Founded in 2013, BlueVine offers online working capital financing to small and medium-sized businesses. The company allows business owners to get financing through their invoice factoring or business line of credit products. Through their invoice factoring product, BlueVine provides cash advances on outstanding invoices of up to $5 million. Instead of waiting 30, 60, 90 days and sometimes longer, business owners are able to access funds trapped in unpaid invoices immediately. BlueVine also provides a flexible business line of credit of up to $200,000. BlueVine founder and CEO Eyal Lifshitz told the Wall Street Journal that he started the company partly because he recalled how his father, a physical therapist, struggled to maintain his business while waiting 90 days for customers to pay. With BlueVine, businesses are able to grow quickly by getting the cash needed to cover expenses. BlueVine has already funded over $800 million to small businesses since 2013. Consumers that choose Bluevine should remember that they must have a credit score of 550 or higher.
First Financial is a small credit card processing and merchant service company that was founded in 1996. They specialize in offering personal and business services. Personal services consist of auto loans, cash advances, credit cards, student loans, mortgage loans, personal loans, and low credit score loan services. Business services you can find at First Financial are high-risk merchant accounts, merchant service, merchant advance, and business loans. The consumer loan deals and consumer services are not provided by First Financial, but rather from an independent third-party company. The credit card services are issued by a third-party credit card company as well. First Financial claims to help those with low credit scores to get a loan, credit card, or other financial services. Consumers that choose First Financial should remember that they must have a credit score of 550 or higher.
Lending nearly $11 billion since 2007, Lending Club is one of the world's largest online funders. Today, they offer business loans, personal loans, auto-refinancing, and patient solutions. Compared to traditional and other alternative loaning programs, Lending Club operates at a lower cost, giving borrowers access to a lower APR. Consumers that choose Lending Club should remember that they must have a credit score of 550 or higher.
Formally known as Retail Capital, Credibly is a small business lender that helps businesses navigate the murky underworld of alternative funding. The company has been in business since 2010, and its employees have over 50 years of combined experience. Like most alternative funding companies, Credibly helps customers who are underserved by banks and works hard on underwriting procedures to provide business owners with viable alternatives to SBA and conventional business loans. Consumers that choose Credibly should remember that they must have a credit score of 550 or higher.
Bond Street began providing loans to small businesses in the United States in 2014. The company offers loans of $50K-$1m for term lengths of one to three years. To qualify for its loans, businesses must have been in operation over two years and have annual revenues of over $200,000. Bond Street reviews both the business owners' personal credit scores and their companies' financial information to determine if businesses qualify for loans and what rates and terms will apply to those loans. The company states business owners who have a personal credit score of 640 or greater are most likely to qualify for funding, however, consumers that choose Bond Street should remember that they must have a credit score of 550 or higher.
Shield Funding is an alternative lending company with an edge. Sam Baitz, Founder & CEO, decided that he wanted to resolve the issue of tedious bank loan processes and decrease the rate of rejection. The great part is that they not only offer money to those with bad credit reports-but they additionally specialize in that. Consumers that choose Shield Funding should remember that they must have a credit score of 550 or higher.
Able is a low-cost online lender that caters to small businesses and startups. The company charges some of the lowest rates in the industry (maxing out at 25% APR), and boasts flexible requirements to help even brand new businesses secure the funds they need; however, the company also falls behind in some areas, like the waiting period before funds are disbursed, and other limitations. Overall, Able Lending is a solid option for borrowers interested in peer-to-peer lending options. Consumers that choose Able Lending should remember that they must have a credit score of 550 or higher.
Funding Circle is an online peer-to-peer lending marketplace founded in 2010 in San Francisco, California. The company has assisted over 15,000 businesses globally with more than $2 billion in small business loans. The company offers small business loans up to $500,000 with fast approval times and funding within ten days. The main complaints from customers involve too many emails received by the company.
Typical borrowers through Funding Circle have been in business for at least three years. Small business owners also should not have any bankruptcies on record within the last seven years. Borrowers must be able to provide both personal and business collateral and show proof of consistent income. Startup companies and business owners with bad credit will want to consider alternative lending options. Consumers that choose Funding Circle should remember that they must have a credit score of 550 or higher.
Small business loans from Funding Circle are typically used for inventory purchases, location expansion, debt refinancing, and payroll.
Synergistic Investments, LLC is an online lending company founded in 2013 by CEO John Terry Nicasio and its corporate headquarters are based in Cerritos, California. The company offers unsecured loans up to $150,000 to borrowers of all credit types with no collateral required. Approval generally takes one day and funds can be received within 10-20 days. There is no customer feedback regarding the company available online and the company does not have a corporate profile with the Better Business Bureau.
Synergistic Investments is best suited for small business owners who may have difficulty qualifying for loans through traditional banking lenders. The company works with all types of credit histories and does not require collateral or income verification. Typical borrowers are startup and real estate companies needing easy access to short-term capital and 100 percent financing for real estate deals. Terms range from six months to two years, depending on the approved amount. Consumers that choose Synergistic Investments should remember that they must have a credit score of 550 or higher.
Small business loans from Synergistic Investments are typically used for inventory and equipment purchases, marketing, and payroll.
Personal Money Service is an online loan marketplace that was founded in 2013 in San Bruno, California. The company assists borrowers with both bad and good credit to receive access to small business loans, merchant cash advances, and business lines of credit. Personal Money Service offers debt consolidation, mortgages, and various insurance options as well. Personal Money Services does not provide loans themselves, but matches qualified borrowers with customized loan options from third-party lenders.
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.