Reliant Funding Business Financing Review
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Pros and cons of Reliant Funding
Pros
- Relatively lenient eligibility requirements
- Same-day funding available
- Available in all 50 states
- Prepayment discounts available
Cons
- Factor rates can make it hard to compare against competing offers
- May require daily or weekly payments
- Doesn’t list upper range of rates and fees
Reliant Funding small business loans review
Reliant Funding , a division of the LCF group, is an alternative lender specializing in quick merchant cash advances (MCAs) with flexible eligibility requirements and large loan amounts, helping businesses of all sizes tackle various business expenses.
While MCAs can be a great choice for those needing same-day business financing, be prepared to pay more than you would with a bank business loan. That said, Reliant Funding offers a prepayment discount when you repay your debt early, which can help reduce the total cost of borrowing. And if you want a more traditional loan versus an MCA, you’ll be able to obtain short-term business loans in the near future through Reliant Funding ’s partnership with Utah Business Loans.
While borrowers have reported positive experiences with lenders going above and beyond with speedy turnarounds, some have complained about unprofessional telemarketing practices and high rates. Currently, Reliant Funding has 2.8 out of 5 stars on TrustPilot and is no longer accredited on the Better Business Bureau. It’s worth researching the company’s most recent status before proceeding to ensure they can properly meet your needs.
- Business owners willing to pay extra for emergency funding. Although Reliant primarily focuses on merchant cash advances (MCAs), which usually have higher fees than traditional business financing, the extra cost could be worth it if you need quick access to emergency business financing.
- New businesses with relatively low annual revenue. While producing $48,000 in annual revenue could be a challenge for those needing startup financing, this amount is significantly lower than some competitors.
- Small business owners who can’t provide collateral. With Reliant Funding , you don’t need to provide collateral or a personal guarantee to secure financing.
Reliant Funding small business financing at a glance
| Product | Loan amounts | Repayment term | Starting factor rate | Fees |
|---|---|---|---|---|
| Merchant cash advance | $2,000 to $2,000,000 | 2 to 24 months | 1.20 | Origination fee varies by customer and loan size |
Merchant cash advance
A merchant cash advance (MCA) is a type of small business financing that allows you to borrow against your future credit and debit card sales. While getting an MCA with Reliant Funding could help your small business access up to $2,000,000 in capital as soon as the same day you’re approved, the daily or weekly payments could be tough to manage.
Note that MCAs are generally more expensive than traditional business and SBA loans. While many conventional lenders offer standard business loan interest rates, often measured as an annual percentage rate (APR), merchant cash advances tend to use factor rates. To calculate the total cost of borrowing with Reliant Funding , multiply the balance by the factor rate.
Let’s say you qualify for the lowest factor rate of 1.20 and borrow $10,000. Your repayment would look like this:
$10,000 (loan amount) x 1.20 (factor rate) = $12,000 (total loan amount)
All contracts come with a prepayment discount, with factor rates as low as zero if you repay your debt early. However, you will likely have to pay additional origination fees, which vary based on customer and loan size.
Reliant Funding borrower requirements
| Minimum annual revenue | $48,000 |
| Minimum time in business | 3 months |
| Minimum credit score | No minimum |
You need at least $48,000 in annual revenue with a minimum 3 months business history to qualify for a merchant cash advance from Reliant Funding . While there’s no minimum credit score required to gain approval, boosting your credit score before applying could improve your chances of securing a competitive factor rate with more flexible repayment terms.
Reliant Funding ’s merchant cash advances are a type of unsecured business loan, meaning you don’t need to provide collateral and you may not have to sign a personal guarantee. Businesses in all 50 states are welcome to apply for an MCA with Reliant Funding .
Required documents
Reliant Funding doesn’t list the specific documents you will need when applying for business financing. However, you can be prepared by gathering the following common business loan requirements in advance:
- Business plan
- Recent bank statements
- Personal and business tax returns
- Accounts receivable aging reports
- Current profit and loss statement
Alternatives to Reliant Funding
| Reliant Funding | OnDeck | Fora Financial | |
|---|---|---|---|
| Minimum credit score | No minimum | 625 | 570 |
| Loan products offered | Merchant cash advances |
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| Time to funding | Same day | Same day | As little as 24 hours |
| Starting rate | 1.20 |
| 1.13 |
| Maximum loan size | $2,000,000 | $400,000 | $1,500,000 |
| Minimum annual revenue | $48,000 | $100,000 | $240,000 |
| Minimum time in business | 3 months | 12 months | 6 months |
Reliant Funding vs. OnDeck
Reliant Funding and OnDeck are both alternative lenders offering quick financing to early-stage startups or businesses with low to fair credit.
You can borrow more with Reliant Funding — up to $2,000,000 versus OnDeck’s maximum of $400,000. In addition, Reliant Funding has more lenient criteria, with no minimum credit score requirement and only 3 months business history and $48,000 in annual revenue to qualify, making it an ideal option for new startups. OnDeck, however, requires at least 12 months of operation with $100,000 in annual revenue and a credit score of 625 or higher.
If you want a traditional term loan or revolving line of credit, OnDeck may be the better choice. Meanwhile, Reliant Funding only offers merchant cash advances, which are notorious for charging higher rates and may require daily or weekly payments — which could strain your business budget. When comparing the two, it’s worth converting factor rates to APR to calculate the total cost of borrowing.
Reliant Funding vs. Fora Financial
Reliant Funding and Fora Financial are both solid choices for getting a merchant cash advance.
Fora Financial has a slightly higher minimum credit score requirement but offers a more traditional short-term business loan — potentially with more competitive rates and flexible repayment terms. Note that your company must operate for at least 6 months and generate $240,000 in annual revenue to qualify for either of Fora Financial’s products, while you only need a 3 months business history and $48,000 in annual revenue to qualify with Reliant Funding .
If you need a fast business loan, both lenders boast that they can deliver funds in as little as 24 hours, although there’s no guarantee you’ll receive funds that quickly.
Fora Financial’s MCA has a lower starting factor rate of 1.10 (taking into account early payback provisions), compared to Reliant Funding ’s 1.20. That said, you won’t know your actual rate until you submit an application with each lender.
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