Reliant Funding Small Business Loans Review

What is Reliant Funding?

Reliant Funding is an online alternative lender based in San Diego, Calif. Since 2008, Reliant Funding has focused on providing short-term working capital to small businesses across the country via merchant cash advances. The company has provided more than $1 billion to more than 10,000 companies in the last decade. Reliant Funding merged with New York-based Merchants Capital Access in September 2017 and now has additional offices in Melville, N.Y. and New York City.

Compare small business loan offers

Lender highlights

Focused on speed. Reliant Funding advertises their application process takes less than 30 seconds and approval happens in one day. It’s common for online lenders to promise a quick application process and approval within 24 hours.

Several uses for short-term funding. Reliant Funding offers merchant cash advances, which are different from traditional loans. A merchant cash advance is a lump sum of money issued to you in exchange for a portion of your future sales. You could use a merchant cash advance from Reliant Funding to cover a variety of business expenses, including payroll, equipment, materials and more.

Many industries qualify. Reliant Funding serves a wide range of industries from health care to construction and transportation. The variety of industries served and the freedom to use capital for any expense are typical perks of many online lenders.

What Reliant Funding offers?

Reliant Funding provides short-term financing to small business owners seeking working capital.

Reliant Funding: At a glance
Funding product Funding amount Term APR range/ factor rate Fees Time to funding
Merchant cash advance $5,000 to $250,000* 6 – 12 months* Factor rate between 1.35-1.5 Origination fee of $499 for funding amounts up to $50,000; No origination fee for higher amounts (based on funding amount) 24 hours after approval

Rates current as of 10/31/2019

*Reliant Funding does not advertise the rates and fees associated with its products on its website. Terms accurate as of the date of publishing.

For merchant cash advances, Reliant Funding determines a fixed cost without compounding fees or accruing interest. To pay back the advance, you must agree to a daily bank-to-bank withdrawal from your business account.

Eligibility requirements

Funding product Annual revenue Min. Business Credit Score or Personal Credit Score Time in business
Merchant cash advance $100,000 in annual sales Not required 6 months

Credit history considered. Reliant Funding will review your credit history, but it is not a primary decision-making factor when it comes to approving your financing. Additionally, Reliant Funding does not require a personal guarantee or pledged collateral from most borrowers.

Businesses that are not eligible for Reliant Funding loans:

You may not be approved for financing from Reliant Funding if:

  • You’ve been in business less than 6 months.
  • Your business has an open bankruptcy.
  • Your business has a negative landlord reference.
  • You have significant judgments or liens against you without a plan to pay those off.

How to apply for Reliant Funding financing

You can apply online for a free, no-obligation quote from Reliant Funding. You must provide your contact information, number of years in business and gross annual sales. Reliant Funding advertises a simple application process with little paperwork needed.

Documents to apply

  • Six months of most recent bank statements


Pros Cons
  No restriction on use of funds   Merchant cash advance details not available on website
  No collateral or personal guarantee required   Substantial annual sales required
  Credit history not a deciding factor   Rates and fees may be higher than expected

Who is the best fit?

Reliant Funding works with businesses in several industries, customizing funding to meet specific industry needs. Here are the top fields the lender works with:

Fine print

Understand how factor rates work. Cash advances don’t have interest rates like loans. Instead, pricing of the advance is based on a factor rate. Here’s how that works. Say, the factor rate is 1.25. To calculate how much you would pay in total for a $10,000 loan, multiply the borrowing amount by the factor rate. That would total $12,500, meaning you would pay $2,500 in addition to paying back the $10,000 you borrowed.

Be aware of the riskiness of cash advances. Merchant cash advances are typically expensive products with fast repayment terms, making them dangerous to take on. You would owe the lender a portion of your daily credit card transactions, regardless of your sales volume, which could prevent your business from earning profits. Some business owners end up taking out another cash advance to cover the high fees of the original advance, sending them further into debt. Merchant cash advances could be more trouble than they’re worth. Consider all of your financing options before making a decision.

Financial stability required. While Reliant Funding doesn’t require you to make a fortune in sales, the lender does expect your business to bring in steady revenue. The six-month minimum for merchant cash advances indicates Reliant Funding prefers to work with business owners with some experience. While credit is not a deciding factor, Reliant Funding won’t approve a business owner who has filed for bankruptcy.

The bottom line: How Reliant Funding stacks up

Reliant Funding provides merchant cash advances as short-term financing solutions for business owners but offers little detail online. The funding amount ranges from $5,000 to $250,000 and could cover large and small expenses, but you may not know the total cost of your loan or cash advance until you go through the application process. The lack of readily available information could prove frustrating while shopping and could make it difficult to compare Reliant Funding to other lenders.

Despite the absence of product details, Reliant Funding does share its company history online and lists its leadership team, which is a common practice among reputable online lenders.

Compare small business loan offers