Kalamata was founded in 2013 by Steven Mandis, a financial services executive who now serves as the company's chairman. The company provides technology, data analytics services and fast financing to small business owners, Mandis stated, noting the company finances $10,000 to $750,000 to underserved small businesses nationwide in as little as 24 hours. In addition, the company is looking to add and integrate its fast processes, tools and procedures with payments.
"Square went from payments to capital," Mandis said "Kalamata is going from capital to payments. Square markets directly to entrepreneurs, typically with less than $250,000 in annual revenues. Kalamata markets via sourcing partners and ISOs to small businesses, typically with more than $250,000 in annual revenues."
Mandis went on to say that the company integrates fast and easy tools, services and financing to better serve small business owners. On a typical day, Kalamata provides capital to between 10 and 30 small business owners who can choose an array of optional value-added tools, resources and services designed to help them create jobs and scale their companies, he noted.
"Providing working capital doesn't only help small businesses but also helps our sourcing partners and ISOs reduce attrition by providing valuable services," Mandis said. To illustrate this point, he noted that Kalamata doesn't have a direct sales model but instead markets its small business products, services and financing solutions through ISO and ISV sales channel partners. These channel partners can syndicate their own deals and white label Kalamata's product and service offerings under their individual companies and brands, he added.
Kalamata is also interested in purchasing portfolios and partnering with payments enterprises—and offers attractive terms, Mandis stated. While Kalamata may offer 42 to 48 times for monthly credit card payments residual portfolios (net of agents/ISO fees), it may consider higher valuations from 40x to 50x, based on contributing factors such as bank and processor channel relationships, low attrition, BIN/portability, portfolio diversification, seller guarantees, size of monthly residuals/economies of scale, and cost of servicing, he explained.
"We also can structure loans against monthly residuals where the owner gets the interest deduction of the loan or structure a loan and then option to purchase providing the owner an interest deduction and possible deferral of sale," Mandis said. "Generally, we are looking for $50,000 to $500,000 in monthly residuals. The key items for us are the monthly net residuals and attrition by merchant and volume as well as breakdown of the merchants by industry code and percentage of net residuals."
As he reflected on Kalamata's year-over-year growth, Mandis, who formerly held leadership positions at Goldman Sachs, McKinsey & Co. and Citigroup, said the company averaged 400 to 500 applications for capital per day in 2021 while providing additional resources, services and benefits to small business owners. Mandis credited Kalamata's success to an exemplary team of over 80 employees. "We paid special bonuses to employees who volunteered to take temporary pay reductions during the pandemic," he said. "Due to the employees' actions, Kalamata did not furlough any employees during COVID-19."
Looking ahead, Mandis observed that Kalamata will continue to evolve and adapt to better serve small business owners and its sourcing partners and ISOs while exploring adjacent opportunities in the acquiring space, which may include acquiring or partnering with companies that provide advisory services to lower credit card payments fees, he stated.
"Kalamata will purchase credit card residual portfolios and look at other acquisitions and partnerships in the payments area," Mandis said. "Payments companies are realizing that providing capital improves client relationships and lowers attrition. However, it is better to partner with Kalamata than underwrite balance sheet and service deals."
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Company Profile originally appeared in
The Green Sheet Issue 211102
220601 - Nationwide Payment Systems
211102 - Kalamata Capital Group
210701 - Choice Merchant Solutions
200601 - Delta Payment Solutions
190802 - Credit.net, a division of Infogroup
190702 - Samsung Electronics America Inc.
181201 - Network Merchants LLC
180902 - MainStream Merchant Services Inc.
180801 - Century Business Solutions
180502 - Priority Payment Systems Northeast
180501 - Merchant e-Solutions Inc.
180301 - Wirecard North America
180201 - Sysnet Global Solutions Ltd.
171202 - Secure Cryptopayments
171002 - National Benefit Programs LLC
170902 - Frates Insurance & Risk Management
170901 - DCS Holdings Group LLC
170802 - Apogee Payment Systems LLC
170702 - Active Software & Hardware Systems
170701 - Veratad Technologies LLC
170502 - Frontline Processing Corp.
170501 - Platinum Choice Bancard LLC
170201 - Electronic Payments Inc.
161202 - International Bancard Corp.
161201 - CSR Professional Services Inc
161102 - Digitzs Solutions Inc.
161101 - Residual Sheriff LLC.
160801 - DigiPay: Solutions Inc
160702 - CreditCardProcessing.com
160201 - Lead Tracking Systems LLC
151202 - Benseron Information Technologies Inc.
151201 - CardWare International Inc
151101 - Lion Capital Group LLC
150801 - Topcreditcardprocessors.com
150702 - Vision Payment Solutions LLC
150601 - Conformance Technologies
150502 - Global Processing Systems
150402 - Mercantile Processing Inc.
150401 - Field Guide Enterprises
150302 - Signature Card Services
150301 - Premier Payment Systems Inc.
150201 - Humboldt Merchant Services
150102 - Expansion Capital Group LLC
141102 - National Merchants Association
141001 - Instant Credit Manager
140902 - Merchant Cash and Capital LLC
140701 - National Transaction Corporation (NTC)
140601 - Total Merchant Services
140501 - Nationwide Payment Solutions
140501 - BPC Banking Technologies
140301 - Meritus Payment Solutions
140201 - Process Pink Payments LLC
131202 - First American Payment Systems L.P.
131102 - Evo Payments International LLC
131001 - Live Reps Call Center
130901 - Regal Payment Systems LLC
130901 - The Merchant Solutions
130802 - North American Bancard LLC
130801 - Payment Logistics LLC
130702 - Plug n Pay Technologies Inc.
130601 - U.S. Merchant Systems LLC
130402 - National Processing Co.
130202 - Charge Card Systems Inc.
130202 - Layered Technologies Inc.
130102 - Glazer_Kennedy Insiders Circle LLC
121202 - American Microloan LLC
121102 - Keep in Touch Systems Inc.
121102 - Merchants Choice Payment Solutions
121002 - Washington Bancard Merchant Services LLC
120902 - Central Payment Co. LLC
120802 - Royal Merchant Holdings LLC
120801 - National Benefit Programs LLC
120602 - Cardinal Commerce Corp.
120601 - Veritrans Merchant Services LLC
120502 - ExecuTech Lease Group
120502 - The Small Business Authority
120402 - Chargeback Guardian Inc.
120401 - Electronic Payment Exchange
120301 - Complete Merchant Solutions LLC
120201 - CSR - Compliance Solutions and Resources
120102 - Alpha Card Services Inc.
111002 - Lead Source Call Center
111001 - First Annapolis Consulting Inc.
110902 - Point of Sale System Services Inc.
110901 - Sage Payment Solutions
110801 - Century Payments Inc.
110702 - Creative Vision Studio LLC
110702 - Network Merchants Inc.
110701 - Capital Access Network Inc.
110602 - eProcessing Network LLC
110602 - Moneris Solutions Inc.
110502 - Paragon Application Systems Inc.
110401 - Merchant Implementation Services
110301 - FrontStream Payments Inc.
101202 - CheckAlt Payment Solutions
101102 - Impact Payments Recruiting
101101 - Global Electronic Technology Inc.
101002 - TriSource Solutions LLC
100802 - Federated Payment Systems LLC
100801 - Voltage Security Inc.
100601 - NETSURION (formerly Vendor Safe Technologies)
100502 - Transaction Network Services Inc.
100402 - Secure Payment Systems Inc.
100401 - Elite Merchant Solutions
100302 - Retail Decisions Inc.
100102 - Payment Alliance International
091201 - Performance Training Systems Bankcard Boot Camp
091101 - Merchant e-Solutions Inc.
091002 - Whitehall Capital Advisors LLC
090901 - CoCard Marketing Group LLC
090801 - First National Merchant Solutions
090701 - checXchange Money Transfer Systems Inc.
090601 - Sterling Payment Technologies
090502 - Infinity Payment Systems
090501 - Merchant Cash and Capital
090401 - UseMyBank Services Inc.
090401 - Data Delivery Services Inc.
090302 - Velocity Merchant Services
090302 - Metro Merchant Services
090301 - Smart Transaction Systems Inc.
090301 - DCC Merchant Services USA LLC
090202 - TransFirst Holdings Inc.
090201 - ACH Payment Solutions
081202 - Affirmative Technologies Inc.
081201 - On-line Strategies Inc.
081101 - Vision Payment Solutions LLC
081002 - Veratad Technologies LLC
081001 - International Merchant Solutions LLC
080801 - GreenSoft Solutions Inc.
080702 - Smart Circle International
080601 - International Bancard Corp.
080502 - DRG Telemarketing Inc.
080501 - BCC Merchant Solutions
080402 - U.S. Merchant Systems
080401 - Greystone Business Resources Corp.
080302 - Transmedia Payment Services Ltd.
080102 - Sonoma Technical Support Services
071202 - Barclay Square Leasing Inc.
071102 - FirstView Financial LLC
071001 - Sage Payment Solutions
070902 - YourTownMall Business
070901 - Nxgen Payment Services
070802 - All card Processing-AAMonte-USA
070801 - Money Movers of America Inc.
070602 - Central Point Resources Inc.
070601 - Positive Feedback Software LLC
070502 - Premier Payment Systems
070501 - Amacai Information Corp.
070402 - National Bankcard Systems