There is a lot of talk about alternative lending these
days. This article gives a good
explanation:
http://smallbiztrends.com/2016/01/alternative-lender-small-business.html
Here’s a list of alternative lenders and a summary of what
each company claims to offer. Each lender evaluates businesses differently, and
each business has a different financial makeup.
1. Accion is a
small business microloan lender. The company provides two types of loans — one
for established businesses and the other for startups. Loan types, amounts and
requirements vary by state. Each loan type is secured and features fixed
interest rates. us.accion.org
2. Advance
Funds Network: Advance Funds Network (AFN) offers a number of flexible
business-financing options for small and medium-size businesses, including bad
credit business loans, cash advances, invoice and purchase order factoring, and
equipment leasing. AFN's products are
available to all businesses, regardless of credit score.
advancefundsnetwork.com
3. American
Express: American Express offers merchant financing to small businesses that
accept American Express cards. The financing offered is a commercial loan, not
a purchase of receivables or a cash advance. A business must repay the loan in
full, together with the loan fee, regardless of its future credit and debit
card charge volume. americanexpress.com
4. American
Finance Solutions: American Finance Solutions purchases businesses' future
credit card transactions, and advances that money to them. After receiving the
advance, this lender deducts a fixed percentage of the business's daily credit
card sales until the advance is paid in full. To qualify, businesses must have
been in operation for more than a year and process at least $5,000 in credit
card sales each month. americanfinancesolutions.com
5. Balboa
Capital offers several small business loan products, including working-capital
loans, franchise loans, equipment leasing, and flexible small business loans.
The company makes quick credit decisions, offers loans of up to $250,000,
processes quickly and has no restrictions on how businesses can use the money.
balboacapital.com
6. Biz2Credit
is an online marketplace for small business funding. The company connects small
businesses in need of funding with lenders. Biz2Credit can help small
businesses obtain a variety of loans, including SBA loans, equipment financing,
business acquisition loans, commercial loans, lines of credit, franchise loans,
real estate financing, disaster loans and merchant cash advances.
biz2credit.com
7. Bizfi
provides multiple funding options to businesses from a wide variety of funding
partners and real-time pre-approvals. Bizfi's funding options include
short-term financing, franchise funding, equipment financing, invoice
financing, medium-term loans and long-term loans guaranteed by the U.S. Small
Business Administration. Founded in 2005, Bizfi and its family of companies
have provided more than $1.3 billion in financing to more than 25,000 small
businesses in a wide variety of industries across the United States. bizfi.com
8. BlueVine
helps businesses free up cash trapped in their invoices by giving them an
advance on the amount due. There are no hidden fees, paperwork or obligations.
The application is completely online, and there are no long-term contracts or
termination fees. Once a business is approved, a credit line will be set to be
used as needed. bluevine.com
9. BoeFly is an
online marketplace for small business loans. The site is a loan exchange that
connects small business owners with more than 4,000 business lenders. BoeFly is
a subscription service that does not charge any transaction fees. boefly.com
10. Business Backer
specializes in small business financing. This lender offers a variety of loan
types, including factoring, purchase financing, specialty financing, equipment
leasing, traditional loans and lines of credit. To qualify, businesses must
have been operating for at least a year, as well as have annual revenue of at
least $150,000 and a personal credit score of 550 or higher. businessbacker.com
11. Business
Credit & Capital specializes in offering retailers, restaurants and service
businesses merchant cash advances. Business Credit & Capital purchases a
percentage of future revenue, and advances those funds to businesses. There are
no restrictions on how the money can be used. For businesses to repay the loan,
the lender collects a daily percentage of sales. businesscreditandcapital.com
12. BFS Capital
offers both small business loans and merchant cash advances. The company
provides small business loans of between $4,000 and $2 million to a wide range
of industries, including restaurants, retail stores, service providers,
manufacturers and wholesalers. bfscapital.com
13. CAN Capital
offers small business loans and merchant cash advances. Loans through CAN
Capital range from $2,500 to $150,000, and mature in four to 24 months. No
personal collateral is needed, and funds can be transferred in as little as two
business days. cancapital.com
14. Capify is an
alternative finance provider that leverages a proprietary underwriting platform
to provide working capital solutions to small- and medium-sized businesses,
including merchant cash advances, business loans and inventory purchase
programs. Business owners can apply online and receive decisions in 60 seconds
or less. capify.com
15. Capital for
Merchants is a business cash advance lender. Capital for Merchants pays for a
business's future sales up front and gets paid back with a fixed percentage of
daily credit card receipts, or via automatic debits from a checking account on
a set schedule. Upon approval, funding is available within 72 hours.
capitalformerchants.com
16. Corporate
Business Lending specializes in working with business owners with less-than-perfect
credit. The lender, which has a quick application process, works with both
startup and established businesses. corporatebusinesslending.com
17. Credibility
Capital is a marketplace lender focused on prime-credit small business
borrowers. Its platform matches businesses with institutional investors to fund
loans ranging from $10,000 to $150,000. The Credibility Capital Risk Score
incorporates a range of data to arrive at a recommendation for a particular
interest rate. The lender's borrowers are small businesses seeking capital
primarily for business expansion and inventory financing.
credibilitycapital.com
18. Credit Card
Processing Specialists: Credit Card Processing Specialists offers merchant cash
advances to small businesses. Its merchant cash advance services work by
providing funds up front while taking repayment back when it processes payments
based on an agreed-upon percentage. creditcardprocessingspecialists.com
19. Dealstruck
provides a variety of small business funding options, including business term
loans, revenue-secured term loans and asset-based lines of credit. The company
offers loans between $50,000 and $250,000. Businesses approved by Dealstruck
need to be profitable, with annual sales of at least $250,000 and more than one
year of operating history. dealstruck.com
20. Everest
Merchant Services provides small businesses with merchant cash advances. Its
four-dimensional underwriting and approval process focuses on future credit
card transactions and receivables revenue as a repayment method. This system
allows the company to quickly estimate and assess its return probability using
all the dimensions of a business and not just a credit score. Repayment is
based upon future swiped Visa and MasterCard credit card transactions.
ems-merchants.com
21. Fastpoint is
a merchant cash advance provider. Fastpoint buys a portion of a business's
future credit and debit card transactions at a discounted rate. The advance is
repaid with a fixed percentage of the business's daily transactions. Only
businesses with a credit card processing account may apply for a cash advance
through Fastpoint. fastpoint.com
22. FastUpFront
provides completely unsecured business cash advances up to $250,000. All
businesses that accept credit cards are eligible for a cash advance from FastUpFront.
The cash advances are based on future sales, not credit scores. fastupfront.com
23. First Working
Capital Group specializes in small business funding. The lender offers a
variety of loan types, including ongoing lines of credit, merchant cash advances,
equipment leasing and franchise financing. First Working Capital Group provides
loans regardless of credit history. Instead, this lender gives considerable
weight to how long businesses have been open when determining the amount of
funds that can be provided. firstworkingcapital.com
24. Fora
Financial offers flexible working-capital solutions to small businesses in need
of financing. The lender offers both small business loans and merchant cash
advances. Fora Financial serves a variety of industries, including
manufacturing, medical, retail, wholesale, transportation, restaurants,
construction and auto. The lender makes funds available within 24 hours of
approval. forafinancial.com
25. ForwardLine
is a nationwide supplier of financing to small businesses, ForwardLine uses
technology and nontraditional credit algorithms to finance 98 percent of U.S.
businesses that banks consider too small and too risky for a business loan.
ForwardLine offers both small business loans and merchant cash advances.
Financing is based on monthly credit card sales volume. Repayment is made by
applying a small percentage of credit card transactions to the balance.
forwardline.com
26. Fundation is
a direct lender that delivers small balance commercial loans. The firm provides
fixed rate loans of up to $500,000 using its own capital. Loans are available
in one- to four-year repayment periods. Long-term loans are designed for
borrowers who are looking to make large investments in their business (such as
by expanding a product or service, hiring new employees and making capital
improvements), and shorter-term loans are designed to help business owners with
everyday operating costs. Both types of loan have fixed interest rates starting
as low as 7.99 percent, with payments automatically debited from the customer's
account twice a month. fundation.com
27. Fundbox
offers business owners a way to fix their cash flow by advancing payments for
their outstanding invoices. There is no approval process, no forms to fill out,
no phone calls to make and no obligation. Businesses connect their accounting
app to add their unpaid invoices, and pick the unpaid invoices they want to
clear. An advance for the amount is automatically transferred to their bank
account. fundbox.com
28. Fundera gives
small businesses access to multiple loan offers through one application.
Fundera does not loan money directly to small businesses, but rather connects
small businesses with different financing options. Types of loans the company
helps set up for small businesses include small business loans of up to $1
million, merchant cash advances, equipment loans, factoring, 401(k) rollover
funding and lines of credit. fundera.com
29. Funding
Circle is an online marketplace lender exclusively focused on small businesses.
Funding Circle uses its technology to match accredited and institutional
investors with small businesses looking for financing. You can apply for a loan
online in just 10 minutes, and get the money in your bank account within 14
days. All of the loans are secured and require a lien on your business assets
and a personal guaranty from the primary business owners. Each loan has an
interest rate between 5.49 and 22.79 percent and is based on the length of the
loan and the strength of your credit profile. fundingcircle.com
30. GoKapital
helps entrepreneurs obtain business loans nationwide. With GoKapital, you can
apply for a number of business lending options, including SBA loans, short term
loans, lines of credit, merchant cash advances, equipment financing, franchise
loans business acquisitions loans, loans for Latinos and small business loans
for women. Businesses can be instantly pre-qualified for a loan by filling out
an online application. gokapital.com
31. Grameen
America is a not-for-profit microfinance organization that provides small loans
to women to help them build businesses, achieve higher family incomes and
develop entrepreneurial skills. Since being founded in 2008, Grameen America
has expanded to eighteen branches in eleven cities and has disbursed nearly
$340 million to more than 58,000 women. Grameen America is able to invest in
women who have no credit scores, no business plans and can provide no
collateral. Loans sizes range from $1,500 to $10,000. grameenamerica.org
32. Headway
Capital offers small businesses lines of credit ranging from $5,000 to $30,000.
Once approved, businesses can borrow as much money as needed, whenever it's
needed, up to the available credit limit. With each draw, a business can select
the repayment schedule that best suits its needs. In order to be eligible to
apply, your business must have been in operation for at least one year, and it
must be located in Florida, Illinois, Missouri, North Carolina, Pennsylvania,
Virginia, Washington or Wisconsin. headwaycapital.com
33. Kabbage is a
provider of working-capital loans to small businesses. Kabbage uses data
generated by dozens of business operations to understand performance and
deliver fast, flexible funding in real time. Kabbage can support any small
business by analyzing various data sources that you use every day to run your
business. kabbage.com
34. Kalamata
Capital is a data-driven, alternative finance company focused on small
business. The lender offers a wide range of loan types, including
working-capital loans, business expansion/acquisition loans, SBA loans, lines
of credit, equipment financing, inventory financing, accounts receivable
factoring and merchant cash advances. Utilizing automated data aggregation and
electronic payment technology, Kalamata Capital can make credit decisions in as
little as 24 hours. kalamatacapital.com
35. Kiva Zip is a
program that provides small business owners in the U.S. with access to capital
through person-to-person lending. Its loans are crowdfunded by a community of
lenders from around the world. As first-time borrowers on Kiva Zip, small
businesses have the opportunity to raise up to $5,000 in capital with no
interest or fees. Through Kiva Zip, anyone who wants to support small business
growth and local job creation can choose to lend $5 or more to a small business
of his or her choice. zip.kiva.org
36. LeaseQ offers
instant quotes on a free, cloud-based SaaS platform for borrowers looking to
finance equipment. The company specializes in deals under $250,000, and
partners with equipment dealers and leasing companies across a variety of
industry segments. With LeaseQ, you can compare and prioritize lease quotes by
monthly payment or total amount and see all related fess. leaseq.com
37. Lending Club
offers loans to most types of businesses in 45 states, including professional
and personal services, retailers, contractors, health and wellness providers,
automotive, wholesalers, manufacturers, and restaurants. Its loans can be used
for a variety of purposes, including business expansion, inventory or
equipment, working capital and refinancing. lendingclub.com
38. LendingTree
connects consumers to lenders that compete for their business. LendingTree
lenders offer an array of loan types, including business loans. The loan amount
approved for a business is based on several key factors, such as how long the
company has been in business, its annual revenue and its credit score.
lendingtree.com
39. Lendio is an
online service that helps small businesses quickly find the right business
loan. Lendio makes business loans by matching qualified small business owners
with active banks, credit unions and other lending sources. lendio.com
40. Maverick
Capital is a business funding provider that offers loans of up to $250,000 and
merchant cash advances. This lender also offers a Hybrid Program that combines
traditional cash advances with microloans. With the Hybrid Program, the cash
advance is paid back through a combination of a holdback percentage of your
credit card sales and a weekly payment. maverickcapital.biz
41. Merchants
Advance Networkis a merchant cash advance and unsecured loan provider. The
lender offers loans and cash advances of between $2,500 and $1 million. To
apply, businesses must fill out a loan application and provide three months of
their most current credit card and bank statements to document sales. The
entire underwriting process typically takes between five and seven days.
merchantsadvancenetwork.com
42. Merchant
Advisors offers an assortment of loan types, including small business loans,
working-capital loans, restaurant loans, bad-credit loans, cash advances, SBA
loans, restaurant equipment leasing, lines of credit, franchise financing,
401(k) business funding and home-based business loans. onlinecheck.com
43. National
Funding offers small businesses a range of financial services and products,
including working-capital loans and merchant cash advances. The company's small
business working-capital loans require no pledge of personal assets.
nationalfunding.com
44. OnDeck offers
loans to small and medium-size businesses. The company uses data aggregation
and electronic payment technology to evaluate the financial health of
businesses when determining whether to approve a loan request. The company's
proprietary credit models look deeper into the health of a business, focusing
on overall business performance rather than the owner's personal credit
history. ondeck.com
45. PayPal offers
working-capital loans to small businesses that already process payments through
PayPal. In most cases, the maximum loan amount is 8 percent of the sales a
business has processed through PayPal in the past 12 months. When applying for
a PayPal working-capital loan, businesses select the daily repayment
percentage, which is the portion of future sales that will go toward repaying
the loan balance. The loan balance is repaid automatically as businesses make
sales through PayPal. paypal.com
46. Prosper loans
are not traditional small business loans; they are personal loans based on
applicants' credit scores and are issued to individuals, not businesses. These
loans are desirable in a variety of cases, such as when a business doesn't yet
have a proven track record. Prosper loans are unsecured and don't require any
collateral. prosper.com
47. SBL Group
offers loans ranging from $5,000 to $1 million. Funds are typically available
within 24 hours, with repayment terms ranging between three and 24 months. To
qualify, businesses must have been in operation for more than three months,
have income of more than $100,000 over the past 12 months and have a credit
score higher than 500. smallbusinessloansgroup.com
48. RapidAdvance
offers small business a variety of financing options, including loans, merchant
cash advances, lines of credit and SBA bridge loans. Businesses can be approved
for loans in 24 hours and receive funds within three days. RapidAdvance has
provided more than $700 million in financing to thousands of small businesses.
rapidadvance.com
49. Rapid Capital
Funding specializes in merchant cash advances for small and medium-size
businesses. Rapid Capital Funding qualifies businesses for advances of between
$5,000 and $500,000. The actual amount depends on each business' sales and
history. Unlike other financing options, Rapid Capital Funding does not require
a plan for the money and doesn't require it to be used for any specific
purpose. rapidcapitalfunding.com
50. RedFynn
offers a variety of credit card processing solutions, including business cash
advances. Eligibility for cash advances is not determined by credit score
alone; a business's current sales and length of time in operation are also
considered. redfynn.com
51. SmartBiz
offers SBA loans of up to $350,000 with interest rates between 6 and 8 percent.
After completing the application, businesses can receive funds in as little as
seven days. SmartBiz is a joint effort of Golden Pacific Bancorp and Better
Finance. Golden Pacific is a member of the SBA's Preferred Lenders Program, and
Better Finance is a financial technology company that provides leasing and credit
solutions. smartbizloans.com
52. Shield
Funding is an alternative lender specializing in bad-credit business loans. To
be eligible, you need to have been in business for at least four months, and
have bank receipts or accept credit cards as a form of payment. A minimum of
$5,000 per month in gross revenues is required for companies that accept credit
cards, and approximately $20,000 a month in gross revenues is required for
those that do not. Shield Funding provides business cash advances and unsecured
business loans of up to $500,000 for a variety of purposes, including to
improve or expand a company, manage payroll costs, purchase inventory or
equipment, acquire customers via marketing, improve or create a website and pay
off creditors. shieldfunding.com
53. Small
Business Loans Depot offers an assortment of loan types, including bank
statement loans, small business loans, working-capital loans, equipment loans
and equipment refinance loans. Loans are available from $5,000 to $150,000. The
amount for which a business can qualify depends on business and personal
credit, time in business, the amount of equipment owned and gross sales.
smallbusinessloansdepot.com
54. SnapCap is an
alternative lender that specializes in unsecured business loans of between
$5,000 and $600,000 for general purposes, expansion, inventory or equipment.
The lender offers a paperless application process and a 48-hour turnaround.
There are no collateral or annual revenue requirements. In addition, SnapCap
places little emphasis on personal credit when determining whether to grant a
loan. snapcap.com
55. Square offers
small business funding to its customers that have an active credit card
processing account with Square. Square capital can be used to increase
inventory, buy equipment or open a new location. Businesses make loan
repayments to Square automatically as a fixed percentage of their daily card
sales. The payments are tied directly to card sales. Businesses pay more when
sales are strong and less if things slow down. squareup.com
56. StreetShares
is an online marketplace exclusively focused on small business term loans of 6
to 36 months with amounts of $5,000 to $75,000. StreetShares connects small
business owners with qualified retail and institutional investors. Investors
then compete in an online auction to fund portions of the requested loan, and
StreetShares combines the lowest bids into a single loan. Business owners can
apply in a few minutes, have their funds available within a week, and should
have at least 1 year in business and $25,000 in revenue. streetshares.com
57. Sure Payment
Solutions is a small business financing company. The lender offers loans of up
to $500,000, business cash advances and accounts receivable financing. Sure
Payment Solutions offers flexible payment options, no early or late payment
penalties, no application fees and 24-hour approvals. surepaymentsolutions.com
58. Swift Capital
provides fast business funding, with amounts ranging from $5,000 to $300,000
and pricing starting as low as 9.9 percent. Through the use of its data and
technology systems, Swift Capital can streamline the approval process and
eliminate the paperwork. For funding amounts of $10,000 or less, funds can be
wired to your account within one hour. Repayment is typically made through
daily automatic deductions from each business's checking account.
swiftcapital.com
59. United
Capital Source offers a variety of loan types, including small business loans,
accounts receivable factoring and merchant cash advances. The company can
approve loans of between $5,000 and $2 million. Businesses with bad credit are
not automatically eliminated from loan consideration. Approvals can be granted
in as little as 24 hours. United Capital Source's loans are unsecured and don't
require a personal guarantee or collateral. unitedcapitalsource.com
