BFS Capital, formally known as Business Financial Services, has been giving funds to small- and mid-size businesses since 2002. Based in Florida, and with affiliates in both California and the UK, BFS serves all 50 United States as well as offering some loans in Canada. BFS Capital offers a number of different loan types including small business loans, equipment leases, and cash advances. These different loan offerings have given BFS Capital the opportunity to serve a wide variety of clients, and to help out many businesses who are unable to obtain loans from traditional lenders. BFS Capital has built its reputation around providing loans that are fast and flexible. Because of their reputation and the quality of their service, BFS Capital states that 80% of their customers return for repeat business.
BFS Capital Business loans are good for new businesses (at least 9 months old) who are looking for a high amount of funding and have poor credit.
The first good thing we noticed about BFS Capital is that they offer a high maximum loan amount: $2 Million. Many other independent lenders do not (or cannot) offer this much money to borrowers, so prospective borrowers who need more funds may find what they are looking for in BFS Capital.
In addition to offering high maximum loans, BFS Capital (Business Financial Services) is very accommodating of younger businesses. Where bigger banks would not be willing to offer loans, BFS Capital does. They offer two different loan options: Advantage Loans and Premier Loans.
Advantage Loans are small business loans geared specifically towards young businesses. They require that a prospective borrower has been in business 9 months and that they maintain a daily average of $1,500 in their bank account, and that they have never gone bankrupt. They are also flexible with their credit score requirements, although they never specifically say a specific credit rate.
Premier Loans are small business loans gear toward businesses who are more established. These loans are ideal for borrowers who have been in business for 2 years, who maintain a stable bank balance (no specifics were offered), and who have “favorable” credit scores (no specifics). Although the website lacks specifics about who qualifies for these loans, they appear to accommodate a wide variety of business experience and stability.
One large benefit that BFS Capital offers is their ability to deliver cash quickly. Five days is how long it takes for them to deliver the funds after approval, and that is much quicker than what traditional lenders can offer.
Repayment withBFS Capital is shorter and more flexible than bigger banks. While big banks can drag out loan repayment to 10 or 20 years, BFS Capital is interested in providing short and efficient repayment plans. Repayment with BFS Capital can be done in less than 18 months, if that works for the borrower. This allows borrowers to avoid extensive interest rates.BFS Capital requires no equity as banks do.
Another benefit is that BFS Capital has received an A+ grade from the Better Business Bureau, and they have been accredited since 2003.
In summary, here are the benefits of BFS Capital:
- Up to $2 Million
- Low and accommodating qualifications
- 5 day cash delivery
- Quick (flexible) repayment plans
- No equity required
- A+ grade and accredited by BBB
While there are clearly some great things about the BFS Capital, there are also a lot of things missing from BFS Capital’s website. It’s true that many lenders don’t offer all their rates and information on their site, but there are definitely other lenders that offer more information. Things that would be important to know for potential buyers are missing from the website completely. Some of these items include:
- Interest rates
- Prepayment penalties
- Origination fees
- Closing fees
- Other fees
- Loan calculator
Without some of this information, it’s difficult for us to make a full evaluation of BFS Capital as a qualified lender. Interest rates, after all, are one of the single biggest factors that lead to a borrower’s decision on where to receive funding from. If borrowers don’t know the interest rates, it’s likely they would turn elsewhere for their loans, considering many other lenders offer this information on their websites. Not listing interest rates on their site also leads us to believe that maybe their interest rates are less than desirable.
While the requirements for obtaining a loan through BFS Capital are definitely not unreasonable, there are some requirements for prospective borrowers that may be slightly more restrictive than other lenders. All in all, they are definitely more flexible requirements than traditional lenders, but they may still be a stumbling block for some prospective borrowers.
Requirements for an Advantage Loan (small business loan for those who are just getting started) include:
- 9 months in business
- $1,500 average monthly bank balance
- Acceptable credit (scores not specified)
- No excessive tax liens, open judgments or bankruptcies
Requirements for a Premier Loan (small business loan for those who are a little more established in their business and looking to grow) include:
- 2 years in business
- Favorable credit (scores not specified)
- Stable average monthly bank balance (numbers not specified)
As these lists make apparent, it’s clear that there is a lot of missing information from the BFS Capital’s website.
In summary, here are the negative aspects of BFS Capital:
- Not enough information on website
- No interest rates
- No loan calculator
- Potentially restrictive qualifications for borrowing (would need more information)
*Star Rating is determined by evaluating APR range, minimum credit score requirement, revenue requirement, length in business requirement, and other related approval data.
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