Finance Factory Business Loan Review
Janet Schaaf is a freelance writer, editor and proofreader who considers reader advocacy to be her calling. After taking a few roads less traveled, Janet completed a bachelor’s degree in English Literature from the University of Missouri-Kansas City, with English Department Honors. She has been correcting grammar and checking facts since she could string a sentence together. For the past three years, Janet has focused on making personal finance topics understandable and relatable. Loan terms and credit card agreements can look overwhelming, but understanding what you’re agreeing to is paramount in grasping the impact debt can have on your life.
 | Estimated interest rate: Varies by product; 9.00% to 16.00% for startup business loans Best for: New business owners with a good personal credit score who aren't sure what type of funding product is best for them |
Pros and cons of Finance Factory
| Pros | Cons |
|---|---|
Multiple financing options available for newer businesses Fixed, low-interest rates for predictability No collateral or down payments required for startup or franchise loans | May charge high fees and prepayment penalties Must have a good to excellent personal credit score Requires a minimum of $100,000 in personal annual income to qualify |
Finance Factory small business loans review
As an online marketplace for small business loans and financing, Finance Factory helps connect entrepreneurs and well-established companies with a network of partner lenders to match a variety of business needs. Available finance options include startup business loans, business credit cards, franchise financing, commercial real estate loans and more. Loan products may change frequently as individual lenders revise their offerings. Note that some of their financing choices may come with high fees and prepayment penalties.
Who is the Finance Factory for?
- You want to stick with a reputable company. Finance Factory reviews and ratings from actual customers are generally positive.
- You need help deciding on the right solution. Finance Factory can help advise you on the best option for your business needs and act as a go-between for you and the actual lender in its network.
- You want to stick with one company for all funding needs. Finance Factory offers a range of small business finance options, although you may pay a higher business loan interest rate than if you’re willing to shop around for a lower-cost lender.
Finance Factory small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated rate range | Fees |
|---|---|---|---|---|
| Startup funding | $25,000 to $350,000 | 36 to 120 months | 9.00% to 16.00% | 4.50% to 9.90% |
| Business credit card | $15,000 to $150,000 | Revolving | 0% for 18 months, then 14.99% to 28.99% | 4.50% to 9.90% |
| Franchise loan | $25,000 to $500,000 | Up to 144 months | 9.00% to 16.00% | Varies |
| Real estate loan | $100,000 to $5,000,000 | Up to 360 months | 7.00% to 12.00% | 1.00% to 3.00% origination fee, plus $4,495 legal doc and processing fees |
Startup business loans
If you’re a new business looking for startup business financing, Finance Factory offers unsecured business loans up to $350,000 with no business history, down payment or collateral required. You must, however, have a minimum credit score of 700 or higher and earn at least $100,000 in annual personal income with no plans to leave your current job. Fixed interest rates typically range from 9.00% to 16.00%, with financing fees going as high as 9.90%. 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.
Business credit cards
With an introductory rate of 0% for 18 months, Finance Factory ’s business credit card can help new businesses cover essential startup business costs or daily operational expenses up to $150,000. If you’re diligent about paying off the debt before the interest kicks in, you can basically enjoy the benefits of an interest-free business loan. Finance Factory markets these credit cards to newer business owners looking for startup funding, although any business owner who meets the qualifications can apply.
Franchise loan
A franchise loan from Finance Factory can help startups and well-established businesses expand their companies to new locations — both local and nationwide. With fixed interest rates in the 9.00% to 16.00% range and terms lasting up to 144 months, you can access between $25,000 and $500,000 with zero upfront costs. 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, office, warehouse or industrial location, Finance Factory can provide up to $5,000,000 in commercial real estate loans and lines of credit through its in-house mortgage division, Evergreen Equity Partners. Options include long-term rental, fix-and-flip, bridge, debt-service coverage ratio (DSCR) loans, as well as investment and owner-occupied loans and refinances. Fixed rates typically fall in the 7.00% to 12.00% range, with a down payment of 20% or more required to secure commercial financing. You can review your rate and term options with no hard credit checks, upfront fees or obligation.
Finance Factory borrower requirements
Finance Factory is quite open about what you’ll need in order 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 business credit card or a 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 | $100,000 personal annual income |
| Minimum time in business | Not required for most loans; 12 months for commercial real estate |
| Minimum credit score |
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Required documents
Business financing requirements can vary based on the business loan type and the partner lender providing the funds. That said, you can expect 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
Alternatives to Finance Factory
| Finance Factory | Fora Financial | Chase business loans | |
|---|---|---|---|
| Minimum credit score |
| 500 | Not disclosed |
| Loan products offered |
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| Time to funding |
| 24 to 48 hours | Not disclosed |
| Starting rate |
| Factor rate: 1.10 | Not disclosed |
| Maximum loan size | $5,000,000 | $1,500,000 | $12,500,000 |
| Minimum annual revenue | Business income isn’t required; must have $100,000 or more in annual personal income | $180,000 | Not disclosed |
Finance Factory vs. Fora Financial
If you have credit challenges, Fora Financial may be even more forgiving than Finance Factory . The downside is that it only offers two financing options: term loans or revenue advances. The loans don’t operate like you might expect, either — you’ll make daily or weekly payments instead of monthly payments, as is typical. Fora Financial is also on the expensive side, with many fees rolled in and a strange factor rate that also applies to the loans, not just the cash advances. When you do the math, you’re looking at a rate range of 17.00% to 200.00% for Fora Financial‘s loans.
Finance Factory vs. Chase
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 .