Founded by entrepreneurs similar to you, Behalf's objective is to ease the process of borrowing money. It is quite different than your typical alternative lender in that they designed their service in a way which allows you to build and maintain relationships.
- Soft Credit Pull
- Free Credit Line
- Few Limitations
Soft Credit Pull
Because this process has been made simple, they do not regularly use your credit score against you. Since you must provide them with your social security number, you might be afraid that they will damage your score. However, they make sure that they do not risk your credit score, as they perform a soft credit pull as opposed to a hard one. During the application process, they might scan your company's social media pages or your credit score in order to determine how risky it would be to loan you capital. Sometimes, they make the decision based solely on other factors, but they need your social security number for identification purposes regardless.
In order to apply, you must make an account and supply them with your:
- Full name
- Home address
- Business name
- Business address
- Social security number
Immediately after filling in this straightforward application, they give you an idea of which credit line you would be eligible for. This offers you a quick overview of the capital that you will be able to obtain, the interest rates, and how long you will have to pay it back.
Free Credit Line
You get up to $50,000 without building up a credit line with them. Once you start paying them back consistently, they provide you with more capital in your quest to build a more successful business. This is an opportunity that their competitors normally don't offer; alternative lenders typically base your capital loan on your original credit report.
Behalf is not going to attempt to control every purchase you make with the capital they lend you. If you need to buy supplies for your business, invest on your website, or even pay for an occasional legal service, they will not stop you, so long as you find the way to pay them back within the allotted time period.
The website claims that they use high levels of protection in order to keep your personal information from leaking or being stolen. They also do not share your personal information without your sole discretion.
- Low Acceptance Rate
- Limited Funds
- Repayment Period
- They Report on Your Behalf
- Not for Personal Use
Low Acceptance Rate
Although it seems as though 40 percent is high in comparison to many companies, it is actually two percentage points above the average six-month loan. However, at an average of 38 percent, alternative lending institutions normally use your credit score as their main incentive to accept or reject your application. Their well-rounded approach is what makes a Behalf loan a convenient option.
If you are looking to expand your business drastically, or your business is already large and you need extensive supply coverage, the maximum amount that you can borrow at any given time is $50,000, which is only convenient for minor expenses or businesses that simply need polishing.
Like Kabbage, you are able to pay back your loan in a time period of up to six months. Many competitors offer this same repayment period. This might be difficult, depending on your company's success rate, so it might be something to consider before accepting a loan from them in the first place.
They Report on Your Behalf
Behalf reports directly to the business credit bureaus. This is only beneficial if you actually manage to meet your dates. Although this might seem to have a purely negative connotation, it could also be a good thing. If you feel as though your credit report should improve, and you show Behalf that you are capable of responsibly paying back the loan, they are able to report positively, thus improving your actual credit score. They claim that they do not yet report to personal credit bureaus, but that their business credit bureaus include D&B, Experian, and Equifax.
Not for Personal Use
The website clearly states that the money cannot be used for personal gain. This means that you cannot use their loan to pay for personal debt, including your payroll, credit card bill, your bank loan, your rent, or yourself.
If you wish to change your repayment plan (in the case that you simply cannot make a certain payment on time) there is a $20 fee imposed.
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The Bottom Line
Because Behalf performs a soft credit pull, and because they are quick in generating a response, you should be able to apply and determine for yourself whether you believe that they are compatible with you. Behalf is a company that truly aims to make a difference in your life and business. If you are in the process of starting or slightly expanding your small business, and believe that you can meet the repayment amounts and dates, this might be the perfect match for you. In our opinion, Behalf's positive attributes overpower the negative ones, and if their loan plan makes sense for you and fits your business, we definitely recommend them. They are a personable lending institution, aiming to reduce the tensions involved in such a process, and willing to give you the flexibility and benefit of the doubt. We concluded that they are credible, reliable, and offer a variety of different payment and repayment options, making it suitable for many different industries. Compare to Top Company