Businessloans.com Small Business Loans Review
Businessloans.com is an online marketplace where business owners can compare loan offers from various lenders. Small business owners can shop for loans ranging from $10,000 to $3 million, as well as business lines of credit.
Our in-depth analysis of the company includes its eligibility requirements and loan types. Read on to find out if this online marketplace might be where you find a loan well-suited to your funding needs.
Best for comparing loan providers
Businessloans.com is one of the best alternative — as in, not a national bank — lenders because it makes it easy to compare small business loan offers.
The online application process is straightforward. After answering basic questions, Businessloans.com will use an algorithm and data from previous customers to match you with the best funding options. In other words, you can get a loan without talking to a loan specialist.
If you do need help with documentation or have any questions about the process, Businessloans.com has loan specialists available.
Businessloans.com small business loans pros and cons
- Works with lenders that provide same-day funding
- Compare loan offers from multiple lenders
- View offers with soft credit pull (no impact on your credit score)
- Requires a minimum of $75,000 in annual sales
- Minimum time in operation between one and two years
- Customer service information unclear on the company website
Pros explained
Works with lenders that provide same-day funding
Some Businessloans.com lenders offer same-day funding of loans, especially with shorter-term lenders. This process is faster than the weeks, or even months, it can take to get a loan from a traditional lender.
Allows for easy and quick comparison between loans
Businessloans.com lets you quickly and easily compare loans. Fill in a three-minute questionnaire and Businessloans.com will match you with the top funding options. You can then compare and contrast your options.
View offers with soft credit pull (no impact on your credit score)
Your credit won’t be affected by looking at offers, as Businessloans.com only performs a soft credit check (also known as a soft inquiry). You won’t see a hard pull on your credit (which can affect your score) until you apply for a loan.
Cons explained
Requires a minimum of $75,000 in annual sales
Your company must make at least $75,000 annually to qualify for a loan from a Businessloans.com lender. This threshold may exclude new or smaller sole proprietorships and businesses.
Minimum time in operation is between one and two years
Your business needs to have been in operation for a minimum of one to two years to qualify with a Businessloans.com lender. This requirement means brand-new businesses aren’t eligible to apply.
Customer service information unclear on the company website
Businessloans.com does not display its email, phone number or address on its main pages or website footer — you must go to its Privacy Policy to find this information.
Businessloans.com small business loans offerings
With any business loan, it’s important to consider how interest rates and fees will affect your ability to repay. Before considering a loan, use the best business accounting software for small businesses to make sure you have a solid picture of your financials.
Below are details on the types of loans Businessloans.com offers.
Shorter-term loans
Shorter-term loans through Businessloans.com lenders are paid back in a short time frame, usually between three and 24 months. Typical uses of short-term loans include equipment, inventory or software purchases, working capital and marketing. Short-term loans give business owners quick access to funds with more flexible underwriting standards.
Fees, such as origination and documentation fees, are typically included with shorter-term loans. Some lenders offer the option to pay these fees upfront or add them to the loan balance.
Longer-term loans
Longer-term loans at Businessloans.com typically have repayment schedules between one and five years with amounts of up to $500,000. These types of loans are ideal for big projects, like a major expansion or opening a new location.
Remember that longer-term loans typically require you to pledge collateral, such as real estate. The lender can seize the collateral if you fail to repay the loan. Like with shorter-term loans, fees (e.g., origination, documentation, closing fees) are often added to the amount borrowed.
Business line of credit
A business line of credit (LOC) is a flexible loan that offers a fixed amount of capital you can access at any time. You can tap into all or part of a line of credit up to a pre-set limit. You’ll pay interest based on the funds as you use them. Funds repaid into your account while it remains open are available to use, too.
There are two kinds of LOCs: secured and unsecured. A secured business line of credit requires collateral, typically in the form of inventory or accounts receivable. Unsecured business lines of credit are often smaller in amount and don’t usually require collateral. Credit requirements are higher and interest rates are less favorable, as the lender is assuming more risk than with a secured business line of credit.
Merchant cash advances
A merchant cash advance (MCA) provides funds in exchange for a percentage of a business's daily credit card income directly from the processor that settles and clears the credit card payments. Credit score requirements are less strict for MCAs, but the charge for borrowing, also called the repayment rate, is high. An MCA could cost between 20% to 40% of the amount borrowed, plus additional fees.
Merchant cash advances do not usually require a true personal guarantee, so they may be riskier for lenders, hence the high repayment charges. How much you can borrow and the deadline for repayment with each MCA is based primarily on a business’s credit card processing history and an analysis of potential future sales.
Businessloans.com small business loans pricing
Businessloans.com does not disclose its marketplace lenders' loan specifics. To see loan offers, you must enter information about your business, desired loan amount, personal credit score and other factors via the online application at Businessloans.com.
Often, borrowers with lower credit scores are required to pay higher interest rates. Certain lenders in the Businessloans.com marketplace may also charge additional costs, such as origination and documentation fees. After you successfully apply for a loan, the lender will discuss all the information regarding fees and the repayment schedule with you.
If you take out a line of credit, you will only pay interest on the funding you actually use. Although there is no timeframe for repaying a line of credit, repayment is often more frequent than monthly. It's also in your best interest to pay the line of credit funds back as soon as possible since interest begins to accrue from the first day you borrow the money until the day you pay it back.
You will pay directly from your incoming cash or credit card sales if you take out a merchant cash advance. Exact terms will vary by lender.
Businessloans.com small business loans financial stability
Financial stability is vital for financial institutions like loan providers. You can determine loan providers' financial strength ratings from credit rating agencies like Demotech, AM Best and DBRS, Inc.
According to Businessloans.com's Terms and Conditions page, Businessloans.com is officially registered as SSBV LLC, which was incorporated in Delaware in 2020. However, there are no listings for SSBV LLC or Businessloans.com on AM Best, Standard & Poor’s or Moody’s, three of the major credit rating agencies.
Businessloans.com small business loans accessibility
Businessloans.com is accessible and has numerous free resources, including a frequently asked questions page and a blog. However, it could be more transparent about its contact information.
Availability
According to Businessloans.com's Terms and Conditions page, Businessloans.com services are available to users above 18 years old who live in the United States or any of its possessions or territories. To successfully secure a loan, applicants must also meet eligibility requirements (time in business, annual revenue, personal credit score) set by lenders.
Contact information
Unlike most other lenders, Businessloans.com does not provide an email address, phone number or address on its main website pages. You can only find this information on its Terms and Conditions page.
According to this page, you can contact Businessloans.com's main office at 844-585-0656. Businessloans.com's main office is located at SSBV LLC c/o The Corporation Trust Co, Corporation Trust Center 1209 Orange St., Wilmington, Delaware 19801.
You can email Businessloans.com using the following:
- For intellectual property rights complaints: copyright@businessloans.com
- Feedback and account security and technical support issues: info@businessloans.com
Businessloans.com lacks clear information on its customer service operating hours.
User experience
Businessloans.com offers business owners a simple way to compare funding offers and apply for loans online.
To get started, you must submit the necessary details, such as the type of business you own, how much you need and what you're seeking funding for. Businessloans.com will use a special algorithm and previous customers' data to match you with suitable funding options.
If you have questions about the documentation or loan application process, you can request to speak with a loan specialist. Businessloans.com also provides free resources for small business owners, including:
- Information about how to start a business
- A comprehensive guide on shorter-term and longer-term online business loans
- Frequently asked questions about small business loans for startups
Businessloans.com small business loans customer satisfaction
Customers were generally satisfied with Businessloans.com's website and customer service.
On one popular online review site, Businessloans.com has a rating of 4.8/5 stars. Ninety-nine percent of these reviews gave Businessloans.com a 5-star rating, and 1% gave the company a 4-star rating.
According to these Businessloans.com reviews, users find the customer service staff to be thorough, responsive and professional. Support staff walked customers through the loan process and explained different options. By the end of their phone calls, many customers felt educated and confident enough to make good decisions.
How we evaluated Businessloans.com small business loans
We evaluated Businessloans.com's small business loans by looking at the following:
- Online application process
- Small business loan offerings
- Accessibility and transparency
- User experience
- Customer ratings and reviews
Summary of Money's Businessloans.com small business loans review
Businessloans.com is an online marketplace that connects small business owners to loan offers from various lenders, some of which offer same-day funding to your business checking account. The platform allows for quick and easy comparisons between loan offers. To see offers, Businessloans.com uses a soft credit check with no impact to your score.
Additionally, Businessloans.com provides excellent customer service. Over 60 users have rated Businessloans.com 5/5 stars on third-party review sites. They praised its service staff for their professionalism, responsiveness and thoroughness.
However, Businessloans.com isn't for everyone. Companies must make a minimum of $75,000 in annual sales to qualify for a Businessloans.com small business loan. Businesses must also be in operation between one and two years.
Additionally, it’s challenging to find Businessloans.com's customer service contact information. This lack of transparency and accessibility can cause a lot of frustration and anxiety, especially if you're new to lending.
For other small business loan providers, see Money’s guide to the best small business loans. Also, if you haven’t already, be sure to take advantage of our guide to how to get a free business phone number. You can also read our review of the best business cell phone plans.