iBusiness Funding Business Loans Review
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Pros and cons of iBusiness Funding
Pros
- Large loan amounts available (up to $25,000,000)
- Lengthy repayment periods (up to 360 months)
- No application fees
- One application for multiple financing options
Cons
- Collateral and/or a blanket lien may be required
- Startup owners and low-credit borrowers may not qualify for all loan products
- Doesn’t disclose all of its fees
- Higher minimum loan amount, which may be more than some businesses need
iBusiness Funding small business loans review
iBusiness Funding is an online lender that has historically focused on offering SBA loans. However, it has expanded its financing portfolio to include business term loans and USDA loans as well.
iBusiness Funding’s strongest features include large loan amounts — standard SBA loans up to $5,000,000 and USDA loans scaling all the way up to $25,000,000 — and its streamlined application process.
Interested borrowers fill out an online application for their businesses to be considered for the full range of iBusiness Funding’s financing options. Once the application is complete, you’ll receive tailored product recommendations and be given the option to move forward with any loan offers that make sense for your business.
Still, iBusiness Funding’s eligibility criteria suggest that established businesses with good credit are likely to have the most success on the platform and that startup businesses and bad credit borrowers may not be eligible for all products. Be sure to consider the business loan requirements carefully before moving forward. Even though applying won’t hurt your credit score, a hard pull may be required for final approval.
- Businesses looking for long-term financing. iBusiness Funding’s long-term business loans come with flexible repayment terms ranging from 6 months to 360 months, depending on your loan type.
- Well-established business owners seeking quick business loans. Your business must be in operation for at least two years to qualify for a business term loan with iBusiness Funding. If you qualify, you can receive your funds as quickly as two business days.
- Business owners who aren’t sure which loan type is right for them. iBusiness Funding has one application for multiple financing options.
iBusiness Funding small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| iBusiness Funding term loans | $25,000 to $500,000 | 6 to 60 months | 22.45% to 52.40% | Not disclosed |
| SBA 7(a) loans | $15,000 to $5,000,000 | 120 to 300 months | Prime rate + 2.75% | Not disclosed |
| USDA loans | Up to $25,000,000 | 84 to 360 months | Not disclosed | Not disclosed |
Term loans
iBusiness Funding offers quick business loans from $25,000 to $500,000. Repayment terms range from 6 months to 60 months, with no penalties for repaying your debt early. You can receive funds in as fast as two business days.
SBA 7(a) loans
iBusiness Funding offers both regular SBA 7(a) loans and 7(a) small loans, which means you can get between $15,000 and $5,000,000, with repayment terms ranging from 120 to 300 months, depending on what the loan is used for.
iBusiness Funding offers most of its SBA loans through its parent company, Ready Capital, which is an SBA Preferred Lender. However, some SBA loans may also be originated through its network of lenders, which means you may be referred to another lender.
USDA loans
The U.S. Department of Agriculture (USDA) provides a partial guarantee to lenders offering small business loans in rural areas. These government-backed loans can be used for development, real estate and more.
With a USDA loan, you may be able to borrow up to $25,000,000. Loan terms last between 84 to 360 months, giving you plenty of time to repay your debt. USDA loans are available for businesses in areas with populations under 50,000. To qualify, you will also need to meet the lender’s eligibility requirements.
Note that iBusiness Funding’s USDA loans are originated through a network of approved lenders, meaning they’re not directly funded by iBusiness Funding.
The interest rate you pay will be negotiated with the lender, though the rates you’re offered will depend on your financial situation. Rates may be fixed or variable, and variable rates may not be adjusted more than once per quarter.
iBusiness Funding borrower requirements
| Minimum annual revenue |
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| Minimum time in business |
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| Minimum credit score |
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To get a business loan from iBusiness Funding, you’ll need to meet the lender’s loan requirements. For term loans, this means you will need a minimum credit score of 640. Your business will also need to have operated for a minimum of two years, with an annual revenue of $50,000 or higher.
However, it’s important to note that SBA loans and USDA loans may require collateral or a UCC-1 filing. If you default on your loan, iBusiness Funding can seize these business assets. You may also be required to sign a personal guarantee, which makes you personally responsible to repay the loan if the business fails to make payments.
Required documents
To check if you meet its business loan requirements, iBusiness Funding will request certain documents, including:
- Bank statements: Six most recent months
- Personal tax returns: Most recent year from all owners with 20% equity or more in the company
- Business tax returns: Two most recent years
Alternatives to iBusiness Funding
| iBusiness Funding | OnDeck | Fundbox | |
|---|---|---|---|
| Minimum credit score |
| 625 | 600 |
| Minimum time in business |
| 12 months | 3 months |
| Loan products offered | Term loansSBA 7(a) loansUSDA loans | Short-term loansLines of credit | Lines of credit |
| Time to funding | Two business days | Same-day funding available | Two business days |
| Starting APR | 22.45% | Term loan: 35.26%
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
| 4.66% simple interest for 12-week term |
| Maximum loan size | Term loan: $500,000SBA 7(a) loan: $5,000,000USDA loan: $25,000,000 | Term loan: $400,000 Line of credit: $200,000 | $250,000 |
| Minimum annual revenue |
| $100,000 | $30,000 |
iBusiness Funding vs. OnDeck
OnDeck is another online lender that provides short-term loans up to $400,000 and lines of credit up to $200,000. Although this is less than what you may be able to get with iBusiness Funding, OnDeck’s financing options come with a few perks. Most notably, in certain states the lender offers same-day funding on loans of $250,000 or less.
Unlike iBusiness Funding, OnDeck only requires businesses to be in operation for one year to be eligible for financing. It also has a slightly lower credit score requirement, approving applicants with scores as low as 625.
However, your business will also need a minimum annual revenue of $100,000 to qualify. It’s also worth noting that OnDeck’s high interest rates and other fees will drive up the cost of borrowing,
iBusiness Funding vs. Fundbox
Startups and low-credit borrowers may struggle to qualify for financing through iBusiness Funding. If you’re drawn to the speed and accessibility of iBusiness Funding but you don’t meet the lender’s minimum time in business, annual revenue or credit score requirements, Fundbox might be a good alternative.
Fundbox only requires 3 months in business, $30,000 in annual revenue and a credit score of 600 to qualify. Borrowers who meet these requirements may be able to access a business line of credit up to $250,000 in as little as two business days.
Fundbox’s starting interest rate is Fundbox for its 12-week term. This may be lower than the rates you’ll find with iBusiness Funding, though shorter loan terms will increase your cost per payment, so you’ll need to make sure you can afford the weekly payments before committing to a loan.
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