Platform Funding Business Loans Review
 |
|
Pros and cons of
Pros
- Low minimum credit score and time in business requirements
- Higher loan amounts than many alternative lenders
- Relatively fast funding available
Cons
- Origination fee of up to 3.00% may apply
- Factor rates can make it difficult to compare the cost of borrowing with other loan options
small business financing review
is an online business financing marketplace, so when you apply for financing through , the company may match you with one of its partner lenders. Your loan would be funded by that partner lender rather than by directly. You can apply on its site for several types of small business financing, including term loans, lines of credit, revenue-based financing and equipment leasing options.
When you apply, your application will automatically be considered for the full range of ’s products. A funding specialist will work with you to find the best option for your needs.
With higher loan amounts than many alternative lenders, might be a good option for businesses looking to cover extensive or expensive costs. Despite these high borrowing limits, offers relatively fast financing, and borrowers can expect to receive their funds within one to two business days.
However, with the exception of the equipment leasing option, ’s borrowing costs are expressed as a factor rate, which can make it difficult to compare with other lenders. To estimate your total borrowing costs with , multiply your desired loan amount by the factor rate.
- Borrowers seeking high loan amounts. provides financing up to , which is higher than what you’ll find with many online lenders.
- Low-credit borrowers. offers multiple financing options for business owners with credit scores as low as .
- Recently established businesses. You only need a six-month business history to qualify for financing with , making this a startup-friendly option.
small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated cost | Fees |
|---|---|---|---|---|
| Business loans | to | to months | to + factor rate | Origination fee: to |
| Business lines of credit | to | to months | to + factor rate | Origination fee: to |
| Revenue-based financing | to | to months | to + factor rate | Origination fee: to |
| Equipment leasing | to | to months | Starting at APR | Origination fee: to |
Term loans
If you’re looking for a lump sum of cash, a business loan may be your best option. offers both long- and short-term loans, with repayment terms ranging from as little as months to as many as months. With a term loan, you can borrow up to for your business. The funds you receive can be used for any business purpose, making this a versatile financing option if you need to cover a wide range of costs.
Lines of credit
If you’d prefer access to revolving funds, consider a business line of credit, which allows you to borrow money as needed up to a certain amount, only paying interest on the borrowed amount. offers lines of credit up to . As you pay off your withdrawals, your available balance will replenish, allowing you to continue borrowing funds to cover your operational expenses.
Revenue-based financing
Revenue-based financing, also referred to as a merchant cash advance or MCA, is ’s core product. This type of financing allows you to sell a percentage of your future revenue, using accounts receivable — aka unpaid invoices — as collateral to secure your funds.
The amount of revenue-based financing you can get with will depend on your monthly revenue, as the lender can typically provide between 80% and 110% of this amount. For example, if your business earns an average of $20,000 per month, you may be able to borrow between $16,000 and $22,000.
If you don’t qualify for debt-based financing, revenue-based financing may be a better option, as your ability to qualify will not depend on your credit score, instead basing your ability to repay the loan on your business’ current revenue and future projections. You’ll repay your borrowed funds with a percentage of your monthly revenue.
states that these payments can be adjusted as your revenue changes, so the amount of time it takes to repay your loan will depend on your specific situation.
It’s worth noting that ’s president is also the president of another company, Elevation Capital Group — an online lender that primarily provides merchant cash advances. Some of ’s MCAs are funded through Elevation Capital, while others are funded through outside companies.
Equipment leasing
can help you secure new and used essential equipment for your business, with affordable equipment leasing starting as low as APR. Funding amounts range from to , so whether you need to purchase heavy machinery or basic office equipment, can help.
However, while the lender advertises quick funding times for its other products, equipment leasing could take longer to process and approve. This is due to the time it takes to find and assess the value of equipment. provides equipment leases through a network of funding partners.
borrower requirements
| Minimum annual revenue | $120,000 |
| Minimum time in business | 6 months |
| Minimum credit score |
To get a business loan from , you’ll need to meet the lender’s loan requirements. With a minimum credit score of and a minimum time in business of six months, may be an ideal option for startups and borrowers with bad credit.
However, your business will need to make at least $120,000 in annual revenue to qualify.
Depending on your situation, collateral may also be required to secure your financing.
Required documents
Applying for financing from is a relatively straightforward process. All you need to do is fill out the online application and provide business bank statements from the last four months. Traditional lenders often have a longer list of required documents, which can slow down the process of applying for and receiving funding. By comparison, is a relatively low-doc loan option, which may allow you to get the funds you need without delay.
Alternatives to Platform Funding
offers several products to help with funding without requiring excellent credit scores or a lengthy business history, but it’s not the only lender with flexible eligibility criteria. Here are two other online lenders that provide similar solutions to help take your small business to the next level.
| Taycor Financial | Credibly | ||
|---|---|---|---|
| Minimum credit score |
| 500 | |
| Loan products offered |
|
|
|
| Time to funding | Same day to 2 business days |
| As soon as same day |
| Starting rates |
|
| 1.11 factor rate |
| Maximum loan size |
| Up to $600,000 | |
| Minimum annual revenue | $120,000 |
| $180,000 |
vs. Taycor Financial
and Taycor Financial offer similar loan products, but Taycor may be a better option if you’re in need of business equipment. In addition to equipment leasing, Taycor Financial also offers equipment financing options, which may be more appealing if you want to own your equipment.
Taycor Financial is also similar to in that it offers high loan amounts, though the exact amount you can borrow will depend on the loan type. However, startups may have an easier time qualifying for financing with Taycor, as the lender only requires three months of business history for term loans and merchant cash advances. Taycor’s annual revenue requirements are also lower, with businesses only needing to earn $48,000 per year to get an MCA.
vs. Credibly
Though Credibly offers lower loan amounts than , its other features are similar. You’re likely to find comparable rates and receive your funds in roughly the same amount of time with both lenders. Still, offering both working capital loans and merchant cash advances, Credibly might be a good option for businesses seeking $600,000 or less. Just keep in mind that an annual revenue of $180,000 is required to qualify, so this is only an option if your business earns an average of $15,000 or more per month.
Compare business loan offers