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.

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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.

What does Finance Factory offer?

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.

Product Details
  • Startup loans and line of credit
  • Interest rate: 0% for up to 21 months, then up to 15.00%
  • Amounts: $5,000–$350,000
  • Terms: Up to 84 months
  • Fees: 4.50% - 9.90%
  • SBA loans
  • Interest rate: 6.50%–8.75%
  • Amounts: $250,000–$5,000,000
  • Terms: 120–300 months
  • Fees: 1.00% - 5.00%
  • Business Express loans and lines of credit
  • APR: Starting around 12.00%
  • Amounts: Up to $500,000
  • Terms: 6–60 months
  • Fees: Origination fee of 3.49% - 6.99% for prime borrowers
  • Merchant cash advances and accounts receivable financing
  • Factor rate: 1.14-1.50
  • Amounts: $5,000–$1,000,000
  • Terms: 6–60 months
  • Fees: Origination fee of 1.00% - 10.00%, and there may be a prepayment penalty.
  • Equipment financing
  • Interest rate: 6.00%–30.00% or more
  • Amounts: $5,000–$5,000,000
  • Terms: Life expectancy of the equipment you’re purchasing
  • Fees: Origination fee of 1.00% - 12.00%, and there may be a prepayment penalty

Startup loans and lines of credit

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.

SBA 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.

Business Express 

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.

Merchant cash advances and accounts receivable financing

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.

Equipment financing

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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Finance Factory loan requirements

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:

Product Details
  • Startup loans and line of credit
  • Monthly revenue: $1,000 or more
  • Minimum credit score: 600
  • Time in business: None
  • Collateral: No, but you have the option to use collateral
  • SBA loans
  • Annual revenue: $20,000 or more
  • Minimum credit score: 600
  • Time in business: 2 years or more
  • Collateral required: May be required in some cases.
  • Business Express loans and lines of credit
  • Annual revenue: N/A
  • Minimum credit score: 660
  • Time in business required: 2 years
  • Collateral required: N/A
  • Merchant cash advances and accounts receivable financing
  • Annual revenue: $100,000 or more
  • Minimum credit score: 550
  • Time in business: 3 months or more
  • Collateral required: N/A
  • Equipment financing
  • Annual revenue: $20,000 or more
  • Minimum credit score:  600
  • Time in business required: 2 years or more
  • Collateral required: Yes; the equipment you purchase

Applying for a loan through Finance Factory

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:

  • Desired loan amount
  • Loan purpose
  • Credit score
  • Business start date
  • Annual income (personal)
  • Monthly business revenue
  • Value of your assets
  • Type of collateral you can supply
  • Industry

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:

  • Tax returns (business and personal)
  • Business bank statements

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.

Finance Factory loans: Pros and cons


  • Many lender and loan options: With a group of lenders under one roof — Finance Factory doesn’t specify exactly which companies or how many are in its network — it’s easier to shop around without handing out your data to multiple websites.
  • Transparency: Finance Factory provides more information about rates and terms than some competitors. This makes it easier to compare the company with other small business lenders.
  • Positive customer reviews: The company has received mostly positive Finance Factory reviews from business owners who’ve worked with them to find funding.


  • You might be able to find better financing on your own: Finance Factory only works with lenders in its own network. It’s possible that you could find better rates and terms on your own, although that may take more time and research.
  • Additional fees possible: In addition to the origination fee the lender you are matched with may charge, Finance Factory may charge you an additional fee on top of that. The company says this is rare and that when it happens, it either lowers the fee or deducts it from your loan amount.
  • Collateral may be required: It’s wise to speak with a financial advisor before you put up any of your retirement savings or real estate as collateral. If you can’t repay the loan, you could lose an important nest egg.

Should you apply for financing through Finance Factory?

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.