The Business Backer business loans review April 2018

The Business Backer business loans review

Get business financing — direct or through a partner lender — for short- and long-term needs.

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Business loans can be a way to expand your small business or lift it over a financial hump. They can also help cover costs that you can’t afford to pay all at once.

Thanks to the rise of online lending, finding flexible financing for your small business or startup isn’t as difficult as it used to be.

We take a look the online Business Backer, which can directly fund businesses or match borrowers with vetted network lenders if it can’t meet your needs.

Product NameThe Business Backer Business Loans
Min Loan Amount$5,000
Max. Loan Amount$500,000
APRAs low as 5%
Minimum Loan Term1.5 years
Maximum Loan Term25 years
  • Be in business 1+ years
  • Have annual revenue of $150,000+
  • Have a personal credit score of 550+

First, do I qualify?

To qualify for a loan with the Business Backer, general businesses need to meet minimal requirements:

  • Your business must be at least a year old.
  • Your business must generate at least $150,000 in annual revenue.
  • Your credit score must be at least 550.

If your business is a startup, you’ll need to meet two qualifications:

  • Your business must be at least six months old.
  • Your personal credit score must be at least 700.

What is The Business Backer?

The Business Backer is an online lender and financial matching service offering:

  • SBA loans. These low-interest, government-backed term loans are designed to help out small businesses that have trouble finding financing. SBA loan amounts are typically higher than other business options.
    • Up to $5 million
  • Business lines of credit. This more flexible loan option allows for access to funding that you can withdraw from as needed to cover unexpected expenses. You pay interest on what you draw through weekly or monthly repayments.
    • Up to $100,000
  • Long-term loans. A lump sum loan you pay back with interest over a period of up to five years. Great for hiring new staff, moving to a new space and refinancing older debt.
    • Up to $500,000
  • Short-term loans. Funding you get upfront and pay back with interest in up to 18 months. It’s quick funding designed for immediate expenses like payroll or large unexpected costs.
    • Up to $200,000
  • Merchant cash advance. An advance on future revenue that you pay off by giving your lender a percentage of your sales. Used to fund short-term projects and most small business expenses.
    • Up to $300,000
  • Commercial real estate financing. Both short- and long-term loans designed to cover the cost of buying new real estate.
    • Up to $75 million
  • Invoice factoring. Sell your unpaid invoices to a third party for a fee or percentage of your invoices’ value.
    • Up to $250,000
  • Startup loans. Fixed term loans with relaxed eligibility requirements for businesses that have been around for less than one year.
    • Up to $200,000

What makes a Business Backer business loan unique?

The Business Backer provides quick hassle-free funding to borrowers that might not find approval for more traditional financing at a bank or credit union. This online lender primarily caters to small and midsize businesses, but it offers a few options specifically for startups.

What sets it apart from competitors is that it’s both a direct lender and a loan marketplace. So if it can’t help your business on its own, it can try matching you with a lender in its network.

Compare top online business loan providers

Rates last updated April 20th, 2018
Name Product Product Description Min Loan Amount Maximum Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans for business owners in a hurry with no hidden fees.
$5,000
$500,000
Annual business revenue of at least $100,000, at least 1 year in business, personal credit score of 600+.
LendingTree Business Loans
Compare 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.
National Business Capital Business Loans
Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
$10,000
$5,000,000
Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
Excel Capital Management Small Business Loans
Get personalized financing options that suit your unique business needs in just a few simple steps.
Varies by loan type
Varies by loan type
Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.
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+.
Kabbage Small Business Line of Credit
A simple, convenient online application could securely get the funds you need to grow your business.
$2,000
$250,000
Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
Fora Financial Business Loans
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
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
2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
SmartBiz SBA Loans
Get funding for your small business with a government-backed loan and extended repayment terms.
$30,000
$5,000,000
Personal credit score of 650+; US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000+; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years.

Compare up to 4 providers

What are the benefits of getting a loan from the Business Backer?

  • Wide variety of loans. Chances are good that the Business Backer offers a loan for your business’s needs.
  • Low credit requirements. If you have a credit score of at least 550, you’re welcome to apply.
  • Startups OK. The Business Backer offers options geared toward helping startups stand on their own two feet.
  • Personalized underwriting. The Business Backer considers your business’s story when reviewing your application. So if you have a low credit scores or patchy sales, you’ll have a chance to explain them.
  • Solid customer support. Much of its application is automated, but customer service reps are available to go over your options and troubleshoot problems.

What to watch out for

The Business Backer advertises a transparent lending process. But that’s not entirely backed up by facts.

Your loan options are limited to its partner network, which is one of the provider’s revenue sources. This means that recommendations may not be based on your financial needs alone.

Here are other potential drawbacks of applying for a loan with the Business Backer:

  • Fees are unclear. The Business Backer doesn’t charge prepayment fees, but some of its loans come with fees — especially SBA loans.
  • Quotes can be misleading. Former customers complain that loan offers don’t always match preapproved quotes. Quotes are merely estimates, not hard offers — and rates and terms might differ.
  • Possible weekly repayments. It sounds convenient, but weekly repayments can eat into your cash flow. Just one off week in revenue could set you back.
  • Long waits for SBA loans. The Business Backer’s two-day response does not apply to government-backed loans. Prepare to wait weeks — or even months — to receive your funding if you decide to go with an SBA loan.

Is the Business Backer safe?

Yes. The Business Backer is BBB accredited since 2012 and gets an A+ rating. It has only 31 reviews on Trustpilot, which rates it 8.9 out of 10, and 81% of those reviewers rate it “Excellent.”

The information you enter through its site is also safe. Your application is SSL-encrypted, and the Business Backer also uses McAfee Secure to safeguard your personal and financial details.

Am I eligible?

Each loan comes with its own eligibility requirements — especially SBA loans.

As a start, you’ll need to meet three requirements to be considered for a loan with the Business Backer:

  • Your business must be at least a year old. Startups of up to six months old are eligible for specific options aimed at younger businesses.
  • Your credit score must be 550 or higher. The Business Backer has low credit requirements because it considers your full financial history before extending a loan.
  • Your business must bring in at least $150,000 annually. To put this into perspective, some lenders only accept businesses that bring in $100,000 a month.

How do I apply?

The easiest way to get started with the Business Backer is online, but you can also apply over the phone at 866-615-4747.

  1. Go to the Business Backer’s site and click Apply for Funding.
    The Business Backer homepage with apply button
  2. Set up a profile with your name, business phone number and email and a password. Click Continue.
    The Business Backer login screen
  3. Enter your company’s requested information and click Continue.
    The Business Backer application form screenshot
  4. Review your application information and carefully read the terms and conditions before submitting it.
  5. A Business Backer adviser will contact you shortly after you submit your application to let you know if you’re preapproved. If you don’t hear back within a week, call to follow up.
  6. If you’re approved, your adviser will go over your borrowing options, help you get together the documents you need for your specific loan and then submit your application

The Business Backer typically funds loans two business days after approval. Approval turnaround varies by loan: short terms are the quickest, while SBA loans can take weeks.

What documents do I need to apply?

The Business Backer asks for four months of your business’s bank statements for its preapplication. Your assigned adviser will help you gather additional documents that might include:

  • Profit and loss statements. Provides a summary of your business’s recent revenue, costs and expenses.
  • Proof of ownership. Articles of incorporation or organization and bylaws are generally accepted as proof that the business is yours.
  • A business tax return. If required, you’ll need a tax return from the previous year.
  • Government-issued ID. Like a driver’s license or a passport.
    References. You might need to provide references from your landlord or customers.

I got a business loan from the Business Backer. Now what?

Depending on your business loan, you’ll now begin making monthly or weekly repayments. If you can, consider setting up autopay to avoid late fees and penalties.

Keep a close eye on your account — especially if you’re making weekly repayments. If your account is short, you’re exposed to high nonsufficient funds and overdrafts fees.

Bottom line

Startups, small businesses and midsize businesses might benefit from the Business Backer’s wide range of business financing. An easy-to-follow application process and highly rated customer service simplifies the process of finding a small business loan.

But this provider’s interest rates are nothing to write home about. If interest is a major factor for you, you might want to look into other business financing options.

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