Diamond Business Loans review
No matter your industry, this lender may have financing available for your business.
Running a nontraditional business makes it that much harder to qualify for a loan, no matter how well-qualified you are. Diamond Business Loans is among a growing list of lenders that offers straightforward business term loans and lines of credit. It works with many types of business at every stage of development, including those involved in the cannabis industry.
Do I qualify?
For your business to qualify for funding through Diamond Business Loans, you must have
- A personal credit score of 680 or higher.
- No late payments listed on credit report.
- No past bankruptcies.
How does borrowing form Diamond Business Loans work?
Diamond Business Loans is a direct lender that offers unsecured lines of credit and term loans to companies in a variety of industries, including established and startup cannabis businesses. You can apply for up to $150,000 toward your existing business or startup, up to $150,000 through Diamond’s unsecured capital program and up to $150,000 for commercial real estate financing.
Diamond Business Loan determines your rate based on factors like your credit score, income and your loan term.
If you’re looking to borrow money for a one-time expense, you might want to take out a term loan. Term loans have APRs that typically range from 5.90% to 19.99%. Businesses generally have between one to five years to pay off the principal and interest of a term loan.
If your business has ongoing expenses or projects, consider a line of credit. Lines of credit come with APRs that go up to 9.99%.
Each loan requires a 10% fee before your funds are disbursed. It’s taken out of your loan or line of credit, potentially decreasing the funding you need. For example, a $100,000 business loan would require $10,000 in fees, leaving you with only $90,000 in funding after the fees are deducted from your loan amount. You should apply for more than you need if you know you’ll need the full $100,000 after the fee is taken out.
Virtually any type of business in the US can apply for funding through Diamond Business Loans. Even businesses in the cannabis industry, from startup growers to established dispensaries, may be eligible for funding despite the lack of a financial track record or the shaky legal status in different states.
You can get an idea of the rates you might qualify for by sending over a copy of your personal credit report — a service many other lenders that work with nontraditional businesses aren’t always able to provide.
It doesn’t have to be difficult to find capital for your business, even if you’ve only just started. You won’t need to provide collateral or documentation of your income. You also don’t have to have any prior experience as a business owner. Your business may be eligible for a Diamond Business Loans’ startup loan if you have a credit score of 680 or higher, no past bankruptcies and no late payments listed on your full credit report.
The process is simple: after Diamond Business Loans receives your full credit report, underwriting takes one to two days. If approved, your loan will generally be funded within one to two weeks. Startups can qualify for funding up to $150,000.
What are the benefits of using Diamond to fund your business?
- See what you might qualify for. You can get a quote of your potential rates simply by submitting a copy of your personal credit report.
- Cannabis friendly. Diamond Business Loans works with businesses that other lenders tend to shy away from.
- Startups accepted. Provided you have a clean credit report and a score of at least 680, your startup may qualify for a loan from DBL.
- Hands-on approach. A representative guides you through the application process, taking the guesswork out of financing.
What to watch out for
- High fees. A 10% funding fee is on the high end for a business loan, however uncertain the industry.
- No online application. You can’t just complete a quick online form and be done with it. This loan is more involved.
- Not the fastest loan. With Diamond, you’ll have to wait one to two business days preapproval and one to two weeks for funding.
Compare Diamond to similar providers offering alternative business loans
What does the Internet say about Diamond Business Loans?
The little chatter out there is overwhelmingly positive. In fact, we couldn’t find any negative reviews.
Diamond Business Loans earns an A+ from the Better Business Bureau (BBB), where it’s been accredited since 2015. It gets a five-star composite BBB score based on its BBB rating and two positive customer reviews.
It doesn’t do quite as well on TrustPilot, but it does score a respectable 7.7 out of 10. Like the BBB page, however, these ratings are based on two customer reviews at the time of writing, both of which are positive. The four BBB and TrustPilot users all agree on one thing: Diamond Business Loans’ customer service is top-notch.
Customers in online forums agree on Diamond Business Loans’ efficiency, competitive rates and speed in turning around funds. Several comments mention trouble getting financing for their business elsewhere and prefer to work with this lender.
Am I eligible?
You must meet eligibility requirements for your business to qualify for cannabis business funding through Diamond:
- Personal credit score of 680 or higher. Like with other loans, the higher your credit score is, the more competitive the rate you’ll qualify for.
- No delinquent payments. Your credit report must be free of late payments to qualify for this loan.
- No past bankruptcies. You won’t be able to qualify with bankruptcies on your credit report, no matter how long ago.
How do I apply?
To start your application, click Go to site. Complete Diamond’s preapproval form with basic information about you and your business.
You can choose between letting Diamond Business Loans check your credit score for a fee or sending in a PDF of your credit report, which you can typically get for free through sites like AnnualCreditReport.com.
You may have to wait one to two business days for Diamond Business Loans to let you know if you’re preapproved. If you get the green light, a representative guides you through the next steps.
I got financing from Diamond Business Loans. Now what?
It’s time to start paying off your loan. Keep track of our loan balance and stay in touch with Diamond Business Loans if you notice anything off or have questions. Don’t be afraid to reach out if you think you’ll have trouble making repayments to go over your options.
More loan offers by DBL
Diamond Business Loans offers nine types of financing, from your standard small business loan to cash advances, startup loans and equipment financing. It can finance businesses in just about any legitimate industry, including adult entertainment.
To qualify for these loans, you’ll generally need a personal credit score of 620 or higher and proof that you’ve been in business for at least one year. If you’re a startup, you’ll need to meet more stringent criteria.
A breakdown of DBL lending products
- Small business loans. Fixed-term financing for any standard business expense, including day-to-day expenses, inventory or hiring.
- Startup business financing. Funding for your new business with a different set of credit requirements.
- Real estate financing. Buy new commercial property to grow your business.
- SBA 7(a) Loans. Loans backed by the Small Business Administration (SBA) tend to come with competitive interest rates and can be used for legitimate business purposes that include real estate, investments in a new business, working capital or even getting a startup off the ground.
- Business acquisition financing. To cover the cost of buying a new company, DBL helps you set a price and provide financing if your funds get temporarily tied up in the transaction.
- Easy pay cash advances. Qualify for a merchant cash advance to borrow against future credit sales with at least $8,000 in monthly credit card sales and acceptance of Visa, Mastercard or Amex.
- Equipment leasing and financing. Find funds to cover the cost of a lease or new equipment for your business.
- Accounts receivable financing. Access cash for your business that’s tied up in invoices.
- Debt restructuring. Consolidate and refinance your business’s current debts for a better deal on rates and simpler repayments.
Diamond Business Loans is one of a handful of lenders willing to work with businesses lacking a comprehensive history. Provided you’re working legally within the US, Diamond Business Loans is part of a growing group of lenders opening up financing options for all types of businesses — even businesses working in the cannabis industry.