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Small Business Funding

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LAST UPDATED: October 18th, 2019
Small Business Funding is committed to providing businesses access to quick and easy working capital loans to meet their individual business needs.
 
Small Business Funding helps borrowers improve their cash flow to expand their businesses and keep them growing. The lender offers multiple financing options and is transparent about loan terms and requirements for each one. 
 
If you want to learn about the customer experience, you can find Small Business Funding reviews below as well as a breakdown of the pros and cons for the lender. 

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The Good

  • Multiple Loan Options
  • Transparent Loan Terms
  • No Collateral

Multiple Loan Options

Small Business Funding has multiple small business loans, including working capital advances, SBA loans, line of credit, term loans, and equipment financing loans. We break down each offered financing option below and the requirements for each:

Working Capital Advance

Small Business Funding offers working capital advances for a variety of business needs, whether that's payroll, inventory, etc. The approval process is simple and typically takes 24 hours. When applying, you'll need your company's business banking history for the past three months. 

Once your application is complete and you've been approved, you can receive funding within two to three days — sometimes sooner. Small Business Funding offers working capital advances up to $500,000. 

Loan terms will vary based on a percentage of your company's revenue. This helps borrowers because if their revenue decreases, your scheduled payment to Small Business Funding may be eligible for a decrease as well. Also, even if your revenue increases, Small Business Funding will not increase your scheduled payment amount. 

To qualify for Small Business Funding's working capital advance, your business must have three to four months in business and a minimum of $100,000 in annual revenue. 

SBA Loan

Since SBA loans are backed by the government, their requirements are a bit more strict when compared to other funding options. To be eligible for a Small Business Funding SBA loan, you need up to two years in business (verified through recent tax returns), and at least a 650 personal credit score.

When applying for an SBA loan, you'll need multiple financial statements, including your profit and loss statement, your balance sheet, and maybe more depending on if Small Business Funding requests additional documents. You'll also need your company's banking history for the past three months.

Small Business Funding's SBA loan amounts range from $30,000–$350,000. Repayment terms last 10 years with monthly payments, and the annual percentage rate ranges from 6.50 percent to 8.75 percent (Prime Rate + 2.75 percent to 3.75 percent).

Following initial approval, it can take up to four weeks to receive funding. 

Line of Credit

A line of credit is great for businesses that don't want a set amount of money upfront. Instead of giving you a lump sum of money, a line of credit gives you flexibility in how much you want to withdraw at one time. You'll be approved for a maximum amount and after that, you can decide how much of that you want to withdraw.

Once Small Business Funding approves your business for a line of credit, you can have access to funding in as little as 24 hours. To qualify for this fast business funding, your company needs at least six months in business, a personal credit score of 620, and an annual gross revenue of at least $300,000. 

When applying, you'll also need your company's bank history for the past three months. Small Business Funding's line of credit amounts range from $10,000–$250,000. Repayment terms are 6- or 12-month terms, and interest rates are 12 percent to 47 percent simple interest (annualized). However, Small Business Funding states on its website that not all businesses will qualify for these rates.

Term Loan

Term loans are more standard short-term loans that are easier to qualify for than SBA loans. With Small Business Funding, you'll still need at least two years in business, and you'll need to provide a profit and loss statement, a balance sheet, and your company's bank history for the past three months — same requirements as an SBA loan. However, you'll only need personal credit up to 640, whereas the SBA loan requires at least a 650 in personal credit. 

Small Business Funding's term loan amounts range from $30,000–$200,000, and repayment terms are two to five years with monthly payments. Annual percentage rates start at 6.99 percent and can go up to 26.99 percent. However, not all small business owners are eligible for these APRs.

It can take up to two to four weeks to receive term loan funding. 

Equipment Financing

Equipment financing is Small Business Funding's largest funding option of up to $1 million that can potentially cover 100 percent of your company's equipment costs. To qualify, you'll need your equipment invoice and a personal credit score of 600 or more.

Unlike Small Business Funding's other funding options, you don't need a minimum time in business for equipment financing as long as you're currently in business when you apply for funding. 

Approval for equipment financing typically takes between 24–48 hours, and you can receive funding within one week after approval.

Repayment terms for equipment financing start at one year and can go up to five years with monthly payments, depending on your financial situation. 

Transparent Loan Terms

Small Business Funding is transparent with its loan terms, including loan types, requirements, repayment information, annual percentage rates, etc. 

Many business financing companies provide limited information on their websites and require potential borrowers to fill out an application before receiving any rates or requirements. It's refreshing to see Small Business Funding provide an in-depth website so small business owners don't have to dig for information.

So much information upfront also makes it easier for borrowers to decide quickly if Small Business Funding seems like a good fit for them. The simpler the business loan process, the quicker businesses can have access to additional cash flow to grow their company. 

No Collateral

Small Business Funding does not require collateral for any of its business funding options. Many financial institutions, especially banks, require collateral since small business loans are high risk. However, because not requiring collateral is riskier for Small Business Funding, payback is likely higher than most traditional lenders that do require collateral. 

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The Bad

  • Lengthy Funding Times
  • Limited Loan Amounts
  • High Credit Score Requirements
  • Unknown Fees

Lengthy Funding Times

Some of Small Business Funding's financing options have longer funding times than other business lenders in the industry. For example, Small Business Funding's term loan financing can take two to four weeks, while other financial institutions can fund term loans in as little as 24 hours. Many businesses need fast business funding, so slow funding times may be a deal-breaker. 

We listed the company's funding times for each financing option below:

  • Working capital advance — two to three days
  • SBA loan — up to four weeks
  • Line of credit — 24 hours
  • Term loan — two to four weeks
  • Equipment financing — one week

Limited Loan Amounts

Small Business Funding's largest loan amount is its equipment financing that can reach up to $1 million. Many business financing companies offer a variety of loans for amounts that are closer to $5 million. 

Here's a list of Small Business Funding's loan amounts:

  • Working capital advance — up to $500,000
  • SBA loan — $30,000–$350,000
  • Line of credit — $10,000–$250,000
  • Term loan — $30,000–$200,000
  • Equipment financing — up to $1 million

High Credit Score Requirements

When compared to other business lenders, Small Business Funding has high credit score requirements for its small business loans. Many business loan providers require credit scores in the 500s, but Small Business Funding's FICO credit requirements are above 600, which makes it difficult for borrowers with bad credit to receive funding. We put together a list of the company's credit score conditions below:

  • Working capital advance — no credit score requirement noted
  • SBA loan — 650 credit score
  • Line of credit — 620 credit score
  • Term loan — 640 credit score
  • Equipment financing — 600 credit score

Unknown Fees

Because Small Business Funding isn't a direct lender, the fees will depend on which company you choose to finance with. Small business owners often have to pay origination fees — also known as closing fees — that typically range between two to five percent. 

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The Bottom Line

Small Business Funding is an online marketplace that connects you with online lenders that fit your financing needs. The company is transparent about its requirements, so borrowers don't have to worry about digging for information or filling out an application before receiving basic loan terms. You can find the majority of Small Business Funding's loan terms and requirements listed above.

Although Small Business Funding seems to be a quality lender with transparent information, when compared to other online lenders in the industry, the company has limited loan amounts, lengthy funding times, and high credit score requirements that make it difficult for business owners with poor credit to receive funding.

We suggest checking out the top-rated small business lenders before making your business capital decision. If you want additional information about the company, you can find Small Business Funding reviews below. 

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