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SmartBiz Review: Small-business Loans

 

SmartBiz is a San Francisco-based alternative lender for small-business loans.  They opened their doors in 2009 with the goal of using new financial technology to provide small businesses with quick and easy loans.  SmartBiz is geared toward offering U.S. Small Business Administration small-business loans.   SBA loans are generally the most inexpensive financing option for small-business owners.  The thing about SBA loans are that they have a very lengthy and detailed application process.  It’s a problem that SmartBiz is trying to address with its online lending platform.

Who Should Use SmartBiz?

  • Business owners with good credit and a healthy business
  • Businesses that are already established and looking to expand
  • Business owners looking for the least expensive financing option

Would You Qualify?

  • There is no minimum credit score, however, most borrowers have at least 600
  • No minimum revenue requirement, however, most borrowers report $50,000 to $5 million
  • Must be in business for at least 2 years
  • Each principal owner must personally guarantee the loan
  • No bankruptcies or foreclosures in the past 3 years
  • No outstanding tax liens
  • No recent charge-offs or settlements
  • Must be current on government-related loans

Why Should Somebody Use SmartBiz?

If you can qualify, it’s very tough to beat the low rates of SBA loans.  SmartBiz is an excellent option for small-business owners looking for cheap financing.  If your primary goal is to grow your business, getting an SBA loan from SmartBiz is probably the best way for you to reach that objective.  You get the funding you need on manageable terms.  Unlike with other online loans, you won’t get stuck with high monthly or daily payments.

Why SmartBiz Might Not Be for You:

If your business is not in good financial standing, or is inconsistent, you may not be eligible.  You don’t need to have impeccable credit or millions in revenue but you do need to be considered average to above average by industry standards.  You can’t have any bankruptcies and you need a clean record when it comes to meeting your obligations.  Another potential turn-off is the fact that you still have to get the SBA’s ok before you receive your funds.   Because while SmartBiz has found a way to speed up the process of applying, you still need to meet the SBA’s requirements, which can be intimidating.   The SBA even has a list of types of small businesses that shouldn’t bother.  The list includes businesses involved in life insurance, mortgage servicing, religious teaching, and real estate development.

For those who aren’t sure SmartBiz is for them:

If you are starting to think SmartBiz won’t be able to help you, or isn’t for you one way or another, you have other options.  By choosing to go to a marketplace instead, you will be presented with variety and more than likely given options to choose from.  A marketplace is a sort of intermediary where specialists very much like brokers will take a look at your financial situation and determine which direct lenders are more likely to approve you.  They can help you determine which products are best for your specific type of business and need, and they will help you structure your payout structure and length of term.  Marketplaces such as www.SproutLending.com allow you to fill out one easy application and then get responses from all direct and specialized lenders rather than just a specific one.  That way, we can choose the best deal for you while helping you avoid any application denials, crippling interest rates, or hits to your credit.

Working With Sprout

Sprout is an online marketplace where businesses come to compare and save on small business loans. You go to www.SproutLending.com and simply fill out a profile or call us at 800-865-6057. Based on that information you provided, Sprout suggests the best matches depending on the amount and purpose of the business loan you are seeking. Last year, Sprout and it’s staff was responsible for over $100 million in loan approvals.

To speak with a funding specialist now, call:

800-865-6057

 

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