Business Funding Group: Small Business Loans Review


Who is Business Funding Group?

Business Funding Group is a financial consulting firm that helps small businesses find the best funding programs through one of its lending partners.

Based in Washington, the company has an established network of trusted, private money lenders, small business investors and public lenders that offer a variety of finance programs to qualifying businesses nationwide.

A consultant will work with you every step of the way, from the pre-application process to closing. Whether you’re just starting out or already have an established company, he or she will take a comprehensive look at your entire business to match you with the right funding solution.


Why choose Business Funding Group?

Small business owners might choose Business Funding Group to help with their financial solutions because it works with trusted financial institutions, has a variety of funding options and charges no upfront costs.

No upfront fees. Business Funding Group does not charge any fees for using its consulting services. Whether you’re approved for a loan or not, you will not pay any money to the broker. Business Funding Group’s lending partners pay the company at closing.

It’s important, however, to determine prior to closing whether or not the lender will charge you a success fee, which is due at closing and based on the amount of funding you receive.

Variety of funding options. The Business Funding Group is not a direct lender, which enables it to offer a wide variety of funding solutions for its customers. The company acts as the intermediary between small business borrowers and lenders, working hard to create the perfect pairing.


Overview of Business Funding Group’s financial services

Sorting through the different types of loan options can be very confusing. But don’t stress: A consultant will work with you to decide on the best funding solution for your business. The six types of small business loans available through the Business Funding Group’s network of lenders are:

  1. SBA loans (7a & 504). Business Funding Group works with small businesses to prepare and apply for SBA loans from its network of approved SBA loan providers. The SBA sets the maximum interest rates that lenders can charge small businesses.
  2. Business express loan. The newest loan program offered, the Business Express Loan, provides working capital for those in need of fast cash. Loans are available from $20,000 to $150,000, with interest rates starting at 6% and terms that range from 5 to 10 years. Approved applicants will receive funds in as little as 48 hours with the money made available in seven days.
  3. Equipment financing. This type of program is ideal for startups and established businesses that don’t have money for the equipment they need to operate their business. There are two options available: financing or leasing.
  4. Franchise/business term loan. This type of loan is for someone looking to buy an established business or start a new franchise. Franchise or business term loans range from $50,000 to $5 million. Business Funding Group offers a free loan assessment consultation for anyone who is thinking about applying for a franchise or business term loan.
  5. Revenue based loan. The company’s revenue-based loan is a short-term loan for existing businesses in need of a lump sum to grow their companies. Loan terms range from three to 18 months, with direct, daily withdrawals from the borrower’s bank account. Loans range from $10,000 to $2 million and are approved in as little as two business days, with funding in seven business days).
  6. Startup/unsecured business capital. This type of funding program is an unsecured loan you can use to start your own small business or grow your existing company. Business Funding Group works with traditional lenders on your behalf in order to get you the best possible loan with rates between 8.99% and 12%. Rates and terms will vary depending on the lender.
Business Funding Group: At a glance
Loan product Loan amount Loan term APR Range/ Factor Rate Time to funding
SBA Loan (7a & 504) $500 to $5.5 million 10 to 25 years 7a loan: prime rate + reasonable rate capped at 2.75%
504 loan: below market fixed rates
Varies per lender
Business Express Loan $20,000 to $150,000 5 to 10 years As low as 6% 7 days
Equipment Financing $5,000 to $2 million 24 to 60 months Varies per lender 48 hours Funding varies per lender
Franchise/Business Term Loan $50,000 to $5 million Varies per lender Varies per lender Varies per lender
Revenue Based Loan $10,000 to $2 million 3 to 18 months Varies per lender 7 business days
Startup and Unsecured Business Capital Up to $75,000 for startups
Up to $250,000 for those in business for more than 2 years
Varies per lender 8.99% to 12% Varies per lender

Rates current as of 06/27/2018

Not all small businesses need or qualify for traditional business loans. Business Funding Group offers additional funding options for small businesses that need access to working capital to ensure the business remains open. The three options available include:

  • Purchase order (PO) financing. A purchase order helps small businesses meet inventory needs. The lender pays PO financing directly to the vendor. This enables businesses to take or place orders even if they don’t have the cash flow to cover the entire order at that time. There is a minimum funding of $100,000, with no maximum.
  • Business directed retirement account. This type of program enables business owners to use their individual retirement accounts (IRAs) or 401(k) funds to invest in their own business instead of keeping the money invested in the stock market. A business directed retirement account is not considered a loan because the money you’re investing in the business is your own. Visit the website for important details.
  • Accounts receivable factoring. This form of financing enables small businesses to trade-in unpaid customer invoices at a discount to third-party companies — known as Factors — to access cash. The invoice serves as collateral to help small businesses access funds while they wait for payment from unpaid invoices.

Eligibility requirements

Business Funding Group acts as the middleman between small businesses in need of financing and lenders looking to fund businesses. Although the company has established relationships with its lending partners, each lender sets its own loan eligibility requirements.

Because SBA-guaranteed loans are government regulated loans, they have more eligibility requirements than private lenders. In order to qualify for an SBA loan, the business must meet the following criteria:

  • Officially registered and legally operating a for-profit business
  • Locally owned and operated in the U.S.
  • Invested equity (time or money) by the business owner
  • The business does not qualify for funding from any other financial lender

Which lenders work with Business Funding Group

The company partners with a wide variety of lending partners, such as:

  • National banks
  • Regional banks
  • Local lenders
  • Credit unions
  • Private money lenders
  • Direct lenders
  • Hedge Funds

Who’s eligible to use Business Funding Group solutions?

Business Funding Group advertises itself as a company that works with almost all types of businesses, industries and situations, even nonprofit businesses.

Ultimately, the lenders make the final decision as to who they choose to enter into a loan agreement with.


How to apply with Business Funding Group

To get started with the online prequalification form, you’ll need to provide some basic information about yourself and your business, including things such as:

  • Name
  • Legal business name
  • Type of business
  • Net business income
  • Credit card lender(s) and credit limit
  • Disclose business lines of credit
  • Amount of unsecured business capital you are seeking

To complete the preapproval process, you’ll be asked to verify your personal credit by purchasing a credit report from Credit Check Total. You have to upload your credit report from the company before you can submit the completed preapplication form. A representative will contact you within one business day.


Pros/cons

Pros Cons
  Variety of funding options   Opaque fees charged by lending partners
  Free business consulting services   Pay for a credit report during the preapplication process
  SBA loan preparation assistance   Unknown specific lending partners

Who is the best fit?

Business Funding Group is ideal for small businesses that have exhausted all other loan avenues. As long as your business meets the basic criteria set by the SBA, a Business Funding Group consultant can help you complete the SBA loan application process. SBA loans programs offer flexible funding with longer terms and low interest rates.


The bottom line: How Business Funding Group stacks up

Whether you’re in the planning stages or have been in business for a long time, it always pays to shop around for the best rates and terms.

Unlike working with a direct lender, Business Funding Group can walk you through the different types of funding options available across a variety of lenders, free of charge. The company’s employees have expert knowledge of the loan industry, which is great because current trends can add a lot of value while you explore your funding options.

Of course, nothing in life is ever really free. Although the company advertises that it doesn’t charge any upfront fees, you still don’t know how much you could end up paying the lender at closing.

Compare small business loan offers