IOU Financial Logo
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LAST UPDATED: September 10th, 2019

IOU Financial is US based out of Kennesaw, Georgia, and is headquartered in Montreal, Canada. The 100 percent paperless company initially started in 2008 because of the credit crunch that banks were putting on small businesses. IOU Financial has funded over $334.7 million in loans. Clients can receive funding within a day, and loans are available up to $150k. Consumers that choose IOU Financial should remember that they must have a credit score of 550 or higher.

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The Good

  • Fast Funding
  • Quick Application Process
  • Small Business Loans
  • Convenient Features

Fast Funding

The company specializes in small business loans and primarily helps businesses with a healthy cash flow. Their typical clients include medical and dental practices, grocery and retail stores, restaurants, hotel franchises, and e-commerce companies. Customers can qualify for up to $150,000, and get funded within just 24 hours.

Quick Application Process

While the qualification process could take weeks with some big banks, IOU Financial clients can prequalify in seconds and receive an offer for a loan in 24 hours. The company uses RiskLogic Score methods and has a pre-approval rate of 85 percent. The small business loan process is fully automated and IOU Financial notifies clients if their credit qualifies in minutes, with just a soft credit pull; the pull does not impact client credit. From there, the application is free, simple, and can be completed in three minutes. People also have the option to call a small business loan consultant, who can fill out the application for clients over the phone.

Small Business Loans

IOU Financial can provide funding within one day, and is geared toward businesses that are small retail or merchant-driven. Funding ranges from $5,000 to $150,000, and clients can choose a 6-, 9-, 12-, 15-, or 18-month repayment-term. Customers looking for more than the maximum $150,000 can renew their loan once it is 40 percent paid down. The loans work with a fixed daily payment, and payments are taken directly out of the client's bank account. The company works with true small business loans, and not with cash advances. There are no prepayment fees, and IOU Financial was endorsed for honesty, value, and direct approach by Kevin O'Leary from ABC's Shark Tank. IOU Financial complies with federal, state, and local regulations, and is licensed in the states it does business with.

Convenient Features

Not only is IOU Financial transparent, the company offers a variety of convenient features, including a live chat feature and a loan calculator. The live chat feature allows customers to receive immediate answers to questions, and the loan calculator estimates how much one's business can borrow with IOU Financial.


The Bad

  • Fees
  • Strict Eligibility Requirements
  • Website Lacks Information


IOU Financial is very transparent about some of its fees. They do not disclose an origination or closing fee, but do charge other fees that potential clients should be aware of. While the company does not charge prepayment, application, or upfront fees, IUO Financial does charge a variety of other fees, including:

  • Wire Transfer Fee: Instant 24 hour funding from wire transfers result in a $95 processing fee. Anything after the first wire transfer will only cost $35.
  • Non-Sufficient Funds Fee: Payments that fail from insufficient funds are charged a $25 fee. This fee can also occur if the client closes or changes their bank account before the loan is completely paid off.
  • Guarantee Fee: This fee depends on how high risk the client business is since IOU Financial is not insured against losses by government agencies. The fee helps offset default costs from small business lending services.

Strict Eligibility Requirements

IOU Financial has strict eligibility requirements. In order to qualify for IOU Financial, applicants but own at least 80 percent of the business, or at least 50 percent if co-owned with a spouse. The applying company has to have been in business for at least one year. The client should have daily deposits, and generate at least 10 deposits per month into their business bank account. Lastly, the client must have an average balance of $3,000 per day in the business bank account, and annual revenue of at least $100,000. The website does not advertise a mandatory credit score requirement.

Website Lacks Information

While the website is very upfront with their small business loan information, it does not clearly specify if IOU Financial requires collateral. Additionally, the company does not explain state availability, APR range, and if they have origination and closing fees.


The Bottom Line

The application process is paperless, quick and convenient. Clients can enjoy no upfront, prepayment or application fees, and funding ranges from $5,000 to $150,000. IOU Financial can fund customers within one day, which is fast in the industry. Eligibility requirements are strict, and may disqualify many interested applicants. The small business loan process is meant for businesses with a healthy cash flow. Because of the lack of information we cannot recommend working with IOU Financial at this time.

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