Efundex long-term business loans review
Financing for high-risk industries with transparent rates and terms.
Business owners in high-risk industries who’ve struggled to secure financing in the past might find Efundex helpful. If offers long-term business loans with transparent rates and terms, along with other more flexible financing options. But your business needs to have been around for at least two years to qualify.
First, do I qualify?
You need to meet the following criteria to qualify for a long-term business loan from Efundex:
- In business at least two years
- Minimum credit score of 620
- No business or personal bankruptcies in the past seven years
- No history of felonies or financial crimes
- Not a sole proprietorship or nonprofit
- No tax liens over $5,000
What makes Efundex long-term business loans unique?
Unlike many lenders that shy away from working with businesses in high-risk industries, Efundex doesn’t. It offers long-term business loans to companies in a variety of industries, including:
- Restaurant and bars
What is an Efundex long-term business loan?
Efundex offers long-term business loans ranging from $50,000 all the way up to $1 million. However, its terms aren’t all that long — only spanning from one to five years. It’s rates start relatively low at 5.49% and go up to 27.79% — not including an origination fee between 0.99% and 4.99% that’s based on the strength of your credit profile.
It’s not the fastest lender out there, though. While you can apply online in just a few minutes, it could take up to three business days to hear back about a decision. And another 10 business days to receive your funds.
What other financing options does Efundex offer?
On top of its long-term business loan, Efundex offers several other financing options:
- Simple-interest term loan. Borrow up to $500,000 with terms as long as three years and rates starting at 6%.
- Business line of credit. Businesses in need of flexible financing might prefer Efundex’s line of credit — available in amounts up to $100,000 with APRs starting at 13.99%.
- Merchant cash advance. Borrow against your future sales with no set terms and factor rates ranging from 1.09% to 1.42%.
- Invoice financing. If you serve other businesses or government agencies, you can sell your invoices to Efundex with weekly rates ranging from 0.25% to 1.25% and terms up to six months.
What are the benefits of an Efundex long-term business loan?
From its transparent rates to its willingness to work with high-risk industries, here are a few perks of taking out an Efundex long-term business loan:
- Open to high-risk industries. Whether your business is in the construction or restaurant industry, you may be eligible for funding.
- Faster approval for QuickBooks users. You can connect your Intuit account for faster approval with less documentation required.
- Transparent rates, fees and terms. Efundex lays out exactly what to expect when taking out its long-term business loan to help you avoid any surprises down the road.
What to watch out for
Consider these potential drawbacks before taking out a long-term business loan from Efundex:
- Relatively short terms. It only offers loan terms up to five years — relatively short for a long-term business product.
- Origination fee. Depending on your credit profile, you’ll be on the hook for an origination fee between 0.99% and 4.99%.
- Not open to startups. Even newer businesses aren’t eligible — you need to be around for at least two years to qualify for a long-term business loan with Efundex.
- Relatively slow turnaround. It could take up to three days to hear back about a decision and another 10 days to receive your funds — relatively slow compared to other online lenders out there.
Compare more business loan providers
What do borrowers say about Efundex business loans?
Not much as of July 2019. Efundex doesn’t have a page on the Better Business Bureau, and it only has a handful of reviews on Trustpilot. However, those that are there all rate the lender as “excellent,” earning it a TrustScore of 8.4 out of 10. For the most part, customers seem happy with Efundex’s simple application and quality customer service.
How do I apply?
Before you get started, double-check that you’re eligible. You can then begin the application process by calling 212-213-5680 or visiting its website.
Follow these steps to begin the process online:
- Go to the Efundex website and click Apply Online Now!
- Provide details about the loan you’re interested in taking out and your business. Click Continue.
- Enter your name, email, phone number and business name. Click Continue.
You’ll then be asked to create an account or connect with QuickBooks to start the application. You should hear back about a decision within three business days. If your application is approved, it could take up to 10 business days to receive your funds.
What documents do I need to apply?
Have the following information and documents on hand before you apply:
- Two years of your most recent business tax returns
- Your most recent personal tax return
- Six months of your business’s bank statements
- Details on your business’s current debts
You may be asked to provide year-to-date profit and loss statements and balance sheets if you’re interested in borrowing more than $300,000.
I got an Efundex long-term business loan. Now what?
You’ll be on the hook for either biweekly or monthly repayments based on your loan term. Late payments come with a 10% fee of the amount due, so you might want to ask about setting up autopay to avoid this. And since Efundex doesn’t charge prepayment penalties, you could save on interest by paying back your loan early. If you have any questions or concerns, reach out to customer service as soon as possible by calling 212-213-5680.
Efundex’s long-term business loans are ideal for businesses in high-risk industries looking for financing with transparent rates and fees. It’s not the fastest option out there, though. And you might have trouble qualifying if you don’t have good credit or haven’t been around for too long.
See how Efundex compares to the competition with our guide to business loans.