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.

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.

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 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

Compare business loans you can apply for today

Rates last updated April 23rd, 2018
Name Product Product Description Min Loan Amount Maximum Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans for business owners in a hurry with no hidden fees.
$5,000
$500,000
Annual business revenue of at least $100,000, at least 1 year in business, personal credit score of 600+.
LendingTree Business Loans
Compare multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
National Business Capital Business Loans
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
Excel Capital Management Small Business Loans
Get personalized financing options that suit your unique business needs in just a few simple steps.
Varies by loan type
Varies by loan type
Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
Kabbage Small Business Line of Credit
A simple, convenient online application could securely get the funds you need to grow your business.
$2,000
$250,000
Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
Fora Financial Business Loans
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
SmartBiz SBA Loans
Get funding for your small business with a government-backed loan and extended repayment terms.
$30,000
$5,000,000
Personal credit score of 650+; US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000+; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years.

Compare up to 4 providers

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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