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IOU Financial Business Loan review

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IOU Financial Business Loan
Loan Term
6 - 36 months
Minimum Revenue
annual revenue of $120,000+ for your business
Minimum Time in Business
Have at least an 80% ownership stake in your business
All information about IOU Financial Business Loan has been collected independently by Finder. Finder is not connected with IOU Financial products, and this page is not sponsored, endorsed or administered by, or associated with, IOU Financial. All product names, logos, and brands have been used for identification purposes only and are property of their respective owners.

Summary

Offering business loans up to $1,500,000, IOU Financial can help you to finance the next phase of your business and get access to capital fast
Once you have paid 40% of your loan off, you can borrow above the limit amount. This is ideal for businesses that need more than $1,500,000 worth of capital.

Pros

  • Once you have paid 40% of your loan off, you can borrow above the limit amount

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IOU Financial offers business loans of up to $1,500,000 that can help you to finance the next phase of your business with loans that allow you to react quickly to opportunities and to get access to capital fast.

Often, opportunities arise suddenly for business owners who might not have the time to wait weeks or months to see if they are approved for a bank loan, and IOU Financial is a great way for you to get the funds that you need quickly in order to finance a section of your business.

Criteria to get an IOU Financial Business Loan

If you would like to obtain a business loan from IOU Financial, you must:

  • Have at least an 80% ownership stake in your business
  • Have been in business for at least one full year
  • Make 8 or more deposits per month into your business bank account
  • annual revenue of $120,000+ for your business

What are IOU Financial Business Loan used for?

Business owners use IOU Financial Business Loan primarily for four purposes:

  1. Purchasing equipment. This could be machines, computers, tools, etc. 47% of businesses use IOU Financial loans to finance the purchasing of equipment.
  2. Expanding the business. When a small business wants to expand, it has to spend money on things such as a new store location, new employees, new permits and more. 18% of business owners use IOU Financial Business Loan to help pay for business expansions.
  3. Obtaining temporary cash flow. Businesses have expenses and they need a certain amount of cash flow each month in order to be able to pay for these expenses. 16% of business owners who obtain loans from IOU Financial do so to obtain temporary cash flow.
  4. Purchasing inventory. Many businesses need to have a certain amount of inventory available to function properly. 14% of business owners who take out loans from IOU Financial do so in order to fund the purchasing of inventory.

IOU loan details

  • Amount you can borrow – $15,000–$1,500,000
  • Early payment penalty? – No
  • Instant pre-qualification – You can get pre-qualified for your IOU loan over the phone, or online in a matter of minutes
  • Additional funding – Once you have paid 40% of your loan off, you can borrow above the limit amount. This is ideal for businesses that need more than $1,500,000 worth of capital.
  • Fixed daily/weekly payments – Payments are taken directly out of your business bank account at fixed intervals. This makes it easy to keep your payment steady and to avoid missing any.
  • Soft credit pull – IOU Financial only does a soft credit pull. This prevents your credit score from being negatively affected, which is a major benefit because not all lenders do this.

How does a business loan from IOU Financial work?

The first step to get a business loan from IOU Financial is to apply over the phone or online. When you do this, the company will tell you whether or not you qualify for pre-approval. Pre-approval depends on whether or not you meet the criteria for the loan which, as mentioned above, is:

  • Have at least an 80% ownership stake in your business
  • In business for at least one full year
  • Make 8 or more deposits per month into your business bank account
  • annual revenue of $120,000+ for your business

If you successfully pre-qualify for the loan, IOU Financial will run your credit score through a soft inquiry, will verify all of your information and will then deposit the funds into your business bank account. This can take as little as 1-2 business days.

You will have the option to choose between weekly or daily payments on the loan. You can go with whichever option you believe is best for your business. There is no early repayment penalty, so if you would like to save money in interest payments by paying the loan off early, you can do this.

Pros and cons

Pros

  • Can access up to $1,500,000 in funds.
  • Fast approval and funding times.
  • No early repayment penalty.
  • Soft credit inquiries to avoid harming your credit scores.
  • 85% of loan applications are approved.
  • Choice between daily or weekly payments.
  • Once you have paid 40% of your loan off, you can borrow above the limit amount
  • IOU Financial has an A+ rating from the Better Business Bureau.
  • Significantly less paperwork than other options such as bank loans.
  • Can get pre-approved over the phone in minutes.

Cons

  • You can’t get a loan for a brand-new business.
  • Have at least an 80% ownership stake in your business
  • Your business must be generating at least annual revenue of $120,000+ for your business to get approved for a loan
  • IOU Financial is really set up to help businesses that already have a certain level of success, so if your business is a brand-new start-up this is not going to be a great option for you.

Bottom line

IOU Financial is a solid option when it comes to obtaining business loans. Not only does the company have an outstanding reputation, it has an extremely streamlined process for business owners to get small business loans. And as long as you meet the criteria, getting a business loan from IOU Financial can be very easy and stress-free. Because of this, many small businesses have chosen to use IOU Financial and have benefitted because of it.

Compare other business loans

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Name Product APR Range Loan Amount Loan Term Minimum Revenue Minimum Time in Business Loans Offered Broker Compliance
Journey Capital Business Loan
8.00% – 29.00%
$5,000 - $300,000
4 - 24 months
$100,000/year
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Term Loan, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months with a minimum annual gross revenue of $100,000.

Journey Capital offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.
Merchant Growth Business Loan
12.99% – 39.99%
$5,000 – $800,000
6 – 24 months
$10,000 /month
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Unsecured Term, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months and have a minimum of $10,000 in monthly sales.

Merchant Growth offers financing tailored to business needs. It specializes in providing capital based on future cash flows, but it also offers fixed solutions. Fill out an application within 5 minutes and get your funds within 24 hours.
Loans Canada Business Loan
6.60% - 29.00%
$4,000 - $500,000
3 - 60 months
over $10,000/month
100 days
Unsecured Term
Loans Canada is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.
To be eligible, you must have been in business for at least 100 days, have a Canadian business bank account and show a minimum of $10,000 in monthly deposits ($120,000/year).

Loans Canada connects Canadian small business owners to lenders offering financing up to $500,000. Complete one simple online application and get matched with your loan options.
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