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Noble Funding Business Financing Review
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Noble Funding is an online lender that offers several forms of working capital for large businesses with high annual revenue seeking at least $50,000 to $100,000. Business owners in need of funding in fairly large amounts can find short-term, long-term and asset-based financing with competitive starting rates on par with banks.
- Types of financing Noble Funding offers
- Who is eligible for Noble Funding financing?
- Noble Funding review: Pros and cons
Types of financing Noble Funding offers
Long-term business loans
Noble Funding calls these loans “BankLite” because they have monthly payments like a bank loan when many alternative lenders require weekly or even daily repayment. Unlike bank loans, Noble Funding’s long-term loans could be approved in two to three business days and funded within a week.
Noble Funding does not require specific collateral to back the loan, but a personal guarantee might be required. Noble Funding does not charge prepayment penalties.
Noble Funding offers short-term funding that could be used as a bridge loan or for other uses such as inventory, equipment, payroll and more. Borrowers have the option to renew their loans when half the balance is paid down. No collateral would be required to secure funding.
A/R lines of credit
Noble Funding’s A/R lines of credit provide ongoing access to funding based on a business’s accounts receivable. You could borrow up to 90% of the value of invoices that are less than 90 days old and at least $500,000. As those invoices are paid, Noble Funding would collect interest-only repayment. Rates increase when invoices are paid more than 90 days past the due date. The A/R line of credit is bank-funded, whereas non-bank business lenders fund Noble’s other products.
|Noble Funding Options at a Glance|
|Amount||Terms||APR||Time to funding after approval|
|Long-term loan||$100,000 to $500,000||36, 36 or 60 months||Starting at 8.99%||One week|
|Short-term loan||$100,000 to $2,000,000||6 to 18 months||Starting at 17.99%||One to two business days|
|A/R line of credit||$500,000 to $8,000,000+||Ongoing; rates increase after the first 90 days||7.50% to 12.00%||Two to four weeks|
Similar to the A/R line of credit, asset-based lending is based on accounts receivable or inventory. Funding could be revolving if secured with accounts receivable and invoices, or a one-time term loan if secured with assets such as machinery or equipment. Asset-based funding is available between $500,000 and $25,000,000.
Noble Funding could approve up to 85% to 90% of unpaid accounts receivable that are less than 90 days old and 50% to 65% of inventory comprised of finished goods. Noble Funding could issue asset-based financing in 72 hours following approval.
Businesses purchasing or refinancing commercial property may be eligible for a commercial mortgage between$750,000 and $15,000,000. Noble Funding offers 30-year terms with a five-year interest-only period for well-qualified borrowers. Annual interest rates start at 6.75%. If you already have a mortgage holder or bank in position, you could take out a business loan from Noble Funding with a second position or junior lien on the property, allowing you to borrow money without compromising your first mortgage.
Unsecured business loans
For businesses in need of smaller funding amounts, unsecured business loans are available from $50,000 to $2,000,000. No collateral or liens are needed to secure financing. Unsecured loans also have few documentation requirements and a simple approval process. Terms span 6 to 18 months. Eligible borrowers could receive loans up to $250,000 in one business day, and loans up to $1.5 million in 48 hours. In general, unsecured business loans are more expensive than loans that are secured with some type of collateral that the lender could seize if you default.
Business owners could borrow $250,000 to $20,000,000 against inventory and purchase orders. You could use inventory financing to get up to 100% of the value of purchase orders and up to 65% of finished-goods inventory. Large retailers could secure inventory-based lines of credit from Noble Funding for an ongoing funding solution.
Who is eligible for Noble Funding financing?
Noble Funding caters to companies with large financing needs. The credit score, time in business and financial history required varies by financing product. Here are a few examples of what Noble Funding may look for.
Long-term business loans
- Minimum 650 FICO Score
- At least 18 months in business
- Positive net income in one of the last two years
- Minimum 500 FICO Score
Unsecured business loans
- Minimum 525 FICO Score
- Positive or negative net income accepted
What you need to apply
Several of Noble Funding’s products are based on cash flow, meaning you would not have to offer specific business assets as collateral when applying for financing. Others would require you to secure financing with accounts receivable, invoices, inventory or property, depending on which type of funding you’re seeking.
Noble Funding’s products are available to businesses throughout the U.S. and Canada. When signing loan documents, you may be required to have at least 51% business ownership.
After approval, Noble Funding could fund short-term business loans and advances in as little time as 24 hours, long-term loans within five business days or one week, and asset-based lines of credit within 30 days. Noble Funding does not charge any upfront fees.
Businesses that are not eligible
Noble Funding may not approve applicants with past bankruptcies, or open state or federal tax liens. However, tax liens may be overlooked for unsecured business loans.
Noble Funding’s minimum financing amount for most products is $100,000, although unsecured business loans are available in amounts as low as $50,000. Businesses needing a smaller amount should seek funding elsewhere. Most of Noble Funding’s transactions range between $150,000 and $5 million.
Noble Funding review: Pros and cons
Before applying for financing from Noble Funding, consider a few of the lender’s potential positive aspects and drawbacks.
|Large funding amounts available.||Smaller or low-revenue businesses may not qualify for financing.|
|Several financing solutions offered.||Rates, terms and payment structures are somewhat unclear.|
|Businesses could apply for either unsecured or secured options, depending on collateral.||Secured financing has slower time to funding.|
How does an A/R line of credit work? An A/R line of credit lets you continuously borrow against accounts receivable as you send invoices to customers. Rather than having cash tied up in unpaid invoices, you could receive an advance from Noble Funding. The lender would collect payments as the invoices are paid.
Can I renew my loan through Noble Funding? You may be able to renew your loan through Noble Funding once you’ve paid down half your debt. Renewing your loan would allow you to borrow more money and extend the amount of time you have to pay off the full amount.
Is a personal guarantee required? A personal guarantee may be required on certain loans, including long-term business loans. A personal guarantee would make you as the borrower personally liable to repay the debt if the business defaults. Be sure to ask if a personal guarantee is required to secure financing before accepting a loan offer from Noble Funding.
How fast can I get a loan through Noble Funding? Time to funding would depend on the type of financing you receive. Short-term loans and advances could be funded in 24 hours after approval, while long-term loans may take five business days to one week, and asset-backed lines of credit could be funded in 30 days.