Finance Factory
Finance Factory is a full service business finance and consulting firm. Through our marketplace, we offer a full suite of financing programs and small business services nationwide. From our executives to our loan specialists, our entire team has the DNA of an entrepreneur. Our knowledgeable staff develops a funding strategy designed not only around your short term needs, but also your long-term vision. Whether you are a start-up looking for working capital, an existing business acquiring a competitor or purchasing new equipment, Finance Factory has options that will accomplish your goals at competitive costs.
92%
I had a wonderful experience with Finance Factory from start to finish. We worked with Alex C and he was thorough and responsive throughout the entire process. He was up front about costs and worked quickly to secure all of the funding we needed. I would highly recommend Finance Factory based on our experience.
By: Erin
I will keep this short and sweet, but I was painted a wonderful picture of how everything would go. If I hadn't utilized other avenues of funding, the purchase of our small business never would have happened. And now our brand new, small business is saddled with fees linked to funding that came through not as explained and way too late. I'd recommend working with a small, local bank vs. this group. Worst financial decision of my life.
By: Justin
The entire process was easy. I was excited to work with them. Setting up an account is easy and inside account is understandable.
By: Katrinka
Whitney made the entire process easy and understandable. She was available every step of the way and if she was busy there was always a team member available. Highly recommend Whitney and her services
By: Charles
Their service was professional, prompt, and efficient. I couldn’t be happier with the entire process!
By: Danny
If you’re looking for a way to fund your business, the options can be a little overwhelming, which is where a company like Finance Factory can come in handy. It’s not a lender in its own right; Finance Factory is an online marketplace that matches small businesses with lenders providing SBA loans, equipment financing, term loans, lines of credit and merchant cash advances.
A wide variety of businesses, including startups, may find funding here. But there might be a price for the matchmaking: Finance Factory sometimes charges a fee on top of the one you pay your lender.
Finance Factory also offers personal loans that can be used to cover business expenses, but we’ll focus on its primary business financing products in this review.
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This isn’t necessarily a certain type of small business financing, but rather it’s a combination of different products geared toward new businesses. That said, you may still have difficulty qualifying for this funding if your business is less than two years old. Strong credit and cash flow will strengthen your case for funding, or you could consider other types of startup business loans.
If your business is able to qualify, a loan through the U.S. Small Business Administration is always a good first choice. SBA loans offer relatively low rates as well as flexible amounts and terms. There are many types of SBA loans, but lenders in the Finance Factory network only offer two types: the popular 7(a) program that can be used for a wide range of business purposes, including buying and opening a franchise, and CDC/504 loans that are geared toward buying assets like equipment or real estate.
Not to be confused with the SBA Express loan, these loans and lines of credit are provided through Finance Factory partner Funding Circle. Funding Circle is a peer-to-peer lender connecting small businesses with investors. It’s a good fit for established companies with at least two years in business and business owners with good personal credit.
A merchant cash advance is generally easier to qualify for but is also more expensive than a traditional small business loan. The way merchant cash advances work is different from loans and lines of credit — for one thing they typically use factor rates instead of interest rates to express costs — so you’ll also want to consider this option carefully before you apply. Short-term business loans and accounts receivable financing can also be expensive ways to borrow. Like MCAs, they may offer fast approvals and time to funding, as little as 48 hours.
If you’re buying equipment that you need to run your business like cash registers, tractors or computers, another option is to apply for an equipment loan. If you’re a well-qualified business owner, you could get competitive interest rates with this type of loan. Because the equipment itself secures the equipment financing, lenders may even consider relatively new businesses.
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Because Finance Factory isn’t a lender but rather has a network of lenders, the exact qualification criteria will differ depending on which lender you’re matched with. But in general, the company says that you may be a good candidate for certain types of loans if you can meet some of the following requirements:
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It’s possible to get prequalified for financing through Finance Factory with a soft credit pull, which won’t affect your credit. Fill out a form on Finance Factory’s website with your contact information and the following:
If you like your options, you can proceed with an application, which will result in a hard inquiry on your credit report. You’ll need to gather some additional information before you apply including:
Some products like SBA loans might require more documents, including a formal business plan, balance sheet, income statements and more.
The application and funding process (if you are approved) vary depending on your lender and type of financing. MCAs, as we’ve mentioned, may be quick to fund while SBA loans can take anywhere from seven days to a couple of weeks to complete.
Pros
Cons
Finance Factory gives you the advantage of sifting through several types of financing in one fell swoop. That can save you a lot of time if you’re not quite sure where to start, but it shouldn’t be the end of your search. It’s still important to compare Finance Factory’s offerings with those of other small business lenders.
