Headquartered in South Jordan, Utah, Lendio has been providing business loans primarily to small businesses since 2006. The award-winning company has focused its efforts on changing industry norms for providing small business loans and has been successful in creating a name for itself within the business loans industry. The company has simplified the application process and increased the number of loan options, removing the hassle of going from bank to bank researching the different lenders. However, Lendio does not fund startups and those consumers hoping to use the company must have a credit score of 550 or higher.
Kabbage is an online lending company based in Atlanta, Georgia and has developed an online algorithm that simplified the financing process for small businesses. They are unique in the business loan industry because they use data from business checking accounts, payment processing, shipping data, and other e-commerce sites to reach small businesses that are looking for loans. Kabbage boasts a high success rate: Over 80 percent of all Kabbage transactions come from repeat users.
For borrowers looking for a small business loan from Kabbage, having a low credit score won't necessarily knock them out of the running. Kabbage looks primarily at current revenue (they want to see more than $50k/year) and the amount of time in business (needs to exceed one year). Typical Kabbage borrowers also have a good social media presence and high amounts of inventory. Small business loans from Kabbage are typically used for inventory purchases, system upgrades, and marketing. Consumers that choose Kabbage should remember that they must have a credit score of 550 or higher and that funding is not available to startups.
LoanBuilder, A PayPal Service is a business loan serviced by Swift Financial LLC. Swift Financial was established in 2008 with a mission to provide small businesses quick access to funding. In 2017, PayPal acquired Swift Financial to help continue to fuel the dreams of more small businesses.
Founded in 2005, RapidAdvance has provided over $1 billion in financing for small businesses across the United States. With approval in 24 hours or less and funding within three business days, customers get fast access to their money. RapidAdvance provides a variety of financing options, but individuals who are considering RapidAdvance should note that they must have a credit score of 550 or higher.
Founded in 1988 and based out of Irvine, California, Balboa Capital is one of the oldest independent lenders that can be found on the internet. The company initially made its reputation by providing equipment leases, but today, Balboa Capital offers a number of other funding options, including small business loans, commercial financing, vendor financing, and franchise financing. Consumers that choose Balboa should remember that they must have a credit score of 550 or higher and funding is not available to startups.
OnDeck began offering loans to small businesses in 2007. Since their founding, they have lent over $7 billion to over 700 industries. Today, OnDeck is one of the top sources for business term loans and business lines of credit.
In addition to having a generally positive reputation among borrowers, OnDeck was part of the Fortune 50 Best Small and Medium Companies to Work For in 2016. Many people who have taken out business loans with OnDeck have left positive reviews for OnDeck at the bottom of this page. Consumers that choose OnDeck should remember that they must have a credit score of 550 or higher.
Torro is a business loan provider that is dedicated to helping others reach their personal business goals. Since being founded in 2012, Torro has grown to specialize in small business, new business, and even startup loans, catering to the needs of individuals hoping to jumpstart and expand their businesses. The company prides itself on granting fast approvals for all types of business loans (with funding approval given in as little as one hour), and its high quality service. In addition to loans, Torro also offers consultations for small businesses and startups. Consumers that choose Torro should remember that they must have a credit score of 600 or higher.
CAN Capital is the largest source of alternative funding for small businesses in the United States. Since 1998, the company has provided almost $6 billion in capital, assisting roughly 125,000 small- and medium-sized businesses throughout North America.
Do you dream of becoming your own boss? Or perhaps you’re already your own boss and want to expand your company. Those daring enough to take the plunge and apply for a business loan will find it can sometimes be a complicated process. To find a loan that fits your company, consider all the factors you’ll encounter when applying. Here are a few helpful things for you to know when looking for a business loan company:
Finding the right loan for your business is a daunting task. There are a plethora of business loans, each with unique aspects and requirements. Keep in mind all the factors that could affect your loan such as personal and business credit history, sufficient collateral, profitability, and cash flow. However, don’t let this discourage you. Don’t be afraid to ask questions and look around until you find the right lender and loan. Make sure to ask your lender what loans they offer and which one will help your business.The most important thing is to find a loan that will best benefit you and your company’s needs.
Lenders will want to know everything about your business. Take the time to tell them about your business, clients, and industry. You can also share how you plan to spend the loan money and where you want to be in the next 5-10 years. Additionally, be sure to bring any documents that can speak to the credibility of your business, including business and personal credit histories, business plans, proof of collateral, bank statements, tax returns, and any other legal paperwork.
You filled out your business loan application a few months ago and are waiting to hear back about the decision. However, the lender calls to inform you that your business loan was rejected. This news would bring anyone down and feel discouraged. In fact, this is the case for many people attempting to get a business loan. Some people never even figure out why their application was rejected. Before hanging up the phone ask what it was that influenced their decision. Sometimes it can be that your business involves to much risk or there wasn’t a clear business plan. Most of the time it is something that can be changed and fixed. Before you submit another application make sure to revisit all aspects of your business proposal to make sure they meet the requirements.
Traditional bank loans are probably the most common when starting to apply for loans. However, just because they are the most common doesn’t mean that it is the best fit for you and your company. Finding the right business loan company takes time and patience, so be prepared to shop around. Focus on companies that are best suited to your current needs.
Be aware of the following items that a lender will look for in your business loan application:
Personal credit score: Your personal credit score plays a key role in whether a lender decides to grant you a business loan. Lenders want to try to guarantee that you’ll make your monthly payments and pay back the entire loan. A personal credit score allows lenders to make a judgement call about whether they’ll approve the loan. Generally, most lenders prefer a credit score of 700+, but there are exceptions.
Amount of time in the business industry: Lenders will consider how long your company has been operating. Most lenders require that your company be in business for 1-2 years before they’ll consider you for a loan.
Collateral: Before giving you the loan, lenders will want to know that if something goes wrong they’ll have something tangible to sell. Collateral can be a car, real estate, work equipment, cash, accounts receivable, or other assets. Lenders tend to undervalue collateral as it lessens the risk they have to take. Undervaluing the collateral requires a borrower to provide more assets to secure the loan.
What types of business loans are there?
Depending on the company and industry you’re in, there are various options for business loans. Each loan lender will specialize in different kinds of loans, and not all of them will be right for your company. Some loans are customized for startup companies, seasonal companies, companies that need equipment, companies that want to increase their working capital and more.
Why should I get a business loan?
While loans can be risky, they can also benefit your company. You can get a business loan for a variety of reasons:
How can I increase my credit score and qualify for larger loans?
Many business owners choose to take out smaller, short-term loans. Consistently making on-time payments will build your business’s credit score and credibility, making it more likely for you to qualify for larger loans in the future.
How long does it take to get a business loan?
This can depend on a number of factors, but don’t expect to walk out of your lender's office with a handful of money on day one. Assuming all documents are correct and present, it can still take weeks or months for your business loan to be accepted. Research each lender’s application and approval process before taking out the loan, just in case it takes longer than you thought.
What’s the difference between a bad business credit score and a thin business credit score?
A business credit score is based on various factors, including your payment history, bankruptcies, liens, etc. A bad credit score shows that you have failed to make your scheduled payments, otherwise known as payment defaults. Whereas, a thin credit score means you don’t have a sufficient amount of business credit history, making it hard for lenders to determine creditworthiness. In both cases, it can negatively affect whether you get the loan.
How can I fix my bad/thin business credit score?
Fixing your credit score will take some time, but there are several steps you can take. Be aware that it could be a while before you see any drastic results.
First, pay all your bills on time or, even better, pay them early. A late payment will lower your score, and it only gets worse the longer you leave it. Second, be on good terms with your vendors. Your suppliers can make a big difference in your credit score. Some vendors will report your on-time payments or early payments to credit bureaus, which will raise your credit score. Another tactic to fix your credit score is to open more than one credit line. Or, you may want to try getting a secured credit card. A secured credit card allows you to set up a security deposit that acts as collateral. If you put down a $500 security deposit, your card limit is $500. Making regular, consistent payments to this card will positively affect your credit report. Last, keep your personal finances and business finances separate. A simple way to do this is to open two separate accounts, one for business and one for personal.
What is the best business loan company for me?
First, identify what your company needs. If your company is looking to expand, don’t apply to a loan company that focuses on equipment financing. The best thing you can do for yourself and your company is to take the time to find the right lender. Reading reviews, calling and asking questions, and reaching out to those who started their own businesses will help you find the best fit. Each business loan company will have different requirements and qualifications so taking the time to conduct your own research is key to finding the right business loan company.