This online lender specializes in bad credit business loans as an alternative to traditional bank loans.
Shield Funding offers a variety of business financing options for a wide range of industries. Loans typically do not require collateral but must be used toward business expenses. Read further to learn more what Shield Funding has to offer and how to apply.
First, do I qualify?
To qualify for a business loan through Shield Funding, your business must be at least four months old and have monthly revenue of $5,000+ if accepting credit card payments or $20,000+ if not accepting credit card payments.
What makes Shield Funding unique?
Shield Funding is an alternative to traditional bank business loans. Specializing in lending to business owners with poor credit, Shield Funding works to decrease the rate of rejection on 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 women entrepreneurs. Because the lender offers a diverse array of options, loan terms can vary greatly by loan type.
|Product name||Shield Funding Business Loans|
|APR||10%–45%, varies by loan|
|Loan security||Secured and unsecured|
|Maximum loan amount||As high as $1 million, varies by loan|
|Minimum loan amount||As low as $5,000, varies by loan|
|Maximum terms||Up to 18 months, varies by loan|
|Minimum monthly revenue||$5,000 if you accept credit card payments
$20,000 if you don’t accept credit card payments
|Minimum personal credit score||500|
|Nationwide||Shield Funding is available in all 50 states|
Compare Shield Funding to top online business lenders
What are the benefits of Shield Funding business loans?
- Bad credit OK. If you don’t have perfect personal credit, Shield Funding could still offer you a business loan.
- Fast turnaround. Those who apply for a business loan with Shield Funding typically hear back within three business days.
- Many loan options. Shield Funding offers more than 20 loan types to businesses, categorizing them by need and industry.
What to watch out for
You may want to keep an eye out for several potential drawbacks:
- Trustworthiness. There were discrepancies between what Shield Funding’s claimed endorsements and actual reputation. For example, the 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.
- 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, the loan could be very costly. Learn more about business loan costs.
- Varying fees. With so many options, Shield Funding loans can have wide-ranging fees. Carefully read your agreement before you sign to avoid unexpected fees.
Am I eligible?
Shield Funding approves business loans based on a company’s financial strength and potential, which means that can vary even if you meet the eligibility criteria:
- You are at least 18 years old.
- You are a US citizen.
- You have a minimum personal credit score of 500.
- Your business makes at least $5,000 in monthly revenue in credit card payments or $20,000 monthly w/o credit card payments
- You are in business at least four months prior to loan application.
What do I need to apply?
Shield Funding offers a lot of options and loan types. Once you’ve found a loan that fits your needs:
1. Go to Shield Funding’s site and hover over Business Loans in the top navigation menu. Select the loan option you’re interested in.
2. How much information you’ll need to provide will depend on the loan. Submit your personal and contact information and any other information requested, which could include your company’s monthly gross sales and monthly credit sales.
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 with the lender. Make sure that you understand potential fees — like origination or early repayment fees — to avoid any surprises down the road.
- 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 don’t qualify for other business loans because of their business age or bad personal credit. But narrowing down an option among Shield Funding’s many choices can be confusing, and loans can come with wide-ranging 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.