Reliant Funding Business Financing: 2023 Review
Starting factor rate: 1.10
Best for: Business owners who have relatively small borrowing needs, but require a quick turnaround time.
Pros and cons of Reliant Funding
Reliant Funding’s rates are fairly competitive, even if merchant cash advances tend to be an expensive way to borrow
Low minimum time in business and annual revenue requirements
Quick time to funding
Origination fees waived for those with military affiliation
Only available product is merchant cash advances
Website is confusing and makes it look like Reliant Funding offers more products than it actually does
Lack of transparency regarding origination fees
Relatively low maximum borrowing amount
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Reliant Funding review
Reliant Funding is an online-only lender that has been issuing merchant cash advances since 2008. Based in San Diego, the company has helped over 10,000 small businesses secure over $3,000,000,000 in financing. Borrowing via a merchant cash advance is expensive, but Reliant Funding has competitive rates and quick turnaround times – even if the maximum amount you can borrow is relatively low.
Who is Reliant Funding for?
- Business owners who are willing to pay a premium for emergency funding. Reliant Funding only offers merchant cash advances, which are an expensive but quick way to access funding. Applications can be approved within hours, with funding available within 24 hours of approval.
- New businesses with relatively low annual revenue. While producing $60,000 in annual revenue is nothing to scoff at as a new business owner, this minimum annual revenue requirement is low when compared to Reliant Funding’s competitors.
- Small business owners with military affiliation. Borrowers with current military affiliation or veterans are eligible to have origination fees waived.
Reliant Funding small business financing at a glance
|Product||Loan amounts||Repayment term||Starting factor rate||Fees|
|Merchant cash advance||$5,000 to $400,000||3 to 15 months||1.10||Origination fee varies by customer and loan size.|
Merchant cash advance
When you take out a merchant cash advance, you’re borrowing against your own future credit and debit card sales. Terms are much shorter than other lending products at just 3 to 15 months, and payments with Reliant Funding are due either daily or weekly depending on the terms you are offered.
This lending product is much more expensive than a traditional business loan. Where traditional loans charge interest rates, often measured as an annual percentage rate (APR), merchant cash advances tend to come with factor rates. To figure out how much you’d pay Reliant on top of the principal, you’d take the balance and multiply it by the factor rate.
For example, if you qualify for the lowest factor rate of 1.10 and borrowed $10,000, your equation would look like this:
$10,000 x 1.10 = $11,000
You’d owe Reliant Funding $10,000 for the principal, and an extra $1,000 per the factor rate.
Waiver of origination fees
Most people will also have to pay origination fees, though Reliant Funding does not disclose how much those fees are except that they can vary based on your credit profile and loan size.
However, the origination fee can be waived if you are a military member or veteran. In order to qualify, the business has to be at least 50% military-owned. You will need to provide proof of military affiliation with one of the following documents:
- Military ID
- VA ID issued for healthcare
- Drivers license with Veterans designation
- State-issued Veterans ID card
- Veterans group membership card
If you were dishonorably discharged, you do not qualify for the origination fee waiver.
Reliant Funding borrower requirements
|Minimum annual revenue||$60,000|
|Minimum time in business||6 months|
|Minimum credit score||525|
To qualify for a merchant cash advance from Reliant Funding, you will need at least $60,000 in annual revenue with at least 6 months of business history. The minimum credit score requirement is 525, but the higher your credit score the more likely you are to qualify for advantageous factor rates and terms.
There is no collateral required for Reliant Funding’s merchant cash advances, but you aren’t likely to be approved if your business has an open bankruptcy. Reliant Funding lends in most of the U.S., but cannot lend to businesses based in North Dakota, South Dakota and Vermont.
When you apply for a Reliant Funding merchant cash advance, you will need to provide your bank account information along with the three most recent statements.
You should also be prepared with:
- Your driver’s license information
- Contact information
- Number of years in business
- Gross annual sales
Alternatives to Reliant Funding
|Reliant Funding||Elevation Capital||Fora Financial|
|Minimum credit score||525||500||500|
|Loan products offered||Merchant cash advance|| |
|Time to funding||As soon as next day||As soon as next day||Up to 3 days|
|Starting factor rate||1.10||1.12||1.10|
|Maximum loan size||$400,000||$3,000,000||$1,500,000|
|Minimum annual revenue||$60,000||$150,000||$60,000 in credit card sales or $144,000 across all transaction types|
Reliant Funding vs. Elevation Capital
Merchant cash advances have higher starting rates at Elevation Capital when compared to Reliant Funding, but you can borrow far larger amounts of money — $3,000,000 compared to just $400,000 at Reliant Funding. While credit requirements are lower at Elevation Capital, you will need more than double the annual revenue in order to qualify. Ultimately, the decision between the two comes down to your annual revenue and the amount you need to borrow.
Reliant Funding vs. Fora Financial
While both Reliant Funding and Fora Financial have identical starting factor rates, Fora Financial allows you to borrow significantly more with lower minimum credit score requirements. If you process at least $60,000 of your sales via credit card, annual revenue requirements are equivalent, but if you bring in revenue via other forms of payment, the minimum at Fora Financial jumps up to $144,000. Another factor to take into consideration is the time to funding — Fora Financial can take up to three days after your application is approved, but Reliant Funding only takes one day.