In 2012, United Capital Source helped businesses get more than $30 million. Future forecasts suggest that UCS can provide $4 million on the monthly level within the coming years. One recent press release that United Capital Source published says they helped over 100 businesses during a one-month period in 2013, injecting over $3.95 million into businesses that needed short-term cash. That number includes the company’s direct and indirect funding sources.
While these states are impressive, the company is missing too much information on their site for us to recommend them. Read our United Capital Source review below to see why.
Typical borrowers can be those with bad credit needing small loans, or those with good credit looking to get a large amount of quick funds.
The company provides funds to increase cash flow. Many companies use the loans to buy supplies, pay additional employee wages, cover unexpected costs, and more.
The Borrowing Process
United Capital Source offers a team of business lending specialists to discuss requirements and the best options for funding.
United Capital Source offers several types of small business loans – borrowers can take out a max of $2 million in small business loans or $1 million with all other loans. Benefits of the United Capital platform include:
- It only takes 5 days to get funding
- They approve both start-ups and established businesses
- Borrow up to $2 million
Easy, Disclosed Requirements
To get funding from United Capital Source (UCS), your company must be generating $10,000 or more in sales per month for 3 months. A personal FICO score of 500 or above is required for most business owners, but is not necessary.
The business owner must also be a US citizen and the business must be operating in at least one of the 50 states.
No Collateral or Personal Guarantee Needed
With a loan from United Capital Source, you do not need a personal guarantee or collateral. This may mean that the interest rates are higher, however, small businesses with no credit history or collateral will always need to pay higher interest rates.
Referral Rewards Program
Additionally, UCS has a referral program for both its financing and POS customers. The benefits of using this referral service include, competitive pricing for business referrals, referred businesses get to work closely with a dedicated sales representative, and online login options and reporting for business referrals.
While United Capital Sourcecan help businesses in need of financing, there are some drawbacks to their service overall. Those considering UCS to provide a loan should look into the following areas first:
There are some key pieces of information missing from their the data UCS makes public.
- There is no information about interest rates or APR on UCS’s website
- There is no information about additional fees on UCS’s website
- There is no information about loan term lengths on UCS’s website
- There may be prepayment penalties
- Requires a minimum revenue of $10k per month to be considered
UCS Uses Factoring for MCA Loans
Factoring is when a business sells your loan to a third party. This allows funds to be transferred to your account quicker, but it comes at a price. Fees from a lender that uses factoring are typically much higher than bank interest rates; a typical 4% monthly fee is roughly a 48% APR.
Factoring borrows money from future anticipated invoices, meaning that your long-term cash flow can be put at risk of being seriously undermined.
Unsecured Lending Means Higher Rates
Another problem with UCS is the lack of secured lending available. An unsecured loan (meaning you don’t put up any personal or business collateral) is great for business owners who have no collateral. But, it also means that interest rates will be higher (to make up for clients potentially not paying loans back). In most cases, it is best to secure a loan with your business’ collateral.
Missing Key Pieces of Information
Our biggest concern with with United Capital Source is that they do not disclose key pieces of information on their site – and it’s information that is widely available by the top business loan providers. While we do know the requirements to apply for a loan with UCS, we don’t know how long their loans are offered for. We wish they would tell us how many years (or months) loans need to be paid back in.
UCS also does not disclose any information about fees. This includes interest rates, APR, origination fees, and closing fees. We assume that because these rates are not shown online, they are higher than other companies.
Types of Loans Offered Include…
- Small Business Loans
- Merchant Cash Advance
- Working Capital Loans
- Accounts Receivable Loans
- Business Lines of Credit
What Are Typical Rates?
Compare to Other Companies
- $10,000 in revenue per month
Before you apply for a small business loan from United Capital Source, here are a few things you will need:
- A minimum credit score of 500
- 10k in monthly revenue
- Business established for at least 3 months
- No personal guarantee or collateral
How to Apply
United Capital will ask you to fill out all of your basic information like name, phone number, email address, etc. After filing out that information, you will be taken to a longer application page. The page asks you to NOT fill out any other loan applications on other sites. We can assume this means that once you fill out an application with United Capital Source, they do a hard inquiry of your credit score, which means it will negatively effect your credit score.