Kapitus snaps up Ten Oaks Commercial Capital, launches equipment financing arm
Kapitus, a US-based fintech focused on financing small and medium-sized enterprises (SMEs), has acquired fellow financier Ten Oaks Commercial Capital for an undisclosed amount.
Kapitus snaps up Ten Oaks for an undisclosed sum
Headquartered in New York, Ten Oaks specialises in equipment financing and leasing, working capital loans, and Small Business Administration (SBA) loans.
Through this acquisition, Kapitus plans to launch a equipment finance division, to operate alongside its existing small business loan and revenue-based financing offerings, with the goal of supporting SMEs in sectors such as construction, healthcare, manufacturing, and hospitality.
In addition, Kapitus says it intends to capitalise on Ten Oaks’ established “vendor and direct origination channels” to bolster its “third-party funding capabilities”, with funding on-balance transactions to begin in “early 2025”.
Founded in 2006, Kapitus operates as both a direct lender and a marketplace, claiming to have delivered over $6.5 billion in growth capital to nearly 55,000 small businesses since its inception.
Kapitus, which tapped Mambu for its low-code lending engine in 2022, offers an array of financial products, including sales-based financing, SBA loans, term loans, equipment leases, and revolving lines of credit.
Looking ahead, the company plans to build on Ten Oaks’ initiatives to “connect dealers and manufacturers with financing options for their customers” by setting up a new Equipment Provider Partner Programme.
Ben Johnston, COO at Kapitus, says the new division and partner programme are to arrive at a time when “securing equipment finance has become increasingly difficult as both traditional and online lenders have tightened requirements, and many independent equipment finance companies have been absorbed into the banking system”.
