BHG Financial Business Loan Review
- Starting rate
- 10.49%
BHG Financial is best for established businesses that are looking for fast and flexible funding.
Pros and cons of BHG Financial
Pros
- Relatively fast funding
- Long repayment terms
- Each applicant is paired with a dedicated loan specialist
Cons
- $500,000 maximum loan size is smaller than other lenders
- Uses a blanket lien
- Charges prepayment penalties
BHG Financial small business loans review
BHG Financial offers personal loans, medical professional loans and small business loans to consumers.
On the business loans side, their long-term business loan offers amounts up to $500,000 with repayment windows extending to 144 months. Plus, your loan can be funded in as little as three days after approval, and the approval process can be as quick as 24 hours.
While the lender doesn’t disclose many of its eligibility requirements, it does publish typical consumer profiles, which suggest that BHG Financial may be a better fit for established businesses.
What’s more, potential borrowers should know that consumer reviews for the company from sources like Trustpilot and Better Business Bureau (BBB) are mixed. Positive reviews talk about an easy loan application process and excellent customer service, while negative ones mention aggressive marketing tactics, unexpected terms and prepayment penalties. If you decide to pursue a loan with {partner_name}, read your loan agreement and make sure you understand all of the terms.
- Businesses looking for fast, long-term financing. BHG Financial offers funding in as little as three days for long-term business loans. These loans have flexible loan terms of up to 144 months, which allows you to select a repayment window that suits your needs.
- Established businesses. BHG Financial typically lends to businesses with high credit scores and annual revenues, as well as long business histories, so it’s likely not going to be a fit if you need startup funding.
- Businesses in need of small loans. The company advertises loan amounts up to $500,000, but says that amount is reserved only for its most well-qualified borrowers. Most applicants can only get approved for up to $250,000.
BHG Financial small business financing at a glance
| Product | Loan amounts | Repayment term | Interest rate | Fees |
|---|---|---|---|---|
| Term loan | $20,000 to $500,000 | Up to 144 months | Starting at 10.49% | Not disclosed, but user reviews point to an origination fee and prepayment penalty |
Term loans
BHG Financial offers term loans ranging from $20,000 to $500,000 that can be used for a variety of commercial purposes, including consolidating debt, covering working capital expenses and acquiring a new business. However, you may only be able to get a small loan with BHG, as most borrowers are only approved for up to $250,000.
Still, if you need fast funding or would like a longer repayment term on your small business loan, BHG Financial may be a good fit. This lender has the capacity to fund loans in as little as three days after approval and offers repayment terms of up to 144 months. Plus, the company pairs each applicant up with a dedicated loan specialist who can help with your application.
On the other hand, like many business loan lenders, BHG Financial lacks transparency around its eligibility criteria and fees, which can make it hard to tell if you’re a good fit. Interested borrowers can get preapproved for a business loan, which will provide a rate estimate. But, keep in mind that receiving a loan offer isn’t the same as loan approval, and you may be given different terms once you submit an application through the lender’s customer service team.
By the same token, remember to ask about the lender’s fee structure up front if you apply. While this lender doesn’t disclose its fees publicly, customer reviews reveal that most borrowers will be subject to an origination fee and a prepayment penalty.
BHG Financial borrower requirements
| Minimum annual revenue | $1,000,000 |
| Minimum time in business | 24 months |
| Minimum credit score | 660 |
Compared to other lenders, BHG Financial’s business loan requirements are fairly steep, suggesting it’s likely a better fit for well-established businesses. The company also outlines the profiles of typical consumers, which tell a similar story. Those numbers indicate that BHG Financial prefers to work with business owners with credit scores in the 700s who have been in business for nearly two decades.
According to the company website, loan approval is based largely on your income and credit score at the time of your application. While the site notes that other factors are also considered, it neglects to disclose what they are.
It’s also worth noting that BHG Financial’s term loans are secured with a blanket lien, or a Uniform Commercial Code Article 1 (UCC-1) filing.
Blanket liens are placed against all of your business’s assets, including future ones. This can make it harder to secure additional financing in the future because any new lender’s interest would come second to the existing blanket lien.
Consider both your current and future financing needs to determine if a blanket lien is likely to become a problem for your business in the future.
Alternatives to BHG Financial
| BHG Financial | iBusiness Funding | SBG Funding | |
|---|---|---|---|
| Minimum credit score | 660 | 640 | 550 |
| Repayment term | Up to 144 months | 6 to 60 months | 6 to 48 months |
| Minimum funding time | 3 days | 2 days | Same day |
| Starting interest rates | 10.49% | 7.49%
7.49% interest rate, 22.45% APR
| 1.75% per month |
| Maximum loan size | $500,000 | $500,000 | $10,000,000 |
| Minimum annual revenue | $1,000,000 | $50,000 | $350,000 |
BHG Financial vs. iBusiness Funding
iBusiness Funding is another online lender that offers business term loans up to $500,000. The major difference between the two lenders is in their repayment terms. BHG offers term lengths up to 144 months, while iBusiness Funding’s offerings only extend to 60 months.
Still, if you can make that repayment window work, you may be able to get your money a little bit faster with iBusiness Funding, which may be able to disburse funds in just two days compared to BHG Financial’s three.
If you have excellent credit, you may be able to score a more favorable interest rate with this iBusiness Funding. Plus, iBusiness Funding discloses its APR in addition to its interest rate, giving you a clearer picture of the full cost of borrowing, including fees.
BHG Financial vs. SBG Funding
Similarly, SBG Funding is another alternative lender that provides fast funding, as soon as the same day. However, this lender’s core strength is that it provides more options than BHG Financial.
For one, its maximum loan amount extends to $10,000,000 compared to BHG Financial’s $500,000. It also offers many different types of financing, including business lines of credit, equipment financing and SBA loans, while {partner_name only offers term loans.
Still, loan terms for SBG Funding only extend to four years, while BHG Financial offers terms that are up to three times as long. So, if you need a longer repayment window, {partner_name} is likely going to be a better option for you.
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