Katapult vs Affirm: Best for you [Details review 2023]

In recent years, alternative lending options have become increasingly popular among consumers and small businesses looking for quick and easy access to financing. Two companies at the forefront of this trend are Katapult and Affirm. Both companies use advanced data analysis and underwriting techniques to approve loans quickly, but they have different target markets and loan products. In this article, we will thoroughly examine Katapult vs Affirm, comparing their loan products, interest rates, and customer service. We will also examine the pros and cons of each company and help you determine which one may be the best choice for your specific needs.

What are Katapult and Affirm?

Katapult and Affirm are financial technology companies that offer credit products at the point of sale. Both companies aim to make it easier for consumers to make large purchases without paying in advance.

Katapult offers the latest lease-to-own options built for you without needing credit. The company offers a range of financing options, including installment loans, lease-to-own, and rent-to-own. Customers can apply for financing through the Katapult website or mobile app and, if approved, can use their financing at participating retailers.

In other words, it allows customers who do not qualify for traditional funding opportunities to lease the products they want.

Affirm is a platform that provides customer loans. If cash is needed, the company can offer cash quickly and easily. In simple words, Affirm allows customers to finance their purchases with a loan, with the option to pay in fixed monthly payments. Customers can apply for a loan through the Affirm website or mobile app and, if approved, can use their financing at participating retailers.

In short, both Katapult and Affirm are companies that provide point-of-sale financing options to consumers. The main difference between the two companies is the type of financing they offer; Katapult offers a variety of financing options, while Affirm focuses on installment loans.

How do Katapult and Affirm work?

Affirm and Katapult both work by providing alternative lending options to consumers and small business owners. They both have a simple application process and can provide funding quickly.


Katapult works by providing small business loans to entrepreneurs and small business owners. To apply for a loan, small business owners can fill out an online application on the Katapult website. The application process includes providing information such as the business’s financials and the purpose of the loan. Once approved, the funds can be deposited into the business’s account in as little as one business day.

The loan repayment terms and interest rates will vary depending on the type of loan and the business’s creditworthiness.


Affirm works by allowing customers to finance their purchases at participating retailers. When customers are ready to make a purchase, they can select Affirm as a payment option at checkout Customers then provide some basic information, such as their name, date of birth, and the last four digits of their social security number, to pre-qualify for a loan. Once approved, customers can choose the loan amount and repayment terms that work best for them.

After the purchase, customers will make fixed monthly payments to Affirm, with clear terms, interest rates, and fees disclosed upfront.

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Pros and cons: Difference between Katapult and Affirm

The main difference between Katapult and Affirm is the type of lending they provide and their target market.

Katapult Pros & Cons


  • Various loan options include working loans, facility loans, merchant cash in advance, etc.
  • Provide merchant service programs that enable small and medium-sized companies to settle credit cards
  • Enables cash to be deposited into a business account in as little as one business day
  • They offer services tailored to the needs of small business owners.


  • There may be stricter criteria for granting loans.
  • Interest rates and charges may be higher than traditional lending opportunities.
  • Limited to loans to small enterprises
  • It may require additional documentation to apply for a loan.

Affirm Pros and Cons


  • The simple application process takes minutes
  • Customers can understand if they’re approved for a loan in seconds
  • Clear terms, interest rates, and charges disclosed in advance
  • Provides opportunities for on-the-spot financing in the participating retailers
  • Personal loans for different purposes, such as home improvement, medical expenses, etc.


  • Only available in participating stores
  • Interest rates may be higher than other lending options
  • Restricted loan size opportunities
  • They may not be open to all customers

Katapult vs. Affirm: Details and depth comparison

Katapult vs. Affirm: Requirements

The requirements for loan or financing through Katapult and Affirm vary depending on the type of loan or funding applied for and the borrower’s creditworthiness. However, some general requirements are set out for both companies:


In order to apply for a loan via Katapult, owners of small businesses usually have to provide the following information:

  • Business financial data (e.g., income, expenses, cash flow)
  • Purpose of the loan
  • Personal and business tax returns
  • Business and personal credit rating
  • Business bank statements

To qualify for a Katapult loan, a small business must have worked for at least six months and have a minimum monthly income of $10000.


To apply for a loan through Affirm, consumers normally have to provide the following information:

  • Personal information
  • Information on income and employment
  • Contact information

To apply for a loan through Affirm, the customer must have reached the age of 18, have a valid correspondence address in the United States, and hold a valid identity card issued by the U.S. government.

Katapult vs Affirm: Product Selection

Katapult and Affirm offer different types of loans and financial products that meet different borrowers’ needs.


Katapult offers a variety of lending opportunities to small business owners, such as working capital loans, equipment financing, and commercial cash advances. These loans can help small enterprises to meet their short or long-term financial needs – from purchasing new equipment to expanding their business.


Affirm offers funding opportunities at the points of sale to the customers of the participating retailers. This allows customers to finance their purchases over time and make manageable monthly payments. This service is particularly useful for customers who want to buy high-value goods but may need more funds in advance.

Katapult vs. Affirm: Maximum Limit

The maximum loan or funding limit for Katapult and Affirm varies according to the type of loan or funding applied for and the creditworthiness of the borrower.

For Katapult, the maximum loan amount for small business loans may range from $5000 to $500000. The commercial services program offered by Katapult does not have a maximum limit, as it is intended to help small enterprises to accept credit card payments.

On the other hand, for Affirm, the maximum loan amount to finance commercial premises and personal loans may range from $250 to $17500. However, they also have a program called Affirm Go which allows customers to finance purchases up to USD 20 000 with a higher loan amount and longer repayment periods.

Katapult vs. Affirm: Repayments

During the order, customers will have to make their first lease payment in Katapult. They will then be charged automatically for recurring lease payments with the credit card they entered during the order. In addition, lease payments can be made using your Katapult account.

Affirm allows customers to choose the most appropriate way of payment — from 4 interest-free payments every 2 weeks up to 3, 6, or 12 months. Easily pay for daily purchases with four interest-free contributions every two weeks. Monthly contributions are great for big purchases.

There may be a 48-month loan option for very large purchases with Affirm. If you receive a smaller loan, you can get 1 to 3 months to pay without the possibility of extending the repayment period.

Katapult vs. Affirm: Interest & Fees

The Catapult Leases to own program does not charge any interest and will not be used to estimate the leasing payment.

And as a customer, you only enter into a contract to buy a product lease with an option to own by accessing the Early Purchase Option or making all the payments for a lease to a holding on a schedule in the lease purchase contract. However, several factors are taken into account when calculating a leasing payment. These factors are the price of the goods for cash, the maximum period for which the client can take the goods on lease, the state in which the client lives, and the sales tax rate in the city/state.

In Affirm, the rates are usually set by retailers where you shop and, in some cases, your personal credit history. On the Affirm website, you can find several retailers like Casper, Mirror, Rings, and Dyson with up to 0% funding.

However, in the case of other purchases, interest rates may vary from 10 % to 30 %, depending on your credit history and the retailer. You must also note that Affirm does not charge any fees for its loans or for creating an account, and there are also no hidden fees.

In addition, it doesn’t even charge any arrears fees, but your late payments may be reflected in your credit rating and credit history.

Katapult vs. Affirm: Remainder/Notification

Katapult and Affirm have systems to remind and notify borrowers of their loan or financing repayment schedule.

Katapult sends repayment reminders via email or text message to small business owners who take out a loan through them. The reminder schedule is usually set a few days before the due date. The merchant services program offered by Katapult will have specific terms and conditions regarding notifications and reminders, which can vary depending on the merchant services agreement.

Affirm sends loan repayment reminders via email or text message to borrowers. The reminder schedule is usually set a few days before the due date. Borrowers can also check their accounts online to view their repayment schedule and track their progress. Affirm also offers a feature called Flex Pay, which allows borrowers to adjust their payment schedule as long as they meet the criteria and approve it.

Katapult vs. Affirm: Customer Services

Katapult provides customer service through phone and email support, available during business hours. They also have a knowledge base on their website that answers frequently asked questions. Additionally, they offer a dedicated account manager to assist borrowers with their loan process and repayment schedule.

Affirm offers customer service through phone and email support, which is available during business hours. They also have an extensive help center on their website that answers frequently asked questions. Additionally, borrowers can access their accounts online to view their repayment schedule, track their progress, and contact customer service with any questions or concerns.


What bank owns Affirm?

Affirm is not owned by a bank, it is an independent financial technology company founded in 2012 by PayPal co-founder Max Levchin to provide fair and transparent consumer financing.

Is Affirm better than Afterpay?

Affirm offers customers a monthly payment, while Afterpay requires them to pay their purchases in weekly installments. Affirm does not require a credit check, which means customers with limited credit capacity can use the company’s services.

Does Affirm approve no credit?

Affirm does not require a traditional credit check, but having no credit history can make it harder to approve a loan and lead to higher interest rates or loan amounts.

Does Katapult charge late fees?

Katapult does not charge late fees to borrowers. It’s recommended to review the specific repayment terms for each loan or financing option on the Katapult website.

In which state is Katapult available?

Katapult is a US-based financial technology company that provides loan and financing products to small businesses, but its availability may vary depending on state laws and regulations.

Is Katapult offers a monthly payment?

Katapult has a strategy for Lease-to-Own. Katapult will receive regular payments from you with the opportunity to cancel them at any time. Once your lease is paid or completed, you will become the owner of the items.


In conclusion, Katapult and Affirm offer loan and financing options for small businesses and consumers, with varying repayment terms, interest rates, and fees. From the comparison of Katapult vs Affirm, We said that Katapult offers small business loans, equipment financing, merchant cash advances, and a merchant services program to help small businesses accept credit card payments. Affirm offers point-of-sale financing options at participating retailers and personal loans to customers. Both companies have different products, repayment terms, and features.

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