When the business requires extra expenses, business loans act as the most reasonable life buoy. While the economic situation in the USA is quite stable in comparison to the tough period of 2008 year, banks, and small financial companies started receiving more requests for approving to the business loan. Nevertheless, the fact that small commercial loans are becoming more popular doesn’t mean that you will definitely get qualified financial aid. So, the professional reviewing companies were created for your safety. Our today’s aim lies in considering a couple of peer-to-peer and direct lenders, which provide Americans with small business loans.
Still, before moving to the main part of our article – the review itself – we want you to consider a couple of basic recommendations while choosing a financial company.
How to Choose Reliable Business Loans Company?
When it comes to choosing a financial bureau or a bank, it’s important to consider two fundamental moments – reputation and comparison. The first step of your research lies in searching for reliable financial companies or local banks. The starting point of your choice must become the reputation, which is based on years of professional experience and fair feedbacks of the real clients. The second part of your preparation includes a comparison. Make a list of your essential requirements and additional ones. Compare the offers of different reputable financial resources. Don’t apply to the first bank or company just because they allow paying the debt off within several years. It will more likely offer a high-interest rate or additional fees, which will darken the flexible payment period. Make sure to compare the best loan services online .
Peer-to-Peer Commercial Loans Companies
Review of the Best Small Business Loans Companies
1) Lending Club is the leading P2P lending company in the USA. It’s good for experienced business holders as the terms don’t allow the novices to be approved for the business loan. So, an applicant must hold a business at least for two years and obtain annual revenue in the amount of at least $75,000. Then an applicant can apply for a business loan in the amount of $15,000 to $300,000 and pay the debt off within several years.
The tricky thing about the service is additional fees such as an origination fee of 1% to 6%, unsuccessful payments and payments by check fees of 15%, late payments fees of 5% to 15% of your balance. That’s why Lending Club won’t fit the startups but is a good choice for the business sharks.
2) Funding Circle is another peer-to-peer British company, which offers small business loans to the Americans. The amount of the possible loan is bigger than in Lending Club and covers $25,000 to $500,000 with rates from 5.49% to 27.79%. The firm charges only a flat origination fee in the amount of 1.49% to 4.99%, and a flat late payment fee, which amounts 10% of the unpaid sum.
Still, Funding Circle requires annual revenue in the amount of $150,000. Unfortunately, this financial source is good only for experienced business organizations and for people with good credit histories. Even though the company promises to provide business loans for people with bad credit, the approval process is quite complicated.Direct Lenders:
1) OnDeck can assure the established business institutions with $500,000 loan if they have biennial experience and hold $100,000 annual revenue. It offers an extremely quick approval process (up to one day) but will charge a high-interest rate for it. OnDeck offers two kinds of loans for smaller and bigger amounts but the APRs are quite high from 19.99% to 39.99%. The company tends to encourage established businesses but startups can also try to apply for a business loan.
2) Kabbage is an opposite for OnDeck as the amount of the possible loan is smaller and covers only $100,000. The approval process is extremely short as well and composes several hours. The service also requires data only from PayPal or Amazon, eBay, Yahoo, and QuickBooks. Still, these tempting benefits have a reverse side, which includes a high APR (up to 90%) and short payment period (up to 6 months). Kabbage is good for those, who haven’t passed the requirements of other lenders.
As a businessman or a businesswoman, you need to be sure about the company you are getting the money from. Hopefully, this information clarifies things you had to know.
Now you can apply for a small business loan from one of the companies!