Balboa Capital is aalternative lenderwhich offers a variety of small business financing options, including short-term business loans and small business loans (SBA). Balboa Capital's Term Loan allows you to borrow up to $250,000 for up to two years. The Company also offers equipment, trade, vendor and franchise financing. Balboa Capital prides itself on a simple and quick application process and fast financing turnaround. Indeed, in a crowded market, the lender differentiates itself by reducing the time and labor required to obtain a small business loan.
Balboa Capital Editors Rating: 8.6/10
| Security | 9.0 |
|---|---|
| Fast financing | 9.5 |
| credit diversity | 7.0 |
| Easy Approval | 9.3 |
| Customer service | 8.0 |
Why we chose Balboa Capital as the best for easy approval
We have been impressed with how quickly Balboa Capital reviews and approves funding applications. Applicants simply fill out a simple online form with basic business and biographical details, and Balboa Capital can often make a decision within an hour. Also, the documentation requirements are minimal compared to other lenders we have reviewed. If approved, the funds can be immediately transferred to your business bank account. This hassle-free process makes Balboa Capitalbest business loan and financing optionfor companies looking for easy approval.
FYI
Balboa Capital is one of several top lenders that can do thisProvide business credit quickly.
What we like about Balboa Capital
- The processing time of applications at Balboa Capital is extremely fast, with decisions often being made within an hour.
- The lender offers some more specialized financing options, such as franchise and vendor loans.
What we don't like about Balboa Capital
- Balboa Capital's minimum requirements will likely exclude applicants with very small businesses or low credit ratings.
- Loan terms are shorter compared to alternatives, so monthly payments can be higher.
Loan Types and Interest Rates
Balboa Capital offers attractive financing options, each with their own terms, rates and loan amounts. The Company provides access to term and SBA loans, as well as equipment, commercial, vendor and franchise financing.
term loan
Balboa Capital offers aTerm loans for small businessesof up to $250,000. Many business owners prefer term loans because they have simple interest rates and payments are fixed over a period of time, which in Balboa Capital's case can be up to two years. Balboa Capital's hassle-free application process is ideal for business owners who are in a hurry, as the lender can approve these loan requests in as little as an hour and initiate a transfer immediately.
We like that there are no hidden fees or upfront costs with Balboa Capital's small business loans and you can pay up front with no penalty. However, to qualify, you must have at least one year in business, at least $25,000 per month ($300,000 per year) in revenue, and a credit score of 620 or higher. Sales and credit requirements can be more difficult to meet for some small businesses.[BoxBusiness loans you can get with bad credit.]
Balboa Capital's requirements for applicants are more stringent than some of its competitors. Source: Balboa Capital
Did you know?
Balboa Capital can approve your loan application within one hour if you apply during normal business hours.
SBA loan
Balboa Capital is an approved lender for the SBA and offers access to bothSBA 7(a) Loansand SBA 504 loans. SBA loans are popular with small business owners because of their long repayment terms, low or no down payments, and low interest rates. Balboa Capital originates amounts ranging from $400,000 to $5 million, which is high-end among the SBA loan originators we reviewed.
Accounts payable financing
If your business is selling expensive machinery or other expensive equipment, Balboa Capital offers seller financing that can help customers purchase your products. Same day financing is available through the company's vendor financing program along with a digital sales management system. To qualify, Balboa equipment must be pre-approved and your business must have $300,000 in monthly sales and a two-year operating history.
bottom line
With supplier financing, you can finance the purchase of expensive machines and systems from your customers. This is different from getting oneLoans for business equipmentto finance their own equipment.
Franchise Financing
Balboa Capital also has loans for franchise operators, including single unit owners. Franchise loans are up to $350,000 and terms range from 24 to 72 months. As with Balboa Capital's other products, applications are processed quickly and you can receive an approval decision in as little as an hour. To qualify, you must have been in business for at least one year, have annual sales of $100,000 and a minimum credit score of 620.
Other Loan Types
Balboa Capital is also offering up to $500,000 in equipment and commercial financing. These loans can be used to pay for vehicles, software, enhancement initiatives, and other equipment needs. Requirements include a year in business, $100,000 in annual sales, and a credit score of 620 or higher.
Conditions
Balboa Capital doesn't publicly disclose the starting interest rate on its loans, but you can use a calculator on the company's website to estimate monthly payments for short-term loans. In our research, we found that a $100,000 loan repaid over 12 months has an APR of about 18%, which is on the high end of typical small business financing products.
Balboa Capital's online calculator can be used to estimate loan payments. Source: Balboa Capital
Security
Balboa Capital offers unsecured small business loans, which means you don't have to post any specific personal or business assets as collateral. However, a personal guarantee may be required. It's a good idea to ask your loan specialist about personal guarantees when inquiring about a quote.
FYI
A secured business loan requires you to pledge some of your company's assets as collateral.
Special documentation
Balboa Capital does not have specific documentation requirements for applicants. You simply fill out an online form with fairly basic information. However, it's a good idea to have your financial information handy when answering the application's questions, including your business bank statements and tax information.
application process
Balboa Capital's quick and easy application process is the main reason we selected it as the best lender for business owners focused on easy approval. You canapply for a loanon Balboa Capital's mobile-friendly website. The application is straightforward; It only asks for basic details about you and your business. If you apply during normal business hours, you can receive a decision in less than an hour. Balboa Capital also has a fast processing time for deposits into your bank account. The only possible hanging up is if you do not meet the lender's qualifications.
Customer service
You can reach Balboa Capital by completing an email form on the company's website or by calling the company during office hours, which are 7:00 a.m. to 4:00 p.m. Monday through Friday. pt. Balboa Capital's website also contains a variety of helpful materials and guides to help small business owners make financing decisions. Despite these resources and quick approval decisions, our investigation revealed that some business owners were dissatisfied with Balboa Capital's communications.
restrictions
Balboa Capital's minimum approval requirements are much more stringent than other lenders we've reviewed. The requirements of at least $300,000 in annual sales, a year in business, and a credit score of 620 or better will likely preclude many small business owners. See oursReview of SBG fundingfor a financier with much less stringent requirements.
Another downside is that Balboa Capital's loan sizes are smaller -- and maturities are shorter -- than some alternatives, like the one in oursReview of Rapid Finance, which is also characterized by fast financing. If you are a well-qualified applicant in no hurry to get approved, you might want to look at companies with lower interest rates than Balboa Capital. See for example oursTrust ratingfor a bank that can not only offer term and SBA loans, but is also willing to offer a valuable interest rebate to those with checking accounts at Truist.
methodology
In our search for the best business financing options on the market, we researched loan providers and their platforms based on their loan requirements, loan types, minimum turnover requirements, minimum business tenure required, speed of funding, and customer service. We also rated lenders based on their interest rates, loan terms, and loan sizes. To find the best financier for businesses that want easy approval, we looked at each lender's ease of application and speed of approval.
frequently asked Questions
What types of loans can you get with Balboa Capital?
Thetypes of loansYou can get short-term loans, SBA loans, and financing for equipment, vendors, and franchises with Balboa Capital.
Who owns Balboa Capital?
Ameris Bank owns Balboa Capital. Ameris bought the online lender in 2021.
Does Balboa Capital offer SBA loans?
Yes, Balboa Capital offers SBA loans. The lender can connect you to SBA 7(a) loans and SBA 504 loans.
bottom line
We recommend Balboa Capital for...
- Business owners who prioritize quick approval and funding.
- Franchisees and business owners who wish to offer accounts payable financing.
WenotRecommend Balboa Capital for...
- Startups with little operating history or small businesses that don't meet the minimum sales requirements.
- Businesses that need larger loans or a longer repayment period.
Mike Berner
Staff writer
Mike Berner is a staff writer at business.com and Business News Daily, specializing in finance. Mike has a deep background in finance and has written hundreds of articles and blog posts on financial markets, economics and investing. He has a B.A. in Economics and a B.B.A. in Finance, both from the University of Massachusetts, Amherst. Before his writing career, he was an economic analyst doing quantitative analysis and research.
FAQs
Can I get a business loan with a 500 credit score? ›
Fortunately, certain lenders offer bad credit business loans to those with credit scores as low as 500. Lenders use your credit score as a measure of creditworthiness — the lower the score, the higher the risk.
How much credit do you need for Balboa Capital Corp? ›To qualify for a business loan from Balboa Capital, your company needs to be at least one year old and generate $300,000 or more in annual revenue. In addition, you need to have a FICO® Score of 620 or more and meet our other borrowing requirements.
What credit score is needed for a start up business loan? ›Banks and credit unions: A credit score of 700 or higher is ideal for a bank or credit union business loan. If you can reach a score of 740 or higher, you'll likely get approved for the best terms the lender offers. SBA lenders: Aim for a credit score in the mid-600s to qualify for an SBA term loan.
Which company is best for business loan? ›- Best Business Loan in January 2023.
- State Bank of India.
- Axis Bank.
- Punjab National Bank.
- ICICI Bank.
- Kotak Mahindra Bank.
- IndusInd Bank.
- HDFC Bank.
The easiest loans to get approved for are payday loans, car title loans, pawnshop loans and personal loans with no credit check. These types of loans offer quick funding and have minimal requirements, so they're available to people with bad credit.
Can you get a business loan with no money down? ›Fortunately, there are plenty of no-money-down business loans that can help get you out of a bind. These loans waive the down payment in exchange for collateral, higher interest rates, and other fees.
What is a good credit score for a LLC? ›Most small business lenders like to see a business credit score above 75, but local lenders may consider lower scores for small businesses or startups. Conventional consumer financing companies rarely make loans to individuals with credit scores below 500.
What credit score do you need for a capital? ›To qualify for the Capital One Venture Rewards Credit Card, you'll likely need to have a good credit score of at least 670, although having a higher credit score would only improve your chances of approval.
Do you need good credit for LLC? ›As mentioned above, filing your LLC can be done no matter your credit score, and it opens up greater opportunities to seek funding and small business support. It can also be done easily online.
Can you get a business loan with a 550 credit score? ›Eligibility: To qualify for a Rapid Finance business loan, prospective borrowers must have a minimum credit score of 550, be in business for at least six months and have at least $5,000 in monthly revenue.
What is the minimum credit score for SBA? ›
The SBA does not state specific credit score minimum requirements, but business mentors recommend entrepreneurs have a credit score in the mid to high 600s. Some loan products, like the SBA microloan program, may have SBA loan credit requirements on the lower end.
How much loan can you get to start a business? ›Startup loans typically range from $9,000 to $20,000. You can be funded for as little as $500 or for as much as $750,000 (though you'll need a large personal income for a loan that size). Startup loan decisions are made differently from other forms of business financing.
Which bank provides business loan easily? ›1.SBI (Small Business Loans)
The lowest loan amount available to MSME enterprises is above ₹10 lakh, with a maximum of ₹25 lakh. The SBI small company loans are unique in that they need 40% annual property as collateral and have an interest rate that is tied to the Marginal Cost of Funds based Lending Rate (MCLR).
If you have good credit and can meet the lender's eligibility guidelines, getting a business loan with an LLC can often be easy. But new businesses and businesses with limited revenue may have difficulty getting approved, especially with traditional banks and credit unions.
How long does it take for a small business loan to be approved? ›The SBA promises a turnaround time of 36 hours for their express loans. But, that doesn't include the time it takes for the lender to approve the loan, which could tack on another few weeks. So, instead of 60-90 days, you're looking at 30-60 days for the SBA loan processing time when all is said and done.
What is the best loan to get approved for? ›Consolidating debt is one of the most common reasons to borrow a personal loan. According to a 2022 LendingTree study, debt consolidation was the most popular reason to apply for a personal loan among consumers with excellent credit.
Can I get a loan with a weak credit score? ›You can still get approved for a personal loan with a less-than-stellar credit score. Having a personal loan can help boost your credit score by strengthening your credit mix, but you must remember to make your payments on time each month. Late and missed payments show up as negative marks on your credit report.
What is the fastest way to get a loan approved? ›The best way to get a loan immediately is to apply online for a personal loan from a lender known for quick approval and funding. The best lender for fast personal loans is LightStream because it funds loans as soon as the same day and has low APRs, large loan amounts, long payoff periods and no origination fee.
What disqualifies you from getting a business loan? ›Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending, or where the owner is on parole.
Can I get a loan to start my own business? ›Business loans are available through banks, credit unions, online lenders and even microlenders that specialize in smaller loans. However, not every potential lender is going to be a fit for your startup business.
Do banks give loans to start a business? ›
So yes, banks do make loans to startups – provided they demonstrate the ability to repay them. Generally, that means: Strong collateral. Lenders expect borrowers to put up something – usually their home or other significant asset.
Can I get a loan with my EIN number? ›Can I Get a Loan with Just My Business EIN? Yes, there are certain circumstances where a lender will not use your personal credit score, but only your EIN as a factor in lending to you. Note that they won't just use your EIN in isolation, as there are many factors that go into qualifying for a small business loan.
Is it easier to get credit with an LLC or a corporation? ›According to the Internal Revenue Service, to obtain a credit card, a company must be registered in the U.S. and shareholders must be U.S. citizens. Corporations, therefore, may find it easier to obtain a credit card than an LLC since under a corporation, shareholders must be U.S. citizens.
What percentage should I pay myself from my LLC? ›The SBA reports that most small business owners limit their salaries to 50% of profits, Singer said.
Can I get a Capital One credit card with a 550 credit score? ›You may need a score of 570 or higher to be approved for the Capital One Platinum Credit Card. A score in the 580 to 669 range is a fair score, while a score of 670 to 739 is considered good. If you have a score at the lower end of the fair score range, a premium credit card is all but out of the question.
What credit limit will I get with Capital One? ›Almost all cardholders have credit limits between $1,000 and $10,000, with over a third at $3,000 or less. Then there's the Capital One QuicksilverOne Cash Rewards Credit Card, which is aimed at consumers with fair credit or worse. Top credit limits may range from $2,000 to $5,000.
Does Capital One approve everyone? ›Although Capital One offers cards for every credit level, a very good or even excellent credit score (740 and above) increases your chances of approval for the best Capital One credit cards. And, although your credit score is one of the most important factors Capital One looks at, it's not the only factor.
Does your ein have a credit score? ›While your personal credit score is tied to your Social Security number, your business credit score is tied to an EIN. This helps you keep your personal financial information private while you build and maintain your business credit score.
Does opening an LLC hurt your credit? ›Only individuals who cosign or guarantee an LLC loan have their personal credit affected by it. If you don't cosign or guarantee a loan to the LLC, your credit report is safe.
Does your credit score affect your LLC? ›As an LLC, your personal credit has an impact on your business, but not as strong as a sole proprietorship. LLCs are considered “pass through entities,” which means the business results are reported on your personal tax return.
What is the easiest SBA loan to get? ›
SBA Express
This term loan or line of credit offers fixed or variable SBA loan rates as well as the easiest SBA application process, quick approval times, flexible terms, and lower down payment requirements than conventional loans.
Business credit scores impact the ability of a business to secure loans in the same way personal credit can affect an individual's ability to get a mortgage or buy a car. For a business looking to obtain a loan, negative information or a poor credit score can make it difficult to get business loan approval.
Can I get a business credit card with a 625 credit score? ›Can I get a business card with a 625 score? Business owners with poor personal credit (a score below 630) will have a hard time qualifying for a standard business card.
Can I get SBA loan with 560 credit score? ›However, SBA loans are provided by lenders who may have minimum score requirements. Typically, this minimum is about 620. 1 However, the higher your score, the more likely you are to receive approval.
How much deposit do I need for a SBA loan? ›The most common SBA loans, SBA 7(a) loans and CDC/504 loans, require a down payment equal to 10% of the total amount you're borrowing. Given the average SBA 7(a) loan sizes in 2019, this down payment size could start at around $44,000.
Does SBA loan hurt credit? ›Even though a borrower must personally guarantee the loan, it is not reflected on a personal credit report.
What is the biggest loan you can get to start a business? ›SBA loans
The SBA 7(a) loan program is one of the most popular programs and offers up to $5 million in funding. In 2021, about 17% of SBA 7(a) loans went to startups. The SBA 504 loan program could be a good option if you're buying real estate or equipment, but only 10% of those loans went to startups.
- Startup India Initiative. ...
- Startup India Seed Fund Scheme. ...
- Pradhan Mantri Mudhra Yojna. ...
- Atal Innovation Mission. ...
- Credit Guarantee Trust Fund. ...
- Venture Capital Assistance Scheme. ...
- The Standup India Scheme. ...
- Design Clinic Scheme.
Loans help your business grow: Whether your plan is to hire more employees, expand into a new market, offer new products or grow an existing location, your business needs cash to do so. A business loan will cover the upfront costs of expansion, allowing you to pursue profitable growth.
What do most banks require for a business loan? ›They'll consider household income, business revenue, cash flow, outstanding debt, unused credit lines, and the amount of money the owner has personally invested into the business. All these variables will help lenders calculate the ability for an owner to repay the loan.
Which bank takes lowest interest on business loan? ›
...
Which Bank Gives The Lowest Interest Rate For A Business Loan?
| Bank Name | Interest Rate |
|---|---|
| Kotak Mahindra Bank | 16.00% |
| Yes Bank | 16.25% |
| HDFC Bank | 15.65% |
| Tata Capital | 21.00% |
Axis Bank Business Loans are collateral-free. You can get up to Rs 50 lakh as a loan without providing any collateral or asset as security.
How much of a loan can I get with an LLC? ›Business line of credit amounts can range from $10,000 up to $1 million. Repayment terms typically fall between three and 18 months.
Is it hard to get a small business loan to start a business? ›Getting a startup business loan can be more difficult than getting approved for financing as an established business. This is because most lenders gauge their risk of borrowing based on the financial stability and history of an applicant's business.
Do you need good credit for business loans? ›Banks and credit unions: A credit score of 700 or higher is ideal for a bank or credit union business loan. If you can reach a score of 740 or higher, you'll likely get approved for the best terms the lender offers. SBA lenders: Aim for a credit score in the mid-600s to qualify for an SBA term loan.
How long does it take for your business to get approved? ›In most states, the average LLC processing time is seven to ten business days. However, other states can take up to four to six weeks. It's important to be aware of the other variables that could affect how long it takes for your LLC to be approved.
How many months is a small business loan? ›Most standard small business loans run for three years (36 months) or five years (60 months), although they can be longer or shorter. If you want to keep your interest rate down, you should aim to repay the loan as quickly as possible.
How much of a loan can you get with 500 credit score? ›You can borrow anywhere from a few thousand dollars to $100,000+ with a 500 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
What is the lowest business credit score? ›Business credit scores range from zero to 100 and most small business lending companies require a minimum business credit score of 75.
Is there a minimum credit score for SBA loan? ›But remember, the SBA loan will come through a lender, and they have no problem doing so. For the SBA 7(a), this means a minimum score of approximately 640. But you'll increase your chances to be approved for an SBA loan with a minimum credit score of 680 or higher.
How big of a loan can you get with a credit score of 550? ›
How big of a loan can I get with a 550 credit score? The amount you can qualify for with a credit score of 550 usually depends on the lender. One lender that considers borrowers with a credit score of 550 is Avant. They can lend up to $35,000, and their rates range from 9.95%-35.99%.
How high does your credit score have to be to get a $10000 loan? ›To get approved for a $10,000 personal loan, you'll typically need a credit score of 620 or higher — though keep in mind that some lenders are willing to work with borrowers who have scores lower than this.
Can I get a loan with a 524 credit score? ›Key Things to Know About a 524 Credit Score
Borrowing Options: Most borrowing options are available, but the terms are unlikely to be attractive. For example, you could borrow a small amount with certain unsecured credit cards or a personal loan with no credit check, but the interest rate is likely to be high.
Does an LLC Have Its Own Credit Score With The Rating Agencies? Yes, a business has its own credit score and credit report. When you start your business and start applying for credit, your personal credit history and score will be taken into account.
Does everyone get approved for SBA loan? ›In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Normally, businesses must meet SBA size standards, be able to repay, and have a sound business purpose. Even those with bad credit may qualify for startup funding.
What disqualifies you from getting an SBA loan? ›Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending, or where the owner is on parole.
Do people get denied for SBA loans? ›Even after you've been through the application process, it's possible that your SBA loan will be disqualified or denied. If that happens, you'll have questions—and we're here with the answers.