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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-QSB/A

(MARK ONE)

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

         FOR THE TRANSITION PERIOD FROM _____________ TO _____________

                         COMMISSION FILE NUMBER: 0-24220

                             KBK CAPITAL CORPORATION
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

                   DELAWARE                            75-2416103
        (STATE OR OTHER JURISDICTION OF             (I.R.S. EMPLOYER
         INCORPORATION OR ORGANIZATION)            IDENTIFICATION NO.)

    301 COMMERCE, SUITE 2200, FORT WORTH, TEXAS        76102-4122
      (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)          (ZIP CODE)

       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (817) 258-6000

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.

Yes [X] No [_]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

COMMON STOCK, $0.01 PAR VALUE                         3,310,133
                                       (SHARES OUTSTANDING AS OF MARCH 31, 1997)

TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT
YES [_] NO [X]
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10-QSB FOR FIRST QUARTER 1997

PART II  -  OTHER INFORMATION

ITEM 1  -  LEGAL PROCEEDINGS

The Company is not a party to any litigation other than routine proceedings
incidental to its business, and the Company does not expect that these
proceedings will have a material adverse effect on the Company.

ITEM 6  -  EXHIBITS AND REPORTS ON FORM 8-K

      (a) Exhibits

            *10.1 - Receivables Purchase Agreement dated April 11, 1997 among
      KBK Receivables Corporation as Seller and KBK Financial, Inc. as initial
      Servicer and XYZ Corporation as Purchaser and State Street Boston Capital 
      Corporation as Administrator and State Street Bank as Relationship Bank.

            *10.2 - Purchase and Sale Agreement Dated as of April 11, 1997
      Between KBK Financial, Inc. individually and as the initial Servicer, and
      KBK Receivables Corporation as the Initial Purchaser.

* Filed herewith. The Company is seeking confidential treatment of certain
portions of this Exhibit pursuant to Rule 24b-2 and has omitted portions of this
Exhibit pending a determination on such request. The omitted portions have been
filed with the Commission in connection with the Company's request for
confidential treatment.

      (b) Reports on Form 8-K - None

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                         KBK CAPITAL CORPORATION

Date  November 21, 1997                  /S/ DEBORAH B. WILKINSON
                                             Deborah B. Wilkinson
                                             Chief Accounting Officer

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