About Company
Katapult is a lease-to-own option that allows individuals to acquire products and goods they may not have the means to purchase outright, either due to financial constraints or lack of credit history. With Katapult, customers can lease a product for a specified period with an option to purchase it at the end of the lease term.
Katapult is a multi-purpose app for payment, credit information, leasing, and other excellent services. Katapult can provide a lease-to-own option to the neglected subprime and helps consumers who may not be eligible for convenient finance obtain the funds they require. The company offers an intuitive online process across the country for online and offline retail partners.
Key Features
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Lease-to-Own. The lease-to-own option allows customers to make regular monthly payments over the course of the lease term and then have the option to purchase the product at the end of the lease term.
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Easy Application. The application process for a Katapult lease is simple and can be completed online or through the mobile app.
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Wide Range of Products. Katapult partners with a range of retailers, offering a variety of products, including appliances, electronics, furniture, and more.
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Customer Support. Katapult provides customer support through its website, mobile app, and customer service phone line.
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Early Purchase Option. Customers have the option to purchase the product before the end of the lease term, which can reduce the total cost of the product.
Pros and Cons
Pros
Cons
Reliability
Katapult is a legitimate and reliable lease-to-own option. It is a publicly traded company listed on the NASDAQ (symbol: KPLT) and has been in operation since 2012. Katapult has partnerships with a range of well-known retailers and offers a wide variety of products for lease.
Katapult is also accredited by the Better Business Bureau (BBB) and has an A+ rating. The BBB provides consumer protection by evaluating businesses based on their trustworthiness, transparency, and customer service.
How to Apply for Katapult Financing?
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Online Application. Visit the Katapult website and locate the "Apply" option in the upper right-hand corner. Click on "Apply" and enter your phone number. Katapult will send you a verification code to proceed with the application. Complete the application process by providing the following information: address within the U.S, your Social Security number (SSN) or Taxpayer ID Number (TIN), valid email address, credit or debit card details, government-issued ID proving you are over 18 years of age and your mobile phone number.
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In-Person Application. Alternatively, you can visit any physical store that has partnered with Katapult. Apply for a lease in person by following the application process provided by the store. Provide the necessary details, including your address, identification, and other required information.
Conditions and Requirements
Conditions
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Lease Amount. You can lease to own items with a total value of up to $3,500 once your Katapult account is approved.
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Payment Plans. Katapult offers three payment plans to accommodate different preferences and financial situations. If you prefer a quicker payment option, you can pay off your lease within 90 days, minimizing the markup to only 5% and covering additional fees. This ensures you save the most money. For larger purchases that require more time, you have the option to pay off your lease after the initial 90 days. Alternatively, you can choose to purchase the leased items at the end of your lease term.
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First Payment. Your initial lease-to-own payment is due during the checkout process.
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Lease Agreement Summary. Upon completing your lease agreement, you'll receive a comprehensive summary. This includes details such as the markup, any associated fees, and the duration of your lease.
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Notifications. Katapult will notify you about return policies, providing clarity on procedures to follow if your leased product is damaged.
Requirements
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Valid Mobile Phone Number. Ensure you have a functional mobile phone number capable of receiving SMS text messages.
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US Address. Provide a valid address within the United States.
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Social Security or Taxpayer ID Number (ITIN). Furnish a valid Social Security Number (SSN) or Taxpayer ID Number (ITIN).
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Valid Email Address. Supply a valid email address for communication and account-related purposes.
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Credit or Debit Card. Have a valid credit or debit card to facilitate payments. Note that prepaid or gift cards are not accepted for this purpose.
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Photo ID - 18 Years or Older. Submit a valid photo ID confirming that you are 18 years of age or older. This is a crucial requirement for the lease approval process.
Ways to Receive the Money
Katapult primarily focuses on providing leasing services, facilitating the acquisition of products through their platform. As such, Katapult does not involve the disbursement of money to users. Instead, once your Katapult account is approved, you can utilize their lease options to obtain various items, and the payment is structured based on the chosen plan.
Products
Katapult offers a diverse array of products through its platform by partnering with various retailers. Consumers can access a broad range of items, spanning categories such as electronics, appliances, furniture, fitness equipment, fashion and accessories, home decor, gaming consoles, toys, and games. The specific products available for lease may vary based on the retailers participating in the Katapult program. Whether it's the latest electronic gadgets, essential home appliances, stylish furniture, or entertainment and gaming gear, Katapult aims to provide leasing options across different product categories to meet the varied needs and preferences of its users.
Other Loans
How to Repay Katapult Financing?
Repaying a Katapult lease is a straightforward process. Your initial lease-to-own payment is required during the checkout process, serving as the initiation of your lease agreement. Following this, recurring lease-to-own payments are automatically deducted from the credit or debit card you provided at checkout. This automated process ensures a convenient and consistent payment schedule.
For those who prefer a more hands-on approach, Katapult also provides the option to make lease-to-own payments by logging into your Katapult account. This access allows you to manage and monitor your payments, providing flexibility and control over your lease agreement. Your lease purchase agreement account information is readily available on the Katapult website, offering a user-friendly interface for easy navigation and payment tracking.
Reasons for Getting Rejected for Katapult Financing
Several factors could contribute to the rejection of a Katapult lease application. Common reasons include inadequate credit history, failure to meet specific eligibility criteria, providing inaccurate information during the application process, or residing in a location where Katapult services are not available. Additionally, if the required documents, such as a valid ID or proof of address, are not provided or do not meet the stipulated criteria, it may lead to rejection. It's essential for applicants to ensure they meet all the necessary requirements and provide accurate information to increase the likelihood of approval.
Alternatives
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Affirm allows users to make purchases and pay for them over time with flexible payment plans.
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Klarna offers various payment options, including interest-free installment plans and the ability to buy now and pay later.
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Apple Pay Later is Apple's installment payment service that enables users to pay for Apple products over time.
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Afterpay allows users to split their purchase into four equal payments, with the first installment due at the time of purchase.
Loans like Katapult
OnDeck
OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.
Funding Circle
Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.
Credibly
Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.
Fundbox
For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.
Editorial Opinion
Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Methodology
At Finanso, we've carried out a comprehensive analysis of over 50 business lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.
In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.
At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.
Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.
Additional Resources
- Katapult Account Review
- How to Apply for Katapult Loan
- How to PayOff Katapult Loan
- Katapult Mobile Apps
- Katapult Reviews
