Is Able Lending legit or a scam? What you need to know | finder.com

Is Able Lending legit or a scam?

See how Able Lending stacks up to other online business lenders in terms of safety and security.

Able Lending is a safe, reliable lending platform founded in 2014 to support small businesses. Learn more about how this lender’s reputation and security details.

Is Able Lending legit?

Yes, Able Lending is a legitimate platform that combines a traditional loan structure with peer-to-peer crowdfunding for loans of up to $1 million. Available in 44 states, Able Lending prides itself on be accessible to the small business owner.

What makes Able Lending unique?

Meant specifically for businesses that are at least a year old, Able Lending allows you to keep equity in your business with the support (and financing) of a lender.

  • Instant pre-approval. Find out how much you could be approved for with funding delivered in as little as a week.
  • High loan maximum. Loans range from $25,000 to $1 million.
  • Unsecured loans. You will not need collateral for any loan through Able Lending.
  • No prepayment penalties. Pay off your loan early with no additional fees.

What to look out for

  • Potentially high origination fee. For loans backed by friends and family, you’ll pay an origination fee equal to 3% of your total loan amount. All other loans require a fee equal to 5% of your total loan amount.
  • Not available in all states. Able Lending does not offer services in California, Delaware, Nevada, North Dakota, South Dakota and Vermont.
  • Friends and family recruitment. Able requires 10% of your loan to be backed by friends and family. At least two of your backers cannot be immediate family members.
  • Delayed funding. You aren’t eligible for funding until all of your backers provide their portion of your loan, and it can take up to 30 days after all your backers have provided funding for your money to be deposited.
  • Not FDIC insured. Transactions made through Able Lending are not insured by the FDIC.

Compare four different types of crowdfunding for your business

Is applying for a business loan with Able Lending safe?

Yes. Able Lending is a legitimate business lending platform that offers transparent terms with understandable rates and fees to make sure you’re comfortable with borrowing through them. However, Able Lending’s privacy policy states that it may share your activity on its website with third parties.

What else do I need to know?

Many borrowers report satisfaction with Able Lending’s loans, but some complain about much longer turnaround than expected because most loans require multiple backers.

Bottom line

Able Lending can be a good fit for younger borrowers who have little to no credit history but have friends and family who are willing to lend a financial helping hand. Because rates and terms for Able Lending’s business loans can vary, carefully read the fine print and compare your business financing options before making a final decision on your loan.

Frequently asked questions about Able Lending

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