Balboa Capital is one of the older independent lenders that you can find on the Internet today. Founded in 1988 and based out of Irvine, California, Balboa Capital initially made its reputation primarily on providing equipment leases. Today, Balboa Capital offers many more funding options including small business loans, corporate financing, vendor financing and franchise financing.
While the website looks full and does have plenty of pages, there is a substantial amount of information that is missing from it. While we have tried to gather as much information as possible for this review, there are some areas of information that cannot be evaluated entirely for lack of information.
Types of Loans Offered
- Equipment Leasing – Up to $1 Million
- Small Business Loan – Loan Amount Unknown
- Working Capital – Up to $2 Million
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Balboa Capital has several good qualities that make it an appealing lender to businesses looking to borrow money. For starters, Balboa Capital has been around for a long time—much longer than other lenders. Their time in the business (since 1988), as well as their A+ grade and accreditation from the Better Business Bureau, gives us the impression that they are a stable and trustworthy lender. This level of success and stability is obviously an important quality in a lender.
Another impressive thing that Balboa Capital offers is a 5-day loan disbursement on approved loans, which is fast when compared to other lenders. Banks can take weeks or even months to disburse loans after they have been approved, so receiving these funds that quickly is noteworthy. (We will say, however, that 5 days is not the quickest we have seen, so if this is your main draw to Balboa Capital, then you should definitely keep shopping.)
One thing that Balboa Capital offers prospective businesses who want to borrow is the ability to borrow funds without having perfect credit. Although we wish the Balboa Capital website would define exactly what they mean by this, these statements suggest, at the very least, that they are more accommodating than many other lenders such as big banks.
In addition to offering loans to businesses without perfect credit, Balboa Capital offers unsecured loans. Unsecured loans can be better for many businesses who do not want to put up personal or business collateral when receiving funding.
Although they do not offer any specifics, Balboa Capital claims that they do not have any hidden fees. We cannot understand exactly what this means because they do not have any fees listed on their website. So either they will let the borrower know of the fees once they are approved for a loan, or they really do not have any fees at all. If this is the case, this would be a major advantage for Balboa Capital, but without the full information, we do not know exactly what this means.
In summary, these are the benefits of Balboa Capital:
- Long history in the business
- A+ grade and accredited by BBB
- 5 day loan disbursement
- Perfect credit not required
- Unsecured loans
- No hidden fees
Like many online lenders, Balboa Capital’s website lacks some vital information that we would need in order to make an accurate assessment. The illusion of the Balboa Capital website is that it looks robust, but often does not provide concrete details. Information that is missing from the Balboa Capital website include:
- Clear information about the interest rates
- Credit score requirements
- Time in business requirements
- Minimum monthly/annual revenue requirements
- Details about prepayment penalties or other fees
- A working loan calculator
When we say “clear information about the interest rates,” here’s what we mean: on the first page of the website, there is what looks like a loan calculator. However, this loan calculator also says that it is only for equipment leasing. It will give some estimate of how much interest rates are for equipment leasing, but this is the only place on the entire site that interest rates are suggested. Even here, they are not written clearly.
The loan calculator that is under the tab Small Business Loans, on the other hand, doesn’t even work properly. No matter what annual revenue is entered, it will always respond by saying that qualifying borrowers must make over $150,000 in annual revenue. This calculator also requires an email and phone number, making it seem that it is actually more of a marketing tool than a legitimately helpful tool for prospective borrowers. We can assume through this calculator that it is a requirement to have $150,000 in annual revenue, but we cannot say for certain since the calculator seems dysfunctional in responding to the credentials entered.
Likewise, the Balboa Capital site talks very little about what is actually required to qualify for a loan. The only detail we get about who can qualify is when they say “Perfect credit isn’t required.” No specific scores are ever mentioned.
When Balboa Capital does get specific, like when they tell us that $150,000 is the maximum amount of money that can be borrowed in a small business loan, it’s also less than preferable. This amount is on the low-end of funds offered by online lenders, and prospective borrowers should pay attention to these numbers when they are looking at potential lenders.
*Star Rating is determined by evaluating APR range, minimum credit score requirement, revenue requirement, length in business requirement, and other related approval data.