BHG Financial Business Loan Review
 | Starting APR range: 10.49% Best for: Established businesses that are looking for fast and flexible funding |
Pros and cons of BHG Financial
| Pros | Cons |
|---|---|
Relatively fast funding (3 days) Long repayment terms (Up to 144 months) Flexible funding | $500,000 maximum loan size is smaller than other lenders Uses a blanket lien Factor rates Lack of transparency around its lending criteria |
BHG Financial small business loans review
BHG Financial, previously known as BHG Money, was founded in 2001 in an effort to provide financing for professionals. The company offers both personal 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, which can make it a good fit if you need quick funding. In addition, this lender also allows for a variety of loan uses, such as business acquisition, debt consolidation and covering ongoing business expenses.
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, bait-and-switch loan offers and some uncommon loan terms, like a prepayment penalty. If you decide to pursue a loan with BHG, read your loan agreement and make sure you understand all of the terms.
Who is BHG Financial for?
- 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 only get approved for up to $250,000.
BHG Financial small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | 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 and offers repayment terms of up to 144 months. Plus, the company allows for a lot of flexibility in terms of how its funds are used.
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 upfront. While this lender doesn’t disclose its fees publicly, customer reviews reveal that most borrowers will be subject to an origination fee and prepayment penalty
BHG Financial borrower requirements
| Minimum annual revenue | None |
| Minimum time in business | None |
| Minimum credit score | Not disclosed |
Unfortunately, beyond the criteria listed above, BHG Financial is not very forthcoming when it comes to disclosing its business loan requirements. According to the company website, loan approval is based largely on your income and credit score at the time of your application.
Unlike many other lenders, BHG Financial says it doesn’t impose formal annual revenue or time in business requirements. However, it does outline the profiles of typical consumers and those indicate that the company prefers to see business owners with credit scores in the 700s, annual revenues well over $100,000 and who have been in business for nearly two decades.
It’s also worth noting that BHG’s term loans are secured business loans, which means they’re backed by collateral. In this case, the collateral is a blanket lien, or a Uniform Commercial Code Article 1 (UCC-1) filing.
What to know about blanket liens
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 | iAdvance Now | |
|---|---|---|---|
| Minimum credit score | Not disclosed | 640 | 650 |
| Repayment term | Up to 144 months | 6 to 84 months | 12 to 300 months |
| Minimum funding time | 3 days | 2 days | 3 days |
| Starting interest rates | 10.49% | 7.49% | 4.99% |
| Maximum loan size | $500,000 | $500,000 | $5,000,000 |
| Minimum annual revenue | None | Not disclosed | $240,000 |
*Rates and fees are for term loan products
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 84 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 is able to disburse funds in just two days compared to BHG’s three. And, if you have excellent credit, you may be able to score a more favorable interest rate with this lender.
BHG Financial vs. iAdvance Now
Similarly, iAdvance Now is another alternative lender that provides relatively fast funding, with a minimum funding time of just three days. This lender’s core strength is that it provides many more options than BHG Financial.
For one, its maximum loan amount extends to $5,000,000 compared to BHG’s $500,000. For another, it offers many different types of financing, including business lines of credit, accounts receivable financing and SBA loans while BHG only offers term loans.
However, in order to qualify for one of iAdvance Now’s loans, you have to be able to meet some fairly strict business loan requirements. For example, you need to be able to show that your business brings in at least $240,000 in annual revenue and you have to have been in business for at least two years to qualify for one of its term loans. BHG doesn’t formally impose these requirements, but even its typical consumer profiles are more lenient.