Finance Factory Small Business Loan Review

About Finance Factory

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.

review breakdown

Interest Rates
Fees & Closing Cost
Customer Service

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What is Finance Factory?

Finance Factory is a business finance and consulting firm. They offer a variety of funding solutions for small businesses and entrepreneurs.

Based in Townson, Md., Finance Factory has facilitated over $100 million in funding across all 50 states.

They create individualized funding solutions, acting as an intermediary between small businesses and small business lenders.

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Lender highlights

Finance Factory bring borrowers and lenders together. The company works with lending partners nationwide to secure funding solutions based on their client’s individualized needs.

Starting a small business can be risky. Startups and small businesses often find it difficult to qualify for funding from a bank or credit union. Although there are different ways to fund a business, it’s likely that most business owners will need funding at one time or another.

Finance Factory compares loans, rates and terms with over 100 of their lending partners, bringing you the best possible funding solution for your needs.

Their team of professionals can walk any new or seasoned business owner through the funding process, start to finish. From educating you about the different types of funding available to securing the loan, they are there as a resource until you pay off the loan.

Finance Factory does not charge any upfront fees. You’re only charged a one-time percentage fee at closing, if you decide to secure a small business loan.

Some highlights of their program include:

  1. Consultative approach. Because Finance Factory does not lend money, their focus is on client service and satisfaction. Their goal is to learn about the needs of their clients in order to secure the best lending solutions. This includes helping a small business owner determine how much funding they’ll need, how much they qualify for, the different types of funding available and what they need to do in order to secure the loan.
  2. Closing costs. Finance Factory charges a one-time rate of 9.9 percent at closing on the total amount of the loan. Borrowers who do not qualify for funding do not pay a fee.
  3. Business Entity Formation. For startups or new companies, Finance Factory has a team of licensed attorneys to file and track the necessary paperwork to set up a company. In addition, they’ll work with the local and state government where the business is operating out of to ensure the proper documentation is in place to start up your company.

What does Finance Factory offer?

Finance Factory offers a broad range of financing programs and services through their lending partners.

The company acts on your behalf to secure the right type of funding with favorable terms and low Annual Percentage Rates (APRs).

Loan terms and rates are based on each specific lender’s requirements. However, qualified applicants can expect to see terms and rates similar to those listed below.

Finance Factory: At a glance
Loan product Loan amount Loan term APR range/ factor rate Time to funding
Business Express Loans Up to $500,000 Varies per lender Varies per lender 1 to 2 weeks
Revenue Based Loans $10,000 to $1 million Repayment fluctuates based on generated revenue Varies depending on lender, credit score, cash flow, health of business As little as 48 business hours
SBA Loans (504 & 7a) $250,000 to $5 million 10 to 25 years 6% to 8% 2 weeks to 2 months
Startup Funding Up to $350,000 Unsecured personal and business financing terms varies per lender. As low as 0% interest rate for up to 21 months. Varies per lender.
Franchise Funding Varies Up to 25 years Variable rate of Prime at 6.25% – 7.25% plus 2.75% – 3.75% Varies per bank.
Business Credit Cards Up to $200,000 Varies per lender Only pay interest on the money you use.

Introductory rates 0% to 3% for 6 to 12 months

7.9% – 19.9% APR

As fast as 10 business days
Equipment Finance Start-up companies: $10,000 to $25,000

Existing business: Over $25,000

Varies per lender Varies per lender Varies per lender.

Rates current as of 6/16/2018

Securing a bank loan can be difficult for small or new business. In addition to the variety of funding programs, Finance Factory offers a Business Credit and Educational System to help businesses become bankable in order to secure funding from a bank in the future.

Eligibility requirements

Funding obtained through Finance Factory is based on credit score and verifiable income. In order to pre-qualify, clients must have a credit score of 680 or higher with one of the three major credit bureaus — Experian, Equifax or TransUnion. In addition, your debt-to-income ratio must be below 30 percent.

Pre-qualification does not guarantee that you will qualify for a loan or be able to secure a loan. Each lending partner has their own loan program qualifications, terms and conditions.

Additional eligibility factors

For startup companies, at least one person, known as a guarantor, must meet the following criteria:

  • 680+ FICO credit score
  • No bankruptcies
  • No judgements or unpaid collections
  • No negative credit marks within the last six months
  • At least one line of credit over $3,000

For established businesses to pre-qualify for additional funding, they must have a clean business history and need to provide business financials and history.

Businesses that are not eligible for Finance Factory loans:

Once you decide to pursue funding through one of Finance Factory’s lenders, you’ll work with that lender to qualify for the loan. It is up to the individual lender to decide the type of businesses that are not eligible for funding.

In general, the following industries are considered high-risk in the lending world. Lenders are hesitant, and sometimes even prohibited, to lend money to high risk/cash intensive industries, such as.

  • Casinos
  • Auto dealers
  • Pawn shops
  • Convenience stores
  • Retail stores
  • Liquor stores
  • Cigarette distributors
  • Privately owned ATMs

How to apply for Finance Factory financing

During the application process, a funding specialist will work with you to determine the best financing options based on your business’s needs.

Once you’re pre-qualified through Finance Factory, they’ll work on your behalf to find the best available funding through their large network of lending partners.

In order to pre-qualify, you’ll need to provide the following information:

Documents to get pre-qualified

  • Legal name(s)
  • Business name (applicable for established businesses)
  • Proof of verifiable income – Paystub from the last 30 days, W2s, bank statements or previous year’s tax return
  • Contact details – home address, phone number, email address
  • Social Security number or Tax-Identification number
  • Credit report authorization
  • E-Consent form to do business electronically
  • Date of birth

Once a lender is selected, the specific application process is based on each lender’s own requirements. For proof of identity, the program lender might ask to see a copy of your driver’s license or government issued identification.


Pros Cons
Wide variety of funding options Addition of 9.9 percent closing fee on all loans
Individualized service Strict pre-qualification standards
Zero upfront costs

Who is the best fit?

Finance Factory is an ideal solution for new business owners. They’ll navigate you through one of the most difficult and confusing aspects of opening a business — funding.

Fine print

Additional closing fees, maintenance fees or management fees are based on the individual lender.

It’s important to work with your Finance Factory representative and the lender to ensure you understand every aspect of the loan prior to signing on the dotted line.

The bottom line: How Finance Factory stacks up

Starting your own business can seem overwhelming. Funding Factory is there to help ease the burden of shopping around for the best available funding options, rates and terms.

Their staff is extremely knowledgeable about the wide variety of product offerings from their lending partners. With no upfront fees or costs, there’s no reason you shouldn’t call Finance Factory. They’ll do the heavy lifting for you.

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