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Finance Factory business loans review

Find low rates and startup financing with this connection service — though it might not be as fast as other providers.

finder.com’s rating: 4.5 / 5.0

★★★★★

Bottom line: Finance Factory is an online business loan marketplace that offers a wide range of options from banks and alternative lenders. It also offers a few low-cost options for startups. But some funding programs can take weeks, and you need good credit for most programs. Read our full review or get our 30-second take.

Details

Min. Amount$5,000
Max. Amount$500,000
Loan Term2 and 5 years
Min. Credit Score700
APR5.99% to 10.99%
RequirementsGood to excellent personal credit, steady cash flow, two years in business
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Pros

  • Low APRs compared to similar connection services
  • Award-winning customer service
  • Multiple options for startups

Cons

  • Can take weeks to fund in some cases
  • Not a direct lender
  • Limited options for bad credit

Our take on Finance Factory

Finance Factory is a loan connection service that helps business owners find financing. It’s one of the only business loan marketplaces I’ve reviewed with multiple financing options for startups, including personal loans, financing using retirement funds and lines of credit to start a new business. Its partners also charge lower rates and fees than you’ll find with most online providers.

But like with most low-cost loans, you typically need good credit to qualify, and the whole process can take days or weeks. For Finance Factory’s unsecured business express financing, you’ll also have an easier time qualifying with consistent cash flow and a couple years in business. Consider another provider if you have bad credit or need funding within a few days.

Finance Factory’s partners offer low rates

Finance Factory’s business express loans come with lower rates and more flexible terms than you might find with other business loan providers:

  • Rates range from 5.99% to 10.99% APR
  • Terms run between 2 and 5 years
  • Loan amounts are available from $5,000 to $500,000

Other financing options will come with different rates and terms. For example, Finance Factory’s startup funding line of credit offers a 0% introductory rate for the first 21 months.

Revenue-based loans and advances, which are available to businesses with bad credit, have factor rates that range from 1.14 to 1.5. These are low for a cash advance, but expensive compared to other types of business financing.

Customers haven’t left many Finance Factory reviews

BBB accredited Yes
BBB rating A+
BBB customer reviews 3.75 out of 5 stars, based on 4 customer reviews
BBB customer complaints 2 customer complaints
Customer reviews verified as of 30 September 2021

Finance Factory only has a handful of reviews from customers — which is common for a connection service. Customers tend to review the lender they get connected with, rather than the service. 

The few that exist are mostly positive. A few customers mention being grateful that Finance Factory made sure they understood all of their options before they signed up for a loan. Finance Factory also won a spot on LendingTree’s top business lenders list for customer satisfaction in 2016, 2017 and 2020.

Finance Factory requires good credit for most loans

These are the minimum requirements for a Finance Factory business express loan:

  • Personal credit score of at least 700
  • At least 2 years in business
  • Steady cash flow

Most Finance Factory options require good credit and regular cash flow. Ideally you should have a personal credit score of at least 680 and a minimum account balance between $1,000 and $5,000 for non-startup financing.

More Finance Factory programs

In addition to the business express program, Finance Factory also has several other business loan programs, including:

  • Startup funding is available from $5,000 to $350,000 to businesses with very little credit history. These loans come with a 0% introductory interest rate for up to 21 months, but can reach 15% after. You need a credit score of at least 600 to qualify.
  • Retirement Funding, or a Business Directed Retirement Account (BDRA), allows startups to access between $20,000 and $200,000 saved up in a retirement account from a previous employer without paying taxes. You need at least $50,000 in your account to qualify.
  • Personal loans for starting a business range from $25,000 to $500,000 and have rates starting at 5.99% APR. These can take seven to 10 days to fund and require a credit score of at least 650.
  • SBA loans are government-backed loan with low rates and long terms. Finance Factory partners with SBA 7(a) and 504 lenders, which offer working capital, real estate and equipment financing.
  • Revenue-based loans and advances offer an advance on $5,000 to $1 million of future sales for a flat fee of 14 to 50 cents on the dollar. These are available to business owners with credit scores as low as 550.
  • Equipment financing for computers, signage, vehicles and any other equipment your business uses, backed by that equipment. Loan amounts, rates and terms vary but startups are eligible.

Sign up on Finance Factory’s website

You can sign up for Finance Factory’s services by filling out a quick form on the company’s website. After you submit your information, review the options available to your business and follow the instructions to complete the application.

While you may be able to receive financing within 48 hours, the business express program can take seven to 10 days from start to finish.

Low rates and multiple startup options set Finance Factory apart

Most online connection services partner with providers that have low starting rates. But the maximum rates available through Finance Factory’s partners are uniquely low. Low maximum rates are particularly important, since most applicants can’t qualify for the lowest rates available.

It’s also one of the only connection services that offers multiple financing options to start a new business — rather than just businesses in the startup phase. But like most startup loans, your eligibility depends on your personal credit history and finances and may not be right for all entrepreneurs.

Alternatives to Finance Factory

These providers may be a better choice if you’re looking for faster funding or have bad credit. Fill out the form with information about yourself and small business for personalized results. Or, read our guide to business financing to learn about more options.

Name Product Filter Values Loan amount APR Requirements

Biz2Credit business loans
Finder Rating: 3.75 / 5: ★★★★★

Biz2Credit business loans
$25,000 – $6,000,000
Starting at 5.99%
6+ months in business; $100,000+ monthly revenue; 500+ credit score
Get only the capital you need through secure, prescreened lenders with this highly rated company offering SBA, expansion, working capital and other loans.

OnDeck short-term loans
Finder Rating: 4.6 / 5: ★★★★★

OnDeck short-term loans
$5,000 – $250,000
As low as 35%
600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
A leading online business lender offering flexible financing at competitive fixed rates.

Fora Financial business loans
Finder Rating: 4.1 / 5: ★★★★★

Fora Financial business loans
$5,000 – $500,000
Varies
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.

Lendio business loans
Finder Rating: 4.75 / 5: ★★★★★

Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.

ROK Financial business loans
Finder Rating: 4.7 / 5: ★★★★★

ROK Financial business loans
$10,000 – $5,000,000
Starting at 6%
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
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Business loan ratings

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We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.

Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.

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