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BusinessLoans.com Review
Table of Contents
- BusinessLoans.com's marketplace offers a wide range of loan sizes and terms.
- The online application takes just a few minutes to fill out.
- The platform uses an algorithm to match you with the ideal loan and offers the option for phone support.
- BusinessLoans.com's time to fund is somewhat longer than those of similar alternative lenders.
- Individual lender requirements for minimum sales and time in business may exclude some small businesses.
BusinessLoans.com isn’t a lender. Instead, the company acts as a marketplace for funding. BusinessLoans.com offers a variety of loans in its network, with loan amounts ranging from $10,000 to $3 million. The loan terms vary from three months to five years, and rates start at 9%, which is about average for the lenders we’ve reviewed.
If your loan is approved, you can expect to receive funding within a week, which is slower than with other lenders we’ve reviewed. However, some lenders at BusinessLoans.com do offer same-day funding. What sets BusinessLoans.com apart from its competitors is its self-service platform, which allows business owners to find a suitable loan without assistance.
BusinessLoans.com Editor's Rating:
9 / 10
- Collateral
- 9.2/10
- Fast funding
- 8/10
- Loan variety
- 9.5/10
- Easy approval
- 9.5/10
- Customer service
- 9/10
Why We Chose BusinessLoans.com as Best for Self-Service
BusinessLoans.com stands out from other financiers by providing an easy way for business owners to compare lenders and identify the best funding for their business needs. The company’s online application process is simple: Once you submit the necessary details, the BusinessLoans.com platform uses its algorithm and a wealth of data from previous customers to match you with the top funding options based on the information you provide.
For independent-minded business owners who want to take control of the process, it’s possible to complete the loan application and receive funding without using a loan specialist. Even though the company focuses heavily on self-service, we like that BusinessLoans.com still offers the option to speak with a representative if you have questions or need help with documentation.
For these reasons, we selected BusinessLoans.com as the best business loan and financing option for business owners who are seeking a self-service solution.
Loan Types and Rates
BusinessLoans.com’s proprietary algorithm can match you with several financing products based on their rates, terms and loan sizes. These include term loans, lines of credit and merchant cash advances.
Term Loans
BusinessLoans.com offers both short- and long-term loans for small businesses. Term loans are a popular financing option for business owners who want to grow their companies. Simple interest and payments that remain fixed over a specified time period make term loans more affordable than lines of credit.
The term loans available through BusinessLoans.com can be as short as three months and typically max out at five years. However, loans of 10 or 20 years or more may be available in specific situations, such as real estate financing. Our research found that annualized rates with BusinessLoans.com start at 9%. Interest rates vary based on your credit score and other factors.
Eligibility for term loans varies by lender, but it’s common for lenders to expect your business to have been in operation for at least six months and generate at least $100,000 in annual revenue. Providers on BusinessLoans.com generally seek a minimum credit score of 500, but you’re more likely to be approved and get better terms if your score is at least 600.
Merchant Cash Advance
A merchant cash advance isn’t a loan in the conventional sense. Rather, it’s a form of financing in which a lender purchases a portion of your future sales in exchange for giving you an upfront cash payment. This cash advance can be used for business-related expenses, such as inventory purchases, equipment, marketing and advertising, or for other short-term capital needs. BusinessLoans.com estimates that the payback is 20% to 40% of the amount borrowed.
Factoring
Like a merchant cash advance, invoice factoring technically isn’t a loan. Instead, the financier (or factor) purchases a portion of your accounts receivable. Your business receives a cash payment, and the factor attempts to collect on the unpaid invoices. You may be subject to fees of 2% to 4.5% of the total invoice amount if an invoice goes unpaid.
Working Capital Loan
Working capital generally refers to the money that your business needs on hand for day-to-day expenses and short-term obligations. This type of loan can be used for a variety of purposes, such as to cover a temporary cash shortfall for payroll, inventory, debt payments, rent and more. When you’re comparing a working capital loan versus a merchant cash advance, consider that a working capital loan is a conventional loan and that you retain full control of your business.
Line of Credit
A business line of credit allows you to get money as needed and pay interest only on the amount borrowed. This type of loan provides a fixed amount of funding that you can access whenever you need it. This type of credit has a shorter repayment period than term loans do and is usually not as flexible. BusinessLoans.com notes that many line-of-credit lenders in its network have an annual maintenance fee of $150 after the first year.
Equipment Financing
Equipment loans can be used to finance assets that are necessary for your business. Almost any tangible asset can be financed, including machinery, computer hardware, appliances and office furniture. The equipment itself serves as collateral for the loan, with interest rates on BusinessLoans.com ranging from 8% to 25%. Many equipment loans also require a down payment of up to 20%.
Terms
BusinessLoans.com isn’t a lender, but its marketplace can provide flexibility and support for your business at different growth stages. We like that even with a starting rate that’s competitive with those of other alternative lenders we evaluated, the total interest paid on a BusinessLoans.com loan may be lower in some cases.
Here are some additional factors to keep in mind when you’re shopping for a loan with BusinessLoans.com’s self-service platform.
Collateral
BusinessLoans.com provides access to lenders that offer both secured and unsecured loans.
An unsecured loan means you don’t need to put up collateral for the loan. In many instances, however, you’re required to sign a personal guarantee, which means you’re liable if your business doesn’t pay back the loan.
On the other hand, a secured loan requires collateral that can be repossessed if you no longer make payments.
Special Documentation
BusinessLoans.com doesn’t require much documentation to get started on a loan application. Initial questions include basic inquiries about your annual revenue and most recent business bank account deposits. Gathering these details shouldn’t be difficult if you already use high-quality accounting software to manage your business’s finances. After you’re matched with lenders, you might need to provide additional documentation based on requirements.
Application Process
BusinessLoans.com’s process for applying for a loan is one of its standout features. This financing provider distinguishes itself from rivals by offering a straightforward method for business owners to locate funding on their own terms. The online application takes just a few minutes to complete, with only a few basic questions about your business and revenue figures. The platform uses this information and extensive data from previous users to match you with several funding options. The mobile-friendly application can be completed on a desktop computer or smartphone.
Customer Service
Although BusinessLoans.com’s online platform uses software to match you with a funding source automatically, many customers choose to speak with a funding specialist. After you receive your initial loan offers, BusinessLoans.com provides the option to talk with a representative if you have any concerns. The company says the majority of applicants utilize this option, even though the self-service nature is one of the main reasons the company is so appealing. We like that BusinessLoans.com considers the need for more guidance in some cases.
In addition to the option for customer service help, BusinessLoans.com offers a website with helpful content, including a blog on small business financing, guides to the different loan products, and answers to frequently asked questions. BusinessLoans.com has been accredited with the Better Business Bureau since 2022 and has an A rating. BusinessLoans.com has a Trustpilot rating of 4.8 out of 5 stars across nearly 500 reviews.
Limitations
BusinessLoans.com is an excellent lender for small business owners who are looking for a self-service experience, but there are a few drawbacks. One is that there are no set funding criteria because each lender on the platform has its own policies. This can exclude smaller businesses and sole proprietors that are relatively new, especially if they don’t have $100,000 in annual revenue.
Additionally, some lenders listed on BusinessLoans.com require a minimum of six months in operation. If your business doesn’t meet those stipulations, you may need to consider ways to self-fund your business. However, it’s also worth checking out our review of Accion, which has a much lower revenue qualification but a longer time-in-business requirement.
Also, although same-day funding may be available through some of the lenders in BusinessLoans.com’s network, it could take up to a week after approval to receive the funds. Business owners who need money right away should look at faster options, such as those described in our Rapid Finance review.
Methodology
We reviewed business lenders in different markets to find various financing options for small businesses. As part of our investigation, we examined dozens of loan providers and their platforms, including their credit requirements, loan types, minimum sales requirements, required minimum time in business, customer service options and speed of funding.
We also assessed financial factors, including each financier’s starting interest rates, loan terms and loan sizes. To determine the top lender for business owners who prefer a self-service process, we researched each company’s use of self-service technology to facilitate funding searches and approval, as well as analyzed the variety of loans available.
BusinessLoans.com FAQs
Bottom Line
We recommend BusinessLoans.com for …
- Business owners who’d like to find funding via a self-service platform that matches them with different options.
- Business owners who want access to the variety of loan providers that a marketplace lender can offer.
We don’t recommend BusinessLoans.com for …
- Businesses that don’t meet the minimum sales or time-in-business requirements.
- Businesses that need immediate funding guaranteed to arrive quickly.
- Startups that have been in business for less than six months and make less than $100,000 a year in sales.