Finance Factory Business Financing Review
 | Interest range: 0% intro APR to 30% or higher, depending on the financing type and lender match. Merchant cash advances have factor rates of 1.14 to 1.50 Loan amounts: $1,000 to $5,000,000, depending on the financing type Our Verdict: Finance Factory connects business owners to a network of lenders and offers a wide variety of financing options. The company is transparent about its eligibility requirements, rates and terms, and customer reviews are generally positive. |
Pros and cons of Finance Factory
Pros
- Multiple financing options with clear eligibility requirements
- Several funding options have no time-in-business requirements or annual revenue criteria, making it ideal for startups
- Some loans require no collateral or down payments
Cons
- May charge high fees and prepayment penalties
- Must have a good to excellent personal credit score
- Some financing options require more than $180,000 in annual revenue
Finance Factory small business loans review
Finance Factory is an online marketplace that connects business owners to a network of lending partners. Think of them as the intermediary between borrowers and small business loans.
Finance Factory offers a wide range of funding options and provides a direct link to potential lenders. Finance Factory may be especially appealing to young companies that haven’t been in business long and aren’t yet generating steady revenue. Time to funding is also relatively short — some loan funds are available in as little as 48 hours.
But small business owners with less-than-perfect credit may have a hard time qualifying for some funding options, especially startup loans.
Having said that, Finance Factory is refreshingly upfront about their rates, terms, loan amounts, and eligibility requirements — though the rates and terms you qualify for will ultimately depend on which lenders you match with.
- You want to go with a reputable company. Finance Factory customer reviews and ratings are generally positive.
- You need help choosing the right funding solution. Finance Factory can help advise you on the best funding option for your business needs. They essentially act as a go-between for you and their network of lenders.
- You want a variety of financing options. Finance Factory offers a range of small business finance options. However, shopping around for a lower-cost lender could help you secure a better business loan interest rate.
Finance Factory small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated rate range | Fees |
|---|---|---|---|---|
| Startup funding | $5,000 to $100,000 | 0 to 84 months | 0% intro to 15.00% | Varies |
| Business credit card | $1,000 to $50,000 | Revolving | Varies by lender match | Varies |
| Franchise loan | $35,000 to $5,000,000 | 36, 60 or 84 months | Starts at 8.00% | Varies |
| Real estate loan | $100,000 to $5,000,000 | 12 to 360 months | 5.00% to 12.00% | 1.00% to 3.00% origination fee, plus $4,490 legal doc prep and processing fees, along with other third-party fees |
| Equipment financing | $5,000 to $5,000,000 | Life expectancy of the equipment being financed | 6.00% to 30.00% or more | Varies |
| SBA loan | $250,000 to $5,000,000 | 120 to 300 months | Capped at 10.50% to 14.00% for variable loans (based on the current prime rate of 7.50%) | Varies |
| Merchant cash advance | $5,000 to $1,000,000 | 6 to 60 months | Factor rate of 1.14 to 1.50 | Varies |
Startup funding
Finance Factory offers startup funding through a combination of business credit cards, personal loans and lines of credit. This could unlock anywhere from $5,000 to $100,000 with no business history, down payment or collateral required. You must, however, have a minimum credit score of 700 or higher.
Fixed interest rates range from 0% intro APR on cards to 15.00% — though read the fine print carefully if you get a credit card to understand what your interest rate will be when the intro period ends. Fees, which can vary by lender, may apply.
Finance Factory also provides business-directed retirement accounts that allow you to invest retirement assets into a new business venture. You’ll avoid taxes and penalties, but be aware that investing your nest egg is inherently risky.
If you decide to go with Finance Factory , you can receive dedicated customer support and additional small business resources to help your business grow to new levels. If you’re looking for a startup business loan, rather than a personal credit card or line of credit, you may want to look elsewhere.
Business credit cards
Finance Factory can help new businesses cover essential startup business costs or daily operational expenses up to $50,000 per lender with funding via a business credit card. Some lenders also offer a short-term 0% introductory rate.
If you pay off the balance before the interest kicks in, you’ll essentially enjoy the benefits of an interest-free business loan. But interest rates and fees can vary greatly depending on the lender and borrower.
Be aware that opening multiple new credit cards can have a negative impact on your credit score. Before applying with Finance Factory , reach out to discuss whether you’re looking for a single credit card or multiple cards to reach a higher total limit.
Franchise loans
A franchise loan from Finance Factory can help startups and well-established businesses expand to new locations, both locally and nationwide. With fixed interest rates starting at 8.00% and terms lasting up to 84 months, you can access between $35,000 and $5,000,000. Funds can cover a range of expenses, such as working capital, equipment, expansions, real estate and more.
Commercial real estate loans
If you’re looking for a retail location, office or warehouse, Finance Factory can provide up to $5,000,000 in commercial real estate loans through its real estate partner, Evergreen Equity Partners. That may include funding for long-term rentals, fix-and-flips, investment properties and owner-occupied loans and refinances — as well as bridge loans and debt-service coverage ratio (DSCR) loans. Fixed rates range from 5.00% to 12.00%, with a down payment of 20% or more required to secure financing. You can review potential rate and term options with no hard credit checks, upfront fees or obligations.
Equipment financing
Equipment financing can be a valuable option if your business needs capital to purchase essential equipment — whether that’s machinery, tools, hardware, software or office furniture. Eligible borrowers can finance up to $5,000 to $5,000,000, with terms determined by the life expectancy of the equipment that’s being financed. Interest rates vary and can range anywhere from 6.00% to more than 30.00%. You’ll need a credit score of at least 600 to qualify.
SBA loans
SBA loans, which are guaranteed by the U.S. Small Business Administration, are ideal for established business owners with strong credit. They’re also known for having lower interest rates. Through Finance Factory , qualified borrowers can tap into $250,000 to $5,000,000, with repayment terms spanning 120 to 300 months.
Interest rates for variable SBA loans are capped at 10.50% to 14.00% (based on the current prime rate of 7.50%) depending on your loan size. To be eligible for an SBA loan, you’ll generally need a minimum credit score of 650.
Merchant cash advances
A merchant cash advance is designed to help small business owners manage short-term expenses, including seasonal slow-downs in revenue. Business owners receive an advance in exchange for a percentage of the business’s future credit and debit card sales.
Instead of offering a regular interest rate, merchant cash advances charge a factor rate. This is a flat fee you pay to borrow the money. To figure out how much you’ll pay, you can multiply your factor rate by the advance amount.
Finance Factory charges a factor rate of 1.14 to 1.50 and allows business owners to borrow $5,000 to $1,000,000. Terms range from 6 to 60 months, and you’ll need a credit score of at least 550 to qualify.
Finance Factory borrower requirements
Finance Factory is quite open about what you’ll need to apply for a business loan. In general, its lending criteria are generally lower compared to many other lenders. For example, you may be able to get a startup loan or real estate loan before opening your doors for business, although your chances of approval will likely improve if you can demonstrate your business’s ability to earn income.
| Minimum annual revenue |
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| Minimum time in business | Not required for most loans; Generally 12 months for commercial real estate loans; two years for SBA loans |
| Minimum credit score |
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Required documents
Business financing requirements can vary based on the type of financing, the borrower and the partner lender providing the funds. That said, you may be asked to provide the following paperwork when applying for a Finance Factory loan:
- Copies of your driver’s license
- Recent business and personal tax returns
- 30 days worth of paystubs
- A voided check
- Profit-and-loss statements
- Accounts receivable reports
- Financial projections
- W2s
Alternatives to Finance Factory
| Finance Factory | Credibly | Chase business loans | |
|---|---|---|---|
| Minimum credit score |
| 500 | Not disclosed |
| Loan products offered |
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|
|
| Time to funding |
| As soon as same day | Not disclosed |
| Starting rate |
| 1.11 factor rate | Not disclosed |
| Maximum loan size | $5,000,000 | $600,000 | $5,500,000 |
| Minimum annual revenue |
| $180,000 | Not disclosed |
Finance Factory vs. Credibly
While Finance Factory offers more funding options, Credibly may be the right choice for business owners with poor credit. However, getting approved doesn’t guarantee a low interest rate. Having said that, Credibly provides quick funding, sometimes within the same day. But the maximum loan amount is less than what Finance Factory offers. Your business must also have a minimum annual revenue of $180,000.
Finance Factory vs. Chase Bank
If you’d rather stick with a more well-known lender that offers physical branch locations, there’s always Chase Bank. It’s the largest bank in the country, after all, and like most big banks, it’s rather tight-lipped about its fees, rates and borrower qualifications. It is also a lender in its own right, so if you check your options with Chase Bank, you’ll only receive financing offers from Chase itself, rather than a network of lenders, like with Finance Factory .
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