Kalamata Capital Review 2021

Overview

Kalamata Capital offers merchant cash advances and can provide up to $500,000 in financing within a day.

In 2018, Kalamata Capital merged with merchant cash advance provider Kings Cash Group, and the new entity was named Kalamata Capital Group (KCG).[1] KCG provides approximately $300 million in capital each year to over 5,000 small businesses. The company has offices in Maryland, New York, and Miami.

Kalamata Capital Merchant Cash Advance Details

Green checkmarkPros
  • Low credit score requirements
  • No hard credit pull
  • Lower rates compared to other MCA lenders
  • Prepayment discounts
Red X markCons
  • $299 application fee
  • High revenue requirement
  • Doesn’t report loan payments to personal or business credit bureaus so you can’t build credit
  • Lack of transparency—practically no information available on their website
  • Loan Amount

    $15,000 – $500,000

  • Loan Terms

    4 – 12 months

  • Factor Rate

    1.25 – 1.43

Qualifications

  • Annual Revenue

    $250,000

  • Credit Score

    500

  • Time in Business

    1 year

Kalamata Capital Borrower Eligibility

Kalamata Capital works with businesses in the following industries:

  • Retail, wholesale, ecommerce
  • Medical, dental, pharmaceutical
  • Trucking, construction, logistics
  • Restaurant, hotel, franchises

Eligibility requirements will vary based on the term, size, and type of financing that you’re looking for. In general, the larger the loan size and the longer the term, the more strict the requirements are.

Kalamata Capital requires borrowers to have a business bank account with an average balance of at least $1,000 to qualify, with at least three monthly deposits and no more than five non-sufficient funds (NSF) transactions or overdraws per month. If you’re applying for funding of over $300,000, you’ll also need to have used accounting software for at least a year. 

As far as tax liens, Kalamata Capital evaluates them on a case-by-case basis, but borrowers must be on a payment plan. Additionally, they require three years to have passed since discharge if you’ve ever filed for personal bankruptcy.

What You Need to Apply

  • 12 months of business bank statements
  • Two years of business tax returns
  • Most recent profit and loss statement
  • Most recent balance sheet
  • Certificate of good standing
  • Voided business check
  • Copy of driver’s license
  • Credit card processing statements 

How to Get a Merchant Cash Advance With Kalamata Capital

Here’s what you can expect during the application, underwriting, and post-funding processes when funding with Kalamata Capital.

Application and Underwriting Process

To start, borrowers will find the Kalamata Capital website largely unhelpful. There is very little information disclosed on their site with regards to their merchant cash advance product. You won’t find eligibility requirements, terms, or even information about how a merchant cash advance works.

You can apply for a merchant cash advance with Kalamata Capital by calling them. You’ll answer basic questions about you and your business, such as your business’s address and the amount of financing you need. You’ll also need to provide supporting documents, which you can email to them or send in hard copy.

After receiving a complete underwriting package, Kalamata will review your bank statements and financial statements. They’ll also verify your business’s listings on online directories and social media. If you pass all the eligibility requirements, Kalamata will make you an offer, usually within just a few hours of receiving your underwriting package. If you accept the offer, it takes 30 to 60 minutes to receive a contract. Once you sign the contract, you should see the funds in your bank account within two to three business days.

If you are denied for a cash advance with Kalamata Capital, don’t worry. If you were denied due to your credit score, you can reapply as soon as your credit score increases beyond Kalamata’s required minimum. If you were denied for too many non-sufficient funds in your bank account, then you will need six months of “clean” bank statements.

Post-Funding Process

Kalamata Capital’s post-funding process depends on the size of the MCA you’re applying for and the repayment term. Kalamata Capital offers daily or weekly repayment terms, depending on your cash flow.

Kalamata lets you refinance existing debt, meaning that you can use the advance to pay off existing debt that might be more costly. That said, you are eligible to renew your funding with Kalamata once you’ve paid at least 50% of your outstanding balance on time.

At the moment, Kalamata Capital doesn’t offer an online account dashboard. To see the progress of your advance or obtain statements, you need to call your Kalamata Capital account manager.

Fees and Collateral

Kalamata Capital’s factor rates are between 1.25 and 1.43

They also charge an origination fee that’s equal to 2% of the amount borrowed, as well as a flat $299 application fee.

All majority owners will also need to sign a personal guarantee (you’ll need at least 51% of your company’s ownership represented), and they’ll also file a blanket UCC lien on your business at closing. Kalamata Capital will take second position to a bank or factoring company.

Kalamata Capital Customer Service

Kalamata Capital has offices in Maryland, New York, and Miami. They can be reached by phone or by filling out a brief form on their website.

Kalamata Capital Customer Reviews

Kalamata Capital is accredited by the Better Business Bureau (BBB) and has an A-plus rating. While they have a few complaints, each one has been addressed by the company. 

In reviews across various online platforms, positive Kalamata Group reviews highlight the speed of the approval process and rates that are pretty reasonable compared to competitors. While customers acknowledge that their products are still expensive (as merchant cash advances are), the speed and ease in which they received their funding made up for it.

On the flip side, negative customer reviews found that Kalamata’s website wasn’t transparent about cost. Taking a look at their website, it’s readily apparent that there is very little information there. If you do pursue funding with Kalamata Group—or any other lender, for that matter—be sure to carefully review any loan agreement before you accept it and compare rates and terms to what other lenders are offering to be sure you’re choosing the best loan for your business.

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Frequently Asked Questions

Is Kalamata Capital in Fundera's Network?

Kalamata Capital is in Fundera’s Lender Network. The Fundera team has carefully vetted Kalamata Capital and determined that its offering is one of the best in its product category. When working with Kalamata Capital, you can be sure you’re getting transparent, fair pricing on a best-in-class product.

 

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Priyanka Prakash, JD
Senior Contributing Writer at Fundera

Priyanka Prakash, JD

Priyanka Prakash is a senior contributing writer at Fundera.

Priyanka specializes in small business finance, credit, law, and insurance, helping businesses owners navigate complicated concepts and decisions. Since earning her law degree from the University of Washington, Priyanka has spent half a decade writing on small business financial and legal concerns. Prior to joining Fundera, Priyanka was managing editor at a small business resource site and in-house counsel at a Y Combinator tech startup.

Read Full Author Bio