An online lender that claims to finance businesses in just 24 hours.
When you’re looking to move fast and need the funds to do it, it may be worth looking into a lender that boasts one-day turnaround times. QuarterSpot does just that, but its lack of transparency on APRs and its daily repayment schedule may raise some red flags.
|Product Name||QuarterSpot Business Loans|
|Min Loan Amount||$5,000|
|Max. Loan Amount||$200,000|
|Interest Rate Type||Fixed|
|Minimum Loan Term||.75 year|
|Maximum Loan Term||1.5 years|
|Requirements||550+ FICO, 12+ months in business, $16,000+ monthly revenue and $2,000+ in daily balance|
- Personal FICO score must be at least 550.
- Be in business for more than one year.
- An average monthly revenue of $16,000 or more.
- An average of 10 sales or more per month.
- An average daily balance of $2,000 or more per month.
- Not a resident of North Dakota, Rhode Island, South Dakota or Vermont.
First, do I qualify?
You’ll need to meet the following criteria to qualify for a business loan from QuarterSpot:
- FICO score of at least 550. Your personal credit score needs to be at least 550 to qualify.
- Business is at least 12 months old. Make sure your business has either private or public record of being established at least one year prior to your application.
- Average monthly revenue of at least $16,000. The three months leading up to your application should average to at least this minimum.
- Average 10 or more sales a month. Similar to the above qualification, the three months prior to your application should average to 10 or more sales per month.
- Average daily balance of at least $2,000. Your average daily balance is an average based on the three months leading up to your application.
- Located in a state that QuarterSpot services. Residents of North Dakota, Rhode Island, South Dakota and Vermont currently don’t qualify for a business loan from QuarterSpot.
What is QuarterSpot?
QuarterSpot specializes in business loans of $5,000 up to $200,000 depending on your business’s qualifications. Terms are relatively short at 9, 12 and 18 months.
While QarterSpot doesn’t advertise a range of rates, its starting APR is equivalent to 12.5 cents on the dollar. This includes an origination fee between 0.48% and 6.48% on any loan you take out, which QuarterSpot deducts from your loan proceeds.
QuarterSpot has two benefits that set it apart from its competitors. The first is its fast funding time. Depending on when you submit your information, how complete it is and your business qualifications, you may be able to get funded in as little as 24 hours.
The second is early repayment. Unlike many other short-term lenders, you won’t get stuck with fees or the remaining interest if you pay your QuarterSpot business loan off early.
What are the benefits of QuarterSpot business loans?
- No early repayment fees. You can end up saving a lot of money in interest payments when you pay off the entire amount of your business loan early. Many short-term lenders don’t allow for early repayment without you paying the remaining interest and penalties.
- Applying doesn’t impact personal credit. While you do have to have a minimum FICO score of at least 550, an application with QuarterSpot won’t affect your credit score. Being able to get a sneak peek at your eligibility and potential rates can be a huge leg up when you’re still trying to get a feel for what options exist for your business.
- Tight turnaround. A 24-hour turnaround is impressive for any lender, especially a business lender. Banks can take several weeks or even months to get funds to you.
What to watch out for
While the benefits of a business loan with QuarterSpot may make it seem like a shoo-in lender, there are other factors to consider. As with most short-term loans, a short funding time comes with a high cost.
- No APR range listed. Despite what ranges you might see listed on other sites, QuarterSpot doesn’t actually have a solid minimum or maximum APR range. Your most recent bank statements are run through an algorithm, which determines your interest rate. While it’s a neat process, it doesn’t allow for easy comparison.
- Maximum loan amount may not be enough. Depending on how ambitious of a budget you have, a loan of $200,000 may not cut it. Traditional lenders and even some online specialty lenders have much higher maximum loan amounts.
- Loan origination fee. Depending on your creditworthiness, your fee can be as high as 6.48% and is deducted from the loan amount before your funds are disbursed.
- Daily repayments. Your loan’s payments are deducted daily, which could make repaying your loan difficult if you have a seasonal business or have a bad day or week.
Compare more business loan providers
What do borrowers have to say about QuarterSpot?
QuarterSpot is accredited with the Better Business Bureau (BBB) and has an A+ rating, which is based on factors including customer complaints, transparency and any government action against the company. QuarterSpot has zero customer reviews and just one customer complaint as of this writing.
Over on Trustpilot, QuarterSpot holds a rating of “Great” and a TrustScore of 8.2 out of 10. The score and rating are based on 19 customer-submitted reviews, which highlight QuarterSpot agents’ responsiveness and how easy repeat borrowing is. Though specific times aren’t given, customer reviews also praise how quickly funding comes through.
How do I apply?
First, confirm you meet the eligibility criteria. To qualify for a loan with QuarterSpot, make sure you have at least three months of bank statements for your business and that you meet the following qualifications:
Be sure to have the following ready:
- Prior three months of business bank statements.
- Your Employer Identification Number (EIN).
- Tax return for the previous year.
Steps to apply for a QuarterSpot business loan
- Go to the QuarterSpot website.
- Select Apply Now in the upper right-hand corner of the page.
- Enter your name, phone number and email, and select Next.
- Enter your business name, address, EIN and whether you have any existing loans, and select Next.
- Enter your full name, ZIP code, Social Security number, mobile number, email address and your percent ownership, and select Next.
- Provide three months of business bank statements.
- Provide the amount you’re applying for and click Review Your Offer.
- Read and accept the legal terms if you want to continue with the loan offer.
- Provide your bank account information for funding purposes.
I got the QuarterSpot business loan. Now what?
You’ve got the funds to make a difference in your business, but you’ll also need to figure out the best way to repay that amount. You can wait until the amount becomes due, but you may want to pay the loan off faster. Paying off your loan ahead of time can save you interest payments and reduce the overall cost of your loan.Payments are deducted daily, and typically the amount is debited by ACH transfer. Should you miss a payment, you’ll pay a $10 late fee. If after three days you’re unable to make a payment and haven’t worked out a plan with QuarterSpot, you’ll be deemed in default. Email or call QuarterSpot immediately if you think you won’t be able to make a payment.
To contact customer service, call 888-718-7768 Monday through Friday from 8 a.m. to 7 p.m. EST. You can also email firstname.lastname@example.org or use its website form and receive a response within 24 hours.
QuarterSpot claims to get business owners funds within 24 hours, which can be helpful if you’re in a rush. Speed isn’t everything though. Before you jump on board with any one lender, take the time necessary to compare your business financing options. Making an informed decision can save your business a lot of money in the long run.