SmartBiz Loans

• Access to SBA Loans
• Potential for Low Interest Rates
• Fee Structure
• Automated Process 
• Venture Capital Support and Partnerships with Industry Leaders

Access to SBA Loans

SmartBiz specializes in SBA loans, which are loans partially guaranteed by the government and tend to have lower interest rates and longer repayment terms than a bank term loan. SmartBiz has plenty of experience in this area: Banks use the SmartBiz platform to process more than 10 percent of the nation’s volume of traditional SBA 7(a) loans under $350,000. 

Bank term loans offer fixed interest rates and shorter repayment terms than SBA loans, but work well for when you need funds quickly and don’t have time to wait for lengthy approval processes. SmartBiz bank term loans have interest rates as low as 6.99% in amounts from $30,000 to $500,000. Payments are due monthly with repayment terms ranging from 2-5 years. 

Businesses can use SBA loans for working capital, debt refinancing, real estate purchases, and business acquisition. With 10-year terms, these types of loans offer small companies an affordable option to maintain or grow their businesses. 

Keep in mind that the interest rate of any loan depends on the loan term, the applicant’s credit, and the applicant’s overall financial profile. 

Potential for Low Interest Rates

SBA and term loans can be substantially more cost effective than other loan types. 

One option with SmartBiz is the potential to get you an even lower interest rate for a term loan: qualifying customers may be able to reduce the term loan interest rate by a full 2% if they will accept a prepayment penalty of 5% of the outstanding loan balance. Of course, you'd need to determine if a prepayment penalty clause is worth it to you. 

Fee Structure

SmartBiz charges a one-time referral fee of 2 percent of the loan amount and a one-time packaging fee of 2 percent. For loans $151,000 and higher, there is also a 2.25 percent guarantee fee paid to the SBA. SmartBiz said most bank closing costs for the loans typically cost $317 although the closing fees may vary depending on third party report charges.

Automated Process 

SmartBiz's online application reduces the amount of paperwork companies have to provide and decreases the amount of time it takes to apply for a loan backed by the SBA. With SmartBiz's application, you can pre-qualify online in as little as five minutes. 

SmartBiz states most loan applications take a couple of weeks, although loans for over $150,000 may take longer. The company claims the streamlined process it has created, which can often be completed solely online, has also increased its customers' approval rate for SBA loans. Once approved, SmartBiz claims companies can receive their funds in as little as seven days.

Venture Capital Support and Partnerships with Industry Leaders

SmartBiz is a brand of Better Finance, Inc., which has received funding from venture capital firms including Investor Growth Capital, Venrock, First Round Capital, Baseline Ventures, and Bronze Investments. SmartBiz has aligned itself with distribution partners to increase its outreach to businesses in need of SBA loans. Distribution partners for SmartBiz's services include Yahoo!, ePay, Xero, California Business Bank, and Sam's Club.

• Negative Customer Service Reviews 
• Limited Loan Types
• High Minimum Qualifications

Negative Customer Service Reviews

SmartBiz is impressive in regards to what it can offer customers. Unfortunately, we can tell based on reviews that it seems to be lacking in customer service. Reviewers have raised complaints about the company’s willingness to respond to phone calls and emails throughout the loan application process, even after being approved. This lack of communication should be cause for concern for prospective customers. 

Limited Loan Types

SmartBiz offers only SBA loans and bank term loans through its lender network, rather than a variety of loan types as offered by other lending platforms. While SBA loans can be used for a number of purposes, you can’t obtain a line of credit, accounts receivable financing, equipment financing-specific, or commercial real estate-specific loans through SmartBiz. 

High Minimum Qualifications

Not all businesses will qualify for the low-interest SBA loans that are the primary market for SmartBiz. If you don’t have good credit, you won’t have any lending options through SmartBiz. There are other lenders that will work with customers that have sub-par credit. 

To qualify with SmartBiz lending partner companies, you’ll need meet the following requirements, which includes a good credit profile:

• You’ve been in business for two or more years
• You are a U.S. citizen or legal permanent resident
• Your personal credit score is above 660
• You have the cash flow to support loan payments
• You have had no bankruptcies or foreclosures in the past three years
• You have no outstanding tax liens, no recent charge-offs or settlements, and you are current on all government-related loans
• You have no criminal record other than minor motor vehicle violations

In addition, companies in the following industries are not eligible for SBA loans through SmartBiz:

• Gambling
• Lending
• Life Insurance
• Religious Teaching
• Political and Lobbying Activities
• Oil Wildcatting
• Mining
• Mortgage Services
• Real Estate Development
• Bail Bond
• Pawn Shops
• Private Clubs