New businesses often do not know where to turn when they are looking to finance their plans. Knowing which business finance group to approach for a loan is the first step for your business.
You should only take such an approach after a bit of research depending on what you are looking for.
The business finance group you decide to approach in the end depends on the type of loan you need, whether it is a medium or short term loan, if you would prefer a line of credit and other factors.
Kabbage is a great option for small businesses that need help with their first step forward. Established in 2009, Kabbage has lent more than $5 billion in funding to 130,000 businesses.
Kabbage only gives out loans that are less than $250,000 or more than $2000.
Quick Facts about Kabbage:
- Kabbage normally gives out loans to businesses that would very often get rejected by other lenders since it has very low revenue requirements. This is great news for a lot of small businesses that dread sending in their revenue data to a lender because they are scared of rejection.
- The working capital you would get from another company would probably be less than what is made available to you if you approach Kabbage.
- One of the features that a lot of people complain about when it comes to Kabbage is the short amount of time given to businesses to pay back the loan with the longest term being only 12 months.
- Kabbage is great for companies that need money immediately and have the ability or want to pay it back quickly.
- Your business needs to be in operation for at least a year to qualify for a loan from Kabbage.
- The TrustPilot score for this finance company is excellent so they do have quite a few happy customers.
- You can reach Kabbage for a quote and more information at their toll free number: 888-986-8263.
Lending club deals with loans for small businesses with anything from $5000 to $300,000 available. The terms are very similar to what is on offer if you approach a bank, only slightly shorter, with anything from a year to 5 years on offer.
So far, Lending Club has positioned itself as one of the best business finance groups available when it comes to small businesses and has had over two and a half million customers.
It has lent $42 billion till date and is continuing to lend more out each day. Here is some information you should know to get your started if you are interested in a deal with Lending Club:
- The interest rates are anywhere from 5.99% to 29.99% depending on the term of the loan and the amount being borrowed.
- If business owners are aiming on increasing their business credit then taking a loan from Lending Club would be a good idea because they report their data to the business credit bureaus.
- The company has a 4.5/5 star average rating with their customers. The company has also been talked about by The New York Times and The Economist.
- You can contact Lending Club at their toll free number 1-888-596-3157.
OnDeck was established in 2007, and boosts a 9.8/10 star rating with their previous clients.
They also have an A star rating from the Better Business Bureau and have lent $10 billion till date to businesses around the globe.
OnDeck is essentially perfect for small businesses that do not have a great credit score. They also give businesses the option to either go with a line of credit loan or a term loan depending on what suits them better.
- If the business chooses to move forward with a term loan, then the maximum amount that can be borrowed is $500,000 and a FICO score of only 500 is needed to qualify which is what makes OnDeck great for low credit scores.
- The AIR for term loans start at 9.99% while the AIR for lines of credit start at 13.99%.
- Lines of credit loans can go up to $100,000 depending on what the business needs.
- Loan terms can go up to 36 months which is considered average when compared to other companies.
- The main problem for businesses are the prerequisites necessary to qualify for a loan which are that the business needs to be operating for at least a year and have an annual revenue of at least $100,000 at the time of applying.
- The origination fee needed for term loans is anywhere from 2.4% to 4% depending on the loan.
- Businesses looking for more information or a quotation can get in touch with OnDeck by calling their toll free number at 888-269-4246.
Fundbox is the company to approach if your biggest problem is customers who do not pay their invoices on time.
This company is great for invoice financing which essentially means that it will help companies that struggle with cash flow during times when customers do not pay on time.
Cash advances can go up to $100,000 which really helps businesses to keep going during this period without cutting corners.
There is a 0.5% fee of the amount for every week where the invoices remain unpaid. This really helps businesses to keep growing when the time is right.
- Fundbox does not require any information regarding your credit score and the company only has to be in operation for 3 months to qualify.
- The funds are in your bank account within a day of finishing the application process.
- Fundbox has over 70,000 business owners who have already used their services.
- The fees are only paid for the weeks where the funds are used so if a client pays back the money early, the rest is waived off.
- Fundbox can be contacted for more information at 855-572-7707.
Crest Capital was founded in 1989 and is essentially your go to for equipment funding or software funding. The company provides financing to borrowers with funding starting from $5000 and going up to $500,000.
The process is extremely easy if your business needs anything less than $250,000. You fill out an application and send it in which can be done be online or alternatively on paper.
The minimum requirements are a credit score of 650 and a business that has been operating for at least two years. Overall, Crest Capital is great for medium sized businesses looking for funding.
- Crest Capital is known to have great customer service and also helps their clients connect with an equipment vendor if needed.
- Another requirement is that the business owner should have no outstanding payments left or a bad history with creditors due to late payment.
- Once you submit your application, you should normally get the decision within four hours. Overall, Crest Capital is extremely efficient when it comes to applications and processing.
- The loan term can be anywhere between 2 to 6 years with interest rates starting at 5%.
- An administrative fee of $275 is charges by Crest Capital.
- You can also get funding for costs like delivery and installing equipment as part of the loan. This can go up to 25% of the loan.
- Crest Capital can be contact for more information at 800-245-1213.
Choosing the Right Business Finance Group
As you can see, there are many great choices when it comes to finding a way to fund your growing business.
Things to look for in a solid business finance group includes loan terms and fees, the financial strength of the group, loan limits, and the experience of the organization in the business finance industry.
It can be very tempting to jump at the first business financing option you find, but you’ve worked very hard to establish your business and to grow the bottom line. Don’t throw it away by making a bad business finance decision.
Review all of the options, do all of your research, and then choose the investment group that you know will truly invest in not only the success of your business today, but also its future.