Balboa Capital Corp. Small Business Loans Review

About Balboa Capital

Balboa Capital

Balboa Capital is a technology-driven independent financing company that provides fast, hassle-free financing solutions to small and medium sized businesses throughout the United States. Our company developed an intuitive online platform that saves time and simplifies the entire process. Small business loan and equipment financing applications can be completed and submitted online in a matter of minutes, and our proprietary credit scoring technology provides rapid decisions. No lengthy paperwork or collateral are needed, and all credit scores are considered. Since opening our doors, we have provided close to $5 billion in funding to businesses nationwide, and we have earned a reputation for outstanding customer service. Whether it’s a small business loan or equipment financing, you can count on us to structure and deliver the best solution for your company’s needs, and to provide you with the responsiveness and dedication that have earned us an A+ rating with the Better Business Bureau (BBB).

review breakdown

Recommended
100%
Interest Rates
Fees & Closing Cost
Customer Service
Responsiveness

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What is Balboa Capital?

A streamlined online application process, quick approvals and delivery of funds, and a host of loan products have made Costa Mesa, Calif.-based Balboa Capital Corp. a popular choice for small and mid-market businesses. It has funded more than $5 billion since it was founded in 1988. A direct lender, Balboa Capital’s 200-plus staff includes financing and accounting experts, allowing it to manage the entire process —application through approval — in house. It also is an alternative lender, offering funding opportunities for businesses with weak credit, cash flow problems or lack of collateral, which are hurdles in securing traditional bank funding. It has been a Better Business Bureau accredited lender since 1999, and it has an A- grade.


Lender highlights

Balboa Capital offers six types of funding, giving businesses – and in one instance their customers – different avenues for meeting their funding needs. The application process for most is simple: Fill out the online form and receive a decision in minutes. While Balboa Capital provides funds for businesses in many industries nationwide, nearly all need to have been in business at least a year and $300,000 in annual revenue. Those might be tough hills to climb for newer businesses. Balboa has invested in the latest bank-level encryption technology to protect sensitive customer information. And because it’s a direct lender, all that data is kept in house.


What Balboa Capital offers?

Balboa Capital offers a variety of loan products for businesses. They include:

  • Small business loans: These don’t require collateral, and all credit scores are considered. Use the online calculator to estimate your monthly payments based on how much is borrowed, up to $250,000.
  • Equipment leasing: Use a lease to purchase up to $250,000 of needed equipment — from software to vehicles — to fulfill an immediate need or free capital for other uses. Balboa Capital, at its discretion, will match better equipment-leasing offers on the exact deal or make the first payment, up to $500, on its offer. Payments also might qualify as a Section 179 tax deduction, providing annual savings.
  • Commercial financing: This option can provide up to $100 million for capital equipment purchases, new technology or expansion. Terms are flexible.
  • Franchise financing: Financing plans, working capital and credit lines, all with varying amounts and terms, are designed to help franchises grow, whether that’s with property upgrades, expansion or even daily expenses. Many well-known franchise brands consider Balboa a preferred lender.

Other funding options

Balboa Capital offers business cash advances from $5,000 to $250,000. These aren’t loans but the sale of future receivables. They work exactly like merchant cash advances. Unlike traditional bank loans, advances have no set payments or term. Lenders take a predetermined percentage from daily or weekly sales, usually those made with credit and debit cards, as repayment. So, amounts change with sales. With strong sales, for example, it’s possible to repay the advance faster than if sales are slow. Approval requirements are often lower than for loans, so advances cost more because lenders use higher rates to cover their risk. Advances don’t require a guarantee, but borrowers might have to sign a performance guarantee, promising they’ll operate the business in a way that ensures repayment. But even then, there’s no legal requirement to repay the advance.

Loan product Loan amount Loan term APR range/ factor rate Fees Time to funding
Small business loan Up to $250,000 3 – 24 months Varies from 6.25% – 35% Up to 2% of principal 1-3 days
Equipment leasing Up to $250,000 24 – 72 months Varies from 6.25% – 35% Up to 2% of principal 1-3 days
Commercial financing Up to $100 million Flexible term lengths Varies from 6.25% – 35% Up to 2% of principal 1-3 days
Franchise financing Financing plans up to $1 million, working capital loans up to $1 million and credit lines up to $500,000 24 – 84 months Varies from 6.25% – 35% Up to 2% of principal 1-3 days
Business cash advance $5,000 – $250,000 3 – 18 months Varies from 6.25% – 35% Up to 2% of principal 1-3 days

Rates current as of 6/27/2018

Balboa Capital doesn’t offer 60 or fewer day financing for equipment but can provide more than $250,000 for it in some instances. It also offers vendor financing, which can help a business’s customers purchase needed equipment. Application is through Balboa Capital’s website, and no collateral is required. Applicants, who need to be in business for at least a year and have annual sales of at least $300,000, receive same-day decisions, and businesses have access to digital marketing and sales tools.


Eligibility requirements

Loan product Annual revenue Min. business credit score or personal credit score Time in business
Small business loan $300,000 minimum 560 At least one year
Equipment financing $300,000 minimum 560 At least one year
Commercial financing $10 million minimum 560 At least one year
Franchise financing $300,000 minimum 560 At least one year
Business cash advance At least $10,000 in monthly credit and debit card deposits 560 At least one year

Additional eligibility factors

Business applying for leases must provide quotes or invoices for the equipment. Those applying for working capital must share their past bank statements.

Businesses that are not eligible for Balboa Capital loans:

Balboa Capital doesn’t specifically list any types of businesses or industries that are ineligible for its funding.


How to apply for Balboa Capital financing

Applications start at Balboa Capital’s website. Borrowers answer a few questions about their businesses, and decisions are almost instant. Balboa looks at most credit scores, so businesses may be approved even if traditional banks or credit unions have said no. Once approved, applicants receive a call from their assigned representative, who will handle collating any need documents and escorting the applicant through the final steps of the funding process. And if there is a question or issue during the course of the loan, the representative is only a phone call or email away.


Pros/Cons

Pros Cons
 Easy application   Tougher eligibility requirements
  Variety of loan products   No local representative to answer questions
  Higher approval rate, considers all credit scores   High interest rates on some loan products

Who is the best fit?

U.S.-based small, mid-market and Fortune 5000 businesses are Balboa Capital’s bread and butter. Its commercial financing, for example, have helped companies in the construction, food processing, manufacturing, mining, oil and gas, pharmaceutical, private equity, technology, and trucking industries. It serves customers from its main office and satellite offices in San Ramon, Calif., Scottsdale, Ariz., and Spokane, Wash.

Fine print

Balboa Capital handles payments through Automated Clearing House withdrawals from the borrower’s business banking account. Those can be made daily, weekly, monthly or quarterly.


The bottom line: How Balboa Capital stacks up

Balboa Capital has a loan product for just about any small business funding need. Combine that with a simple to use and secure online application process, and it can be a good choice for funding, especially for businesses with shaky credit scores. Some of its eligibilities are more stringent than other direct lenders, so it may not be the best choice for new businesses.

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