Knight Capital Funding Review

Pros

• No credit score requirements
• No prepayment penalties
• Applicants can quickly prequalify
• The application process is fast and easy
• Funds are disbursed quickly

Cons

• Rates can be expensive
• Some additional fees charged
• No long-term financing options are available

What Is Knight Capital Funding?

Knight Capital Funding provides merchant cash advances (MCA) to small businesses. Unlike traditional loans, where you make monthly payments toward your principal plus interest, you’ll pay Knight a percentage of your sales revenue every business day until you’ve paid off the total amount owed.

Knight is a fairly typical MCA, although it is more transparent than most. However, it has mixed reviews, so continue reading our full review before proceeding with Knight’s services.

Services Offered

Knight offers the following types of business funding:

• Merchant Cash Advances: Once approved for a merchant cash advance, your funder will purchase a percentage of your future credit/debit card sales. Funds will be deducted from your card-based sales each business day until the funder has collected the amount it’s purchased.

Borrower Qualifications

Because it offers MCAs, Knight Capital Funding is more interested in your monthly revenue than your credit rating. However, it will use your credit rating to help determine your factor rate.

To qualify for funding from Knight, you must meet these prerequisites:

Knight also looks for indications that your business has growth potential.

Terms & Fees

Here’s a snapshot of what Knight Capital Funding’s merchant cash advances:

As is typical for merchant cash advances, Knight Capital Funding uses a factor rate (or fixed fee), which it then multiplies by the amount you owe. So you can expect to pay between $1.19 and $1.40 for every dollar you receive, plus the origination fee. Factor rates are calculated using a variety of determinants, though these often include your credit rating and projected term length.

After receiving your advance, Knight Capital Funding will collect an agreed-upon percentage of your daily credit card sales each business day until the agreed-upon amount is recovered.

The advance is paid off when it’s paid off, so in this sense, the term lengths in the table above are less about hard and fast repayment dates and more about estimating the percentage that will be held back. Knight refers to this as a “turn length” rather than a “term length.” A “turn” is equivalent to a business day on which a payment is withdrawn. Payments are withdrawn Monday through Friday, excluding holidays.

Application Process

Online funders such as Knight Capital Funding make it easy to get the ball rolling. You can apply online with a simple form that will help Knight determine right away whether you qualify. You’ll be asked basic questions about yourself and your business, including names and revenue.

If you submit the application, you’ll be contacted by an agent who will confirm your information and likely ask for some evidence that your revenue is what you say it is. That usually means providing several months’ worth of bank statements.

Funding decisions are typically made within 72 hours.

Sales & Advertising Transparency

Knight Capital Funding provides some basic information about qualifications and products. These don’t sit front and center on Knight’s website, but they’re not hard to find either. Just don’t expect much information about rates.

Customer Service & Technical Support

Knight’s staff was helpful and pleasant in my interactions with them. You can reach Knight by phone, submitting an application, or connecting with it on Facebook, Twitter, LinkedIn, or YouTube.

User Reviews

Knight Capital Funding is accredited by the Better Business Bureau and currently has an A+ rating, indicating it’s gotten better at responding to customer complaints. Three complaints have been closed in the last three years.

Google reviews are largely positive, and the funder ranks 4.4 out of 5 stars, with 431 reviews.

There are only two reviews on Trustpilot — one extremely negative and one extremely positive. Make of that what you will.

Negative Reviews & Complaints

Criticisms include:

• Cost: MCAs are an expensive way to fund your business, and Knight Capital Funding is no exception.
• Daily Payments: The percentage-based payment system means you won’t have to worry about being able to make daily payments to Knight, but it can be difficult to meet your other costs if you aren’t prepared. A customer also had some trouble getting withdrawals stopped during the COVID-19 crisis.
• Unusual Requests: At least two reviewers complained that Knight requested their bank account username and password as a part of the application process.

Positive Reviews & Testimonials

Points in favor of Knight include:

• Easy Qualifications: As long as your business makes the profits Knight is looking for, you can probably get funding.
• Fairly Transparent: Knight doesn’t completely obscure the details about what it’s offering, which, in this business, is all too rare.
• Customer Service: I found Knight’s staff to be responsive, friendly, and helpful.

Final Verdict

Like most funders that offer MCAs, Knight Capital Funding targets a particular niche: businesses with poor credit that need cash quickly. Knight’s rates aren’t terrible as far as MCAs go, but you’ll still want to exercise caution and make sure you’ve exhausted cheaper options before signing on the dotted line.

Not sold on this funder? Check out our other merchant cash advance reviews and make some comparisons.

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