Breakout Capital business loans review
Straightforward short-term loans up to $250,000
First, do I qualify?
To be eligible for business financing from Breakout Capital, you must:
- Have a credit score of 600 or higher
- Be at least one year in business
- Make at least $10,000 a month
What makes Breakout Capital business loans unique?
Breakout Capital is one of the most straightforward short-term online business lenders out there. While many are unwilling to share rates, fees and even eligibility criteria, Breakout Capital generally spells out what you’re getting into in plain English.
It also allows you to renew your loan if you need more time to pay it off. If you still owe interest on the loan you renew, Breakout Capital doesn’t add that interest to your loan balance — unlike some other short-term business lenders. This means you won’t end up paying interest on interest.
Have any more questions? We were pleased to find that its customer service team didn’t beat around the bush when it came to questions we had about how it works.
What is Breakout Capital?
Breakout Capital is an online direct lender that offers unsecured short-term business loans ranging from $6,000 to $250,000. Businesses have between 0.5 years and 2 years to pay them back at rates starting at 1.25% per month — equivalent to Starting at 15.01% APR.
Before your business gets its funds, Breakout Capital deducts a 2.5% origination fee from the loan amount. So if your business qualifies for a $10,000 loan, it actually receives $9,750, but you’ll still be on the hook for paying back $10,000.
Depending on your loan amount and business cash flow, you might end up with daily, weekly or monthly repayments. Monthly repayments are more flexible, but are also typically more difficult to qualify for.
Breakout Capital FactorAdvantage loan
Breakout Capital also offers another type of short-term loan for businesses that rely on invoice factoring called the FactorAdvantage loan. Small businesses can borrow up to $500,000 for cashflow assistance that factoring doesn’t cover — like when your unpaid invoices aren’t ready for factoring but you still need funds.
FactorAdvantage comes with fewer requirements than the business term loan: There’s no minimum credit score, time-in-business or monthly revenue criteria to meet. Rates and fees are also the same as the term loan.
What are the benefits of a Breakout Capital business loan?
- Fast turnaround. As long as your business can submit documents the same day it applies for a loan, it can get funds in as little as 24 hours.
- Not required to be profitable. Businesses that haven’t started to make more money than they spend each month can still qualify for financing from Breakout Capital.
- Strong customer service. You can call or email Breakout Capital to get quick, straightforward answers to your questions.
- Option to renew. As long as your business is eligible, it can apply to reborrow the amount it’s paid back before fully paying off the loan — similar to a credit card.
What to watch out for
- Daily, weekly or monthly repayments. Daily and weekly repayments might not be the right option for businesses that don’t have a strong, consistent cash flow.
- Not available in all states. Your business can’t qualify for a Breakout Capital loan if it’s located in California, Nevada, Montana, North Dakota or Vermont.
- Rates aren’t always clear. Breakout Capital advertises monthly interest rates instead of APRs, which can be deceptively low.
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What do other customers have to say about Breakout Capital?
There’s not much online about Breakout Capital, but what’s there is good. As of July 2018, Breakout Capital has an A+ rating from the Better Business Bureau (BBB), which it’s been accredited with since 2016. The BBB bases its ratings on factors like transparency and how it handles customer complaints — Breakout Capital has none. Only two customers have left reviews of Breakout Capital and both are positive.
It does similarly well on Trustpilot, scoring a 9.5 out of 10 based on 115 reviews, and 90% of customers called it “Excellent.” Customers were particularly happy with the quality of customer service, calling them friendly and professional. Several mentioned that the customer service team was what made the process of getting a loan simple and easy. At least one customer was surprised with how high the rates were, however.
How do I apply?
Breakout Capital has a simple online application that only takes a few minutes to fill out. Before you get started, double check that your business is eligible — otherwise you’re just wasting your time. You might also want to make sure you have all of your documents ready to upload beforehand.
- At least one year in business
- 600+ personal credit score
- At least $10,000 in monthly revenue
Steps to apply
- Go to Breakout Capital’s site, select how much financing you need and click Inquire Now.
- Fill out the required fields with basic information about you and your business.
- Hit Submit.
- Wait for a member of Breakout Capital’s team to contact you with an offer.
- Follow Breakout Capital’s directions to complete your application and upload documents.
- Review and sign your loan contract.
- Wait to receive your funds.
If your business can upload documents the same day it applies, it could get funds within 24 hours.
What documents do I need to apply?
Typically, Breakout Capital only asks to see three to six months of business bank statements. You can upload documents by going to the Breakout Capital page, clicking Apply Now in the main navigation bar and then Upload Documents.
I got the Breakout Capital business loan. Now what?
Your business starts making daily, weekly or monthly repayments, depending on which option it qualifies for. Ask if you can sign up for autopay so you don’t have to make a manual repayment each time it’s due.
Need more funding? After your business has paid back part of its funds, it can apply for more money — up to the amount of the principal that’s paid down. For example, if your business borrowed $10,000 and paid back $2,500, it can apply for $2,500.
Have any questions specifically about your loan? Reach out to customer service by calling 888-318-3534.
How to apply step-by-step with screenshots
Breakout Capital business loans could be a good option for businesses that need short-term emergency funding. While short-term financing isn’t typically cheap, Breakout Capital’s transparent site and stellar customer service team set it apart when speed is your top need. Curious about how it compares to other lenders? Check out our business loans guide to read about more options and learn how business financing works.
Frequently asked questions
Imgage source: Shutterstock and breakoutfinance.com