In this video, I talk about how to get approved for the Capital on Tap business credit card! One of my favorite business credit cards!
Credibly is a direct lender of working capital loans and merchant cash advances, offering working capital loans, business lines of credit, equipment financing, and more. They promise fast, flexible loans, excellent customer service. Their biggest selling point is that you may qualify for a loan even if you’ve been in business for as little as 6 months and your credit score is as low as 500.
But is Credibly … credible?
We took a deep dive into the company to see if it’s a viable option for businesses like yours. In this post, we’ll summarize the credit products available from Credibly and share our other findings so you can decide if a loan from Credibly is a smart move for your business.
Here’s what we’re going to cover:
Table of Contents
- Credibly Review
- What is Credibly?
- Who and where is Credibly?
- How does Credibly work?
- What types of funding can you get from Credibly?
- Working Capital Loans
- Business Expansion Loan
- Small Business Line of Credit
- SBA Loans
- Merchant Cash Advance
- Equipment Financing
- Invoice Factoring
- What Do People Have to Say about Credibly?
- Final Thoughts
Promising a “manic” focus on customer experience, Credibly provides short- and long-term financing to thousands of businesses around the United States. Rather than sticking with the standard criteria of time in business and credit score, they use an innovative technology platform to analyze a business’s total health in order to determine its eligibility for a loan.
This is good news if your business is young or if your personal credit score leaves something to be desired. However, that convenience comes with higher costs and more stringent repayment terms than you’d usually get from a traditional bank loan.
Credibly was founded in 2010 as RetailCapital LLC by Ryan Rosett and Edan King with a focus on providing affordable credit to small and mid-sized businesses. In 2015, it rebranded and now does business under the Credibly name. The company is based in Minnesota.
You start the application process from Credibly’s website by entering some basic information about your business, along with your contact information. Assuming you prequalify, you’ll be contacted by a Credibly representative to go over your loan options, determine how much money you need, and what documentation you’ll have to provide.
In most cases, documentation will include:
- Business lease agreement or business mortgage statement
- Picture ID of all owners
- Most recent business tax return (if you are applying for a loan above $100,000)
- Bank statements for the last three months
- Basic personal information, such as your social security number
Credibly promises application review within one business day and funding delivered straight to your bank account, meaning that you could get your funding in less than a week.
Credibly offers a variety of credit products. I’ll go into the costs of each individual loan type in the summaries below.
One important thing to keep in mind is that all Credibly business loans require a personal guaranty by the majority principal(s) of the business. That means you, the individual, are personally responsible for the loan in the event that your business defaults.
Here’s a nutshell look at the financing types, terms, and costs (I explain more about factor rates below):
Many new businesses or startups struggle with cash flow and maintaining adequate working capital. Working Capital loans are short-term loans ranging from $5,000 to $400,000 designed to cover the everyday expenses of running a business, such as payroll, marketing, purchasing inventory, and day-to-day operational needs. (Find out more about working capital here.) These short-term loans can help stabilize cash flow and meet immediate business needs.
At 6 to 18 months, Credibly’s Working capital loans repayment terms are relatively short. The good news is that they’re flexible and fast. Qualifying criteria include:
- You’ve been in business for at least 6 months
- You have a personal credit score of 500 or higher
- You have at least $15,000 in average monthly bank deposits
The downside is that these advantages come at the cost of shorter repayment terms and higher costs. Credibly also requires a UCC-1 blanket lien, meaning that Credibly has the right to seize all pledged assets owned by a debtor in the event of a default. Repayments are made in the form of automatic withdrawals from your account on either a daily or weekly basis.
Unlike longer-term loans, the working capital loan doesn’t accrue interest. Instead, there’s a fixed “borrowing fee,” known as a factor rate, starting at 1.15. (To figure out the cost of your loan, multiply the amount of the loan by the factor rate.) Unlike an interest-bearing loan, factor rates prevent borrowers from making additional principal payments to save money on interest. You’ll also need to pay a one-time origination fee of 2.5% of the total loan amount, which will be deducted from your proceeds.
Credibly’s Business Expansion Loan provides larger-scale growth capital at longer repayment terms than the Working Capital Loan. It’s designed for business owners with a proven track record of success and financial security who are looking to make capital investments in their companies. If you’re thinking about opening a new location, purchasing new equipment, expanding your team, or launching a new product, a business expansion loan might be what you need to take your business to the next level.
The Business Expansion Loan is a more traditional option than the Working Capital Loan. Like a regular bank loan, Business Expansion Loans accrue interest, which ranges from 9.99% to 36%. Your rate will depend on Credibly’s assessment of your business’s overall health. As with the Working Capital Loan, there is a 2.5% origination fee. Repayments are made weekly.
A 2.5% origination fee is okay, though you could probably find lower fees. And while 9.99% for the Business Expansion Loan isn’t bad, 36% is definitely on the high side.
Requirements for a Business Expansion Loan are more stringent than for a Working Capital loan. Qualifying criteria include:
- You’ve been in business for at least 3 years
- You have a personal credit score of 600 or higher
- You have business revenue of at least $15,000/month, with an average daily balance of at least $3000
Credibly will almost certainly be faster than a bank loan, letting you take advantage of opportunities when they arise. On the other hand, the fixed weekly payments might be difficult for businesses with fluctuating revenue, and a business expansion loan from them will almost certainly be more expensive than a traditional bank loan.
A business line of credit is similar to a credit card. It allows you to borrow up to a certain amount, or credit limit, as you need it. After you pay off what you’ve used, the full line of credit is available for you to use again, giving you access to funds when you need them without having to pay for what you don’t use. Typically, the interest rate will be lower than a standard credit card, however. (Learn about the ins and outs of business credit.)
Unlike a credit card, however, business lines of credit typically have lower interest rates and do not have mandatory monthly payments.
Credibly provides access to both secured and unsecured business lines of credit with a maximum credit limit of $250,000.
Minimum criteria for a Business Line of Credit from Credibly:
- 560+ personal credit score
- 6+ months in business – located in the United States
- $50,000+ in annual revenue
Interest rates and funding amounts begin at 4.8% and are based on a review of your business, personal FICO score, and other factors. An origination fee may be required.
The Small Business Administration (SBA) helps small businesses get funding by partially guaranteeing loans made by private lenders (Learn more about Small Business Loans here). They’re typically more difficult to qualify for but offer low rates and more favorable terms than other loans. Credibly is able to provide access to SBA loans for working capital, debt refinancing, and equipment purchases.
- 620+ personal credit score
- 2+ years in business
- The business owner must be a U.S. citizen or legal permanent resident
- Must not have outstanding tax liens
- No bankruptcies or foreclosures in the last 3 years
A Merchant Cash Advance (MCA) is a lump sum of funding is given to a business in exchange for an agreed-upon percentage of future revenues or credit card sales. It’s not a loan; rather, you’re selling a percentage of your future sales for cash upfront.
Generally, I don’t recommend merchant cash advances as they tend to be much more expensive than other financing options (you can read some of my thoughts on alternative financing here). Credibly’s factor rate for a Merchant Cash advance starts at 1.15, in addition to a 2.5% origination fee, and a monthly “administration fee” of $50.
- 500+ credit score
- 6+ months in business
- $15,000+ average monthly bank deposits
If you need to buy or lease specific equipment for your business, equipment financing allows you to obtain the equipment you need now and pay for the asset over its lifetime. Examples include healthcare equipment, construction equipment, vehicles, kitchen equipment, and other large hard asset purchases that allow you to increase production and grow your business.
Unlike its other products, Credibly doesn’t state the terms, rates, or minimum qualifications for its Equipment Financing on its website.
Invoice or accounts receivable factoring lets your business sell its invoices to a factoring company at a discount in exchange for upfront funding. The factor company then advances you up to 95% of the invoice amount, collects the money from the client, and sends any remaining balance to you, minus a fee.
This can help you maintain a positive cash flow when dealing with slow-paying clients. However, the overall costs may be higher than a traditional loan, and access will depend in part on your client’s creditworthiness.
At the time of writing, Credibly has 889 reviews on Trustpilot, 91% of which are either 4 or 5 stars. So far, so good. However, the 50+ one-star reviews are pretty damning. Many of the complaints claim that Credibly mishandled requests for PPP funding. Others complain of misleading information about fees, lack of communication, and poor customer service.
Lending Tree has 20 reviews, all of which are 4 or 5 stars. The Better Business Bureau, on the other hand, gives Credibly an A+ rating, but feedback consists solely of one-star reviews.
Of course, it’s human nature to share the bad news and be less interested in sharing a positive or even neutral experience. Furthermore, 2020 and the PPP loan situation was unprecedented, and Credibly certainly wasn’t the only company that had trouble keeping up.
I recommend reading both the good and bad reviews as part of your due diligence. Even more importantly, as with any loan agreement, you should read the fine print carefully and ask questions about anything you don’t understand. It’s clear from reading the reviews that many customers didn’t
fully understand the terms they’d committed to.
On average, Credibly loans will cost more than traditional loans, so understand what you’re getting into before you sign and make sure the extra cost is worth it to you.
Credibly’s rates, including interest, factor rates, origination fees, and an admin fee in the case of merchant cash advances are on the high side. If your business is young, you don’t have great credit, and you have at least $15,000 in revenue per month, Credibly could be a viable way to get the funding you need to stay in business or expand. It’s a relatively young company, but it’s legitimate, and it has enough happy customers that it’s obviously doing something right.
That said, I can’t really recommend loans through them unless your business is really on the ropes, and if it is, the personal guaranty could be really dangerous. Before committing to Credibly or any other company, you should shop around carefully for quotes. You can probably get comparable loans for less money, especially if you’re more established and/or have a solid credit score.
Even better, though, would be learning how to qualify for better funding options through business credit coaching. If you want to learn how to build business credit so you can obtain up to $100K in funding in 30 days, enroll in Business Credit Workshop today.
So you found a sweet investment property, and you’ve decided that a hard money loan is a good move for you. Great! You’ve taken some huge steps in the right direction to be a profitable real estate investor. If you thought the decision making was over, though, here’s the next step: choosing a hard money lender.
(If you’ve found yourself here and aren’t sure what exactly a hard money loan is, you can find more information on that here, in our guide on what is a hard money loan. To summarize, a hard money loan is a type of borrowing that includes a short, as in less than one year, contract and high interest rates.
This type of loan appeals to real estate investors who can’t get traditional loans either due to:
- a lack of time
- a less than perfect credit history
- no other lender willing to lend on an asset that needs major repairs
This next step in your property investment process is where Alpha Funding comes in (Alpha has been renamed from Alpha Funding Solutions to Alpha Funding Partners). As your partner, Alpha Funding is a vital aid in the hard money borrowing process.
So, why use Alpha Funding as your hard money lending partner?
Well, as a company with over a decade in lending experience and $60 million in active loans circulating the United States, there are scant reasons not to.
With Alpha Funding, Enjoy Lower Interest Rates…
We all know that the ugliest feature of a hard money loan is its double-digit interest rates. These infamous rates can range from as low as 10% to, if the cards are playing against you, up to 15%.
These rates bloat the monthly payment of your loan to the point where essentially no principle is included in the payment.
For one of the most common hard money loans, a fix and flip, Alpha offers a much slimmer 8.99% starting interest rate, and a modest two points required at closing.
You can learn more about points in a hard money loan here.
…Barring a Few Other Requirements
This particular rate may sound like a dream come true, but there are setbacks. This loan’s attractive interest rate, called “The Luxe,” comes with a few prerequisites.
Borrowers hoping to utilize this loan through Alpha should have a track record of at least three successful fix and flips. Additionally, you should have a FICO score of at least 650 and a clean financial slate if you hope to land this funding through Alpha.
However, if you’re a newbie to the fixing and flipping world, Alpha can still help you with an interest rate of less than 10%. This loan, called “The Plush,” starts at 9.99% and requires no track record of rehabbing properties to get approval.
You might want to still double check your credit reports, though, because the step-down from The Luxe loan still requires a 600 FICO score, but will allow certain adverse background histories.
Also consider the down payment for this program, because the underwriter is going to want 10% of the purchase price as down payment. And keep in mind, you can use a business line of credit as the down payment.
Interest Offers for Other Hard Money Loans
Are you looking to fix up a property… and then hang onto it for yourself as a rental? Or maybe you want to breathe some life into a dusty old storefront? Alpha Funding has leading competitive interest rates for a full line of hard money loan types.
New construction is a popular venture funded by Alpha, with a moderate interest rate sitting at just below 11%. You’re going to need to have successfully funded a construction project with hard money before, and have a 620 FICO score ready.
Bridge loans are available for more diverse projects, including retail spaces, multi-family units, and more. The interest rate begins at 9.99% and no prior experience from the borrower is required.
If you’re a long standing Alpha customer, you can get 100% financing loans that entirely cover the purchase.
Custom Tailored Contracts? No Problem
Typically, hard money lenders and even traditional bankers want things done on their own terms, down to the payment date and the length of the loan. If you would benefit from lenders who are open to negotiations, Alpha Funding is the right partner for you.
Alpha’s superior loan officers can work with you to tailor a loan to your needs. With flexibility in loan terms, access to capital, and personalized experiences with underwriters and experts, your custom hard money goals can be addressed.
Alpha Funding Solutions isn’t Right for You If…
You have devastated, bottom of the barrel credit. To continue being able to do what the company does, Alpha Funding has to assess each potential borrower for risk to some degree. People who have serious infractions on their credit pose an uncertain future to lenders at Alpha Funding.
While your credit and financial history doesn’t have to be perfect, it definitely should not be a smoking ruin.
Alpha may also not be suitable for you depending on the state you live in. The company currently funds a select amount of states in the US, which you can find here.
Alpha Funding May be Right for You If…
Your credit and financial history is pretty average, and you are looking for a strategic guide through your experience as a property developer or rehabilitator. Having fixing and flipping experience is a plus in order to get lower interest rates, but not required to have a positive experience at Alpha.
If you happen to live in the northeastern area of the United States (Pennsylvania, New York, New Jersey, etc.), you may be lucky enough to be able to do business with your loan officer face to face.
Even if you’re out of headquarters’ immediate area, you’ll experience timely and personalized encounters with your hard money lending expert.
If you’re hoping for a quick approval process and need to close on funding within ten days, Alpha Funding is the partner for you.
Hard Money Looks Scary, But it Doesn’t Have to Be
The reputation of hard money is shady at best. You may be picturing a no-mercy shark of a man hunting down his borrowers and wringing them of every dollar, but the era of that type of hard money has come and gone.
Modern lending partners such as Alpha Funding are flexible and receptive individuals who have just as much of a hope to see their communities expand and succeed as you do.
If the world of hard money lending appears tangled and messy to you, Alpha Funding is here to simplify it for you.
Learn more about Alpha Funding Solutions and get a pre approval quickly here.
When you hear the phrase “hard money loans,” you may think of a steely, shady man who hunts down borrowers and sharks them with high interest rates. Or, maybe you think of people in desperate times looking to make money fast.
While those financial predators did exist at one time, thankfully, that’s not so much the case anymore. Now, hard money loans typically come from investors or private individuals, as opposed to a traditional mortgage lender.
However, hard money lending still often gets a bad rep.
What is a hard money loan?
To put it in simple terms, when you take out a hard money loan, you’re borrowing money for a significantly shorter period of time, backed by real estate. This means that you may take out a hard money loan with a term of 12 months and use a house as collateral.
Typically, someone who takes out a hard money loan is paying only interest, or almost only interest with a small amount of principal, month over month.
You may be asking yourself why anyone would want to do that, right?
Well, hard money loans may be right for you if you know a thing or two about real estate.
What is Hard Money, and is it Safe?
The best way to explain hard money is to compare it to a traditional loan. Let’s say you’ve just paid in cash for a house that’s in rough shape; you want to fix it up and flip it for a nice profit, but you need some extra capital to do that. You may walk into, say, JP Morgan & Chase, sit down in front of a banker, and ask for a loan.
What happens next?
The answer is a whole boatload of things. Your banker will investigate your credit, inquire about your payment history, consider your debt to income ratio, and grill you about your other monthly expenses.
Traditional lenders look hard and long at the lender to decide if they’re an acceptable risk. Hard money lenders, on the other hand, don’t care much about how much of a risk you are at all.
The reason for that is because you’re backing up a hard money loan with the deed to your house that you just bought. So, they don’t care if your credit score is embarrassingly low or if you’re up to your eyeballs in debt.
As long as the house you’re backing your loan with is up to snuff, your hard money loan will be approved, because if you don’t pay, the lender will just take your house to call it even.
So, hard money loans are typically safe as long as you’re confident that you can meet your monthly payments.
What Should (and Shouldn’t) I Use a Hard Money Loan For?
Hard money loans can be used for just about any property, including single-family homes, multi-family homes such as duplexes and apartment buildings, commercial properties, undeveloped lands, and industrial properties.
You shouldn’t use a hard money loan on your own personal home, or a property that you plan on owning for an extended period of time.
Some hard money lenders have a property type preference. For example, some will only lend out funds for single family residential homes, while others specialize in apartment complex developments.
Additionally, most lenders will not lend on a property that the owner intends to occupy. You can find out why here.
What Extra Costs Should I Plan For?
To sum it up in one word: interest. Your hard loan lender will slap a hefty interest rate on your loan; usually a minimum of 10%, with a high of 15% and an average of 12%.
Comparatively, depending on your credit score, a traditional lender might grant you a more modest interest rate of anywhere between 2% and 5% lower.
You may be able to coax funding out of a hard money lender for the full price of the house and even some of the rehabilitation costs, but you may be spooked in turn by the consequent jump in interest rates, usually by up to 3%.
The good news there is that, in areas with a lot of hard money lenders, they have to compete with each other by vying for the lowest interest rates. If you’re lucky enough to live where there are plentiful hard lenders, you get the privilege of shopping around for the most agreeable rates.
A hard money lender is taking on a substantially higher risk by loaning money regardless of someone’s credit history. For this reason, they will also carve out a lender’s fee on your contract. These fees are usually referred to as points, and each point is typically equal to one percent of the loan.
These fees will surface around closing time. Lenders commonly require a payment of around three points at the time of closing.
Your lender will probably only provide you with up to 75% of what your collateral property is worth (or sometimes what it will be worth after repairs, also known as After Repair Value). So, for example, if you need $80,000 in funding and are backing it up with a house valued at $100,000, you’re going to need to have an extra $5,000 in assets ready.
It’s important to note that 75% is a pretty high maximum on that loan to value ratio, with most lenders averaging about 65% of your collateral’s value.
Why won’t they loan you the full amount of what your property is worth?
Well, if they have to repossess your collateral due to nonpayment, they need to ensure that they can break even with the sale of the property. Everyone needs to make money somehow, right?
Why Would I Take Out a Loan With Such High Interest?
If you are a highly involved real estate investor, or want to be, the answer may simply be because there typically isn’t time for traditional loans. If you don’t want to wait around to be put under the microscope by a bank or lender, the hard loan bandwagon may be right for you.
Another bonus for you is that, the more of a relationship you establish with a lender, the quicker the process tends to go.
While a traditional bank may not shell out any cash to you for over a month, even up to two months depending on how much they want to evaluate your financial profile, hard money can be granted to you within a week, sometimes even within a few days.
If you asked your bank for approval on a loan on the day you walk in, you will probably be shown the door. But some hard money lenders can issue a commitment / approval same day.
A lot of real estate markets are overly saturated with investors who all want to jump onto the same property, because they see the profit potential in renovating it. So, you may want to utilize a hard money lender when you need to act fast and beat several other bidders to the finish line.
You also may not want the loans you take out for flipping houses to intermingle with your personal credit score, which you’d need for your own mortgage and credit cards, etc. Since hard money lenders don’t really have an interest in your personal finances as much as they do the price tag on the house, your private money life is less likely to get tangled up in your real estate loans.
In fact, many hard lenders are known to not pull your credit history at all. In essence, you’re paying for the convenience of all of these characteristics of a hard money loan. Some investors have more financial room for that convenience than others.
How do I Know When Hard Money Loans are the Right Move?
If you are looking to purchase a property just long enough to fix it up and increase its market value (redoing floors, upgrading kitchen, residing, etc.), you probably don’t want to hang on to that house for more than a year at maximum. Hard money loans are usually granted for terms between one and five years (with one year being most popular).
This is when hard money lending may fit right in the cards for you.
You don’t want to take out a hard money loan for a property that may be in your hands for more than five years at an absolute maximum. So, when you buy a fixer upper, you need to take into account how much you can manage to get done in a short amount of time.
You may want to ask yourself these questions: Do I have the time to make these repairs happen? Do I have the labor and capital to get it done? Do I have the financial freedom to do all of this right now, or will I run out of funds? Will there be a prime selling market by the time I’m ready to flip this property?
If all the answers tell you to “pass go,” then you’re in the right place to get a hard money loan, spend six to eight months renovating the property, sell it, and repay your lender. Then, you have the freedom to pocket your remaining profit.
What Drawbacks Can I Expect with Hard Money?
The idea of a hard money loan may seem simple enough. The loan is secured by a property, not my personal credit, so it feels secure.
However, in order for your hard money loan to go right, everything else in your life has to go right. All of those questions above about the right factors that make it a good time for a hard money loan are assuming that the answers remain a constant.
You may have financial freedom now, but what if you lose your job? You may have the time now, but what if you get injured? Can you work hiring extra labor into your budget?
A hard money lender may not be very sympathetic to the unknowns of your life that affect your capability to renovate the house and pay off the loan. Before pursuing the funding, you may want to make sure that you have several levels of backup plans in place.
Your Hard Money Loan Greenlight Checklist
Signing on to a loan of this nature can be a hard pill to swallow. It is called hard money, after all. Here is a checklist to simplify the question of whether or not you’d benefit from this type of lending. If you’ve checked at least one of these boxes, hard money lending may be right for you.
- Am I fixing up or flipping a house?
- Do I have enough capital and assets to ensure this property is sold within a year (or five years at an absolute maximum?
- Do I need money for construction or development of land?
- Do I have poor credit, or a lack of credit, that may prevent me from getting a traditional loan?
- Am I on a short timeline for this real estate investment, and don’t have time to wait around for a traditional lender?
- Am I one of multiple bidders?
- Will I profit enough from the sale of this property to pay back the loan?
Hard Money Plays for You and Against You
Yes, there’s a lot to consider when weighing the options of a hard money loan. You’d probably like to have the money right now, but can you afford the double digit interest rates? You just bought a property you’d like to turn around for a substantial profit, but can you ensure that the repairs are done in a timely window?
If you bought a fixer upper as hobby work and have a “I’ll get to it when I get to it” type of attitude, then a hard money loan would definitely play against you.
The good news is that there are many instances in which hard money loans play for you. You can get them quickly, they bypass your credit, and they tend to have more flexible negotiation terms than a traditional loan.
Once you take all of your investment goals and financial standing into account, you can decide if a hard money loan is right for you.
Anyone interested in building business credit needs to understand all of their credit card options. As of today, Amex is offering 75K bonus points, and this has people talking. Plus, existing Chase cardholders are wondering if they should switch. So, here is a full and honest Marriot Bonvoy Business Amex credit card review led by a quick comparison with the Chase card.
First, What is a Marriott Bonvoy Business Credit Card?
The Marriott Bonvoy Business credit card is a revolving line of credit offered from Amex or Chase on behalf of Marriott hotels. The card is famous for its travel rewards, which include complimentary stays at the hotels and more. Currently, Amex is the only bank accepting Marriott Bonvoy credit card applications from businesses.
Next, a Marriott Bonvoy Business Credit Card Comparison
First of all, the Marriot Bonvoy Business card from Chase is no longer open to new applicants. So, if you’re new to the credit cards and rewards offered by Marriott, you can no longer apply for the Chase card. Still, let’s take a quick look at how these cards stack up against one another.
|0% Intro APR||Cashback||Annual Fee||Points||Bonus|
|Marriott Bonvoy Business™American Express® Card||No||Points redeemable for cash||$125||6X per $1 spent at Marriott Bonvoy hotels|
4X per $1 spent on dining
2X per $1 spent on all other purchases
|75K points for spending $3,000|
Free night award after the first year anniversary
Free night for $60K annual spending
|Marriott Bonvoy Business™ Visa®Credit Card||No||Points redeemable for cash||$95||3X per $1 spent at Marriott Bonvoy hotels|
1X per $1 spent on all other purchases
Elite credit for every $3,000 spent
The annual fee on Chase’s Marriott credit card is significantly lower, which might make this card sound more appealing to many people. However, with the right amount of spending, your rewards for with the Amex credit card blow the Chase card out of the water. With Amex, you can earn double the rewards and more.
In the case that you have a preference for working with Chase, while the Marriott Bonvoy Business Visa credit card from Chase is no longer available, you can still apply for the Marriott Bonvoy Boundless (personal) card. But, as a business owner looking to build your business credit, you need to understand that this card will not impact your Paydex score through D&B.
|⚠ Important Fine Print: You May Not Qualify for Amex’s Welcome Bonus |
Before you cut up or cancel your other rewards cards and apply for the Marriot Bonvoy Business credit card from Amex, you must read the fine print. While the benefits are indeed worthwhile for a traveler, there are instances when you won’t qualify for the welcome bonus.
Have held one of the following cards in the last 30 days: Marriott Bonvoy™ Premier Plus Business Credit Card from ChaseMarriott Rewards® Premier Plus Business Credit Card from ChaseMarriott Bonvoy Business™ Credit Card from ChaseMarriott Rewards® Business Credit Card from Chase
Have held one of the following cards in the last 90 days: Marriott Bonvoy Boundless™ Credit Card from ChaseMarriott Rewards® Premier Plus Credit Card from ChaseMarriott Bonvoy Bold™ Credit Card from ChaseMarriott Bonvoy™ Premier Credit Card from ChaseMarriott Rewards® Premier Credit Card from Chase
Have received a new cardmember bonus offer from one of the following cards in the last 24 months:Marriott Bonvoy Boundless™ Credit Card from ChaseMarriott Rewards® Premier Plus Credit Card from ChaseMarriott Bonvoy Bold™ Credit Card from ChaseMarriott Bonvoy™ Premier Plus Credit Card from ChaseMarriott Rewards® Premier Credit Card from Chase
If you still think you might qualify for the welcome bonus, read on — it’s a great program.
Then, Learn About the Marriott Bonvoy Amex Business Credit Card Rewards
Now, let’s take a closer look at the Marriott Bonvoy credit card business cardholder travel rewards (in addition to building business credit) that you can leverage when you use this card.
Hotel Rewards with the Marriott Bonvoy Business Credit Card
What type of hotel rewards can you earn with the Marriott Bonvoy Business credit card? Here’s what you can earn.
The Free Night Award + Statement & Property Credits
Each year, after your cardholder account opening anniversary (the date you’re approved for a Marriott Bonvoy Business credit card from Amex), you will receive a certificate for a free night stay at Marriott. And, for every $60K you spend in a year, you’ll receive an additional free night.
This perk alone is easily worth the $125 annual fee.
Complimentary Elite Status for 15 Nights
As a cardholder, you will enjoy Marriott Bonvoy Silver Elite Status for 15 nights. But, what does this mean?
- Enjoy 10% bonus points on your hotel stays.
- Leverage priority late checkout at your hotel stays.
- Receive exclusive access to a dedicated reservation phone line.
- Use your phone to check in and out of your room (mobile key).
- Bypass blackout dates when you reserve your stay.
And, if you spend $35K in a calendar year, you’ll be bumped up to Gold Elite Status.
- Enjoy 25% bonus points on your hotel stays.
- Leverage automatic enhanced room upgrade based on availability at check-in.
- Utilize a late checkout at 2:00 pm.
- Receive 250 or 500 bonus points when you arrive to spend on cocktails, meals, spa experiences, and more.
These perks will make your Marriott stay so much more enjoyable.
When you use a Marriott Bonvoy business credit card at checkout when booking your stay, you can enjoy an upgrade to complimentary, premium, in-room WiFi at all participating hotels. So, if you need high-speed internet to work, you won’t have to worry about sharing your connection with other guests.
Airport Rewards with the Marriott Bonvoy Business Credit Card
And, as a Marriott Bonvoy Business cardholder, what perks can you leverage at airports? Read about the air travel benefits below.
Lounge Access + Priority Passes
As a cardholder, you can enroll in Priority Pass™ Select for priority boarding and access to 1,300 airport lounges around the world with up to two guests. Arrive early or spend your layovers in luxury.
Priority Pass Select lounges include the following benefits.
- Comfortable seating and resting areas.
- Complimentary drinks, refreshments, and pre-flight snacks.
- Charging stations for your phone and devices.
- Free WiFi.
- Conference rooms for business meetings.
- Pre-flight spa treatments and massage.
- Swimming pools.
- Family-friendly relaxation areas.
Check on each airport you’ll be traveling with to find out which amenities are available.
Global Access or TSA Precheck Credit Fee
As a Marriott Bonvoy Business Amex cardholder, if you apply for Global Access or TSA Precheck security clearance, you can receive a statement credit every four years. The credit covers the cost of each five-year program.
Global Entry has the following benefits.
- No processing lines
- No paperwork
- Access to expedited entry benefits in other countries
- Available at major U.S. airports
- Reduced wait times
- TSA Pre✓® Eligibility
Global Access statement credit: $100 after four years.
And, here are the benefits of applying for TSA Precheck.
- 5-minute or less wait-time at TSA.
TSA Precheck statement credit: $85 after four years.
Now, Here’s Everything Else You Should Know About Marriott Bonvoy Business Rewards
You’ve seen the benefits and rewards. Next, learn what else you need to know about the card before you apply.
What Credit Score is Needed for a Marriott Rewards Card?
According to users in the myFICO forum, it looks like the Marriott Rewards program requires a personal credit score of at least 650 for approval. This usually means you need a good or excellent Paydex score for approval of the business card. Although if someone has great personal credit, a business credit score may not be as heavy an approval factor.
Need help with your score? Join the Business Credit Workshop today to boost your business credit score.
How Do You Use Your Marriott Free Night?
Have you earned a free night stay at Marriott? They should have sent you a certificate, accessible from your account dashboard. You can find it in the activity section.
If you can find your Marriott Free Night Award certificate from your account dashboard, you should be able to use the “Use Points/ Certificates” option when checking out on Marriott.com. If not, contact support to redeem your award.
How Much is a Marriott Point Worth?
The Point Calculator has a helpful Marriott Points Value Calculator that you can use to find out how much your earned points are worth.
One Marriot Rewards point is worth an average of 0.7 to 1.5+ cents at Marriott hotels, ~0.4 cents toward airfare tickets and rental cars, and ~0.24 cents toward shopping and merchandise.
And, 75K Marriott points are worth about $525 – $1,125+ at Marriott hotels, $300 toward airfare tickets and rental cars, and $180 toward shopping and merchandise.
According to Statista the most recent average night cost for a stay at Marriott in North America is $198.66. If you use your Amex Marriott Bonvoy Business credit card, this would earn you about 1,188 points.
So, one night stay at Marriott is worth about $14 – $30+ at Marriott hotels, $8 toward airfare and rental cars, and $5 toward shopping and merchandise.
Can You Redeem Marriott Points for Cash?
You can use your Marriott points to buy gift certificates, but you do not have the option to sell them and they have “no cash value,” according to Marriott Bonvoy’s terms and conditions.
Do Marriott Rewards Points Expire?
Yes. Marriot rewards points expire six years after the date they are deposited into a member’s account, no matter what their account activity status is. After this time, cardholders and Bonvoy members forfeit their right to use their points and rewards.
In my opinion, Marriott probably has the best hotel rewards card program around. And, the most enticing aspect of leveraging the card is that it helps you establish business credit while you travel for work. So, the Marriott Bonvoy Business credit card is well worth applying for and utilizing if you can qualify. Apply now to start earning travel rewards with your next hotel stay.
And, if you want to learn more about skyrocketing your business credit score and building out your credit profile, check out our free secrets of how to get $100K in business credit in 30 days.
When building business credit, it’s crucial to understand all of your options. Lately, many company owners, especially existing PNC business banking clients, are interested in learning more about PNC business credit cards. The bank offers five options, all with their own rewards systems and varying interest rates.
So, what makes PNC Bank’s credit offerings stand out? How do the cards stack up against one another? And, what else do you need to know before you apply? Find out here.
What is a PNC Business Credit Card?
A PNC business credit card is a line of revolving credit extended to a business by PNC Bank. The company is a portfolio lender which means they lend their own money and they do not sell their loans or lines of credit to third parties. So, a PNC credit card is arguably a good one to get.
PNC Business Credit Card Comparison
Find out which PNC business credit cards have a 0% introductory APR, cashback rewards, an annual fee, points, and other bonuses below.
|0% Intro APR||Cashback||Annual Fee||Points||Bonus|
|PNC Cash Rewards® Visa Signature® Business Credit Card||X||1.5%||$0||X||$200 for spending $3,000|
|PNC points® Visa® Business Credit Card||X||Optional||$0||5 points per $1 spent||Link personal PNC points card|
|PNC Travel Rewards Visa® Business Credit Card||X||X||$0||1 mile per $1 spent||Double miles on first $2,500 spent|
|PNC Visa® Business Credit Card||13 months||X||$0||X||X|
|PNC BusinessOptions® Visa Signature® Credit Card||X||Optional||Up to $500||Optional||$750 for spending $25,000|
Who is the PNC Cash Rewards Visa Signature Credit Card for?
The PNC Bank Cash Rewards card is one of the most popular options. No doubt, 1.5% cashback on spending is enticing for many business owners. Plus, if you spend $3,000 within the initial promotional period, you’ll receive an additional $200. So, if you’re in the market for a card that pays you to use it, this is the one.
Do PNC Cash Rewards Expire?
According to PNC’s cash rewards terms and conditions, your cash rewards will not expire as long as your account is open. However, as soon as you close your account, you forfeit any unused rewards.
Who is the PNC Points Visa Business Credit Card for?
The PNC Bank PNC Points card is similar to the cash rewards card, except you’ll earn five “points” on every dollar spent. Points are redeemable for cash, electronics, gift cards, merchandise, and travel. And, if you have a personal PNC points card, you can link the two for more rewards.
How Much are PNC Points Worth?
When weighing the points card as an option, you need to understand how points are redeemable. There are three sections in the PNC points rewards catalog:
- Gift Cards
- Apple Store & Other Merchandise
You can directly book flights, hotels, cars, and other travel rewards, purchase gift cards and merchandise from the catalog.
For an idea of what you can get for your points, a Nintendo Switch is redeemable for 123,053 points (or after $24,610.60 in spending). And, the same amount might get you a flight from Portland, Oregon to Denver Colorado.
Do PNC Points Expire?
Unfortunately, yes, PNC points do expire. You have 48 months (about four years) from the time points are posted to your account to use them. So, you’ll need to monitor your points account to see how many are available at a given time.
Who is the PNC Travel Rewards Visa Business Credit Card for?
The PNC Bank Travel Rewards card is perfect for travelers. You can earn one mile for every $1 spent and two miles on the first $2,500 in eligible purchases. Or, you can book your own travel and redeem your miles for a statement credit. If this sounds enticing, the travel rewards card might be right for you.
Do PNC Travel Rewards Expire?
According to PNC’s travel rewards terms and conditions, miles expire in December of the fourth calendar year after the miles were earned. So, like points, you have about four years to use miles.
Who is the PNC Visa Business Credit Card for?
The PNC Bank Business Credit Card is a good starter card for small and medium-sized businesses looking to build credit. The 0% introductory rate for the first 13 billing cycles provides an incentive for companies who are looking to increase their short term and long term working capital or are ready to separate their business and personal spending.
|Related Reading: Fund&Grow Facts: An Honest Business Funding Services Review Overview of a paid financial service that helps companies establish multiple 0% APR lines of credit to grow their business.|
Who is the PNC BusinessOptions Visa Signature Credit Card for?
The PNC Bank BusinessOptions Visa Signature card is a better card for higher spending ($50,000 or more annually). While there is a maximum annual fee after the first year, you can avoid it by using your card for $100,000 or more in purchases each year. Plus, you can earn $750 statement credit by spending $25,000 on your card in the first three months.
The best feature of the BusinessOptions card might be the fact that you can choose cash, points, or travel rewards.
This card also has revolving and pay-in-full options for the most flexibility.
|Still not sure which card is right for you?: Find the right PNC credit card for your business.|
Commonalities With PNC Credit Cards
While PNC business credit cards vary and one or another might be better suited to your situations, there are some commonalities that they all share.
What Credit Score is Needed for a PNC Credit Card?
After reviewing the cards above, you may have an ideal card in mind. But, if your credit score is low, you may not be able to qualify yet. According to several cardholders in the MyFICO forum, those with lower credit scores (below 700) will have a difficult time getting a PNC credit card.
So, if you don’t have established business credit, you might have better luck starting with net 30 vendors to boost your score before you graduate to revolving credit options like those offered through PNC.
Are On-Time Payments on PNC Business Credit Cards Reported to Personal Credit Bureaus?
While your personal credit score may impact your ability to qualify for a business credit card, your payments will be reported to Dun & Bradstreet. Your Paydex score, as well as your Experian Business and Equifax Business credit scores, will be affected by on-time payments.
How to Increase Your Credit Limit on a PNC Credit Card?
As with all credit cards, the best way to increase your limit is to pay as agreed and keep your income updated in your account. You can learn more about this and some valuable hacks with a Business Credit Workshop membership.
Your PNC business credit card limit is a reflection of your standing with PNC and your credit profile. For convenience, you can request a credit limit increase online from inside your account.
Other Business Financial Services From PNC Bank
When selecting a credit card to use for business purchases, it’s helpful to know what else the issuer can offer your business. PNC Bank has a full suite of financial services for companies like yours. Most notable are the business checking, lines of credit, and term loans.
- PNC Small Business Checking – Choose from four tiers of business checking options based on your needs and leverage additional solutions as needed.
- PNC Business Lines of Credit – Based on your location, PNC Bank’s services can vary, but the portfolio lender offers business lines of credit other than credit cards. The amount you receive will be based on your credit profile.
- PNC Business Term Loans – When you need a specific amount of funding to cover a business purchase like new equipment or real estate, PNC can help.
If you’re in the market for a business credit card, you don’t need to ask if you should get a card from PNC Bank. Rather, the right questions to ask yourself are:
- Will I qualify for a business credit card through PNC?
- Which card is right for me?
For cashback, choose the cash rewards Visa Signature card. To build points and redeem for gifts, select the points card. If you want to earn travel miles, apply for the travel rewards card. If you need a simple working capital boost, go for the PNC Visa business card.
And, if you need a full-featured card for high spend within your company, try to leverage the BusinessOptions Visa Signature card. And, if you’re interested in learning new ways to acquire more business credit and boost your business credit score, learn how to obtain business credit in 30 days.
Sergey worked with us twice and both times got unsecured business lines of credit from local community banks. We called hundreds of banks and came up with a few “no-doc” lenders that did not require tax returns. The interest rates are super competitive and Sergey is now able to expand his business!
He followed the two step process:
1.) Build your business in such a way that banks want to lend to you
2.) Know where to apply for business line of credit and get an instant approval
Almost every business, at some time, will need a line of credit – and this is the main reason for needing a DUNS number.
If you own a small business, you may have paid a lawyer for articles of incorporation and to secure a federal tax id number so that you could start a company. However, now that you are in business, you may realize that the startup capital you have in the bank may not be enough, as your cash flow fluctuates.
In order to get a line of credit though, you are hearing from different people that you will also need a DUNS number. So, is a DUNS number the same as a federal tax id number? If not, what is a DUNS number used for?
Let’s look at what a DUNS number is first. Then, why it is important to have one, how it works, and finally, how to apply for one.
What Is a DUNS Number?
A DUNS number is a unique nine-digit ID number that is also known as a D&B number and is short for Data Universal Numbering System. This number, which is like having a social security number for your business, is issued by Dun & Bradstreet to any business that completes their informational profile.
This profile is put into a database with 225 million other companies as part of a credit reporting service for businesses. This database works something like Equifax or TransUnion does for your individual credit report. It’s a free service, although you can pay a small fee to get your number faster.
What Is the Purpose of a DUNS Number?
The purpose of a DUNS number is to establish creditworthiness and credit history of your business. This system was established back in 1963 and standardizes business information so that banks and other creditors understand what they are looking at when your business applies for credit or a loan.
This is very similar to what a bank will look at when they go to TransUnion to see if they should issue you a credit card, mortgage, or insurance.
Why Do I Need a Dun & Bradstreet number?
If you want to get a line of credit from a bank for your business, even if it is doing well, it is very hard to do it on your own. This is because a loan officer is not going to sort through your receivables, payables, or tax returns to see if your business is worthy of credit.
They will, however, give you a personal loan based on your credit score or a loan based on the equity in your house. However, it is never a good idea to take your personal money and use it to keep your business running. As well, the personal loan you qualify for is not usually enough to pay the bills a business will incur.
Plus, you and your family may wind up bankrupt if the business fails.
Applying for a personal credit card and using it for your business is also a bad idea – as you may run up bills that you cannot pay. Then your personal credit may be ruined.
Also a supplier may only work with you on a cash basis if your business is not creditworthy as proven by a recognized credit reporting agency like Dun & Bradstreet. So the best way to establish a positive credit history for your business that can be verified is to have and use a DUNS number.
What Is a DUNS Number Used For?
A Duns number is used to generate a credit report for any business that has completed the DUNS informational profile and then starts using the number to do business.
Doing business by using your DUNS number is the first step to start generating a credit history that can be verified by someone who wants to do business with you – including government agencies and other businesses who require it.
So registering with Dun & Bradstreet and getting a DUNS number assigned doesn’t really do anything for you until you start using it with other businesses that are also registered with a DUNS number and that can report payment history to Dun and Bradstreet.
In other words, if you purchase inventory from a vendor who has a DUNS number, they can report your credit limit, your payments, and years of doing business back to Dun & Bradstreet.
This is how you establish the credit history of your business and its creditworthiness. These positive reports will also allow your company to get credit cards and loans from banks without risking your personal credit.
How Do I Find my DUNS Number Online?
To find out if your business already has a DUNS number or to see if a company with your same name already has a DUNS number go to https://www.dnb.com/duns-number/lookup.html.
If you don’t find any listing under your name, you can go apply for one yourself.
How Do I Get a DUNS Number?
To find out more about getting a D&B number, click here. The process is as easy as going online to fill out the form and doesn’t take very long. Nevertheless, it is always good to enlist the professional help of someone who knows the process, as this will be information that will be used to build your business’s credit report.
You will also need all of the information required – like your business name as it appears on your articles of incorporation, the physical address of your business, type of business structure, etc. – before you begin filling out the form.
How Long Does It Take to Get a DUNS Number?
You can get a DUNS number very quickly – usually in less a week – if you are will to pay a nominal fee to expedite the process.
If not, it only takes about ten or fifteen minutes to apply online, assuming you have all the information required. Then, it takes about 30 days to get your number.
But as we talked about earlier, the number is just the start. Now you will have to find other businesses who also have DUNS numbers and can report your payments and credit limits back to Dun & Bradstreet in order to generate a credit history you can use to keep expanding your business. You can see a list of net 30 vendors that do this here.
We’ve compiled the Complete list of Alternative Lending Platforms for Entrepreneurs. Here is what we found…
Starting your own business can be an incredibly satisfying endeavor. When you finally make that leap into the entrepreneurial world, it is often because you love what you do and are looking to make an impact in your particular industry.
However, starting a business does not come without its challenges.
One of the primary obstacles for entrepreneurs is how to fund their business – especially at the beginning. Anyone who has dabbled with starting a business knows that is can take a significant investment up front.
According to a study by LegalZoom and the Ewing Marion Kauffman Foundation, “80 percent of early-stage business owners are using personal funds to finance their companies.”
At such a high percentage of entrepreneurs self-funding their new business, it can be intimidating to even think about starting your own company because, the truth is, most people don’t have the kind of money it takes to start a business on their own.
So, how does one start a business and not completely deplete their entire life savings? There are actually quite a few ways to raise capital using online loans like Kabbage, OnDeck, Lending Club, Fundera, and lines of credit.
There is also always, of course, the option of taking a loan out from a bank; however, it generally takes more time, some collateral, and a great credit score in order to receive a loan from a traditional bank whereas an online loan often has an easy application process, higher approval, and you get the funds quicker.
First, let’s define what it means to “raise capital.” Capital is the amount of money or funds that it will take to get a small business off the ground in order to begin generating its own income and pay its employees and so forth.
We’re going to explore alternate ways to raise capital for entrepreneurs in order to help you to make an informed decision when it comes to raising capital for your small business. For each capital raising option, we’ll cover how long it takes to receive the money, how to qualify, and what other entrepreneurs have said.
Kabbage is an online financial technology company. It’s based in Atlanta, Georgia and provides direct funding to entrepreneurs through an online lending platform. Kabbage is free to use and entrepreneurs don’t pay anything until they use their funds.
Small business owners can receive loans up to $250,000 and the company offers an easy to use app in order to track your funds and give you 24-hour access to the money. Kabbage can help bridge the gap between having a dream and making your dream a reality.
How To Qualify for Kabbage
Small businesses that have been in business for at least one year and have an annual revenue of at least $50,000 (or at least $4,200 per month for the last three months), along with a credit score of 560 or higher qualify for Kabbage.
Applying for Kabbage is very easy to do and requires minimal paperwork. All that’s needed is to create an online Kabbage account and provide basic information about your business (industry, years in business, and so forth).
Once your account is created, you’ll link your business bank accounts in order for Kabbage to revue the business’ revenue. After the application process is complete, Kabbage will let you know if you’ve been approved for a loan.
How To Use Kabbage
Kabbage offers three different ways to retrieve the funds when you need them. The Kabbage app is available for both iPhone and Android and allows you to withdraw funds and manage your account on the go at anytime.
The Kabbage online dashboard allows you to withdraw the funds that you need directly from your computer. The funds are instantly deposited into your account.
The Kabbage card allows you to “grow as fast you swipe” with access to your entire line of credit directly on your card.
Making Payments with Kabbage
Of course, taking money doesn’t come without the stipulation that you’ll pay it back after a certain amount of time. You can make payments with both the Kabbage app and the online dashboard.
Payments can be set up to bill a certain amount monthly or you can set up auto payment which will pay off the minimum payment for each month.
Kabbage Reviews from Fellow Entrepreneurs
There are many reviews on Kabbage’s loan services and they are all positive, for the most part. A review by Merchant Maverick states that:
“finding a lender more convenient than Kabbage would be difficult. In most cases, business owners can apply, get a decision on their rates and fees, and start drawing funds within a few minutes. That’s really fast, even for an industry that’s known for coming to quick lending decisions. The speed comes at a price, though. With fees that can reach up to 10% of your borrowing amount each month, this lender provides some of the more expensive loans you’re going to come across. And while they don’t have a prepayment penalty, some merchants don’t like that Kabbage’s loans are front-loaded, which means you might not be able to save very much money by repaying early.”
Wes Dunn, the founder of Dunn’s Attic in Florida used Kabbage to get his retail business off the ground and he said that what he likes most about Kabbage is how easy it is to apply and use the platform as well as how quickly he can retrieve funds when he needs them.
OnDeck is very similar to Kabbage and the two are often compared online. Primary differences between the two online lending platforms are the loan amount and minimum qualifications. We’ll explore those and more below.
How to Qualify for OnDeck
Similar to Kabbage, in order to qualify for OnDeck you need to have been in business for at least one year. However, OnDeck also requires that your business make at least $100,000 per year or more, and a personal credit score of 600 or higher.
Applying for a loan from OnDeck is quick and simple. Applying can be done online and only takes a few minutes. You’ll need to fill out basic personal and business information, as well as provide bank statements to show your business’ cash flow. You’ll be given an answer within minutes and, once approved, will receive your loan in two days.
How to Use and Make Payments with OnDeck
OnDeck offers a mobile app and also has an online dashboard where you can manage your account, retrieve money, etc… You can also make payments online or with the app.
OnDeck has a customer service team that is available for assistance over the phone 24/7. The loan specialists work with entrepreneurs and business owners on a daily basis and are highly qualified to answer any loan questions you might have.
Because OnDeck has a team of loan specialists that are always available to answer questions, the platform has a very personal feel to it.
An anonymous review on OnDeck’s review page says:
“Love our experience with OnDeck. Such a great company to work with and always follows through on expectations and promises. We have been approached by so many other companies for our funding needs but we have no interest in switching because the experience with them is so great. Katie our Account Manager is honestly amazing! So quick to get back to us and always helping to guide us in the right direction. Normally dealing with finance people is so hard but Katie is honestly a joy to work with. I would highly recommend OnDeck!”
If your business needs a larger loan and has been in business for at least a year with revenue of $100,000 or more, OnDeck is an excellent loan option.
3. Lending Club
Lending Club is different from more standard lending companies like OnDeck and Kabbage because it is a peer-to-peer lending company. Peer-to-peer lending is a way to offer lower rates for borrowing money while offering investors competitive returns.
LendingClub specifically was the first peer-to-peer lending company and uses technology to make the entire lending and borrowing process painless for all involved which has caused the company’s satisfaction rating to rank among the highest in the entire financial services industry.
How to Qualify for Lending Club
In order to qualify for a peer-to-peer loan through Lending Club, your business must have been around for at least one year, have at least $50,000 in annual sales, no bankruptcies, and you must own at least 20% of the business. Lending Club will also look to see if your personal credit score is at least fair or better.
Once you’ve confirmed that you qualify for Lending Club, you can begin the application process. You can apply online by answering a few questions about your business and Lending Club will give you an answer within minutes.
How does Lending Club Work?
Interested businesses can receive anywhere from $5,000 to $500,000 in loans and can have access to the money within as few as 7 days. Borrowers can use the app or the Lending Club website to access their money.
How to Make Payments
Borrowers can pay back their loan with confidence because Lending Club has low and fixed interest rates and you can easily make payments directly from your bank account. Another really nice thing about Lending Club is that there is no application, brokerage, or prepayment fees.
Lending Club Reviews
Lending Club has a slew of positive reviews with borrowers saying things like, “without LendingClub, we wouldn’t have been able to start our business two years ago.” Based on the reviews, it appears that borrowers have seen highly positive results from their experience with Lending Club. Supreme Accounting & Tax SVC said they were:
“surprised by how straight-forward the process was, and how quickly [their] loan was funded.”
Other borrowers have been impressed with Lending Club’s ability to give large loans with good rates as well as the company’s superb customer service. If you’re interested in taking out a peer-to-peer loan, Lending Club should be at the top of your list.
4. LoanBuilder by PayPal
PayPal acquired Swift Financial, which is the financial institution behind LoanBuilder, in 2017. LoanBuilder’s mission is to “help businesses get the right funding quickly by letting them design loans that fit their unique needs to get approved based on how they manage their business.” We’ll walk through how to qualify and how it works to build your own loan below.
How to Qualify for LoanBuilder
In order to qualify for a LoanBuilder loan, your company must have been in business for at least nine months and make at least $42,000 in annual revenue. LoanBuilder works with businesses in over 500 different industries in the United States.
In order to apply and check your eligibility, there is an online questionnaire that should take anywhere from five to ten minutes to complete. Alternatively, you can call LoanBuilder at 1-800-347-5626 and speak with an expert live to apply. Upon completion of the questionnaire, borrowers can begin to build their loan based on estimated loan terms and their financial needs.
Once you’ve been approved for your loan, you’ll receive a contract electronically with instructions on how to receive your money and make payments.
How to Use LoanBuilder
If you are approved for a business loan through LoanBuilder, the funds will be directly deposited into your business’s bank account and can be received in as little as one business day.
Paying Back a Loan from LoanBuilder
To pay back your LoanBuilder loan, the company automatically makes withdrawals from your business’s bank account. You’ll be able to set the day of the week the funds are taken out and how much you pay; however, LoanBuilder does not allow negotiation on the frequency of the payments.
Loan durations through LoanBuilder typically have a payoff time of anywhere from 13 weeks to 52 weeks.
Doug Wiens, owner of Orange Coast Winery, says that before LoanBuilder his company lacked the collateral for a traditional loan. With the loan from LoanBuilder, Orange Coast Winery was able to re-do their wine tasting rooms, purchase more wine bottling materials, and upgrade their kitchen.
Steve Bilenky, Owner of Bilenky Cycle Works says that LoanBuilder was exactly what his company was looking for because of how easy LoanBuilder makes it to apply, receive, and pay back the loan.
LoanBuilder takes the fussiness out of applying for a loan and paying it back. Their customer service has also had many rave reviews.
Fundbox is a fintech company that uses cutting-edge technology and data science to help create financial options for small businesses. Fundbox claims that their use of common sense and technology help small businesses to gain more control over their finances in order to succeed and grow.
Currently, Fundbox has over 70,000 customers. According to Eyal Shinar, Fundbox’s CEO, “Small businesses are the core of our economy, yet the resources available to them are limited at best. We give small businesses new financial power and guidance so they succeed.” The company that got its start in 2013, is based in San Francisco and offers two products: an invoice financing offering and a line of credit.
For our purposes, we’re only going to talk about Fundbox’s line of credit.
How to Qualify
In order to qualify for Fundbox, you must have a business checking account, at least two months of using an accounting software (like Quickbooks or similar) or at least three months of transactions using the business bank account. Additionally, the business must have a minimum of $50,000 in annual revenue and must be located in the United States or surrounding U.S. territories (Guam, American Samoa, North Mariana Islands, Puerto Rico, or U.S. Virgin Islands).
Once you’ve met Fundbox’s qualifications and apply, you’ll typically get a decision from the company within three minutes.
How to use?
After Fundbox has approved you for a credit line, your funds will be available to you immediately and you can draw from them at any time. Generally, it does take one business day for the funds to deposit into your account. Additionally, you only have to pay when you draw funds and there is no continual fee.
How to pay?
Fundbox only charges you when you draw money from them. The example the website gives is that if you draw $1,000 for 12 weeks, the fees would start at $3.88 per week. Following that example, your weekly repayment would be $87.22, and the total (including fees) at the end of the 12 weeks would be $1,046.60.
You can also choose to pay over 24 weeks, which would be fees of $3.75 per week, weekly repayment at $45.41, and a total of $1,089.90 after 24 weeks.
Additionally, if you pay early Fundbox waives all of the remaining fees.
One happy entrepreneur says that Fundbox is a:
“Good company to work with! Once your credit limit is established you can withdraw any amount up to your credit limit at any time. …I would definitely recommend these guys to any small business owners. 5/5 stars!”
Another reviewer mentioned that Fundbox’s payback tactic is a little “aggressive,” but they did still mention that the process was quite painless. According to another small business owner, Fundbox is perfect for the weeks when his business’s weekly revenue is slower than he would like. Because of Fundbox, his company never misses a beat.
LendingTree is the largest online lending marketplace in America. It connects borrowers with lenders that will fit their situation. LendingTree provides financial information and guides in order to help your business make the smartest financial decision possible.
The website breaks down all different types of loans including personal, home, auto, student, and business loans. Within each loan category, LendingTree also breaks down the different types of business loans. LendingTree believes that pursuing a loan should be part of a company’s strategic business plan and their in-depth research and review platform provides entrepreneurs with the resources needed in order to choose the best business loan.
How does LendingTree Work?
LendingTree prides itself on its ability to “get small business loans tailed to you.” The LendingTree website makes it easy to research and explore each of your loan options. First, the website asks which type of business you are – the options range anywhere from Sole Proprietor to a C-Corporation.
LendingTree then explains what a small business loan actually is and how it works followed by a step-by-step process for determining your need for a small business loan through the application and then finally the payment process.
The platform breaks down each type of business loan and touches on how long the loan term lasts, what the payment process is like, how high the interest rates are, and which business necessities each loan is geared towards. The website also offers a business loan calculator when you can plug in the loan amount, interest rate, and loan term in order to determine what your monthly payment would be.
In order to ensure that you are fully prepared when applying for your loan, LendingTree also features a borrowing calculator where you can plug in your annual revenue, monthly income, and credit score in order to determine how much you might be qualified to borrow.
If you use LendingTree’s questionnaire and checklists, you’ll go into the loan application process with the confidence to apply for the loan that is best for your company.
Other entrepreneurs love using LendingTree for their financial questions and needs because the lending process is painless and hassle-free.
The customer service at LendingTree also is something to note – they are always available for your questions, no matter the time and no matter the issue. LendingTree prides itself on being simple, easy to use, and having no credit score impact. Based on their customer reviews, they stand by that through and through.
Similar to LendingTree, Fundera gives clients knowledge and advice after diagnosing your financial situation. The company’s goal is to ensure that the financial decisions that your business is making are smart, practical, and efficient for reaching your financial and business goals.
Fundera allows you to look at a variety of options when it comes to small business loans in order for you to confidently make the best financial choice for your business’s specific needs.
How does Fundera Work?
Fundera provides small businesses with useful information and resources as it pertains to their businesses financial needs. When it comes to taking out a loan for your business, Fundera has a step-by-step online guide to help walk you through that process. The guide includes things like considering how much money you think your business needs, what the money will be used for, types of business loans, as well as your business’s capital and what you can realistically afford.
In addition to the loan help, Fundera also includes information on how to analyze your credit report and what your business needs with regards to qualifying for a small business loan.
When it comes to taking out a small business loan for your company, Fundera should be your first stop in order to understand all of the different loan nuances, terms, and payment policies in order to make the wisest choice for your small business.
What other entrepreneurs are saying about how Fundera has helped their business is an excellent way to see how Funder could be beneficial to you. Some customers are seeing savings of $15,000 a month, while others have had an increase of 130% in sales.
Many entrepreneurs on the Fundera reviews page have mentioned that Fundera made it easier to reach their financial business goals with maximum ease and efficiency.
Runners Up Online Lending Platforms
These online lending platforms didn’t quite make the cut for this article to deep dive into all of their pros and cons; however, they are definitely worth mentioning. We’re going to briefly share a few helpful facts about each of our runners up online lending platforms.
StreetSharesis a business funding option whose claim to fame is that they “put the needs of business owners first.” It is a veteran-run company, which makes it unique and the company works by the following set of high moral values.
The company offers a variety of business loans, as well as lines of credit. All that’s needed to apply for a business loan through StreetShares is the ability to prove that your business can pay back the loan – you can do this by showing documents like bank statements and tax documents. Streetshares also will take your personal credit score into consideration as well.
9. Currency Capital
Currency Capital is a hassle-free way to finance your small business. The platform offers straight-forward financing options that cater to your specific business needs. Currency Capital started out as a financial platform that specialized in financing equipment.
However, now the company has expanded into a broader financial sphere. The company features three financial aid products or services: CurrencyPay, CurrencyFinance, and CurrencyAir.
CurrencyPay is a payment solution for customers of small businesses and offers multiple checkout methods, including financing. CurrencyFinance is straight-forward financing with a streamlined application process in order to help with big purchases. CurrencyFinance is available for both business and personal needs. CurrencyAir finances aircrafts, so it’s a specific niche but good to know about nonetheless.
10. Funding Circle
Funding Circle is actually exactly what it sounds like. It’s small business owners and investors supporting each other. Funding Circle makes this possible by allowing investors to invest in successful and growing businesses through the Funding Circle online platform.
Investors can create portfolios and negotiate their returns in order to make it attractive for small business owners. On the business side, the business receives fast and easy access to money in order to grow, hire new employees, and ultimately drive the overall economy forward. It’s a win-win.
11. Smart Biz
Smart Biz offers a quick, succinct small business loan application process. Once approved for a loan through Smart Biz, the monthly payments are low and offer great interest rates. Smart Biz makes it easier for small businesses to apply for loans from banks that are more likely to say “yes” to a small business.
These loans, in turn, can be used for purchasing new equipment, increasing inventory, marketing, miscellaneous operating expenses, and even refinancing the businesses debt. The application process is so quick and easy that all it takes is five minutes through the Smart Biz online dashboard or the app. Once the application process is complete and you’ve been approved, the funds will appear in your bank account within one week.
Loan vs Line of Credit
This article is primarily pertaining to business loans; however, lines of credit are often mentioned when looking at financial options for your small business, so it’s useful to understand the difference between the two.
A loan is generally described as a lump sum of money upfront and are typically required to begin making payments on it immediately in order to pay it off in the shortest amount of time possible. A loan also typically gives all of the money upfront and then you make payments from there.
A line of credit is similar to a loan in that it provides you with money that wouldn’t be available without the loan or line of credit. With a line of credit, if your small business has been approved for a credit line of $100,000 and you only use $10,000, you only owe interest on the $10,000 that you used and not on the full amount.
In fact, there’s still an additional $90,000 at your disposal. Lines of credit are great if you need money over time, as opposed to all at once.
Perhaps the biggest difference between a loan and a line of credit is the options for payment. With a loan, you’re required to begin making payments immediately, whereas with a line of credit you can often find more flexibility when it comes to when you make payments and how much you’re paying off each month. Additionally, loans usually have much higher minimum monthly payments because they include a lot more principal in the payment. The monthly payment on a line of credit is usually less because it is mostly just the interest (and not much principal) being paid in the payment.
If your business knows the amount of money needed, then a loan can often be cheaper than a line of credit and even more efficient. However, if your company needs ongoing access to funds or a more flexible payment option then a line of credit could better serve your current business needs. Do keep in mind, however, that a line of credit often has the word “interest” associated with flexible payments.
Again, if you know how much money your business needs and have the ability to pay off the same amount each month, then a loan is likely you’re best choice.
When it comes to starting and running your own business, there are many factors to consider. One of the most important things to consider is your business’s financial situation. A business loan can be the difference between your business thriving and growing or never quite making it off the ground.
It’s important to shop around in order to find the loan that is best suited for your particular business needs. Whether you choose Kabbage, OnDeck, Lending Club, or LoanBuilder be sure to check out how the company lines up with your business needs through an online resource like Fundera.
In addition to the pros and cons of each of the online lending services, it’s also important to remember that the loan also will be different based on your company size, number of years in business, industry, and even revenue stream.
Which online lenders have you had luck with? Let us know in the comments below!