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SoFi business loan alternatives
Though this lender doesn't offer business financing, you still have options.
After establishing itself as one of the top online student loan refinancing companies in the nation, SoFi has branched out into other areas of lending. Now you can get a mortgage or personal loan through this prime lender.
But it still doesn’t offer business financing — at least not yet.
Why doesn’t SoFi offer business loans?
Until recently, SoFi only offered student loan products — with an emphasis on refinancing for young professionals. It only started providing personal financing products and hasn’t expanded into business loans just yet.
Why not? It could be because SoFi’s focus is on helping individuals become financially independent. The closest thing it has to business financing is its entrepreneur program, which offers equity capital investment and mentorship to a small class of participants. But you need to already have a loan with SoFi to qualify, and established businesses aren’t eligible.
Instead, you might want to check out these online alternatives.
3 alternatives to SoFi business loans
Already have a business and need funding? You might want to check out these three online lenders:
1. Loanbuilder, a PayPal service
Best for: Businesses that value customer service.
- Loan amounts: $5,000 to $500,000
- APR: Varies
- Terms: 3.25 months to 1 year
- Eligibility: Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
LoanBuilder specializes in short-term loans to cover one-time expenses. It’s known for its strong customer service program — each borrower gets a dedicated representative.
The main drawback is that it requires your business to make weekly repayments, which can be difficult to swing if you don’t have steady revenue coming in daily. It also requires a personal guarantee, meaning you’ll be on the hook if your business can’t repay.
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2. Credibly
Best for: Short-term working capital.
- Loan amounts: $5,000 to $250,000
- APR: Varies
- Terms: 6 to 17 months
- Eligibility: 6+ months in business, $180K annual business revenue, 500+ credit $15K+ in monthly deposits
Credibly’s most popular business loan product is its working capital loan that your business can use to pay for day-to-day expenses. You can get your funds as fast as the next business day, and it’s open to businesses in high-risk industries like real estate companies and restaurants.
But it’s relatively expensive. Instead of charging interest, Credibly charges a fixed fee that typically ranges from 15 to 30 cents on the dollar. It also comes with daily or weekly repayments and short terms, which can be difficult to swing if you don’t have consistent cash flow.
3. OnDeck
Best for: Established businesses.
- Loan amounts: $5,000 to $500,000
- AIR: As low as 9.99%
- Terms: 3 to 36 months
- Eligibility: 600+ personal credit score, 1+ years in business, $100,000+ annual revenue
Slightly more established businesses with ongoing projects or a general need for working capital might want to consider OnDeck. This lender offers both term loans and lines of credit that you could qualify for even if you don’t have strong personal credit.
Its rates are competitive for a business loan, and repeat borrowers may qualify for further discounts. But not all industries are eligible, and you also have to make daily or weekly repayments.
Does SoFi offer any similar loans?
While SoFi doesn’t offer business loans, it’s possible to start a new business through its entrepreneur program. Even though it offers personal loans, it doesn’t permit borrowers to use the funds for business purposes.
SoFi’s entrepreneur program
If you already have a loan with SoFi and want to start a new business, you can apply to SoFi’s entrepreneur program. It provides prospective business owners with seed money, access to mentors and resources and the opportunity to pitch to top venture capitalists and angel investors.
But this isn’t available to just anyone with a SoFi loan — the company only admitted 10 entrepreneurs into the program in 2018.
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Updated April 7th, 2020
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Bottom line
SoFi might not offer business loans, but that doesn’t mean you have to turn to your bank for financing. There are several online business lenders out there that can get you funding as fast as the next business day.
To compare more options, read our guide to business loans.
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