Able is a low-cost online lender that caters to small businesses and startups. The company charges some of the lowest rates in the industry (maxing out at 25% APR), and boasts flexible requirements to help even brand new businesses secure the funds they need; however, the company also falls behind in some areas, like the waiting period before funds are disbursed, and other limitations. Overall, Able Lending is a solid option for borrowers interested in peer-to-peer lending options.
- Competitive APR
- Flexible requirements
- No prepayment fee
- $1 million max loan amount
Along with being one of the few business lenders in the industry to actually disclose its APR, Able Lending offers some of the most competitive rates available. APR ranges from as low as 2% to as much as 25%. When compared to other companies that divulge this information, these are excellent rates, and drastically reduce the total amount of interest a borrower will ultimately have to pay.
In terms of borrower qualifications, Able Lending is fairly lenient, only requiring businesses to be in business one year, have a minimum annual income of $100,000, and a minimum credit score of 600. In the event that a borrower cannot meet these qualifications, Able Lending has its Able Start program, through which borrowers can acquire funds through peer-to-peer lending (aka a friends and family loan).
No Prepayment Fee
Able Lending does not charge prepayment penalties should borrowers finish paying off their loans before the terms of the loan expire. This allows borrowers with the means to pay off their loans more aggressively to do so without incurring more penalties, and saves borrowers from having to pay more interest over the life of the loan.
$1 Million Max Loan Amount
Something that really sets Able Lending apart from other business lenders is its $1 million max loan amount. Although this amount certainly isn't the highest in the industry, it is competitive with some industry leaders, and exceeds the amount offered by comparable companies.
- Long wait for funding
- Limited availability
- Limited loan offerings
- Undisclosed information
Long Wait for Funding
One area in which Able Lending could use some improvement is in the time it takes for borrowers to receive their funds. Top industry performers can disburse loans within a matter of weeks, days, and in some cases, hours. Borrowers who receive funds from Able Lending, meanwhile, need to wait an average of 30 days before funds are disbursed. Businesses, particularly startups, need fast access to funds, so this can be a red flag for some businesses in need of fast cash.
Able Lending's services (at least, as far as we can tell) are only available to borrowers in Texas. This one-state availability drastically limits the number of people and businesses that can borrow from this company. Leading business lenders have nationwide availability, or at least serve a more significant portion of the country than just one state. Some companies even boast an international presence. We would like to see Able Lending broaden its service area.
Limited Loan Offerings
While Able Lending does provide borrowers with peer-to-peer and third-party loan options, these types of loans rely heavily upon the efforts of several people in order to be effective. Leading companies will usually offer loans with greater reliability-term loans or SBAs-as well as other loan options like cashflow/working capital, lines of credit, or microfinancing options.
Able Lending is by far one of the more transparent business lenders in the industry; that being said, the companies has failed to disclosed (or at least, prominently display) the following information: whether it requires collateral on any of its loans; the total amount in funds it has helped borrowers secure; its average closing fee. Disclosure on this information will help Able Lending improve its overall score.
The Bottom Line
If you are a brand new business and are unable to qualify for a traditional term loan, Able Lending's peer-to-peer program may be a good fit for you. In order to access the best rates, Able Lending requires borrowers to have at least 12 months' experience in business, $100,000 in annual income, and a credit score of 600 or more. Businesses located outside of Texas may not be eligible for financing. Overall, Able Lending is an adequate solution for new businesses interested in peer-to-peer or third-party loan options.