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$10,000
Min. Amount
$500,000
Max. Amount
Product Name | IOU Financial business loans |
---|---|
Min. Amount | $10,000 |
Max. Amount | $500,000 |
Loan Term | 6 to 24 months |
APR | 8.8% to 9.5% |
Requirements | 1+ year in business, $100,000+ annual revenue, average daily bank account balance of $3,000+, retail or e-commerce business with 10+ deposits a month, own at least 80% of business |
Review by
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
IOU Financial’s short-term working capital loans are best for retail and e-commerce businesses with steady cash flow that have struggled to qualify for financing elsewhere. Everyone gets the same rate — regardless of your revenue or credit score. And it has mostly positive customer reviews.
But it charges more fees than many other providers out there. And the daily or weekly repayments can be difficult to afford during your business’s slow season.
Not sure IOU Financial is right for you? Compare your other business loan options below.
You must meet the following criteria at a minimum to qualify for a small business loan from IOU Financial:
IOU Financial might have additional requirements that can affect your application.
IOU Financial is one of the the few business lenders that offers the same flat rates, origination and administrative fees to all customers. This could make it a good option if you’ve struggled to get a competitive rate in the past.
But it might not be the best choice if you have excellent credit and an established track record of strong revenue spanning a couple of years. In that case, you can likely find a better deal elsewhere.
An IOU Financial business loan is a short-term unsecured loan meant to cover day-to-day expenses or help you grow. You can borrow between $10,000 and $500,000 and repay it over terms of 6 months to 2 years. Everyone pays the same 9.5% interest rate and fees. The fees include:
Almost half of borrowers use the loan to buy equipment, while other popular uses include business expansion, cashflow financing and inventory. While it doesn’t require collateral, business owners must make a personal guarantee, promising to pay the loan back if the business can’t.
From its flat rates to its option for renewal, here are a few perks of taking out an IOU Financial business loan:
Consider these potential drawbacks before borrowing from IOU Financial:
BBB accredited | Yes |
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BBB rating | A+ |
BBB customer reviews | 3.8 out of 5 stars, based on 3 customer reviews |
BBB customer complaints | 1 customer complaints |
Trustpilot Score | 4.7 out of 5 stars, based on 422 customer reviews |
Customer reviews verified as of | 12 October 2020 |
IOU Financial has mostly positive customer reviews as of November 2019. It scores 4.8 out of 5 stars on Trustpilot, based on over 360 reviews. Three customers gave it a (relatively meaningless) average of nearly 4 out of 5 stars on the Better Business Bureau (BBB). The BBB also gives it an A+ rating, based on factors like advertising practices and time in business.
Customers were mostly pleased with how efficient the process was, and many praised customer service for being up front about how the loan worked. However, a few customers complained that it took longer than expected and that IOU Financial didn’t disclose all fees.
You can apply for a business loan with IOU Financial online. First, check the requirements to make sure you qualify. If you do, follow these steps to apply:
You should receive a credit decision a few seconds after you submit the form. If approved, follow the directions to submit any additional required information to complete your application.
Review your loan offer to make sure you understand the terms and conditions before returning the signed contract. Typically, you can get your funds in between 24 and 48 hours.
It depends on your business and your application. IOU financial doesn’t specifically require any documents, but you might need to submit recent bank statements and financial statements when you apply for the loan to verify your business’s revenue.
IOU Financial charges daily or weekly repayments, depending on which you signed up for. It typically draws repayments from your business bank account when they’re due.
If you don’t have enough funds in your account, you’ll have to pay a $25 nonsufficient funds fee. If you have any questions or concerns about your loan, reach out to customer service by calling 866-217-8564.
Not sure IOU Financial is right for you? Compare more lenders with our guide to business loans.