Kalamata Capital was founded in October 2013 by Steven Mandis, who formerly worked for Goldman Sachs and Citigroup. Kalamata Capital provides funding for small businesses. Some customers qualify for funding from Kalamata Capital directly and the company also partners with a network of other funding companies. Kalamata Capital works with customers on a variety of funding options, including: receivables-based merchant financing, Small Business Administration (SBA) loans, lines of credit, factoring receivables, using 401(k) rollovers, or utilizing luxury assets as collateral for small business loans. You must apply for funding pre-qualification and be accepted before you can determine what kinds of funding you qualify for and what the terms and cost of that funding will be.
Kalamata Capital’s funding options seem geared towards small businesses that have a hard time obtaining funding from traditional lenders. The company offers a variety of funding options, including those that are obtained through the use of business or personal assets as collateral. Benefits of the Kalamata Capital service include:
Simplified Application Process
You apply once for funding through Kalamata Capital and you are assigned a staff member from the company who works with you to determine what financing options are available for your business.
No Pre-Qualification Application Fee
Kalamata Capital states its customers are not charged a fee to apply for funding pre-qualification.
Variety of Funding Options
Kalamata Capital can work with small businesses to determine if they qualify for secured or unsecured funding. Types of funding Kalamata Capital can help its customers obtain include:
- SBA Loans
- Small Business Loans
- Equipment Leasing Loans
- Factoring (cash advances for outstanding invoices)
- Personal Collateral Loans
Kalamata Capital states you can be approved for funding in less than 24 hours.
Kalamata Capital has only been helping customers get funding since 2013 so it does not have a lengthy track record of business funding and may lack the expertise to identify the best and most cost-efficient funding for its clients. The company does not state on its website how many customers it has assisted with funding or how much funding it has lent to small businesses. Limitations of the Kalamata Capital service include:
Kalamata Capital and its founder were the subject of a Bloomberg Business article in 2014 that included a negative review of the company from one of its early borrowers. The article interviewed Sheila Stiles of Goins Waste Oil, a company that borrowed $122,000 with the understanding it would pay back $165,920 in about 11 months, according to Bloomberg Business. The article states, “The Goins contract shows a rate of 36 percent. When calculated as an effective annual percentage rate—which takes the timing of payments into account—that doubles to 72 percent, says Marco Lucioni, a vice president at nonprofit lender Opportunity Fund.” Although the Bloomberg Business article also quoted a satisfied customer, that customer could not remember the terms of his loan with Kalamata Capital.
Limited Information about Loans
There is not enough information on Kalamata Capital’s website to determine what kind of payment terms you would receive before you apply for funding or even if you are likely to qualify for funding. The company does not list a range of interest rates or APRs for its loans or specify what kinds of fees it charges or what percentage of the loan amount covers its fees. The company’s terms of service state that funding is not available in all states, but its website does not list the states it operates in. Other than the company’s founder, there is no information about the other employees of Kalamata Capital on its website and the site also does not list any information about the other funding companies Kalamata Capital partners with to provide funding for small businesses.
Before they apply for a loan, customers should be able to access information about the rates and any fees that Kalamata Capital charges. With the scarce information the company includes on its site, it is not possible to determine if Kalamata Capital is an affordable funding source compared to other lenders. Information the company should consider adding to its website include:
- Range of APRs or interest rates for different types of loans
- Requirements for credit score to qualify for a loan
- Years in business and monthly income requirements to qualify for a loan
- States where funding is available
- Prepayment Penalties
- Origination fees, closing fees, and other fees