Dealstruck business loans review
Quick financing from a lender that understands your business’s needs — but lacks transparency on offer details.
Read on to get the lowdown on the benefits and drawbacks of a business loan through Dealstruck.
I heard Dealstruck shut down in 2016. What's the deal?
In November 2016, news circulated that Dealstruck had closed shop after an acquisition deal fell through at the last minute. A Crowdfund Insider article quoted CEO Ethan Senturia as saying that Dealstruck was no longer originating loans.
Dealstruck wouldn’t comment on exactly what happened beyond disclosing that its broker service had shut down. A representative informed us that its direct lending services, however, are still up and running.
Do I qualify for Deal struck?
To be considered for a business loan, Dealstruck requires:
- A personal credit score of 600 or higher.
- At least one year in business.
- At least $150,000 in annual revenue.
How does getting a business loan through Dealstruck work?
Dealstruck is an online lender that offers fixed-rate term loans to businesses in virtually any industry. Use your financing to buy equipment, fix up your workspace, consolidate other loans and take care of other one-time expenses.
It also offers two types of specialized financing:
Inventory lines of credit
E-commerce businesses and franchises
Access revolving fund amounts to cover the cost of inventory when patchy sales just don’t cut it.
Accounts receivable lines of credit
Tech companies, home healthcare services, franchises and commercial cleaning businesses
Borrow up to 85% of the value of outstanding invoices to keep your cash flow going.
Businesses in other industries can apply for inventory lines of credit and accounts receivable financing, as long as it’s a good match for their funding needs.
What are the benefits of Dealstruck business financing?
- Personalized loans. This lender provides loans that account for needs and quirks of your business and industry.
- Get cash in days. Dealstruck’s turnaround is quick — even for an online lender — with funds disbursed in as little as three days.
- Easy to use. Using a straightforward, simple process, Dealstruck makes a point of speaking in terms that most people can understand.
What to watch out for
Dealstruck doesn’t have the most transparent website. It’s hard to tell from its site the types of fees its loans come with, and customer service wouldn’t tell us which states it operates in. You’ll have to apply first to get that information.
Here are other potential drawbacks to keep an eye out for:
- Prepayment penalty. You might not save on interest by repaying your loan early, what with its 1% prepayment penalty.
- High origination fee. Dealstruck charges most borrowers an origination fee of 5.99% — on the high end of the spectrum.
- Weekly or biweekly repayments. With multiple repayments monthly, your business’s bank account has less room to fluctuate than with a typical loan. Avoid this type of repayment if you’re planning a big purchase or experience dips in your account at specific times of the month.
Compare business loans from top providers
What do customers say about Dealstruck?
Mostly positive things, though you’ll find a few poor reviews. As of this writing, Dealstruck is not accredited with the Better Business Bureau, but it does earn an A+ rating from BBB.
Four customer complaints are on its BBB page, with business owners citing they prequalified for a loan or line of credit only to be denied final approval after sending in their business’s financial documents. Another claimed that after Dealstruck rushed them through the process of signing contracts, they were surprised with weekly — instead of monthly — repayments and a shortened business term of eight weeks, rather than one year.
Meanwhile, nearly 100 Trustpilot reviewers give Dealstruck a 9.3 out of 10, with 92% rating it “Excellent.” Nearly all reviews are positive, calling the process straightforward and employees professional and helpful.
How do I apply?
First, confirm you meet the eligibility requirements:
- Your business is at least one year old. Startups and new entrepreneurs will want to look at other lenders.
- You have a credit score of 600 or higher. You won’t get the lowest interest rates with a score of 600, however — those rates tend to go to people with the best credit.
- Your business generates at least $150,000 in revenue annually. Dealstruck is known for its e-commerce loans, but you won’t qualify if you only sell a few pieces of handmade jewelry every year.
Next, have the following documents on hand before you sit down to complete your application:
- Six months of business bank statements
- Your two most recent business tax returns
- Your most recent personal tax return
If you have only one year of business tax returns handy, expect to also submit your business’s profit and loss statement.
Screenshots of the application process
What happens after I apply?
A Dealstruck loan specialist contacts you usually the same day to discuss your options — though if you can’t wait, you can try to speak with a rep immediately at 1-855-610-5626. You’ll go over loan options to decide on one that’s right for your business needs.
Submit documents for underwriting and to verify your business revenue and other information. Carefully read and sign your loan documents, paying special attention to the repayment schedule. Ask if you can sign up for autopay — that way, you don’t have to worry about manual repayments each week.
The whole process can take from start to finish.
I got a business loan from Dealstruck. Now what?
Get ready to repay your loan shortly after you receive your money. Unlike other lenders, Dealstruck asks for weekly instead of the standard monthly repayments.
If you sign up for autopay, you aren’t required to repay your loan manually each week. But you should keep an eye on your business bank account to make sure that it always has enough funds.
Contact customer service as soon as possible if you notice something that isn’t right or have questions. If our experience with customer service is typical, it can take time before your issue is resolved — which means reaching out early is essential.
Dealstruck offers fast financing tailored to specific industries that might help out a business in a pinch. But its lack of transparency makes us wonder if its deals are as advertised. And weekly repayments can also be tough on businesses that don’t bring in steady sales.
To find a lender that’s right for your needs, consider comparing other business lenders before making a decision.