- Low acceptance rate
- Limited funds
- Repayment period
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. What this means is, 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-perhaps you simply cannot make a certain payment on the time that you thought it could be done in-there is a $20 fee imposed. This is because there is a process involved in the workings of an altered payment plan. This process has to be started at a reasonable time in advance.
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