The Loan Exchange business loans review | finder.com

The Loan Exchange business loans review

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Get connected to working capital with minimal eligibility requirements.

Having trouble qualifying for a loan to cover your business’s day-to-day expenses? The Loan Exchange might be able to help. This connection service works with lenders that offer business loans for borrowers with all types of credit ratings. The turnaround time can also be very fast, sometimes as quick as the same day. Rates aren’t as competitive as some other business loans out there, so you might want to skip this lender if you aren’t struggling to get funds. Read on to find out how The Loan Exchange could help your small business.
Product NameThe Loan Exchange Business Loans
Min Loan Amount$6,000
Max. Loan Amount$250,000
APR19.3% (Starting at)
Interest Rate TypeFixed
Minimum Loan Term2 years
Maximum Loan Term10 years
Requirements500 credit score, bank account open for at least 90 days, based in eligible state.
  • Credit score of at least 500
  • Business bank account for at least 90 days
  • Business based in an eligible state

First, do I qualify?

To be eligible for a business loan from one of The Loan Exchange’s partners, you must have a:

  • Credit score of at least 500
  • Business bank account for at least 90 days
  • Business based in an eligible state

Eligible states

Your business must operate out of one of the following states to be eligible for a loan through The Loan Exchange:

  • Alabama
  • Arizona
  • California
  • Delaware
  • Hawaii
  • Iowa
  • Idaho
  • Illinois
  • Indiana
  • Kentucky
  • Louisiana
  • Maine
  • Mississippi
  • Missouri
  • Nebraska
  • New Hampshire
  • New Mexico
  • Ohio
  • Oregon
  • South Carolina
  • Utah
  • Wisconsin
  • Wyoming

What’s The Loan Exchange?

The Loan Exchange is an online connection service that specializes in fast business loans for borrowers who’ve had trouble qualifying elsewhere. It currently works with three lenders that offer working capital for unsecured business term loans from $6,000 to $250,000. Rates are 19.3% (Starting at), and include an origination fee of 5% to 15% of the loan amount. Businesses typically have between 2 and 10 years to pay off their loan.

You can use your loan for any legitimate expense, including bringing on new staff, general operation costs, buying equipment and refinancing business debt. The application is simple and only takes a few minutes to complete online or over the phone if you have all the information you need on hand. And if you apply early enough in the day, you could get your funds as soon as that evening.

What makes The Loan Exchange’s business loans unique?

With minimal requirements and documentation needed, The Loan Exchange offers one of the simplest business loan applications out there. There’s no collateral required, so you don’t have to put any of your business’s assets on the line and you don’t need excellent credit to qualify. The speed is also worth repeating: It claims that you can get your funds wired to your business’s account as soon as two hours after getting approved.

What are the benefits of using The Loan Exchange?

  • All credit types welcome. You can still potentially qualify for a business loan through The Loan Exchange even if you have poor credit.
  • Fast turnaround. Your business can get access to its funds as soon as two hours after approval.
  • Friendly to young businesses. While you might have trouble qualifying as a startup, you only need to have a business bank account for 90 days to meet the minimum requirements.

What to watch out for

  • Not great for good credit. With rates starting at 19.3%, you might be able to qualify for a more competitive business loan if you have a high credit score or a few years in business under your belt.
  • High origination fees. The Loan Exchange’s partners charge origination fees starting at 5% — where many business lenders stop.
  • Limited state availability. The Loan Exchange’s partners only operate in 23 states.

What do other customers have to say about The Loan Exchange?

Nothing that we could find. It doesn’t have a Better Business Bureau page and its Trustpilot page doesn’t have any reviews yet. It also doesn’t have any pages on Yelp or mentions on online forums like Reddit. While this isn’t necessarily a good sign, it’s not necessarily a red flag either.

That’s because a debt relief service called The Student Loan Exchange has recently gotten some media attention after it was part of a recent crackdown by the Federal Trade Commission on debt settlement providers. Any online reviews of The Loan Exchange would be buried under articles and reviews of The Student Loan Exchange — if they exist.

The Loan Exchange is also still clearly building its network, and it isn’t as established as some other connection services that have been around for longer. It’s not uncommon for lenders with such a short reach to lack online reviews.

Compare more business loans providers

Rates last updated November 21st, 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
500+ personal credit score, 6+ months in business, $15,000+ average monthly deposits
National Funding Small Business Loans
Working capital loans and equipment financing, some high-risk industries may be eligible.
$5,000
$500,000
Be in business at least one year and make at least $100,000 in annual sales. Other loan types have additional requirements.
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
500+ personal credit score, 1+ years in business, $100,000+ annual 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

How do I apply?

Before you apply, make sure you meet The Loan Exchange’s eligibility requirements. To qualify for a business loan with one of its partner lenders, you must:

  • Have a credit score of at least 500
  • Have a business bank account for 90 days or more
  • Be in an eligible state

Keep in mind that the most competitive rates and larger loan amounts typically go to borrowers with better credit and more experience.

Steps to apply

You can apply for a business loan from The Loan Exchange one of two ways: Over the phone by calling 844-956-2639 or online. Follow these steps to complete the online application:

  1. Go to The Loan Exchange’s website and click Apply Now in the top navigation bar.
  2. Enter your name and click Next.
  3. Write your email and phone number, and select your preferred way of communication. Read the contact disclosure and check the box agreeing to it before hitting Next.
  4. Enter your business’s address, select whether you own or rent it and whether you’re interested in buying real estate. Click Next.
  5. Select the amount you’d like to borrow and check Business Need, before hitting Next.
  6. Enter your business’s legal name the way it appears on tax forms, the address and the monthly revenue before taxes. Then hit Next.
  7. Answer a few more miscellaneous questions before hitting Next.
  8. Enter your Social Security number and birthday, then read the Credit Authorization Disclosure. If you agree, check the box and hit Next.
  9. Review your offers. If one meets your business’s needs, follow the directions to complete the application and submit any required documents.

Once you sign your loan documents, your business could get its funds in as little as two business hours.

What documents do I need to apply?

The Loan Exchange’s partner lenders typically only ask for three types of documents, though this can vary. You might be asked to see the following types of documentation:

  • Three months of business bank statements. Since you’re required to have a bank account for at least 90 days, it’s likely that you’ll be required to submit your business’s last three months of bank statements.
  • Tax returns. Your lender might also ask to see your most recent tax returns — both personal and business.
  • State-issued ID. Lenders are required by law to verify your identity by checking a driver’s license, passport or other form of government-issued identification.

How to apply step-by-step

I got a business loan through The Loan Exchange. Now what?

What happens next depends on your lender, though generally your first repayment won’t be due for a month. If it’s an option, consider signing up for automatic repayments. That doesn’t mean you should forget about your loan, however — even machines make mistakes. Monitor your business’s bank account and loan balance. Reach out to customer service if you have any questions or notice an error.

None of The Loan Exchange’s partner lenders charge prepayment penalties, so your business can save on interest by paying off its loan early. But you might want to reach out to your lender before making any extra payments to ask about its prepayment procedure.

Want to learn about more options? Check out our guide to business loans to compare other lenders and find out how it all works.

Frequently asked questions

Image Source: Shutterstock and theloanexchange.com

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