This online lender specializes in bad credit business loans as an alternative to traditional bank loans.
First, do I qualify?
To qualify for a business loan through Shield Funding, your business must
- Be at least two months old
- Have monthly revenue of at least $8,000
You must also be able to provide documentation of your revenue and business details from the past three months.
What makes Shield Funding unique?
Shield Funding is an alternative to traditional bank business loans. It specializes in lending to business owners with poor credit and works to decrease the rate of rejection with more than 10 types of financing options.
What are Shield Funding business loans?
Shield Funding’s many business financing options range from unsecured business loans that don’t require collateral to specialized loans for female entrepreneurs. Because it offers a diverse array of options, terms vary greatly by loan type. However, you can expect to pay an APR between 10% to 45% for loan amounts between $5,000 to $1 million.
But since Shield Funding works mainly with borrowers who have poor credit, the loan turnaround time is short — usually around 18 months. Because of this, you’ll need to know your budget and how much you can afford with such a quick repayment schedule.
Compare Shield Funding to top online business lenders
What are the benefits of Shield Funding business loans?
- Bad credit is OK. Shield funding specializes in bad credit business loans. If you don’t have perfect personal credit, Shield Funding may still be able to offer you a business loan. Just expect your interest rate to be on the high end.
- Fast turnaround. Businesses that apply for a loan with Shield Funding typically hear back within three business days.
- Multiple loan options. Shield Funding offers more than 20 loan types to businesses, categorizing them by need and industry. This includes unsecured business loans so your business won’t have to provide collateral to get funding.
What to watch out for
- Trustworthiness. There were discrepancies between what Shield Funding’s claimed endorsements and actual reputation. For example, its website cites an “excellent A rating” with the Better Business Bureau, the BBB databased doesn’t show that the lender is either rated or accredited.
- Variable fees. With so many options, loans from Shield Funding have a wide range of fees.
- Potentially expensive. Shield Funding’s business loans come with a large APR range. If your offer ends up at the high end of that range, your loan could be quiet costly.
Is my business eligible?
You and your business will need to meet the following eligibility criteria in order to apply for a loan from Shield Funding.
- You have been in business for at least three months
- Your business makes at least $8,000 in gross monthly revenue
- You have a minimum personal credit score of 500
- You are at least 18 years old
- You are a US citizen or permanent resident
How do I apply?
- Visit Shield Funding’s website.
- Select the type of loan you’re interested in from the drop-down menu labeled Business Loans.
- Review the specific loan’s eligibility criteria then click Apply.
- Enter your contact information onto Shield Funding’s form or call it at 1-888-882-6117.
An application will be emailed to you from Shield Funding. Once you complete it, you should hear back from Shield Funding in two to three business days after applying.
I got a Shield Funding business loan. Now what?
- Carefully read your contract. If you’re approved, confirm that the terms and conditions of your loan match what you originally agreed to.
- Set up autopay to avoid unnecessary fees. Be careful with cash advance loans or autopay structures that deduct from your account every day if you have uneven cash flow.
- Avoid insufficient funds fees. Keep a close eye on your account so that your balance doesn’t fall more than you expect. Lenders can charge steep insufficient funds fees if they try to withdraw a payment from your account and there is not enough money in it.
- Pay attention to your repayment plan. While there may be room for tailoring, Shield Funding determines your loan term and repayment schedule. Be sure you know your due dates and how funds are being withdrawn.
Shield Funding could be a good fit for business owners who’ve been denied a bank loan or those who don’t qualify for other business loans because of their business’s age or bad personal credit. But narrowing down an option among Shield Funding’s many choices can be confusing, and loans can come with steep APRs and fees.
If Shield Funding doesn’t sound like the best fit for you, you can explore other financing options and compare more online lenders.