business loans

Giggle Finance: Instant Funding for Freelancers & Self Employed

Key Takeaways

Giggle Finance provides up to $5K in fast funding for gig workers.
Giggle requires no credit checks,= and uses bank account activity to assess eligibility.
You can set up income-based, automatic repayment for flexible loan management.
Customer service is digital-only, with mixed reviews on responsiveness.
Accusations of predatory practices and unauthorized transactions raise red flags.
Some users value Giggle’s speed and simplicity for emergency financial needs.

Giggle Finance offers something a little different than what we usually review here, but maybe not as different as you might think. Before you apply, you’ll want to know what it is you’re signing up for.

Here, explore what Giggle Finance is, learn more about the company, and understand key features of the offer.

This is what’s in store:

What is Giggle Finance?
- Company Overview
How Does Giggle Finance Work?
Frequently Asked Questions
Conclusion: Is Giggle Finance Legit?

Now, let’s dive in!

What is Giggle Finance?

Giggle Finance provides fast and convenient funding solutions designed specifically for:

Gig workers
Independent contractors
Self-employed individuals

They offer up to $5K in instant funding, their platform is fully automated, available 24/7, and requires no credit checks or lengthy application processes.

The idea is that borrowers can access cash quickly to manage unexpected expenses or invest in opportunities. In theory, this can make it a flexible option for those in the gig economy who need immediate financial support.

You might also like: Torro Business Funding Review: Is This “Zero Hassle” Offer Legit?

Company Overview

Giggle Finance, aka, Giggle LLC is a Florida-based, private, for-profit financial services entity that was founded in 2020 by Jared Kogan and Michael Zevallos. According to Florida’s SunBiz, the company is active, in good standing, and up-to-date with all their required filings with the state.

Kogen previously spent 5+ years with OnDeck, as the Director of External Sales, and has held several high-level business consulting positions. Zavallos was the Manager of External Sales at OnDeck when Kogen was with the company, and he was the Co-Founder and COO at Idea Financial before the team launched Giggle.

In short, the leadership seems to be solid. However, it’s important to know what borrowers have to say.

Currently, Giggle isn’t accredited with the Better Business Bureau (BBB), which I would almost let slide—not every legitimate business is accredited. But, they currently have an “F” BBB-rating and have failed to respond to 32 complaints filed on the platform.

Overall, TrustPilot reviews are a little more optimistic, with a 4.0 (out of 5.0) TrustScore.™ Even so, the 1-star reviews are pretty brutal.

All in all, borrowers largely view Giggle Finance as an “unethical” lender, citing:

Unauthorized transactions
Predatory practices
Poor customer service

Though, some people appreciate its fast funding for emergency needs.

These are some pretty weighty accusations, so I wanted to verify whether or not there are any open lawsuits against the company. And, I couldn’t find any current legal issues.

However, Redditors also criticize Giggle Finance as deceptive, warning that its loans involve hidden fees and misrepresented terms, which has caused financial strain for gig workers.

Having no experience borrowing from the company myself, I would have to take others’ word. On one hand, Giggle Finance offers fast funding that some borrowers find helpful in emergencies, while on the other, reviews raise significant red flags.

You might also like: How to Get a Business Credit Card – The Ultimate Guide

How Does Giggle Finance Work?

Giggle Finance offers gig workers and self-employed individuals fast funding options, but borrowers should weigh the potential risks. Here’s how it works.

1. Apply Easily Online

The process begins with a quick online application that takes just minutes to complete. By connecting your bank account, Giggle evaluates your eligibility based on income and account activity instead of credit scores.

While convenient, some users have expressed concerns about privacy and the security of their financial data. I know that they work with Plain, which I know to be a secure technology.

If you’re working for a popular delivery service or selling on Shopify, you may be able to connect your account for immediate revenue info (this may be where the data security issue comes in).

You might also like: No-Doc Business Loans: Get Funds Without Proof of Income

2. Get Instant Funding Anytime

Once your application is submitted, the automated system processes approvals in real time, with funds often deposited within minutes. This 24/7 availability is ideal for emergencies.

However, some borrowers have reported delays or discrepancies in the amount funded compared to what was expected.

3. Repay Based on Your Income

Repayments are automatically deducted in line with your earnings, offering flexibility for those with variable incomes. Giggle also allows early payoffs to save on fees. Despite this, some users have faced challenges with rigid payment schedules and unexpected deductions.

With this said, you will need to connect the platform to your primary business bank account. They’ll use it for income verification AND repayment.

You might also like: 11 Alternate Ways for Entrepreneurs to Raise Capital with Online Lenders

4. Access Funding Without a Credit Check

Giggle Finance caters specifically to gig workers, freelancers, and independent contractors who may struggle to qualify for traditional loans.

The no-credit-check feature makes the service widely accessible, but the high fees and unclear repayment terms reported by some borrowers warrant a careful review.

You might also like: A Full Skip Review: Business Grants, Funding, and More

5. Know Your Terms Before You Borrow

Giggle Finance determines its fees and repayment terms based on the amount borrowed and the borrower’s risk profile. The company claims to maintain transparency to make sure borrowers understand the total cost before agreeing to the terms, with no hidden fees.

However, some users report higher-than-average fees.

Keep in mind, Giggle calculates repayment amounts using a factor rate, which is a multiplier applied to the borrowed amount. For instance, a $5,000 loan with a factor rate of 1.5 would require $7,500 in total repayment. And, Giggle Finance doesn’t advertise their factor rates (I wish they did).

You might also like: Clover Capital Review: Read This Before You Accept an Offer

6. Be Ready for SMS-Only Customer Support

To verify what some borrowers had said, I tried calling the phone number listed on the website and was redirected by a pre-recorded message instructing me to send a text.

Customer service is entirely digital, with interactions through text or email. Some users have described their experiences as unprofessional or unhelpful, particularly when resolving disputes or addressing errors. But, depending on your preferences, this might be convenient.

Frequently Asked Questions

What credit score do you need for Giggle Finance?

You don’t need a specific credit score to qualify for Giggle Finance. The platform does not rely on traditional credit checks and instead evaluates your eligibility based on your bank account activity and income.

What is the maximum loan amount for Giggle Finance?

The maximum loan amount offered by Giggle Finance is $5K— Your approved amount will depend on your verified income and banking activity.

Does Giggle Finance report to credit bureaus?

Yes, Giggle Finance does report to credit bureaus. This means your repayment activity (including any missed or late payments) can impact your credit score and appear on your credit report. Be mindful of this when you apply for a loan.

Conclusion: Is Giggle Finance Legit?

Giggle Finance provides quick, easy access to cash, which can be invaluable in a pinch. However, recurring complaints (with no responses from the company) about aggressive practices, high costs, and poor communication highlight the importance of understanding the risks before borrowing.

If you carefully review the terms, you can make an informed decision about whether Giggle Finance is the right solution for your needs.

Do you want to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

This is How to Buy a Franchise With No Money (Sort of)

By Joe

Key Takeaways

Franchises let you run a business using an established brand.
Most franchises need money upfront for fees, royalties, and other costs like location setup.
Online loans can help fund your franchise, though they may have higher interest rates.
Grants can provide free funding, but you must meet specific eligibility requirements.
Building business credit can help you finance a franchise without using your own money.
Some franchises, especially service-based ones, have lower startup costs.
Local franchises can be more affordable than big-name chains.
White label businesses may let you sell branded products with no upfront investment.

When you don’t have the cash upfront to invest in a business, but you really want to buy a franchise, what are your options? Unfortunately, there’s no such thing as free franchise opportunities in fast food or other brick and mortar chains. Still, you do have some options.

Here, learn your options to buy a franchise with no money down, where to find low-cost franchises, and explore online opportunities that are comparable to franchising.

This is what’s in store:

What is a Franchise?
- Do You Need Money to Buy a Franchise?
Ways to Buy a Franchise With None of Your Own Money Down
Where to Find Low-Cost Franchise Opportunities
Consider an Online White Label Businesses
Frequently Asked Questions
Final Takeaway

Now, let’s dive in!

What is a Franchise?

A franchise is a way to run your own business using someone else’s successful brand and system.

The franchisor (the company) lets you, the franchisee, use their:

Brand name
Products
Business plan

In return, you pay an upfront fee and a portion of your earnings.

For example, if you open a Chick-fil-A, you don’t have to come up with recipes or figure out marketing from scratch. Chick-fil-A provides you with everything you need—like training, branding, and a solid business plan. You run your location while they make sure the brand stays consistent across all their restaurants.

Franchising can be a great way to start a business with the backing of a trusted name.

Do You Need Money to Buy a Franchise?

In short, yes, you almost always need some money to buy a franchise.

There are a few main costs you’ll need to cover:

The initial franchise fee
Royalties
Marketing costs
Building or renovating

And, it’s important to know about each before you get started.

The franchise fee is the upfront cost to buy into the franchise. It can be a few thousand dollars or much higher, depending on the brand.

After that, most franchises charge a regular fee, usually a small percentage of your sales, as royalties. This helps cover things like training and support from the franchisor.

In most cases, you’ll need to chip in for advertising. This is usually 1% to 5% of your sales, and it goes toward marketing the brand as a whole.

Finally, If the franchise needs a physical location, you might need to rent a space, build it, or remodel it to match the brand’s look. This can be one of the biggest expenses.

Ways to Buy a Franchise With None of Your Own Money Down

Most people bootstrap franchise startups with their own savings, loans, or partnerships to cover these costs. But, as a business, you may have some options. Here’s how to buy into a franchise with no money down.

1. Look Into Online Business Loans

how to buy a franchise with no money down

Online lenders offer a quick and convenient way to access funding for your franchise. These platforms often have flexible requirements, making them a good option if you don’t qualify for traditional bank loans. The application process is usually straightforward, and you can receive funds within days.

Online business loans typically come with higher interest rates, so make sure you have a plan to pay them back. Compare multiple lenders to find one that offers favorable terms.

You might also like: No-Doc Business Loans: Get Funds Without Proof of Income

2. Apply for Business Grants

Business grants provide free money to help fund your franchise, but they often have strict eligibility requirements. Some are designed for specific groups, such as women, veterans, or minority business owners, while others support businesses in certain industries or locations.

Research grants offered by government programs, nonprofits, or private organizations. Although the application process can take time, securing a grant can significantly reduce your financial burden.

You might also like: A Full Skip Review: Business Grants, Funding, and More

3. Buy Into a Franchise With Business Credit

Using business credit can help you finance a franchise without upfront cash. By building a strong business credit profile, you can qualify for credit lines, business loans, or vendor financing to cover franchise costs.

Start by establishing business credit if you don’t already have it. Pay attention to factors like your payment history and credit utilization. With good credit, you can leverage funding opportunities to buy into a franchise and grow your business.

Where to Find Low-Cost Franchise Opportunities

If you’re looking for cheap franchises under $1,000, your options are slim. But, you don’t have to invest in a Chick-fil-A branch (which has a $10K initial franchise fee, and would probably cost somewhere in the $250K+ realm to launch) to become a franchise owner. From installing star-gazing ceilings to helping people plan dream vacations, there are other existing businesses you can buy into for less.

Here are a handful of places to start your search:

Franchise marketplaces
Service-based franchises
Local opportunities
The Small Business Administration (SBA)
Expos and trade shows.

Sites like Franchise Direct, Franchise Gator, and Entrepreneur’s Franchise 500 list franchises by industry and cost. These platforms often have a “low-cost” filter to narrow down options under a certain budget.

Businesses like cleaning services, mobile repairs, or tutoring often have low startup costs. Examples include Jan-Pro or Cruise Planners.

Check for regional or smaller franchise opportunities near you. Many local businesses offer franchise options that might be more affordable than national chains.

The SBA’s franchise directory offers tools to research franchises, including ones eligible for SBA loans. This can help you identify cost-effective options with financing support.

Events like expos and tradeshows in your industry are a great place to meet franchisors directly. They often showcase a range of franchises, including budget-friendly ones.

Consider an Online White Label Businesses

How to buy a franchise with no money online

Online white label businesses involve selling products or services that are created by another company but branded under your own name. This allows you to skip the production process and focus on selling and marketing the product.

You can find white label online stores, software products, and service businesses. The white label business model is not the same, but has many shared benefits with franchising.

how to buy a franchise with no money and bad credit

Plus, white label businesses tend to have low startup costs, and some even allow you to begin without any upfront investment.

To run a white label business, you’ll typically need to set up an online store or platform where you can sell the products.

Your main responsibilities will usually include:

Marketing
Customer service
Sales management

Meanwhile, the supplier will handle most of the production and fulfillment. It may be a lower-risk business model, but your success will largely depend on how well you market and brand the products.

You might also like: Is Credit Suite Legit? — A Business Credit Expert Review

Frequently Asked Questions

Do franchises pay a monthly fee?

Yes, most franchise owners pay royalties, which are typically 4% to 10% of sales. Some brands also require contributions to a marketing fund.

What’s the cheapest company to franchise?

Service-based franchises, like cleaning services or vending machines, often have low startup costs, sometimes under $10K.

How do I open a franchise with no money near me?

You can explore financing options like business loans or investors. Some franchisors also offer financing or low upfront costs.

What franchise is the easiest to own?

Franchises with simple operations and strong support, like fast food or cleaning services, are often easiest for first-time owners.

How much do Chick-fil-A owners make?

Chick-fil-A owners can make $200K to $300K annually, depending on location and sales.

Final Takeaway

If you want to buy a franchise business with no money, it’s possible through alternative financing. However, there isn’t a get rich quick scheme to follow. Consider financing, grants, and business credit. If you’d rather explore an opportunity with less initial investment upfront, consider a white label business instead.

Are you ready to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

Sidney Federal Credit Union: NY Business Financial Options

By Joe

As far as financial institutions are concerned, Sidney Federal Credit Union (SFCU) stands out as a beacon of community-focused banking. They offer tailored solutions to meet the needs of both individuals and businesses.

Unlike traditional big banks, credit unions like SFCU are member-owned cooperatives, which means that profits are reinvested into services. In turn, they’re usually able to offer exemplary products and rates for members. From a business credit perspective, SFCU has some interesting offers. Let’s take a closer look here.

This is what’s in store:

What is SFCU?
- Locations Served
- Membership & Eligibility Requirements
SFCU Business Financial Products & Services
SFCU Customer Service
SFCU Community Involvement
Frequently Asked Questions
Final Thoughts

Now, let’s roll!

What is SFCU?

SFCU originated when a group of employees from Scintilla Magneto Corp. gathered in Sidney, NY, to form a credit union. In 1949, they secured a charter from the Bureau of Credit Unions, officially establishing Sidney FCU, later known as Sidney Federal Credit Union.

Today, SFCU boasts 11 branches across several counties in New York state, including parts of Broome, Oneida, Herkimer, Chenango, Delaware, Otsego, Cortland, Onondaga, Madison, Schoharie, Montgomery, Fulton, Hamilton, and Essex. The credit union is governed by a Board of Directors comprising individuals who live and work within the communities SFCU serves.

Established with a mission to serve the local community, Sidney Federal Credit Union has been a cornerstone of financial support since its inception. With a strong commitment to assisting small businesses, SFCU provides a range of specialized financial products and services designed to fuel entrepreneurial growth.

Locations Served

SFCU extends its services to individuals and businesses across various counties and towns in New York state.

These areas include:

Chenango
Cortland
Delaware
Essex
Fulton
Hamilton
Madison
Montgomery
Onondaga
Otsego
Schoharie

In addition to these counties, specific towns within Broome, Oneida, and Herkimer counties are also within the field of membership.

These towns include:

Colesville, Sandford, and Windsor Towns in Broome County
Sangerfield, Bridgewater, Augusta, Marshall, Paris, Vernon, and Kirland Towns in Oneida County
Winfield, Litchfield, Columbia, Warren, Stark, Danube, Frankfort, and German Flats Towns in Herkimer County

If you reside, work, attend school, worship, or conduct regular business activities within these areas, you may be able to take advantage of SFCU’s services and benefits.

SFCU Membership & Eligibility Requirements

Becoming a member of SFCU is a straightforward process designed to be accessible to all eligible individuals.

Here’s how you can join:

To initiate your membership, open a savings account with SFCU online. The minimum deposit required is only $5, making it easy for individuals to get started.
Once your savings account is opened, deposit at least $5 to fulfill the membership requirement.
With your membership established, you are now eligible to apply for and access a wide range of financial services offered by SFCU, including banking services, business accounts, lending services, and more.

SFCU welcomes not only individuals residing within the specified counties and towns but also extends membership eligibility to employees of SFCU, immediate family or household members, organizations of such persons, and corporate or other legal entities—This inclusive approach ensures that a diverse range of individuals and entities can benefit from the superior service and exceptional financial services offered by SFCU.

SFCU Business Financial Products & Services

Now, let’s take a look at the business financial products offered at SFCU—We’ll look at the checking, credit cards, loans, and savings accounts that small business owners can take advantage of.

SFCU Business Banking/Checking

sidney federal credit union online banking

SFCU offers a few different business checking accounts:

Basic Business Checking
Community Checking (for nonprofits)
Business Dividend Checking

With all business checking accounts, you’ll get a Mastercard debit card, free online and mobile banking with e-statements, and unlimited transactions. You’ll also get free bill pay and be able to access overdraft protection options.

With Basic Business Checking, there are no added fees and no minimum opening deposit. You can avoid the $5 monthly maintenance fee if you maintain a $500 minimum balance.

For not-for-profits, SFCU provides the Community Checking account. There is no minimum initial deposit requirement and no monthly maintenance fee.

Businesses looking to earn dividends on their checking balance can opt for the Business Dividend Checking account. With no minimum initial deposit requirement, businesses must maintain a $5K ADB to earn dividends, and to avoid the $5 monthly maintenance fee—This account offers a competitive .25% APY on balances.

Feature	Basic Business Checking	Community Checking	Business Dividend Checking
Minimum ADB to Earn Dividends	N/A	N/A	$5,000
Minimum ADB to Avoid Monthly Maintenance Fee	$500	N/A	$5,000
Dividend Rate *	N/A	N/A	.25% APY
Monthly Maintenance Fee *	$0 to $5	$0	$0 to $5

At SFCU, there seems to be a checking option for nearly any small business.

You might also like: Amex Business Checking Review: What You Need to Know…Really

SFCU Business Platinum Mastercard Credit Card

The SFCU Platinum Mastercard® offers a competitive APR starting as low as 13.15%, with a maximum APR of 17.99%. What’s great? There are no annual fees, making it an attractive option for businesses looking to stretch their dollars further.

With this card, you can earn rewards on everyday purchases.

The SFCU credit card earns a flat 1% back that can be redeemed for:

Cash back
Travel
Gift cards
Charity donations

Plus, there’s no balance transfer fees, and you can enjoy the convenience of tap-to-pay contactless payment. There’s also 24/7 fraud monitoring. If you need to increase your credit limit, you can apply for a limit increase hassle-free.

SFCU Business Loans & Lines of Credit

Sidney Federal Credit Union Business Credit Card

SFCU also has an array of business loans, including term loans, lines of credit (revolving), and real estate loans. All of their loans have competitive rates, flexible terms, and come with no prepayment penalties.

If you’re looking to expand or cover expenses, SFCU’s business term loans provide the financing you might need to keep operations running smoothly. Use them for inventory, equipment, or services. Plus, with fixed rates and the option to choose loan terms between 1 and 7 years, budgeting is pretty simple.

For when you need ongoing access to funds, SFCU also provides business lines of credit. These lines of credit offer financial flexibility for various purposes, including cash flow gaps and overdraft protection. With options for both secured and unsecured lines of credit, you can choose the option that best fits your needs and goals.

If commercial or investment real estate properties are on your radar, SFCU offers commercial real estate loans with flexible terms and structures—These loans come with both fixed and variable rates and can be customized to fit your unique needs and goals.

SFCU Business Savings & Investment Opportunities

SFCU offers a few business savings options tailored to suit different financial needs and goals.

Business savings account
Business money management account
Business share certificates

The SFCU Business Savings Account is ideal if you’re looking to build up savings and maintain easy access to funds. With just a $5 minimum opening deposit, you can earn dividends on your balance (up to 0.05% APY)—This account might be good if you want to earn a little extra while saving for short-term business goals or emergencies.

Now, if you want to maximize your savings potential without sacrificing liquidity, SFCU’s Business Money Management Account might be a better choice. With higher dividends and no withdrawal penalties, this account offers flexibility while allowing your savings to grow. It’s suitable when you want to earn more on your funds and retain the ability to access them when needed.

When you’re aiming for long-term savings goals, such as expansion plans or major investments, the Business Share Certificates offer higher savings rates with flexible terms. With terms ranging from 31 days to 60 months and competitive rates as high as 2.53% APY, SFCU’s certificates provide an opportunity to earn more on your savings over time.

In all, SFCU’s business savings options provide opportunities to earn dividends and grow your funds. However, these aren’t the best rates I’ve ever seen.

SFCU Customer Service

Sidney Federal Credit Union customer service

Sidney Federal Credit Union (SFCU) provides various customer service channels for members’ convenience:

Live chat – Immediate assistance is available via live chat
Email – Members can send messages for non-urgent inquiries
Phone support – Accessible at 877-642-7328 (SFCU)
SMS text messaging – Support for lost or stolen cards—24/7
Text message alerts – Receive important notifications via text

These channels ensure members can access assistance promptly and efficiently. Keep in mind, they’re typically available during normal “banking hours” (9 to 5 Monday through Friday).

sidney federal credit union 24 hour customer service

Of course, as with all services, you might expect mistakes to happen from time to time…But, SFCU has apparently closed all of their *minimal* complaints with the Better Business Bureau promptly. They maintain an A-rating on the platform despite not being accredited.

In all, you should be able to get in touch with someone when you need help.

You might also like: 6 Best 0% APR Business Credit Cards to Check Out

SFCU Community Involvement

Sidney Federal Credit Union in the community

Sidney Federal Credit Union (SFCU) is rooted in community spirit—they pioneer local events like the SFCU Hometown Day Parade. It’s a blast, stretching over 1.2 miles, starting at Sidney Central School and winding down to Keith Clark Park for a lively celebration. Locals are invited to be part of the tradition, soaking in the community vibes and enjoying the festivities.

Ever heard of the Fraud Seminar? SFCU teams up with the Montgomery County Sheriff’s Office to bring the community this eye-opening event. Scams are everywhere nowadays, but staying informed is key to protecting yourself. SFCU teaches the ins and outs of how to spot scams, protect your finances, and what to do if you fall victim to fraud.

And, if you feel a bit lost in the budgeting department, SFCU’s got your back. At their Budgeting 101 workshop at their Cicero branch, they’ll hook you up with all the tips and tricks to create a budget that actually works for you. Plus, there’ll be snacks and beverages to keep you fueled up while you learn.

You might also like: BILL Spend & Expense Card Review (Formerly Divvy Credit Card)

Frequently Asked Questions

Does Sidney Federal Credit Union have Zelle®?

Yes, Sidney Federal Credit Union does offer Zelle®. Simply log into the Sidney Federal Credit Union mobile app and select “Send Money with Zelle®.” From there, follow the prompts to enter the necessary information, accept the terms and conditions, and begin sending and receiving money.

What is the grace period at Sidney Federal Credit Union?

For most products, the grace period for Sidney Federal Credit Union is 10 days—This means that you have a window of 10 days after your due date to make payments without incurring any late fees. However, any payments received after this 10-day grace period will incur fees.

What is Sidney Federal Credit Union’s address?

SFCU’s main office is situated at 42 Union St., Sidney, NY 13838. Additionally, SFCU operates 11 branches across several counties in New York, including parts of Broome, Oneida, and Herkimer, as well as the entirety of Chenango, Delaware, Otsego, Cortland, Onondaga, Madison, Schoharie, Montgomery, Fulton, Hamilton, and Essex counties.

What is Sidney Federal Credit Union’s routing number?

The routing number for SFCU accounts is 221379905.

Final Thoughts

In summary, Sidney Federal Credit Union (SFCU) offers a range of financial products and services tailored to meet the needs of businesses in New York state. From business checking accounts and credit cards to loans, lines of credit, and savings options, SFCU provides comprehensive solutions to support entrepreneurial growth.

Additionally, their community involvement initiatives, such as the Hometown Day Parade and educational events like the Fraud Seminar and Budgeting 101 workshop, demonstrate their commitment to supporting and empowering local communities.

With accessible membership requirements and convenient customer service channels, SFCU strives to be a reliable partner in the financial success of its members—Just be sure to shop around and make sure you take advantage of the business financial products that best meet your needs and goals.

Do you want to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

What You Need to Know About PayPal LoanBuilder for Business

By Joe

PayPal LoanBuilder is advertised as a quick, convenient way to get up to $100K in business funding. The company is more than reputable, and their marketing makes it sound like the easiest financing option in the world. But, what are the terms, how much does it cost, and is this really the best loan for your business?

Let’s find out what LoanBuilder is, how it works, and explore exactly what you can expect if you apply.

This is what’s in store:

What is PayPal LoanBuilder?
- How Much Does PayPal LoanBuilder Cost?
How Does PayPal LoanBuilder Loan Work?
Frequently Asked Questions
Final Thoughts

Now, let’s get to it!

What is PayPal LoanBuilder?

PayPal’s LoanBuilder is a service that offers fixed-term small business loans from $5,000 to $100,000 for first-time borrowers and up to $150,000 for repeat borrowers—the financing option is designed to be fast and flexible, with funds potentially available in your business bank account as soon as the next business day after approval.

The loan comes with transparent pricing, where you pay a clear, fixed fee along with a $20 Returned Item Fee if a payment is returned. There are no late fees, early repayment fees, or processing fees. You can choose a repayment term that suits your business needs, and payments are automatically deducted weekly.

To check if your business is eligible for a LoanBuilder Loan, you can complete a quick online questionnaire. This process won’t impact your personal credit score. If eligible and approved, you can customize your loan amount and term, sign the contract electronically, and receive the funds quickly.

To qualify, your business needs to have been operational for at least nine months with an annual revenue of at least $33,300. Keep in mind that LoanBuilder is a service provided by PayPal in partnership with WebBank. The loan application and approval process is designed to be straightforward and streamlined, aimed at helping businesses manage cash flow, finance projects, or tackle other business challenges.

A LoanBuilder loan does require a personal guarantee.

You might also like: Business Credit Cards without Personal Guarantee

How Much Does PayPal LoanBuilder Cost?

The cost of a LoanBuilder loan is determined by a single fixed fee known as the Total Loan Fee, which will be disclosed at the time of loan approval and remains consistent throughout the loan term.

However, since this is a working capital-style loan, you should expect interest rates higher than you would get via, say, your business credit union. Still, they may be lower than other working capital solutions.

The specific amount of the Total Loan Fee varies based on:

The loan amount
Repayment term
Financial risk

LoanBuilder Loans do not have additional fees such as late fees, early repayment fees, or processing fees—The Total Loan Fee is the primary cost associated with borrowing and is included in your repayment schedule.

To see your LoanBuilder cost, you’ll need to complete the loan application process and review the personalized terms.

How Does PayPal LoanBuilder Loan Work?

LoanBuilder from PayPal offers a pretty simple approach to business financing, providing you with a customizable loan experience tailored to your business needs.

With LoanBuilder, you have the freedom to:

Access funds quickly
Repay with clarity
Benefit from straightforward terms

Let’s delve into the key features that will help you decide if LoanBuilder is the best choice for your business funding.

You might also like: A Deep-Dive National Funding Review: Should You Accept an Offer?

1. Apply With No Impact to Your Credit

The PayPal LoanBuilder “application” is pretty straightforward. The questionnaire asks you for contact information, how you plan to use the funds, how you heard about the loan, business location, and business details.

Details to have on-hand about your business include:

Legal business name & DBA (if applicable)
Business address & website address
Entity type & state of incorporation
Annual revenue
Business start date
Number of employees
Industry & sub-industry
Percentage of ownership

The application also asks for your Social Security Number and Employer Identification Number. Luckily, they do a soft inquiry into your personal credit for pre approval, which won’t negatively impact your credit score.

However, you will probably have to approve a hard pull for final approval.

Don’t move forward with that until you’re absolutely sure you want this loan.

You might also like: Here’s How to [Actually] Get Business Credit With Just an EIN +More Options

2. “Customizable” Funding

LoanBuilder advertises a “customizable” loan—This makes it sound as if you might get to choose your amount, terms, and rate, which would be pretty exciting.

However, that’s not a realistic way to think about lending; lenders need to assess the financial risk before approving any type of financing.

Still, after you’re pre-approved for a loan, you can choose your loan amount and repayment term. Your loan fee percentage will increase as your terms are extended. So, the longer you give yourself to pay off the loan, the higher your Total Loan Fee.

If you do opt for this loan, consider giving yourself some extra time to pay it just in case something unexpected occurs, as you could be charged penalties for failing to pay on-time.

3. Fixed-Fee Loan

When you take out a LoanBuilder Loan, you won’t have any upfront fees deducted from the loan amount you receive. Instead, the cost of borrowing—the single fixed fee, known as the “Total Loan Fee”—is spread out and paid gradually over the entire duration (life) of the loan.

Here’s a breakdown of what this means:

When you receive the loan amount, the full sum is deposited into your business bank account without any immediate deductions for fees or charges. This ensures that you have access to the entire loan amount upfront to use for your business needs.
The cost associated with borrowing the money is represented by a single fixed fee—This fee is agreed upon and disclosed at the time of loan approval; it does not change over the course of the loan.
Rather than paying a fee upfront or separately, it is integrated into your loan repayment schedule. Each time you make a repayment towards your loan (typically on a weekly basis), a portion of that payment goes towards covering the Total Loan Fee. This fee is gradually paid down along with the principal amount of the loan.

By structuring the loan this way, you get clarity on the total cost of borrowing from the outset, and you can plan your repayments knowing how much will be allocated towards the loan principal and how much towards the fixed fee.

4. Fast Access to Funds

The LoanBuilder lending process is designed to be fast…

First, when you check your eligibility, it’s done through a quick online questionnaire. This initial eligibility check does not involve a hard inquiry on your personal credit report, which means it won’t affect your consumer credit score—This is helpful because you can explore loan options without worrying about potential negative impacts on your credit rating.

If your LoanBuilder Loan application is approved, the funds are transferred directly to your business bank account, often by the next business day after approval—This rapid transfer ensures that you can access the funds quickly to address business needs or capitalize on opportunities right away.

5. Accessible Business Funding

The eligibility requirements for a LoanBuilder Loan can be considered relatively low compared to some traditional business loans:

At least nine months in business
$33.3K annual revenue

Requiring a minimum of nine months in business is relatively short compared to other types of business loans that might need several years in operation. Newer businesses can access financing sooner in their development stages.

While this amount varies depending on the size and industry of your business, $33,300 annual revenue is a moderate threshold—It’s achievable for many small businesses, including startups and those in their early stages of growth.

These requirements are inclusive and accessible to a wide range of small businesses, including startups and those with modest revenue streams.

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6. Weekly Repayment Terms Up to 12 Months

The repayment period for LoanBuilder Loans ranges from 17 weeks (approximately 4 months) to 52 weeks (approximately 12 months), depending on your eligibility and the loan amount you qualify for.

During the repayment period, you will make weekly payments towards your loan balance.

The amount of each weekly repayment will be set based on:

The total loan amount
The fixed fee associated with the loan
The chosen repayment term

The weekly repayment amount remains consistent throughout the repayment period, providing predictability in your loan payments.

For example, if you have a loan with a 26-week repayment term, you will make 26 weekly payments until the loan is fully repaid. The amount of each weekly repayment is calculated to cover both the principal loan amount and the fixed fee—this helps you make sure the loan is paid off by the end of the chosen repayment term.

Frequently Asked Questions

Is PayPal legally a bank?

No, PayPal is not a bank. It is a technology company that provides online payment services and financial solutions.

What bank does PayPal use for loans?

LoanBuilder loans are provided by WebBank®, Member FDIC, in partnership with PayPal.

What is the minimum credit score for LoanBuilder?

LoanBuilder does not disclose a specific minimum credit score requirement. Instead, eligibility is determined based on various business factors such as revenue and operational history—but the do require a personal guarantee

Does PayPal LoanBuilder report to credit bureaus?

Yes, PayPal LoanBuilder reports payment activity to business credit bureaus, not personal credit bureaus. This can help businesses establish and build their business credit profile.

Final Thoughts

PayPal is a trustworthy financial company, with LoanBuilder being backed by a reputable bank. The loans they offer are pretty competitive in the working capital realm, but the high rates are a red flag for me. I never recommend my students take out a loan like this unless there is absolutely no better option—even with a flat fee, weekly repayments can eat at your profits.

But, if you need to take out a high-interest loan and you’ve explored all of your options, this might be the way to go. If you have some time, I recommend you put some effort into your business credit so you can get loans and lines of credit with (much) better terms…it’s a game changer.

Do you want to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

Should You Take Fora Financial Reviews With a Grain of Salt?

By Joe

Fora Financial is a pretty well-known source of small business funding. And, according to Trustpilot and other review sources, they’re also super well-rated. But, you and I both know that you can’t necessarily trust that all user reviews you see online are real…and not all online loans are legit.

So, let’s dive deep into Fora Financial’s offer, and see if we can get to the bottom of the issue. Find out if Fora’s offer is right for you.

Here’s what’s in store:

What is Fora Financial?
- Fora Financial Loan Requirements
- Is Fora Financial a Real Company?
What Does Fora Financial Do?
Frequently Asked Questions
Conclusion

Now, let’s go!

What is Fora Financial?

Fora Financial is a financial services provider or alternative lender that specializes in funding solutions for small and medium-sized businesses — They provide options like small business loans with fixed payback schedules and revenue advances that adjust based on sales.

The application process is straightforward, typically involving an online application followed by a discussion with a “Capital Specialist” and, upon approval, receiving funds within a few days.

Their funding amounts range from a few thousand dollars up to $1.5 million (with no restrictions on how you use it). You might be able to qualify for 75 percent to 125 percent of your monthly gross sales.

And, you’ll probably pay between 15 and 20 cents per dollar with their repayment terms.

Fora Financial caters to various industries and business needs, including cash flow management, equipment purchases, expansion, and more. Overall, they provide accessible financing options for businesses looking to address their funding needs.

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Fora Financial Loan Requirements

Like other alternative funding, and compared to traditional business loans, Fora Financial’s requirements are fairly relaxed. You do need to meet some requirements, but the appeal is that these loans are pretty easy to get (In exchange, you pay higher fees over the duration of the loan).

You will need a personal credit score of at least 500 (with no open bankruptcies) to qualify. Most people can meet this requirement easily.

And, according to anecdotal evidence (what I found in various forums), your business must have at least $12K to $15K in gross monthly income and to have been established for at least three months.

Some lenders require several years in business, so their business requirements are nice. However, conventional business loans look at your business credit score, so there’s no impact to your personal credit utilization as long as you pay as agreed.

Is Fora Financial a Real Company?

I was surprised that people are wondering if the company is real. This one is easy to answer – yes, Fora Financial is an established business.

In fact, New York-based Fora Financial LLC was founded in 2008 by Daniel Smith and Jared Feldman. Back then, it was called Paramount Merchant Funding LLC (no relation to Paramount Payment Systems), and the name was changed in 2013.

Today, it’s a private-equity backed company that seems to be thriving.

Feldman is the current CEO of Fora, where he’s been for almost 16 years. Smith is also still with the company and previously spent 7 years as a board member of the Small Business Finance Association.

And, according to Glassdoor, most of Fora’s employees would refer a friend to the company and even more approve of company leadership.

Fora Financial employee reviews Glassdoor

How employees view a company really says a lot about its practices and overall internal ethics – in general, this one seems to have strong leadership.

But, how customers see a business can tell us even more. With that said, Fora maintains a 4.5-star rating on Trustpilot, where most of the poor reviews come from people who don’t have loans with the company.

On this platform, the most common complaints are the loan interest rates and difficulty getting in touch with a representative.

Now, when you check out Fora Financial’s standing with the Better Business Bureau, you’ll find that they are an accredited business with an A+ Rating. They have had seven customer complaints in the past three years (this is a relatively low number).

In sum, they appear to have a legit offer that could be worth checking out if you’d have trouble with approval from a more conventional lender.

But, before you take that as a green light to go apply, you should know that – as of January 2024 – there is an open class action against Fora in which a data breach is being investigated.

In Fora’s defense, one of the world’s largest banks and even one of the three major credit bureaus have suffered data breaches.

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What Does Fora Financial Do?

In a nutshell, Fora offers small business loans and revenue advances quickly through a fast application and approval process. But, let’s take a closer look at each major facet of the offer so you can understand exactly what you’re considering signing up for.

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1. Simple Application Process

The application process with Fora Financial is straightforward and designed for convenience. First, you’ll need to fill out their easy online application form, which only takes a few minutes. Shortly after submitting your application, expect a call from one of their Capital Specialists to discuss your funding request in detail.

It’s important to note that Fora Financial will conduct a credit check as part of their review process, but only upon pre-approval.

2. Speedy Turnaround

Within four to 24 hours of your application submission, if you seem to be a good candidate, Fora Financial will provide you with a funding recommendation. Once approved, you can expect to receive your funds in a lump sum within 24 to 72 hours – This allows you to start utilizing the funds for your business needs straight away.

Be sure to read terms and conditions carefully for any offer Fora might send. You need to be sure your business has the ability to pay back the loan on-time as agreed.

3. Convenient Online Portal

When it comes to applying and repayment, Fora has a convenient online portal that you can access through their website.

An online portal is convenient for business borrowers because it offers easy access to loan information, application processes, and account management from anywhere with internet access.

This means you can apply for loans, check your account status, and manage payments without needing to visit a physical location or wait on hold for customer service. It saves time and offers flexibility.

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4. Repayment Terms up to 15 Months

Fora offers loans from $5K to $1.5M and repayment terms up to 15 months. This means that you will have over a year to either repay your loan or find a way to refinance it through a lower-interest lender.

And, Fora doesn’t penalize early repayment – in fact, Fora rewards responsible payment behavior. If you pay off your loan early, you’ll save money in most cases.

While this seems like a loan feature that should be standard, it’s not something you see with all online loans.

You might also like: 11 Alternate Ways for Entrepreneurs to Raise Capital with Online Lending Platforms

5. Small Business Loans

Fora Financial offers small business loans that can turn your entrepreneurial dreams into reality. With loan amounts ranging from $5K to $1.5 million in working capital, you have the financial flexibility to pursue opportunities and grow your business.

What’s great is that they don’t do hard credit pulls; just one soft inquiry when you apply, saving you from potential credit score damage. Plus, they offer pre-payment discounts and the chance to increase your borrowed amount after paying at least 60% of the original loan, providing ultimate flexibility.

And, you’re free to use the funds for almost any business expense, whether it’s expanding your operations, hiring more staff, or investing in equipment.

Recommended: How to Get an SBA Business Loan

6. Revenue Advances

Fora Financial’s Revenue Advance is designed to provide flexible terms for businesses experiencing variable cash flow. With this option, you can borrow anywhere from $5K to $1.5 million against your future revenue.

The repayment structure is tailored to your business’s sales performance, making it easier to manage during both prosperous and lean times.

Here’s how it works:

Instead of fixed monthly payments, you repay a fixed percentage of your daily or weekly sales.
When your sales are booming, you’ll pay off your advance faster, but during slower periods, you’ll benefit from reduced payments (this gives you breathing room when you need to navigate challenging times).

In essence, this is a working capital loan or merchant cash advance. Again, I only recommend this type of financing if you have no other option.

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Frequently Asked Questions

Does Fora Financial do credit checks?

Fora Financial conducts a soft credit inquiry when you apply for financing. This inquiry does not impact your credit score. However, they do not perform hard credit checks, so your credit score remains unaffected during the initial application process.

Is Fora Financial a direct lender?

Yes, Fora Financial is a direct lender. This means that they provide funding directly to borrowers without involving intermediaries or brokers. Working with a direct lender like Fora Financial can often streamline the loan process and offer more personalized service.

How do I get approved for financing with Fora Financial?

To get approved for financing with Fora Financial, you can start by filling out an online application on their website. Your personal credit score must be at least 500. The application process is straightforward and typically requires basic information about your business, such as revenue history and desired loan amount. Approval is based on various factors including your business’s financial health and creditworthiness.

Does Fora Financial report to credit bureaus?

No, Fora Financial does not report your payment history to major credit bureaus. This means that your loan with Fora Financial will not impact your business or consumer credit profile (unless you default on your loan).

Conclusion

As far as alternative lenders go, Fora is one of the good ones. While their rates are way too high for me to recommend the offer (I never recommend this type of loan unless the situation is so urgent and dire that there is no other choice).

This may seem like a natural benefit if you’re not versed in alternative loans, but the fact that Fora doesn’t have a prepayment penalty is fantastic – many online lenders will penalize you if you pay off your loan before the repayment date.

*Which is why it’s so important to read the terms and conditions.

Ready to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

Torro Business Funding Review: Is This Zero Hassle Offer Legit?

By Joe

If you’ve come across Torro Business Funding, you may have been referred by a franchise or an Instagram influencer. And, they may be offering you the funds you need to start or grow your business…But, for some reason, you’re still wondering if they’re legit.

Here, you can find out what Torro Business funding is (how it’s different from a conventional lender), learn about the company, and explore what you can expect from their offer. You’ll even find answers to some common questions about this type of lending.

This is what’s in store:

What is Torro Business Funding?
- Torro Funding Requirements
- Company Overview
What Does Torro Business Funding Do?
Frequently Asked Questions
Conclusion: Is Torro Funding Legit?

Now, let’s dive in!

What is Torro Business Funding?

Torro is known as a source of “startup capital” and “business capital” – they offer hassle-free financing solutions geared toward small businesses. Torro is an alternative financial service provider that specializes in addressing cash flow and working capital needs.

Unlike traditional banks and lenders, Torro offers a streamlined approach to access funds, and they emphasize the convenience and efficiency this offers business owners.

Whether you’re a post-revenue business seeking expansion or a pre-revenue startup in need of initial capital, Torro has tailored funding options to help you get cash to expand your business.

Interestingly, most of the small number of poor Trustpilot reviews seem to come from business owners who decided not to work with Torro after the initial consultation. Otherwise, they maintain a high rating on the platform (this is always impressive for a financial offer, as long as there reviews are real).

For pre-revenue businesses — which includes startups, franchises, or those looking to purchase a business — Torro offers a three-step process to obtain unsecured working capital (startup capital) between $5K to $125K to kickstart your business.

For post-revenue businesses, Torro claims to simplify the process with a quick online application (business capital) to help you grow your operations with $5K to $725K.

Within their wide funding range, they seem to have something for everyone.

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Torro Funding Requirements

Torro’s funding is considered working capital. With this type of loan, repayment can happen as a percentage of your daily sales, and is most often “factored.” Factoring involves selling accounts receivable to a third party (“lender”) at a discount for immediate cash, while interest loans entail borrowing a sum of money that must be repaid with interest over time.

So, working capital loans are kinda like a payday loan for business. Because of this, their requirements are a bit more lax than a traditional business loan.

When you come across an offer that seems like it could be too good to be true, it’s only natural that your hair would stand up on end. I never recommend this type of loan, unless a business owner absolutely has no other option. The reason is that they tend to be the quickest and easiest funding you can get, but they are more expensive.

Bear in mind, Torro is not the only alternative lender with relaxed requirements, and this isn’t a “scam,” it’s just a more expensive loan — i.e. not the most financially sound option you can take advantage of.

Company Overview

Established in 2015 and based in Salt Lake City, Utah, Torro LLC is an online funding platform, founded, owned, and managed by Cameron Montgomery. The company is in good standing with the Utah Division of Corporations and Commercial Code.

As the current CEO, Montgomery officially registered the company in 2012, and also does business as “The Broker Blueprint” – a training program that empowers individuals to become business loan brokers, connect borrowers with lenders, and secure financing for small businesses.

Prior to launching Torro, Montgomery didn’t share any work or education experience on LinkedIn.

Torro is accredited with and maintains an A+, 4.6-star rating with the Better Business Bureau (BBB). I almost never see any positive reviews on the BBB website, let alone almost 90 of them. I’ll leave you to your own discretion on this one.

What I can say is that there have only been 7 complaints with the BBB in the past 12 months – It’s not uncommon to see 50+ for a financial offer.

I found one thing particularly odd – the company seems to have two websites that are exactly the same – one is at torro.com and the other at gotorro.com. It doesn’t seem like one of them is fake (Trustpilot cites torro.com and Crunchbase cites gotorro.com), so I have no idea why this would be.

In all, Torro Funding has been in operation for nearly a decade, and they’re in good standing in the areas where it’s necessary. However, this isn’t the most transparent company I’ve ever seen — I would like to have seen more information about loan rates and terms on the company website and the founder’s previous experience on LinkedIn.

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What Does Torro Business Funding Do?

In a nutshell, Torro small business funding is a means to get the capital you need quickly. Let’s take a look at their application process, speed of funding, and what you can expect from this offer.

Compared to other, comparable funding products, this one is pretty simple.

1. Quick, Online Application

Torro’s online application asks only for the basic info about your business, like name, years in business, and your personal credit score. Of course, they want your income and contact info, but the pre-authorization doesn’t require that you enter your social security number.

You can supposedly create an online account during the application process, but it has to be manually approved. This probably helps weed-out the people who are just here to spy, and aren’t actually interested in business capital.

After you apply, you should get a call back within one business day.

2. Funding Within a Week

Startup business loans with no revenue bad credit

With their proprietary QuickWrite® system, underwriting typically occurs within the same day, and approved businesses can access funding within 24 hours. To avoid unrealistic expectations, the video you’re taken to after you submit your application makes it clear that funding happens within a week.

This is pretty quick, as far as business loans are concerned, though there are competitors who offer funds with the same urgency.

3. Syndicated Investor Financing

Torro has a network of investors who collectively provide the capital required by your business. Once the approval process is complete, these investors swiftly deposit funds into your bank account, often on the same day as approval, allowing you to utilize the funds immediately.

The loans are funded by a syndicated network of investors and financial resources associated with Torro – though, Torro doesn’t expressly state who these investors are. This is likely somehow related to Montgomery’s other program, The Broker Blueprint.

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Frequently Asked Questions

How can you get a business line of credit with no revenue?

To obtain a business line of credit with no revenue, you typically need to explore alternative financing options such as secured credit lines, personal guarantees, or presenting a strong business plan and credit history.

How do you know if a loan company is scamming you?

You can identify potential loan scams by researching the company thoroughly. Check for legitimate accreditation, verify contact information, read reviews, avoid upfront fees, and be wary of promises that seem too good to be true.

Are money loan apps safe?

Money loan apps can be safe if they are reputable, regulated, and adhere to strict security measures for handling personal and financial information. It’s crucial to review the app’s privacy policy, user reviews, and security features before using it.

Are cash advance loans safe?

Cash advance loans can be safe if obtained from reputable lenders and used responsibly. However, they often come with high interest rates and fees, you need to fully understand the terms and conditions before agreeing to a cash advance loan.

Are online loan requests legit?

Online loan requests can be legitimate if they are from reputable lenders or financial institutions. It’s essential to verify the credibility of the website, review customer feedback, read the terms and conditions carefully, and ensure the website is secure before submitting any personal or financial information.

Conclusion: Is Torro Funding Legit?

Again, Torro Funding is meeting the necessary requirements for a financial offer:

Registered, active, and in good standing with the state of Utah
Good ratings on Trustpilot and BBB
Transparent ownership documentation

Plus, I like that they’re a privately-owned business, which has some appeal over doing business with a big bank (there are pros and cons to each.

Now, I would never step into a factored working capital offer unless it’s absolutely necessary — there are too many options that are much easier on your business budget. And, I wish there was more transparency into the loan rates and terms.

Whether or not this is an offer you want to take advantage of, I’ll let you decide.

Want to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

Is BHG Financial Legit? Personal & Business Loans, VC, & More

By Joe

While not a new company, BHG Financial started becoming wildly more popular than ever in 2022. Since then, they’ve been garnering attention with rumors that owners can get pre-revenue ($0 income) business loans with no personal guarantee. While applicant’s can expect a ton of phone calls from the moment they share their contact info with the company, this is true for most modern lenders.

Most of all, people want to know if BHG Financial is legit. Keep reading to get the answer.

Here’s what’s in store:

What is BHG Financial?
- Is BHG Financial Legit?
What Does BHG Financial Do?
Frequently Asked Questions
Conclusion: Is BHG a Legitimate Company?

Now, let’s get down to it!

What is BHG Financial?

BHG Financial is a financial company that offers various solutions for small and medium-sized businesses (SMBs) as well as consumers across the U.S.

Their approach involves using data analytics and technology to market and underwrite small business and unsecured consumer loans. They claim to be a disruptor in the industry, with a focus on providing innovative financial solutions. BHG operates with a proprietary online auction platform to sell loans to a large network of bank members.

Is BHG Financial Legit?

According to the company website, BHG Financial started back in 2001 with a modest $25K and a small team. Fast forward to today, they’ve grown significantly. The numbers they highlight include over $15 billion in loan solutions, processing around 31,000 applicants each month, with 1,450 bank members and a team of 1,500 employees.

According to Crunchbase, BHG Financial (aka “BHG Financial LLC”) is a Ft. Lauderdale, Florida-based, for-profit company. 🚩However, according to Sunbiz.org (Florida’s Division of Corporations website), no such-named business is registered in the state.

However, Banker’s Healthcare Group LLC. (per bngfinancial.com Terms & Conditions) is active and registered to Albert (Al) Crawford in Davie, Florida. Crawford is the current Co-Founder, Chairman, and CEO at BHG Financial where he’s been since the company’s humble beginnings.

Bankers Healthcare Group is known to directly lend funds and offer financing, credit cards, and patient financing tailored for healthcare professionals for the past 20+ years.

🚩 In digging deeper, I found that, as of November 2023, Bankers Healthcare Group is facing a proposed class action lawsuit that alleges they disguise consumer loans as business loans to cover up unlawful lending practices. If you follow along, you might be able to find out if this allegation has legs – it will be interesting to find out.

Despite 522 complaints in the past 3 years (175 closed in the past 12 months), BHG Financial maintains an A+ rating with the Better Business Bureau (BBB), where they’ve been accredited since 2018.

Now, if the class action previously mentioned happens to stick, this rating might go down.

As reported by at least Redditor, as a lender, BHG reps might try high-pressure tactics to get someone to take a loan offer, but they’re legit and their financial products are negotiable.

In all, the company has been around for over 20 years with its original leadership (they haven’t sold out), and they have no founded legal issues that indicate they’re going to take your money and run.

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What Does BHG Financial Do?

BHG Financial is a parent company with several brands under their umbrella, including BHG Money and several other financial offerings. Let’s take a quick look at each of BHG’s brands and how they serve consumers and businesses. As they put it themselves, they “bring a diverse set of innovation solutions to the market.

And, two of their brands offer financing for small business, so I’ll touch on them first.

1. BHG Money Loans

BHG Money positions itself as a versatile financial solution, offering swift and hassle-free services for individuals and professionals. Whether you’re in need of business, personal, startup, or SBA 7(a) loans, or exploring credit card options, BHG Money caters to a diverse range of needs.

BHG Money’s business loans include:

Up to $500K with flexible terms up to 12 years
Debt consolidation loans
Existing business investment loans
New business opportunity loans
Medical practice loans (naturally)
Working capital loans

What’s cool is that these loans can be approved in as little as 24 hours, and they don’t require personal collateral, a business loan, or pro forma to qualify.

This offering is particularly well-suited for individuals and professionals seeking efficient and convenient financing with a focus on prompt access to funds for various purposes.

2. Fund-Ex Solutions Group Loans

As one of the 14 non-bank SBA 7(a) lenders, Fund-Ex Solutions Group provides rapid and flexible financing for small businesses.

Fund-Ex Solutions Group caters to businesses with several loan options:

Up to $5M with repayment terms up to 25 years
Commercial debt consolidation
Real estate
Start up or acquisition
Equipment purchase
Renovation or expansion
New location

Like BHG Money, Fund-Ex Solutions doesn’t require personal collateral, and these loans won’t impact your personal credit. You can use their loans for a variety of business purposes and there are no balloon payments at the end of the loan.

This offering could be advantageous for small business owners aiming to access efficient and tailored financing solutions, supporting their growth and development endeavors.

3. BHG Bank Network

Tailored for financial institutions, BHG Bank Network provides a cutting-edge loan delivery platform. This platform not only allows banks to view but also to purchase top-performing assets.

Ideal for banks looking to bolster their loan portfolio, BHG Bank Network leverages state-of-the-art technology to streamline the acquisition process of high-performing assets. This can enhance overall operational efficiency.

4. NaluPay

NaluPay distinguishes itself as a merchant-centric point-of-sale financing platform. Designed specifically for healthcare, home improvement, and retail businesses, NaluPay strives to make customer purchases more affordable.

This offering is beneficial for businesses (in these sectors) that want to offer flexible financing solutions, to foster increased sales, and enhance customer satisfaction through accessible payment options.

5. Risk Management Solutions Group

The Risk Management Solutions Group concentrates on delivering regulatory, compliance, and risk management services. Targeted at financial institutions, this offering is designed to assist these entities in staying ahead of industry changes.

It might be great for institutions navigating the complex landscape of regulations and effectively mitigating risks to ensure compliance and operational stability.

6. BHG Connect

BHG Connect introduces a co-branded end-to-end lending program, simplifying the process for companies to seamlessly offer loans online.

This program is an excellent fit for businesses looking to integrate lending options into their services effortlessly, providing customers with convenient online access to loans and enhancing the overall customer experience.

7. BHG VC

Operating as a Corporate Venture Capital fund, BHG VC supports disruptive fintech founders and contributes strategic resources. BHG VC aims to facilitate rapid growth in the financial technology sector by providing comprehensive support to promising startups.

BHG VC might be suited for fintech entrepreneurs seeking both financial backing and strategic guidance for their innovative ventures.

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Frequently Asked Questions

What credit score do you need for BHG?

BHG typically requires a credit score in the good to excellent range, often around 680 or higher. However, specific credit score requirements may vary depending on the type of loan and individual circumstances.

What type of loan is BHG?

BHG offers a range of loans, including business loans, personal loans, startup loans, and SBA 7(a) loans. The diversity of loan options caters to both professionals and businesses with varying financial needs.

Does BHG require collateral?

For many of its loan products, BHG is known to provide unsecured loans, meaning they generally do not require collateral. This can be beneficial for borrowers who prefer not to pledge specific assets.

What is the BHG business loan rate?

BHG’s business loan rates can vary based on factors such as the type of loan, the borrower’s creditworthiness, and prevailing market conditions. I’ve seen them range from 10% to 16%+. Contact BHG directly or visit one of their websites for the most accurate and up-to-date information on loan rates.

Do BHG loans affect credit?

Yes, like any other loan, BHG loans can impact your credit. When you apply for a loan, BHG typically performs a hard inquiry on your credit report, which may have a temporary impact on your credit score. Timely repayments can positively influence your credit history, while late payments or defaults may have a negative effect. And, most of their business loans are likely to carry a personal guarantee (you’re responsible to pay it back if your business defaults).

Conclusion: Is BHG a Legitimate Company?

Yep! BHG is a bona-fide financial technology company that offers not only consumer and business loans, but risk management, point of sale (POS) solutions, venture capital for startups, and more.

There is an open class action proposal (as of January 2024), but the allegations haven’t been proven. And, according to the language, the claims against the company are likely to affect consumer loans, but not business loans.

In all, if you’re looking at taking a loan with BHG, just be ready to negotiate ideal terms and ask for interest rates that you can comfortably work with.

Do you want to learn how to get up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

3 Best Business Credit Cards for a New LLC +More Resources

By Joe

So, you’ve started a new LLC, and you’re interested in getting business credit cards. But, since your business is new, you haven’t established business credit yet. So, what are the most promising cards for you to apply for?

Here, I’ll tell you what cards you might qualify for (along with their requirements), and explain exactly what I would do in your position. As a new business, you don’t automatically have business credit, so you may want to establish it now.

Here’s what’s in store:

What Are Business Credit Cards?
- Can a Newly-Formed LLC Get a Credit Card?
Best Business Credit Cards for New LLCs
Corporate Cards to Consider
- 1. Bill Spend & Expense (Formerly Divvy)
- 2. PEX Expense
Best Loans for New Businesses
- 1. Credibly
- 2. LenCred
Frequently Asked Questions
Final Thoughts

Now, let’s roll!

What Are Business Credit Cards?

Before we look at the cards you might qualify for, let’s make sure you’re clear on what you want. More often than not, business owners get other spending cards confused with business credit.

Business credit cards are revolving lines of credit that can be used for business spending. Only a percentage of the total amount spent is required to be paid each billing cycle. Business credit cards accrue debt on any balance left unpaid.

Meanwhile, corporate cards are either prepaid or must be paid in full at the end of each billing cycle. Corporate cards typically supplement robust business expense management software and tools.

So, if you need funding, look at the credit cards below. And, If you need expense management, consider the recommended corporate cards.

Can a Newly-Formed LLC Get a Credit Card?

So, how soon can you apply for a business credit card and do brand new LLCs get business credit?

Getting a business credit card for a brand new LLC depends on factors like the business’s creditworthiness and the personal credit history of the owners. Typically, credit card issuers have a waiting period before a new business can apply, often a few months to a year (but this isn’t always the case).

As a new LLC, it’s important to establish a clear separation between business and personal finances by:

Obtaining an EIN
Opening a business bank account
Maintaining distinct records

The likelihood of approval is higher if the owners have a good personal credit score. As the business operates and builds a positive credit history, it becomes easier to qualify for business credit cards. Check with specific credit card issuers for their policies and requirements.

You might also like: Here’s How to [Actually] Get Business Credit With Just an EIN +More Options

Best Business Credit Cards for New LLCs

Here, I’ll lay out my favorite business credit cards for new LLCs. You’ll see a summary of each offer (why I like it) and how long your business must be in operation before you apply.

If you can’t get a business credit card yet, and you’re in need of immediate funding, scroll down to the loans section. Or, join Business Credit Workshop to learn how to get up to $100K in business credit in as few as 30 days.

1. Chase Ink Business Preferred

credit cards for new businesses with no credit history

The Chase Ink Business Preferred card stands out as one of the top small business credit cards, thanks in part to its impressive sign-up bonus. Although it doesn’t offer a 0% APR and comes with an annual fee, there’s significant potential for savings and rewards. If you believe your business meets the qualifications, I recommend this one.

To qualify for the Chase Ink Business Preferred credit card, you don’t need a specific annual income or business history, but your revenue should cover the minimum monthly payment.

Other requirements include:

A FICO score of 670 or higher
A minimum credit limit of $5,000

Chase evaluates your application using your personal credit score, with a recommended FICO score of 670 or higher. Keep in mind that while a good credit score is important, it doesn’t guarantee approval or denial. Whether you’re an incorporated business (LLC, corporation, partnership, non-profit, etc.) or a sole proprietor, you’re eligible to apply for the Chase Ink Business Preferred credit card.

2. Bank of America Executive Explorer

Startup business credit cards for new llc

Next, consider looking into the Bank of America Executive Explorer card. Despite its $375 annual fee, the card’s perks more than justify the cost. For instance, you receive a $600 Lounge Access credit annually and a $100 Airport Fast Track credit every four years. Moreover, you gain access to the Benefits on Us and Dinova Rewards programs.

While a new LLC could be approved, it’s important to note that this isn’t a revolving credit line; rather, it functions as a “corporate credit card” that must be paid in full. To qualify, you must be an executive or owner of your company, and while there’s no minimum business history requirement, having an excellent credit score is crucial.

Owners with FICO scores of 740 or higher stand the best chance of getting approved for Bank of America business credit cards.

3. Marriott Bonvoy Business

I believe Marriott boasts one of the top hotel rewards card programs. The appealing part is that while you travel for work, the Marriott Bonvoy Business credit card helps you build business credit. If you meet the criteria, applying for and using this card is a smart move.

Keep in mind that the Marriott Bonvoy Business Credit Card is exclusive to business owners and authorized representatives with a credit score of 700 or higher.

Approval considerations also include factors like:

Annual income
Existing debts

Start earning travel rewards on your next hotel stay by applying now.

Corporate Cards to Consider

If you’re looking for a spend card mainly to help with expense management, and you’ve got some revenue to back your account, a corporate card might be a better choice at this point – especially if your LLC is brand new, and your credit hasn’t been established.

Now, my favorite thing about modern corporate cards is that many of them offer cash back on spending (some more than others). So, with these cards, you have a chance to earn on transactions that you or your employees make. Cool, right?

Here are the two cards I would recommend…I’ll explain why.

1. Bill Spend & Expense (Formerly Divvy)

business credit cards for new llc without personal guarantee

Bill Spend & Expense, formerly known as Divvy, comes with its own set of advantages and disadvantages. If you’re considering whether to take advantage of this offer, reflect on the following questions:

Is your monthly business spending more than $5K?
Does your business have multiple staff members with spending privileges?
Can you pay your expenses in full each month?

If you answered “yes” to these questions, the Bill Spend & Expense card could be an excellent fit for you. Now, to meet eligibility requirements, a business owner must have a minimum personal credit score of 580, and having a score of 640 or higher increases the chances of approval. Additionally, a higher annual revenue enhances the likelihood of approval.

I personally highly recommend checking it out, specifically for the tiered cashback rewards. Sign up on the Bill.com website to find out the credit line you may qualify for.

2. PEX Expense

PEX is another solid corporate card with some cool features, making it a good pick for businesses and nonprofits looking to manage expenses smoothly. It’s got prepaid and dynamic credit cards, throws in 1% cash back, and has a handy app that fits different industry needs.

The user experience is made even better with seamless integrations, virtual/physical cards, and customizable controls, backed by PEX’s positive company vibe.

While PEX is a great choice, if you’re running a startup or an e-commerce gig, you might want to check out alternatives like Brex, Bill Expense, or Shopify Credit that could be more spot-on for your needs. Always a good move to weigh your priorities and compare a few options when it comes to any financial stuff.

Oh, and PEX cards are designed for businesses and organizations, and the cool part is you can get them without worrying about minimum funding requirements—they can even be issued inactive. Nice, right?

Best Loans for New Businesses

Now, if you’re looking for the funding aspect of a credit card, but you haven’t established business credit, you still have options. While your repayment terms aren’t ideal on most of the options available to you right now, you can use one of these offers in a pinch.

Note: I don’t typically recommend factoring-type financing or loan brokers. The problem is that the rates are typically very high. Still, I know that sometimes you gotta do what you gotta do to pay for emergencies to seize an opportunity to grow your business. I have thoroughly reviewed the following loans, and I’ll tell you the truth about them.

Recommended: How to Get an SBA Business Loan

1. Credibly

Business credit cards for new llc ein only

Credibly’s rates, covering everything from interest and factor rates to origination fees and admin fees for merchant cash advances, lean towards the higher side. If your business is on the newer side, your credit isn’t stellar, and you’re pulling in at least $15,000 per month, Credibly might be a viable option for securing the funding needed to keep your business going or expand.

It’s a relatively young company, but it’s legit, with enough satisfied customers indicating it’s doing something right. However, I won’t strongly recommend their loans unless your business is in a tight spot, and if it is, be cautious about the personal guaranty—it can be risky.

Before committing to Credibly or any other company, it’s a good idea to shop around for quotes. You might be able to find comparable loans with better rates, especially if your business is more established or you have a solid credit score.

2. LenCred

business credit cards for new llc with bad credit

If you’re in need of working capital or startup funds, and you’ve got solid credit but aren’t in a position for traditional funding options, LenCred could be the solution you’re looking for – It’s especially handy if you’re not keen on unconventional routes like crowdfunding and are okay with dealing with a 9% origination fee.

LenCred’s financing services might just be the boost you need.

However, if you’re aiming to build up your business credit and prefer securing funding without hefty origination fees, LenCred might not be the best fit. Since they don’t use your business credit profile in the funding process, their lenders are unlikely to report to the business credit bureaus. So, it’s a trade-off to consider.

Frequently Asked Questions

What is the fastest way to get business credit for an LLC?

You first need to make sure the owner’s personal credit is in check and the business is properly established for “credit readiness.” Then, open a bank account and establish relationships at the bank. After that, make sure the business has a DUNS number, establish your first tradelines of credit, and pay your accounts at the right time. Finally, you just need to monitor your business credit before you apply for a new loan or line of credit.

Download our free Business Credit Checklist to start building business credit.

Can a single-member LLC build credit?

Yes, a single-member LLC can build business credit with an EIN and a DUNS number.

Can you get a business credit card with no revenue?

The short answer is no. However, there are exceptions, for example, you may be able to get a business credit card with a personal guarantee if your income meets underwriting requirements.

Do LLCs start out with good credit?

When LLCs are initially registered, they have no business credit. In this case, credit decisions may be based on the owner’s personal credit. Businesses can build credit by establishing their business properly, setting up accounts with the right tradelines, and paying accounts on-time as agreed.

What happens if an LLC defaults on a credit card?

If an LLC defaults on a credit card, the creditor can go after business assets, send debts to collections, and sue to liquidate the company. If the credit card has a personal guarantee, the creditor may hold the business owner personally liable to repay the debt.

Final Thoughts

Now that you’ve explored the best business credit cards for your new LLC, consider all options like the Chase Ink Business Preferred and PEX Expense to find what suits your business needs. Distinguish between business credit and corporate cards, with corporate options like Bill Spend & Expense offering a smooth ride for your expense management.

For loans, check out Credibly and LenCred, weighing perks and alternatives.

Are you ready to learn how to get up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

Is United Capital Source Legit? A Complete, Uncut Breakdown

By Joe

I ran across United Capital Source’s offer, which appears to be pretty popular in the business community. While I typically don’t recommend offers in this branch of finance (call me biased), I know that tons of business owners want to know if they should trust this company.

Here, I’ll help you find out — We’ll explore the offer in-depth, including company leadership and the features and benefits of United Capital Source’s funding products. I’ll direct you to some closely-related and not so closely-related offers and answer some common questions.

This is what’s in store:

What is United Capital Source?
- United Capital Source Company Overview
Features & Benefits
United Capital Source Alternatives
United Capital Source Alternatives
Frequently Asked Questions
Conclusion: Is United Capital Source Legit?

Let’s go!

What is United Capital Source?

United Capital Source is a financial service that caters to small and mid-sized businesses – they dish out a variety of funding options including business lines of credit, term loans, and more.

Their website boasts a breezy application process, promising quick approvals and funds in just a few days for most programs. Apparently, business owners can snag up to $5 million in financing, and what’s cool is you get to choose between secured and unsecured options without having to throw in a personal guarantee.

However, it’s important to note that most of the funding offered by United Capital Source is considered alternative:

Invoice receivables
Merchant cash advances
Working capital loans
Equipment financing
Revenue-based business loans

This means that they are not subject to usury laws because they are not technically “loans.” It’s like this: you’re selling the money you expect to get in the future for a bit less cash right now. This setup is often seen as a factoring deal.

Hence, the “factor rates” can be equivalent to 100% to 150% or higher interest rates – I never recommend this type of financing unless you are in a bind and have no other possible solution.

Still, United Capital Source claims to have hooked up funding for over $1.2 billion to small businesses, which is no small feat. Just keep in mind, as with any financial offer, it’s wise to dive into the nitty-gritty of the company and terms and conditions before you hitch your business to their funding train.

So, let’s do just that.

United Capital Source Company Overview

With a home base in New York, United Capital Source Inc. was founded by Jered Weitz in 2011. Weitz is the current owner and CEO of the company.

In addition to his role at United Capital Source, Weitz is a co-chairman of the Small Business Finance Association and an official member of Forbes Finance Council (both credible organizations).

Despite a couple of complaints from unsatisfied business owners, United Capital Source maintains an A+ rating with the Better Business Bureau.

The company website showcases a solid 5-star Google rating with heaps of positive reviews that highlight efficient service and helpful reps like Matt Weimann and Sean Hutchinson – Since it’s not easy to trust brand advertising, I like to turn to Trustpilot and Reddit for more unbiased reviews.

And, since most Redditors advising on financial offers don’t recommend any type of factoring, I turned to the users posting on Trustpilot. Surprisingly, United Capital Source has maintained a 4.8-star rating on the platform (very impressive for any financial offer).

Keep in mind that, while Trustpilot aims to maintain an accurate overview of every company on the platform, no online reviews are 100% reliable. Still, in this case, I find the 4.8 star rating to be reasonable since other ratings for United Capital Source tend to be in the same range.

What Does United Capital Do?

Is this the moment you’ve been waiting for? Either way, take a look at a breakdown of the features and benefits you can expect from United Capital Source funding (so you can figure out if this is the right funding for your business). From their factor rates to speed of funding and beyond, here’s what the offer is all about.

1. Competitive Factor Rates

First off, United Capital Source offers factor rates as low as 1% (on their business lines of credit), which is competitive in the factoring realm. But, let’s put this number into perspective.

If you’re looking at a $5,000 loan with a 1% monthly factor rate, paid off over 6 months, the total cost would be calculated by multiplying the factor rate (1%) by the loan amount ($5,000) for each month. So, for the first month, it would be $50. Over six months, you’d end up paying $300 in fees.

Now, for a $50,000 loan with the same 1% monthly factor rate over 6 months, the fees would be higher at $500 per month, totaling $3,000 over the loan term.

To put this in perspective, let’s compare it with a traditional business loan with an 11% annual interest rate — The interest on a $5,000 loan over 6 months would be significantly lower than the factor rate, costing approximately $275. For the $50,000 loan, the interest would amount to around $2,750.

Plus, not all borrowers will qualify for the lowest factor rates – United Capital Source’s factor rates are typically 1.1% to 1.5%, which means you’ll likely pay even more than the examples above.

While factoring can provide quick access to funds, it usually results in higher overall costs compared to traditional business loans with lower interest rates – Carefully consider your financial situation and weigh the pros and cons of each financing option before you make a decision.

You might also like: Shopify Capital Review: What are the Benefits & is it Worth it?

2. Quick & Easy Access to Cash

United Capital Source prides itself on providing swift and hassle-free approvals for business owners in need of financial support — Their online application process is designed for efficiency, allowing businesses to submit their information quickly and easily.

So, you can get from $10K to $5M in a short time.

The emphasis on quick approvals is particularly beneficial for businesses that face urgent financial needs or time-sensitive opportunities. By streamlining the approval process, United Capital Source aims to provide you with timely access to funds, which can enable you to take the next step in your operations without unnecessary delays.

However, you need to review the terms and conditions carefully to ensure that the funding solution aligns with your specific requirements and financial goals — As a matter of fact, do this before you accept any financial offer.

You might also like: 6 Best Fintech Credit Cards to Apply for (Consumer & Business)

3. A Variety of Factoring Offers

Technically, United Capital Source is not a lender (they don’t finance the offers themselves). With connections to over 75 lenders, United Capital Source broadens the spectrum of choices for businesses — This means that United Capital Source can have your back with a bunch of funding options to fit any business need.

Here are the ways they might be able to help you:

Got a rocky credit history? Check out their Bad Credit Business Loans.
Need cash flexibility? The Business Line of Credit lets you draw funds as you go.
Ladies in business, they’ve got special financing for you with Business Loans for Women.
For a lump sum upfront with predictable payments, there are Business Term Loans.
Need new equipment? Equipment Financing’s your go-to.
Sorting out cash flow? Invoice/Receivables Financing and Merchant Cash Advance give you quick liquidity.
Want your repayments linked to your revenue? Revenue-Based Business Loans are the way to go.
Small Business Administration (SBA) backing for favorable terms? Yup, they’ve got SBA Business Loans.
Short on operational funds? Grab a Working Capital Loan.

Whether it’s bad credit or big dreams, United Capital Source probably has a factoring solution.

You might also like: What is the Best Credit Card for Ad Spend? Expert Insights

4. United Capital Source “Grants” (ERC)

So many people are interested in grants when researching this company, that I want to address this. While United Capital Source does not actually provide grants, they do offer help accessing Employee Retention Tax Credits (ERTC) for qualifying businesses. I think this is what business owners are looking for when they have this query.

So, let me explain.

ERTC is a tax break from the U.S. government to encourage businesses to keep their staff during tough times, like the COVID-19 pandemic. Essentially, eligible employers get a credit against certain employment taxes based on the wages they pay to employees and health plan expenses.

To qualify, businesses need to meet specific criteria, such as facing a significant drop in gross receipts or dealing with pandemic-related shutdowns – The goal is to provide financial support to businesses, helping them retain employees despite economic challenges.

Of course, details can change year by year, so it’s good to stay updated or consult a tax professional for the latest info. And, United Capital Source may be able to help you in this realm.

You might also like: Behind the Scenes of Become.co: A Comprehensive Review

United Capital Source Alternatives

There are plenty of funding sources, outside of factoring, that you can use to grow your business. Take a look at this list of funding channels without the immediate financial pressures associated with traditional factoring.

As you consider these alternative funding sources, choose the option that aligns with your specific needs, growth stage, and risk tolerance.

Business Credit Cards

Business credit cards are my favorite method to manage expenses. Businesses owners can use credit cards for immediate access to funds, with the flexibility to carry a balance over time.

While they provide quick access to capital, it’s important to note that credit card interest rates can be comparable to factoring if you don’t pay your account off right away. To avoid this, look for cards with introductory low or 0% interest — it will give you more time to settle up.

Venture Capital & Angel Investors

Venture capital (VC) is an option where external investors provide funding in exchange for equity in the business. This form of financing is particularly suitable for businesses with high growth potential and a robust business model.

Angel investors are individuals who invest their personal funds in businesses — like VC funding —- typically in exchange for equity or convertible debt. This funding option is well-suited for startups and early-stage businesses with promising ideas.

While these options offer substantial funding without immediate repayment obligations, they come with the trade-off of relinquishing a portion of ownership to the investors. Still, it typically has the payoff of fresh insights and investors not only provide financial support but often offer valuable mentorship.

Asset-Based Loans

Both a Home Equity Line of Credit (HELOC) and a Real Estate Investor Line of Credit allow homeowners to leverage the equity in their homes as collateral for a line of credit — Both require a high credit score and property ownership.

On these loans, the rates are lower than most other loan types, so they’re great for debt consolidation and big purchases.

HELOCs are available to homeowners with sufficient home equity. They generally come with lower interest rates compared to some business loans. However, they involve the risk of using personal assets as collateral. A Real Estate Investor Line of Credit is similar, but doesn’t require that the property you borrow on is owner-occupied.

Crowdfunding

Crowdfunding involves raising funds from a large number of individuals through online platforms. This method is accessible to businesses with compelling stories or products that resonate with the public. Crowdfunding minimizes immediate financial burden as funds are pooled from multiple contributors.

However, the success of a crowdfunding campaign depends on effective marketing and a compelling pitch, and it can take longer to access your funds.

Check out platforms like Indiegogo, Kickstarter, and Crowdcube to get a better idea how it works.

Frequently Asked Questions

What is a capital source?

A capital source refers to the origin or provider of funds that businesses use for various purposes, such as operations, expansions, or investments. It can include traditional sources like banks, alternative lenders, investors, or financial institutions that offer capital to businesses in the form of loans, credit lines, or other financing solutions.

How can I find out if a loan company is legitimate?

Verifying the legitimacy of a loan company is critical. Start by checking if the company is registered and licensed to operate. Look for customer reviews and ratings on trusted platforms, such as the Better Business Bureau. Legitimate companies are transparent about their terms, fees, and conditions. Avoid companies that ask for upfront fees or seem overly aggressive. Verify their contact information and physical address, and consider seeking recommendations from trusted sources or industry experts.

How many businesses has United Capital Source funded?

United Capital Source has funded a significant number of businesses. While the exact count may vary, they proudly showcase their extensive track record with over $1.2 billion funded to small businesses through their marketplace. This information reflects the impact they have had in support of businesses with their factoring options.

Is United Capital a hedge fund?

No, United Capital Source is not a hedge fund — It’s a financial service provider that offers funding solutions for small businesses. Unlike hedge funds that primarily engage in investment and capital appreciation, United Capital Source focuses on providing businesses with cash flow through various factoring options like loans, merchant cash advances, and other financial products.

Conclusion: Is United Capital Source Legit?

Yeah! United Capital Source is an (impressively) well-rated factoring platform. If you don’t mind the hefty fees involved with this type of business funding, I think this is one of the more trustworthy “lenders” in the realm.

However — unless you have no other option or you’re going to miss an important window if you don’t get a loan now — you might do best to look into solutions that come with lower long-term costs.

I prefer either business credit cards or traditional term loans (including asset-based) because you can access substantial credit lines with your business credit and you don’t have to give up control or ownership of your company.

Are you ready to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

A Full OnDeck Review: All You Need to Know About This Business Funding Offer

By Joe

In the past, we’ve reviewed business funding offers from Fundbox, Lendio, and Kabbage. Until now, OnDeck (a company with a similar offer) has somehow slipped through the cracks. It’s vital for business owners who seek funding to know about all of their options. So, I want to provide a breakdown of OnDeck’s business lines of credit and term loans.

Here, I’ll share everything you need to know about the offers from OnDeck so that you can decide if this is the right option for your business funding needs.

Here’s what’s “in the hole:”

What is OnDeck?
What to Expect When You Apply with OnDeck
- OnDeck Partners
Frequently Asked Questions
The Verdict

Now, batter up!

What is OnDeck?

OnDeck is a small business lending company that promises to make the process fast and easy. The company has an A+ BBB rating, and has funded $14 billion to small business owners in the U.S., and they have a 4.8 TrustScore on TrustPilot. In a nutshell, they provide what seem like trusted term loans and lines of credit.

So, are they legit? Let’s find out!

OnDeck Term Loans

OnDeck’s core offer is a term loan for small businesses. Term loans are set-amount, fixed-rate, loans with specific repayment schedules.

Here, you can get $5K to $250K loans with up to 24-month repayment terms. Automatic payments for an OnDeck term loan will be made daily or weekly.

OnDeck Lines of Credit

The secondary offer from OnDeck is a line of credit. Lines of credit are a pre-set borrowing limit with revolving terms that can be used at any time.

Here, you can get $6K to $100K lines of credit with 12-month repayment terms. Automatic payments for an OnDeck line of credit will be made weekly.

OnDeck Requirements

As with most business funding options, you will need to meet minimum requirements to successfully obtain funding. With OnDeck, you must have at least one year in business, a consumer FICO score of at least 625, $100K annual business revenue, and a business bank account.

Next, you must also operate outside of OnDeck’s list of restricted industries. Any business in the following industries are prohibited from obtaining funding through the platform:

Adult entertainment
Drug dispensaries
Firearms vendors
Government
Non-profit and civic organizations
Public administration
Horoscopes and fortune telling
Lotteries, casinos, and gambling
Gaming
Money service businesses
Rooming and boarding houses

Finally, funding through OnDeck is unavailable in Nevada, North Dakota, or South Dakota.

When the minimum requirements are not met, anyone who applies through the platform will be referred out to OnDeck’s Trusted Lending Partner team.

OnDeck Interest Rates & Fees

I have said this before, but I can’t say it enough. ALWAYS read the fine print.

The average rate for OnDeck’s term loans is 62.1% APR and 48.9% APR for lines of credit (ouch!). This means that if you carry a balance, you’ll be paying a ton of interest, and could get yourself into trouble if you’re not careful.

Let me break this down assuming 50% interest on a $100K, 12-month OnDeck loan: Your monthly payment would be approximately $10,309.82 and your total interest would be $23,717.90 at the end of the year.

This is without considering fees, which, according to several sources, are not disclosed until closing, and can run in the thousands of dollars.

I think that if you have the revenue to qualify, you would be much better off looking into a free corporate credit card from Stripe, Torpago, Ramp, Divy, or Brex. And, if you aren’t there yet, you would do well to build your business credit.

What to Expect When You Apply with OnDeck

If you choose to apply for funding with OnDeck, the first thing you’ll be asked is how much funding you think you need. If your needs fall within the $5K to $250K range, there might be an offer for you here.

Next, they want to know how soon you need the funding. If you have 72 hours or you are looking for funding a month out, this will help determine how the company proceeds with your application.

Then, they need to know what you need the money for. You’ll be provided with a space to describe how you will use any funds you obtain.

From there, you’ll share your contact information with OnDeck and choose a password to create an account. You may be asked to enter a referral code (this will ensure that the person who referred you gets any bonus or incentive that they’re entitled to). So far in the process, the application process is simple.

After that, you will need to share information about your business: legal entity name, address, phone number, EIN, gross annual revenue, and average bank balance. Finally, you will be asked to enter identifiable info about yourself, including your social security number (which lets me know they may do a hard pull to your personal credit. Update: We have been told by OnDeck that they do soft pulls, even after approval, but please verify this information).

When you submit your application, OnDeck will immediately analyze the information you submitted, and attempt to make a pre-approval decision.

Once pre-approved, be prepared to submit documentation to complete the loan process. Then, you can receive your funds or credit line within as few as 24 hours. Then, after 6 months or so of on-time payments, you may be able to refinance your loan for a lower rate.

And, if you run into financial troubles, you will be required to pay your loan, possibly without much flexibility (this should be expected with most business financial offers, though some lenders will give you some grace).

OnDeck Partners

The OnDeck Trusted Lending Partner team can be reached via email at tlp@ondeck.com at any time. But, an unsuccessful applicant will be contacted within 48 hours with offers from partners. OnDeck promises that they do not share your information with partners before asking for your consent.

So, who is in the partner lineup?

OnDeck has two types of partners: editorial and financial.

Editorial partners are essentially affiliates. Anyone with a captive small business audience that might benefit from OnDeck’s offer may inquire.

Financial partners are sales organizations or direct lenders who want to receive customer referrals from OnDeck. In exchange, OnDeck receives a referral fee. Lending partners must have been in business for at least two years, offer at least $1M in monthly business funding, have a functional, encrypted website, active business insurance, and be based in the United States.

Currently, OnDeck is referring applicants whose businesses are too young for internal financing to BitttyAdvance, who works with businesses as young as 6 months. They do require at least 3 months of business bank statements, a personal credit score of 450 or higher, and at least $5K in monthly business revenue.

BittyAdvance offers instant approval and next-day funding, and they have a good TrustPilot score. Before you apply, please do your due diligence — I haven’t had the chance to fully explore this offer yet, and can’t say whether or not I recommend it.

Note: OnDeck also has programs in Australia and Canada.

OnDeck Company Overview

Originally located in the greater New York area, OnDeck Capital Inc. was founded in 2006 by Mitch Jacobs, the founder and current CEO of Plink.

In July 2020, the OnDeck was acquired by Enova International, the company that purchased Pangea Monay Transfer in 2021. OnDeck’s home base is now in Chicago. The current CEO is Joe Coughlin.

OnDeck is a publicly-traded company, and they’ve received a total of $1.2 billion in funding since launch. I would say they are here to stay.

Frequently Asked Questions

Is OnDeck still in business?

Yes, OnDeck was acquired in 2020, and they are still very much in business.

Who owns OnDeck?

OnDeck is now owned by Enova International and is publicly traded.

Is there a minimum credit score for OnDeck?

Yes, OnDeck requires a minimum FICO score of 625.

What is the maximum amount you can borrow from OnDeck?

The most you can borrow from OnDeck at one time is $250K, in the form of a term loan.

What type of loan is OnDeck?

OnDeck offers both term loans and lines of revolving credit.

What are the terms for OnDeck?

OnDeck’s lines of credit should be paid in full within 12 months, while their term loans vary with repayment terms of up to 24 months.

How does OnDeck make their money?

OnDeck makes money by charging loan fees and interest, with early rates in the 50% range.

For a borrower, what are the benefits of choosing OnDeck?

OnDeck offers fast cash, with funds received within 24 hours. The catch is in the cost.

Does OnDeck conduct credit checks?

Yes, OnDeck asks for a social security number in the loan application and requires a minimum personal FICO score (625) to approve funding.

Does OnDeck require a personal guarantee?

Yes, OnDeck required a personal guarantee. Both the business and the owner are liable for any debts incurred.

Does OnDeck use Plaid?

Yes, OnDeck uses Plaid for read-only access to business bank account information.

The Verdict

Is OnDeck the home run you’re looking for?

To be fair here, OnDeck is a legitimate company that seems to have a ton of happy borrowers — in fact, I know some of them personally. They are transparent with their offer, and they seem to be honest lenders (that in itself is a breath of fresh air). I am not one to turn people away from an offer like this… unless something better is available — in this case, better options might be available.

However, if you won’t qualify for other, more feature-rich business funding options, OnDeck could be exactly what you need to get fast cash flow that helps you grow your business. Just make sure to explore competitors. And, no matter which platform you choose to obtain funding, be sure to do the math before you apply (i.e. How much will a loan actually cost, and can you afford it?).

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