LoanMe Inc. is an online lender offering personal loans as well as business loans. We’ll focus on its small business offerings in this LoanMe review. LoanMe business loans may be good for startups and business owners with impaired credit — you only need three months in business and a FICO score of 500 to qualify. Funding is as fast as two to four hours after approval, but the easy access might come at a cost: high interest rates.
LoanMe small business loans make funding accessible to those who may not otherwise qualify for financing, but these loans can be expensive and are only available in 30 states, including District of Columbia.
|LoanMe business loans at a glance|
|Amount||Terms||Starting rate||Fees||Min. credit score|
|Working capital loan||$3,500–$250,000||24–120 months||14.90%||3.00%–10.00% origination fee||500|
LoanMe offers simple interest business loans that can be used for working capital or any other number of business expenses. The trade-off for flexibility is the potential for high rates, as high as 159.00%. These are simple interest rates and not APR. To calculate APR, you would need to include LoanMe’s origination fee ranging from 3.00% to 10.00% of the total loan amount. No collateral is required on any LoanMe small business loan, though it does require a personal guarantee.
An advantage of LoanMe business loans is the ability to pay once a month over relatively long terms, up to 120 months. Borrowers have the option to repay the loan early without facing any prepayment penalties.
Seeking a smaller loan? LoanMe offers personal loans, too, for amounts between $600 and $20,000. To qualify for a personal loan, you must have a minimum credit score of 500 and a monthly income of at least $2,000.
LoanMe small business loans are open to for-profit businesses only. You must be at least 21 years old and have an Employer identification Number (EIN) and an active business checking account that’s been open for at least 90 days. As the applicant, you must represent at least 25% ownership in the business. If you do not meet this requirement on your own, multiple applicants are allowed.
A LoanMe small business loan is available in these states:
|Where to find a LoanMe business loan|
|New Hampshire||New Jersey||New Mexico|
|Utah||Washington||District of Columbia|
If you need a business loan in a hurry, you’re going to have a hard time finding a lender that beats what LoanMe calls its real-time approvals and a two-to-four hour funding turnaround time. But LoanMe interest rates are fairly expensive. It may be worth prequalifying to see what interest rate and origination fee you would receive. Compare those figures to other offers — by comparing the total cost of borrowing, you’ll be able to see if a loan will allow you to turn a profit, break even or keep the lights on through an emergency. If the debt pulls you further under, it could end up compounding your financial problems rather than alleviating them.
You can apply for a LoanMe business loan online or via phone. An online application starts with prequalification. Prequalification includes a soft pull on your credit, which does not impact your credit score. If you decide to pursue a LoanMe business loan after seeing your prequalified offer, a hard pull will be performed on your credit, potentially lowering your score for a period of time. This protocol is fairly standard and should be expected when you apply for a loan with nearly any lender.
In addition to checking your credit score, LoanMe reviews and verifies all your business and personal information. During the application process, you can expect to be asked for:
Because LoanMe business loans can have high interest rates and origination fees, you will want to shop the market as you may be able to find better rates elsewhere. Here’s a look at how LoanMe compares to small business lenders with similar requirements and offerings.
Credibly has the same minimum credit score requirement as LoanMe on its short-term loans, but its comparable business loan requires a minimum credit score of at least 600. Terms are shorter at 18 and 24 months, but its starting rate is lower at 9.99% APR. However, Credibly requires a longer time in business: Six months and at least $15,000 in monthly revenue. Payments are due weekly rather than monthly and funding generally happens 24 hours after approval, but if you qualify, this could be a cheaper way to borrow money.
Business loans at Funding Circle come with lower rates ranging from 11.29% APR to 30.12% APR. Payments are due monthly just like LoanMe with loan amounts from $5,000–$500,000. Loan terms are similar starting at 3 months and going up to 120 months. It is more difficult for new businesses to qualify, as you must prove two years of business history and at least $125,000 in annual revenue. Funding Circle also requires a minimum credit score of 660 and collateral. You could expect funding one to five days after approval.
OnDeck offers business loans of $5,000 to $250,000 with terms up to 24 months. Payments are due daily or weekly. Technically, OnDeck allows you to pay off your loan early without prepayment penalty, but if you get a loan without a prepayment penalty, you’ll pay a higher interest rate. Rates start at 35.00% APR. The time to funding with an OnDeck loan is quick, but not as quick as LoanMe. You could get your money the same day you’re approved, but funding might take as long as three days. OnDeck requires a minimum credit score of 600.