Online business lender expands into Kansas City

By: James Dornbrook | Reporter, Kansas City Business Journal

Jet Capital has expanded into the Kansas City area to offer capital and other services to small businesses.

Jet Capital, a Dallas-based online financial services company, doesn't plan to open a physical office in the Kansas City area. The company slowly has been rolling out its service starting in Texas and is now expanding to surrounding states. It offers a cash advance service for small businesses that is rare in the Kansas City area.

Here's how it works: Jet Capital buys a client's future sales at a discount based on the size of the loan, the size of the company and other risk factors. The cash advance could be as low as $2,500 or as high as $100,000. The average loan Jet Capital makes is between $25,000 and $30,000. Clients must have been in business for at least nine months, generating at least $10,000 a month in sales. For the average-size loan, a customer typically needs to generate about $40,000 in monthly sales.

“Typically, it’s a situation where the business has a near-term opportunity creating an immediate need,” said Randy Hernandez, chief marketing officer for Jet Capital. “We do quite a few restaurants, and maybe they want to build a patio, or the lease next door is suddenly available, and they want to jump on it right away. Maybe it’s an unexpected expense like their oven or air conditioning goes out. They have a huge immediate need, and they don’t have an existing line of credit with the bank. So this is a convenient answer. It’s designed for situations where speed is of the essence, and it can help them get to the next level in terms of growth.”

The application is about three pages long. Applicants need to submit an email address, a business bank account and several months of bank statements, copies of their driver’s licenses and other standard information. Jet Capital puts the information through a proprietary system that checks credit and can provide an answer as fast as one hour later. Clients can get money as fast as the next day in some instances.

“We’ll work with customers to adjust their daily debit if things are harder than they expected, so we’re not a burden on them,” Hernandez said. “If their business is doing better than they thought and they want to pay it off faster, there is no penalty for that. We try to make it as painless as possible.”

Jet Capital also provides resources for small businesses through its Jet Business Hub, allowing customers to get help on managing inventory, answering HR questions, tax tips and other advice.

“We want to be in an advisory position with our clients, so they aren’t just thinking of us when they need business capital,” Hernandez said.

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