|Variety of loan types||1.5|
Balboa Capital offers a variety of financing options, each with different lending rates. The specific prices you pay will depend on a number of factors, including your creditworthiness and sales. The lower your creditworthiness and annual sales, the higher your interest rates. You need to weigh the interest on the loan against what you need the money for.
Balboa Capital also charges an origination fee that covers the cost of processing the loan. While this is common in the small business lending market, other lenders like Rapid Finance do not charge this fee.
Applying for a loan
You get a quick lending process and relaxed qualifications when you apply for a loan with Balboa Capital. Small business owners can apply for loans between $ 5,000 and $ 250,000.
The first step is to fill out an online application that only takes a few minutes. For the application you provide basic information, e.g. For example, your name and business location, how long you’ve been in business, email address, social security number, and business phone number. Balboa also wants to view financial information, including your company’s annual sales and your stake in the company.
Balboa will then check your credit score. The company has a quick pre-approval process. Getting approval for a Balboa Capital loan is easy, which means this lender makes the most sense for borrowers who have been declined elsewhere. Banks, credit unions, and the small business administration offer small business loans at lower interest rates, but do not work with borrowers with specific credit scores. Balboa Capital will work with these borrowers but will charge higher fees due to the increased risk.
Once pre-approved, you will be assigned a loan specialist to assist you in finalizing the loan agreement. Once the agreement is signed, you can get funding within a few days. In some cases, funding can come in on the same day.
The term of business loans from Balboa Capital is three to 18 months. This gives you flexibility and does not bind you to a loan that you have to pay back over years. The longer the repayment term, the riskier you are in the eyes of the lender. Borrowers repay their loans daily or weekly via ACH wire transfer from their commercial bank accounts. Balboa’s loan terms are shorter than some of its competitors. For example, SBG funding only requires a credit rating of 500, but the repayment period is up to 60 months.
Balboa’s loans are unsecured, which means there is no need to offer any collateral. However, you may need to provide a personal guarantee. If your company fails to repay the loan, the lender can arrange for your personal finances to be repaid.
Did you know already? Even if your credit score has hit, you can still get a small business loan. However, be careful not to take out a loan that is too expensive or has too long a term.
Balboa does not list the paperwork required for loan approval, but you should expect to have your commercial bank statements and other financial information on hand. Financial statements, tax returns, and a business plan are standard requirements for an alternative lender.
While Balboa does not list the specific interest rates on its loans, it is easy to assess the loan structure, terms and amounts. The lender provides an online loan calculator that lets you know what your monthly payments will be. The company can provide loans in all 50 states. However, it does not provide loans to certain types of businesses, such as those in the gambling and aviation industries. Before proceeding, it is important to ensure that Balboa is working with companies in your industry.
Key to take away: Balboa Capital makes it easy to obtain small business loan by approving borrowers with credit problems and guiding you through the lending process. Plus, this lender won’t lock you up for years.
Balboa Capital Features
|Relaxed qualifications||Balboa Capital is ready to work with borrowers with any credit score.|
|No collateral requirement||There is no security for Balboa Capital’s small loans.|
|Flexible terms||Balboas small business loans have terms of three to 18 months.|
Balboa Capital is ready to work with borrowers whose credit scores may have taken a hit. This lender understands that mistakes happen and a lower credit score doesn’t necessarily mean your business is doomed. We think it’s good that Balboa Capital takes your entire financial picture into account rather than focusing on a single aspect.
No collateral requirement
Balboa Capital does not require collateral for its small business loans, so borrowers have less to worry about. This is refreshing as Balboa Capital takes an increased risk in issuing these loans.
Balboa Capital’s small loans have a repayment period of between three and 18 months. We like these shorter terms because longer term loans are often more expensive. Plus, you don’t want to be prevented from paying back a loan long after it has lost its value.
You can contact Balboa Capital by phone, live chat, or email during normal business hours. The Balboa website also contains helpful resources such as a financial calculator, blog, infographics and white papers.
Since its inception in 1998, Balboa Capital has provided more than $ 5 billion in funding to companies. The lender has a good reputation and an A + rating from the Better Business Bureau. In 2021, Balboa Capital had a net promoter score of 77 out of 100, placing it in the top 4% of financial services companies.
Balboa Capital makes it easy to get a business loan when you have a loan in question, but there are some potential downsides with this lender. For example, some borrowers may not like that there is an origination fee, although it is very common in the industry.
Although the creditworthiness criteria are bland and you only need to be in business for a year, the $ 300,000 annual sales requirement may prevent some business owners from getting approved.
Another downside is that Balboa doesn’t list specific prices on their website. We would like the company to be more transparent about the cost of the loan, although you can use the lender’s calculator to get an idea of what your loan payments will be. However, you will need to contact Balboa directly for details, which may not be attractive to business owners short on time.
Balboa Capital is a small business lender that offers a variety of financing options and a simple approval process.
We recommend Balboa Capital to the:
- Companies with low credit scores and access to finance
- Business borrowers who don’t want to go through a long application process
We do NOT recommend Balboa Capital to the:
- Companies with strong credit profiles and years of experience than traditional bank loans may offer better interest rates
- Companies that do not want to pay any fees other than the principal and interest on the loan
- Companies with annual sales less than $ 300,000