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finder.com’s rating: 3.4 / 5.0
★★★★★
$100,000
Min. Amount
$10,000,000
Max. Amount
Product Name | ApplePie Core business loans |
---|---|
Min. Amount | $100,000 |
Max. Amount | $10,000,000 |
Loan Term | 60 to 120 months |
Min. Credit Score | 660 |
APR | 6.5% to 9% |
Requirements | Operate an eligible franchise, 660+ credit score, personal assets to fully secure the loan, additional based on financing type |
Review by
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
ApplePie Capital offers financing tailored to franchises with competitive rates that stop below where many other business lenders start. It directly funds loans for both new and established franchises and can help connect your business with an SBA lender or equipment financing.
But it’s ideal not for small expenses. Its loans start at $100,000 — and you’ll need strong personal credit and assets to qualify. Its connection service might not be worth it, since its broker fees are relatively steep.
ApplePie Capital loans came with rates from 6.5% to 9%, including an origination fee of 3.5% to 5% as of September, 2019. But weren’t able to verify if these rates, terms or any other details have changed since.
There are no prepayment penalties, so your franchise can save on interest by paying off the loan before its term of five to 10 years is up. You can borrow between $100,000 and $10,000,000. Use the calculator below to find out how much your loan might cost.
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Generally, only borrowers that have near-perfect credit and have been profitable years will get the most competitive rates and terms. On average, franchises qualify for APRs between 7% and 8%. But if you just barely meet the minimum requirements, you might expect a rate closer to 9%.
To be eligible for financing with ApplePie, you must meet the following criteria:
ApplePie Core requires you to put a lien on your business’s assets and a sign a personal guarantee. Franchise operators are also required to take out a temporary life insurance policy with ApplePie listed as the beneficiary.
The information you’ll need varies widely depending on your franchise, personal assets and what type of financing you’re applying for. You might expect to be asked for some or all of the following:
Typically, it takes about a week to gather all of the documents you’ll need to submit along with your application.
ApplePie Capital only works with the franchise industry. But it doesn’t specify if any specific types of franchises are ineligible. If your franchisor doesn’t currently have a partnership with ApplePie Capital, reach out to see if it’s eligible.
In addition to its core program, ApplePie also works as a connection service to help your business find term loans, SBA loan and equipment financing. It partners with over 50 SBA lenders, banks and other providers.
To use the connection service, ApplePie charges a broker fee of $2,500 on top of the other loan fees from your lender. SBA loans also come with a guarantee fee of 2% to 3% of the loan amount. SBA loans can run as high as $5 million.
ApplePie Capital isn’t right for every franchise. It’s personalized service might be great for some, but it isn’t ideal if you need money right away.
Yes, ApplePie Capital is a legitimate lender. It’s a member of the International Franchise Association (IFA), a trade organization that works to advocate, educate and promote excellence for franchises in the US. Entrepreneur also named it “Top Franchise Supplier” in 2019.
It also takes steps to make sure that your information is safe. This includes using SSL encryption to protect any personal details you submit online.
BBB accredited | Yes |
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BBB rating | A+ |
BBB customer reviews | 1 out of 5 stars, based on 1 customer reviews |
BBB customer complaints | 1 customer complaints |
Customer reviews verified as of | 12 October 2020 |
Not exactly. It only has one negative review on the Better Business Bureau (BBB) — and none on Trustpilot or other similar forums. This doesn’t necessarily mean anything, as customers often only write reviews when they have a very negative or positive experience. But it makes it hard to know what kind of customer experience to expect.
You can apply for a loan through ApplePie Capital online or by calling 800-720-0241. Follow these steps to apply online.
Submitting your application alone can take a week. After that, you’ll be in contact with ApplePie to verify information on your application and submit documents.
It takes an average of 30 to 45 days to receive your funds. If you’re applying for a loan through the SBA program, it can take between two and four months.
ApplePie Core loans come with monthly repayments — and so do most bank and SBA loans of that size. Whichever lender you go with, consider asking if you can sign up for automatic repayments. Then you won’t have to take time out of work to make them each month.
Check your bank account and your loan balance regularly. If your business can afford to make additional payments, you can save on interest. And if you notice anything wrong, reach out to your lender as soon as you can.
See how other financing options for franchises stack up, or compare other business loans.
We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.
Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.