LoanMe small business loans review July 2018 | finder.com

LoanMe small business loans review

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Fast funding for startups, sole proprietorships and more with a unique take on credit ratings.

You’ve got strong credit but you need some financing to get your new business off the ground. The problem is most lenders require your business to have six months of revenue under its belt to qualify for a loan. Lucky for you, LoanMe doesn’t: You only need two months to get through the door.

In fact, LoanMe doesn’t even require you to have a high credit score, though you’ll need a strong credit history to qualify for competitive rates. We break down what LoanMe has to offer small businesses to help you find the right loan for your business’s needs.

Product NameLoanMe Business Loan
Min Loan Amount$3,500
Max. Loan Amount$250,000
APR25.64%–168.67%
Interest Rate TypeFixed
Minimum Loan Term.5 year
Maximum Loan Term10 years
RequirementsFor-profit business at least 2 months old, personal credit score of at least 500, have a business bank account, be older than 21.
  • Personal credit of at least 500
  • In business 2+ months
  • For-profit business
  • Business bank account minimum 90 days old
  • Age 21 or older

First, am I eligible?

To qualify for a LoanMe business loan you must:

  • Have a business that’s been operating for at least two months. Your business must be generating income during this time for it to count.
  • Run a for-profit business. Nonprofits and other organizations are ineligible.
  • Have a business bank account. Your account must be at least 90 days old and in your business’s name.
  • Have a personal credit of at least 500. LoanMe pays attention to other aspects of your credit history to determine what loan amounts and terms you’re eligible for.
  • Be 21 or older. This is slightly higher than most age cutoffs.

What are LoanMe business loans?

LoanMe business loans are fixed-term loans that can be used for any legitimate business use, including working capital, start-up financing, buying inventory or new equipment, or covering the cost of a new staff member. It offers three types of business loans:

Loan typeHow it worksLoan amountsInterest rangeOrigination feeTermState restrictions
Working capital loanYour standard term loan with the option of paying it off early with no penalty$3,500–$75,00024%–149%5%–10% or $500, (whichever is more)24–120 monthsAll states where LendMe operates
Fixed payback loanA short-term no-interest loan with a slightly higher origination fee$4,000–$60,0000%14%–35%6–12 monthsAll states where LendMe operates except New Jersey and Oregon
Prime business loanBig-dollar term loan only available to business owners with excellent credit and high revenue$76,000– $250,00014.90%–24.90%15%120 monthsOnly available in California

Note that the minimum loan amounts for working capital loans and fixed payback loans vary by state.

Working capital loans start at:

  • $6,000 in Arizona, California, Missouri, Ohio and Virginia
  • $11,000 in New Hampshire
  • $17,000 in Kentucky and Maryland
  • $53,000 in New Jersey and Oregon

Fixed payback loans start at:

  • $6,000 in Arizona, California, Missouri, Ohio and Virginia
  • $12,000 in New Hampshire
  • $18,000 in Kentucky and Maryland

For working capital loans in Kentucky, Maryland, New Jersey and Oregon, the only term length you can get is 10 years.

What makes LoanMe business loans unique?

LoanMe specializes in lending to businesses that normally don’t qualify for financing from traditional lenders. It’s willing to work with businesses as young as two months old, solo operations and ventures that are short on cash due to an emergency or unexpected expense.

The LoanMe grading system

LoanMe business loans are also open to borrowers with low personal credit scores. Instead of relying on your FICO credit score, LendMe uses its underwriting system to come up with a letter grade for its applicants based on your personal credit history and business finances. This grade is used to determine what loan amounts, interest rates and fees you qualify for.

Lower grades can only qualify businesses for smaller loan amount at higher rates with shorter terms. Monthly payments are also typically higher. Here’s an example of how the highest and lowest grades compare in most states where LendMe operates:

Working capital loan

GradeAvailable amountsInterest ratesOrigination feeLoan termMinimum monthly payment
A$3,500–$75,00024%5%120 months$77.17–$1,653.61
E$3,500–$15,000149%10%24 months$462.45–$1,981.94

Fixed payback loan

GradeAvailable amountsInterest ratesOrigination feeLoan termMinimum monthly payment
A$4,000–$60,0000%14%12 months$333.34–$5,000.00
E$5,000–$13,0000%35%6 months$833.34–$2,166.67

What are the benefits of getting a business loan through LoanMe?

  • Startups and sole proprietorships welcome. You don’t need to have a large team or be in business a long time to qualify for a loan.
  • Low credit requirements. LoanMe only requires applicants have a personal credit score of 500, though you likely won’t qualify for the most competitive rates or highest loan amounts.
  • Fast funding. You can get your business loan funds quickly. Turnaround time is as soon as the same day you submit your loan documents if you do so before 1 p.m. Pacific standard time on a business day.
  • Rewards repeat borrowers. Borrowers who’ve already repaid a LoanMe business loan on time can typically qualify for lower rates and higher amounts the second time around.

What to watch out for?

While LoanMe allows working capital borrowers to prepay their loan to save on interest, it’s not as much of a perk as a necessity. Even if you score an A and borrow $3,500, you’d still end up paying $5,760.40 in interest alone if you stuck to a 10-year loan term. Here are some other things to look out for:

  • Potentially high interest rates. While they may not be as high as LoanMe’s personal loan rates, they’re still comparably high for a business loan.
  • Long terms on working capital loans. Longer terms mean lower monthly payments, but they could make your interest cost double the amount you borrowed.
  • Short terms on fixed payback loans. Don’t let the 0% interest fool you: These loans can come with higher monthly payments due to the short loan term.
  • Limited availability. LoanMe business loans are only available in 29 states and Washington, DC.

Compare more business loan providers

Rates last updated July 17th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
Excel Capital Management Small Business Loans
Get personalized financing options that suit your unique business needs in just a few simple steps.
Varies by loan type
Varies by loan type
Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.
Kabbage Small Business Line of Credit
A simple, convenient online application could securely get the funds you need to grow your business.
$2,000
$250,000
Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
National Business Capital Business Loans
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
Lending Express Business Loan Marketplace
$5,000
$500,000
At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly revenue.
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
Balboa Capital Small Business Loan
Short-term business financing with no minimum credit score or physical paperwork required.
$2,500
$250,000
Must make $300,000 in annual revenue and be established for at least one year prior.
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.

Compare up to 4 providers

What do other customers have to say about LoanMe?

LoanMe has mixed online reviews. It’s been accredited with the Better Business Bureau (BBB) since 2014 and gets an A+ BBB rating. LoanMe does slightly better on Trustpilot, scoring an 8.9 out of 10 drawn from over 900 reviews, 75% of which called it “Excellent.”

Despite these high scores, nearly all of the customer reviews on its BBB page are negative. It has closed 72 customer complaints filed against it with the BBB, which appear to primarily involve miscommunications over repayments.

Overall, reviewers who liked LoanMe were most impressed with the customer service, the simplicity of the application and the speed they got their funds.

The one-star reviews mostly concerned its high rates, though a few also complained that they were getting bombarded with emails and phone calls. In fact, one customer went so far as to file a lawsuit against LoanMe in 2016, claiming that it constituted telephone harassment by a lender.

The California Commissioner of Business Oversight also filed a complaint against LoanMe in 2015 for misleading customers both in advertising and during the application process, among other things.

How do I apply?

You can either apply by filling out a prequalification form online or calling 844-956-2663. The online application takes about five minutes to finish. Here’s how:

  1. Go to LoanMe’s website and click Small Business Loans.
  2. Once on the Small Business Loans page, hit Check Your Loan Amount.
  3. Fill out your personal and business information, read the Credit Authorization Disclosure and Contact
  4. Authorization Disclosure before clicking See How Much I Qualify For.
  5. LoanMe displays the loan amounts, rates and terms you might qualify for after processing your information. If you’d like to continue, follow the directions to finish your application and submit your documents. This could take as little as five minutes.
  6. Review your loan agreement carefully before clicking I accept.
  7. Receive your funds. If you accept before 1 p.m. Pacific standard time, you could have your loan amount deposited into your account in as little as two hours.

Step-by-step application with screenshots

What documents do I need to apply?

LoanMe requires the following documents and information from all applicants:

  • A state-issued ID
  • A voided check from your business account
  • Your business’s Employer Identification Number (EIN)

I got the LoanMe personal loan. Now what?

LoanMe automatically deducts your repayments from your business checking account so you don’t need to worry about manually making a payment each month. If you want to repay a working capital loan early, you can by electronic transfer, personal check or cashier’s check.

Autopay might save you the headache of remembering to make repayments. But even machines sometimes make mistakes. Check in on your loan balance and business checking account to make sure you aren’t accidentally missing payments or temporarily run out of funds before your payment is due.

If you have any questions or concerns, reach out to customer service. For quick questions, take advantage of the live chat feature on its website. Otherwise, call 844-764-7368 Monday through Friday, 8 a.m. to 6 p.m. Pacific standard time, or Saturday and Sunday, 8 a.m. to 5 p.m.

Bottom line

New business owners with a strong credit history might find the financing they’re looking for from LoanMe. Even better if you’re confident your business will have skyrocking revenues in the coming months and you’ll be able to pay off your loan quickly.

Low-credit borrowers still have options, but you might need to have a more established business to get competitive rates and high loan amounts. Find out if it’s the best deal for your needs by comparing other business loans.

Interested in other providers that serve sole proprietors? Check out our article on business loans for sole proprietorships.

Frequently asked questions

Anna Serio

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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