So much excited to offer new services to my clients who have been demanding acrylic nails for more than a year now but I had to delay every time for some reason or the other. Thanks to knight capital gonna start a new chapter in my business with their MCA.Reply
Jun 29, 2021 6:57 PM
My distribution company in Portland recently financed a big purchase through knight capital. We distribute clinical skin and hair care products to malls and marts and even to other distributors! Customer service was great. Our rep kept responding back and forth for the $200k merchant cash advance deal for us. Really grateful for the business loan and the great clients service as well!Reply