StreetShares business loans review November 2018 | finder.com

StreetShares business loans review

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Up to $250,000 in business financing with a veteran-owned lender backed by a community of investors.

Traditional business loans are time consuming and laden with paperwork, but online lenders are streamlining the process to get funds in your hands faster. StreetShares is one online lender that works with a community of investors to get your loan financed quickly. It only offers term loans up to $250,000, however, and its weekly repayment schedule may not be feasible for businesses that rely on seasonal sales.
Product NameStreetShares Business Loans
Min Loan Amount$2,000
Max. Loan Amount$250,000
APR8% (starting at)
Interest Rate TypeFixed
Minimum Loan Term.25 year
Maximum Loan Term3 years
RequirementsBe in business for 1+ year, $25,000+ annual revenue, have "reasonable" credit and be a US citizen.
  • Be a US citizen.
  • Be in business for more than one year, in some cases six months.
  • Make $25,000 annually in revenue.
  • Either be, or have a guarantor with “reasonable” credit.

First, do I qualify?

To qualify for a business loan from StreetShares, you’ll need to meet the following criteria:

  • Be a US citizen.
  • Be in business for more than one year, in some cases six months.
  • Have at least a $25,000 annual revenue.
  • Have “reasonable” credit, or a guarantor who does.

StreetShares doesn’t define reasonable credit. For reference, at finder.com we consider FICO Scores between 670 and 739 to be good.

What is StreetShares?

StreetShares is a lender offering term loans, lines of credit, specialized veteran business bonds and small business loans and investing options. Term loans are available for amounts up to $250,000. Preapproval takes only a few minutes and doesn’t hurt your credit.

What makes StreetShares term loans unique?

Veterans and military service members are its target audience, but military service isn’t required to take out a term loan. Once your loan is approved, accept the terms and sign for the loan to have the funds deposited directly in your account.

StreetShares isn’t a traditional lender and doesn’t fund the loans directly. It uses investors members that choose which loans to invest in and how much they’ll fund. So your funding may come from one or more members instead of a bank.

What loan products does StreetShares offer?

You can borrow three different ways with StreetShares. The type of financing that’s best for your business depends on your cash flow, business model and the reason you need funds.

Term loan

This basic loan has a repayment schedule between three months and three years. Amounts range from $2,000 to $250,000, but you might not get the amount you requested. Investor members, and sometimes StreetShares, fund these loans and decide how much they want to lend. For prime borrowers, APRs go for 8% (starting at), yet you could see APRs as high as 20% or more if you have a low credit score. You’ll repay your loan with fixed weekly repayments taken directly from your bank account.

Patriot Express line of credit

You can apply for a line of credit between $5,000 and $250,000. Once you approve and accept your loan, you can access funds from your line of credit when you need it. StreetShares takes fixed weekly repayments directly from your bank account once you draw from the line. There are no fees for prepayments or undrawn amounts.

Contract financing

Your business can use contracts with federal, state and large commercial clients to get financing through StreetShares. Your credit won’t be affected when you apply, and once approved you upload a copy of the contract to receive the advance. Once your client pays, the payment goes directly to StreetShares, and you’ll get back any remaining funds, fees and interest.

StreetShares Foundation

StreetShares offers a special opportunity for veterans to learn about owning and operating a small business. Additionally, business competitions are held regularly and provide cash awards to the veterans who place first, second and third. The April 2018 competition had a prize of $15,000 for the top submission.

What are the benefits of StreetShares term loans?

  • Quick funding. StreetShares underwrites each loan, and if it’s approved it’s put to a network of investor members who choose to partially or fully fund it. All you need to do is electronically sign your loan and you’ll see your funds deposited soon after. The process usually takes two to five days.
  • No hidden fees. A one-time origination fee of 3.95% or 4.95% is added to the cost of the loan. The only other fee you may face is a failed payment fee of $10 that’s charged at the time of a failed payment — and every seven days until it’s paid.
  • No prepayment penalty. No matter your loan term, you won’t be charged for repaying your loan early.

What to watch out for

  • Weekly automatic deductions only. Automatic deductions are an easy way to repay your loan, but they also require that you have the amount ready and available in your account or face a $10 fee. If your business experiences a dip in sales, you may have trouble keeping up with weekly repayments.
  • Origination fee. Though StreetShares is upfront about its origination fee, it can ramp up the cost of your loan. Fees range from around $79 to $4,900. Other lenders offer similar loan terms and amounts with lower or no origination fees.
  • Larger amounts unavailable. Your ambitions may outpace the maximum loan amount available. A $250,000 maximum is relatively low depending on the size of your project. You’ll find higher amounts available from other lenders.

Compare more business loan providers

Rates last updated November 13th, 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+.
Credibly Business Loans
Funding to cover business expenses with daily or weekly repayments.
$5,000
$250,000
At least 6 months in business, average $10,000 in monthly deposits.
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
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
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
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+.
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.
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 does the Internet say about StreetShares?

As of August 2018, StreetShares is accredited with the Better Business Bureau (BBB) and has an A+ rating. With a total of two customer reviews and two customer complaints, it has a composite score of 4.67 out of 5 stars. Both of the reviews listed on the BBB were from potential investors and neither had anything bad to say about their experience with StreetShares. Meanwhile, the two customer complaints focused on spammy advertising by StreetShares, rather than experience with the loans.

TrustPilot has quite a few more reviews for StreetShares. Of the 144 reviews, 95% were marked “good” or “excellent,” with customers praising the lender for its friendly customer service and accessible financing opportunities for veterans.

Am I eligible?

You’ll need to meet a few basic criteria to be eligible for a term loan from StreetShares:

  • Be a US citizen.
  • Be in business for more than one year, in some cases six months.
  • Make $25,000 annually in revenue.
  • Either be, or have a guarantor with “reasonable” credit.

Unfortunately, StreetShares doesn’t specify what’s considered reasonable credit. You may be able to get a better idea if you meet the minimum criteria by using the preapproval feature on the StreetShares site.

How do I apply?

  1. Go to the StreetShares site.
  2. Enter the amount you want to apply for and select Qualify Now.
  3. Enter your name, email address and choose a password, then select Continue.
  4. Enter information about your business including its name, type, the date it was established, phone number, website, type of entity, annual revenue, age, number of full-time employees and the state it’s located.
  5. Enter personal information including your name, email, physical home address, date of birth, the last four digits of your Social Security number, if you’re a veteran or military spouse, your household income, percent of the business owned and an estimate of your personal credit.
  6. Select the amount and term you want to request and click Qualify Now.
  7. Within a few moments you’ll know if you qualify.
  8. Following prequalification, review the information given and submit the request.
  9. Provide requested information.

How to apply step-by-step with screenshots

What documents do I need to apply?

Have the following documents ready to speed up the application process:

  • Social Security number.
  • Employer identification number.
  • Total outstanding business debts.
  • Six most recent business bank statements.
  • Most recent personal and business federal tax returns.
  • Profit and loss (P&L) statements and balance sheets.

I got the StreetShares term loan. Now what?

You’ve got the financing you need, and you’re ready to get your project moving forward. Review your repayment plan to avoid potential fees.

Weekly payments are deducted automatically from the account that your loan was deposited in. If you don’t have the funds to cover a payment, you’re on the hook for a $10 fee, that reoccurs every seven days you fail to pay.

Watch your loan and bank account balance, and if you notice anything off, reach out to StreetShares customer service team by calling 800-560-1435.

Bottom line

Veterans and civilians alike can apply for a business term loan with StreetShares. Quick funding and community-based financing may be appealing to small businesses looking for fast cash from a non-traditional lender. However, carefully consider the amount you need, the cost of the loan, including the origination fee and APR, and your ability to meet a weekly repayment schedule.

If you’re not convinced StreetShares is right for your business’s needs, compare other lenders with our guide to business loans.

Frequently asked questions

Image source: streetshares.com

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