Kapitus Expands with Acquisition of Ten Oaks Commercial Capital

Kapitus, a fintech firm focused on financing small and medium-sized enterprises (SMEs) in the United States, has acquired Ten Oaks Commercial Capital. Financial details of the acquisition have not been disclosed.

Ten Oaks, which is based in New York, specializes in equipment financing, leasing, working capital loans, and Small Business Administration (SBA) loans. This acquisition enables Kapitus to establish a dedicated equipment finance division, complementing its existing business loan and revenue-based financing services. Target sectors for this new division include construction, healthcare, manufacturing, and hospitality.

Kapitus aims to leverage Ten Oaks' established vendor and direct origination channels to enhance its third-party funding capabilities. The company plans to begin funding on-balance transactions in early 2025, reinforcing its commitment to supporting SMEs.

Founded in 2006, Kapitus operates as both a direct lender and a marketplace. Since its inception, it has provided over $6.5 billion in growth capital to nearly 55,000 small businesses. The firm, which integrated Mambu's low-code lending engine in 2022, offers a diverse range of financial products, including sales-based financing, term loans, equipment leases, and revolving lines of credit.

Looking ahead, Kapitus intends to establish a new Equipment Provider Partner Programme aimed at connecting dealers and manufacturers with financing options for their customers. Ben Johnston, COO of Kapitus, emphasized that this initiative comes at a crucial time when securing equipment finance has become increasingly challenging, as both traditional and online lenders tighten their requirements and many independent equipment finance companies are merging into the banking system.