SBG Funding Business Loans Review

Pros and cons of SBG Funding

SBG Funding small business loans review

SBG Funding is an online lender that provides a range of small business financing options to help you tackle business needs like marketing, inventory, expansions or seasonal dips in revenue. Since your company only needs to operate for six months to qualify for most products, it can be a great choice for those needing startup financing. That said, SBG Funding requires a minimum annual revenue of $350,000 — which is relatively steep compared to other startup lenders.

If you need a fast business loan, SBG Funding makes funding decisions within 12 hours, with funds hitting your bank account within the same or next business day. While the advertised starting rates look attractive, be aware that these are interest rates, not annual percentage rates (APR). This makes it hard to estimate the total cost of taking out an SBG Funding loan. Be sure to crunch the numbers before signing on the dotted line to see if your business can afford the estimated payments.

The good news is that SBG Funding doesn’t charge any prepayment penalties if you repay your debt early. In fact, you may be eligible for a prepayment discount with its bridge capital loan.

Additionally, SBG Funding has excellent customer reviews on TrustPilot and an A+ rating on the Better Business Bureau, with customers reporting that individual lenders went above and beyond with helping them secure financing.

SBG Funding small business financing at a glance

Here’s how the terms break down for SBG Funding’s financing option. Keep in mind that the interest rate here is monthly interest, not annual. That means that the interest percentage shown is charged each month, making it higher than an APR with the same number.

Term loans

SBG Funding offers business term loans up to $10,000,000 with terms ranging from 6 to 84 months. With a term loan, you receive the full amount in one lump sum and then make scheduled bi-weekly or monthly payments. Interest is charged on a monthly basis, starting at 1.75% per month.

Most lenders display their interest charged per year or as a total per-loan figure. If you’re comparing SBG Funding to other lenders, convert the interest rate to a yearly rate to get a fair comparison. Note that SBG Funding doesn’t list the full range of interest rates or the estimated APR.

In addition, SBG Funding doesn’t specify whether it charges additional fees, such as origination fees or late payment penalties.

Lines of credit

If you need ongoing access to funds, SBG Funding’s business lines of credit could be a good fit for you. Like a business credit card, you can withdraw up to your approved credit limit, repay the debt, then withdraw as often as needed — only paying interest on the withdrawn amounts.

SBG Funding’s line of credit goes up to $750,000 with revolving terms from 6 to 24 months. Monthly interest starts at 1.00% with weekly or monthly payments required.

Bridge capital loans

Commercial bridge loans provide short-term funds to cover essential business expenses while you wait to secure long-term financing. SBG Funding offers bridge capital loans up to $1,000,000 with terms ranging from 6 to 24 months. Monthly interest rates start at 1.92% with weekly or monthly payments required.

One perk to getting a bridge loan with SBG Funding is you may be eligible for a discount if you repay the loan ahead of schedule. However, if you don’t think you can keep up with the short repayment term, you might want to consider a long-term loan instead.

Equipment financing

If you need to replace, upgrade or purchase new equipment for your business, SBG Funding covers up to 100% of the equipment’s value with its equipment loan. Monthly interest rates start at 3.75% with repayment terms between 12 to 84 months.

With SBG Funding, the equipment acts as collateral to secure the debt. This means that if you fail to keep up with payments, SBG Funding can seize the equipment and potentially sue your business for any remaining balance.

Invoice financing

Invoice financing, also called accounts receivable financing, is when you use your business’s unpaid invoices as collateral to secure financing. SBG Funding allows you to pick specific invoices to qualify for financing, giving you more time to focus on your business while you wait to get paid.

You can receive up to 90% of the invoice’s face value, with interest starting at 0.25% a month and no specified repayment terms. Keep in mind that this is different from invoice factoring, which provides an advance for your unpaid invoices and then collects customer payments on your behalf.

SBA 7(a) loans

SBG Funding also provides SBA 7(a) loans up to $10,000,000 with interest starting at 10.25% Based on the current prime rate of 7.75% plus 2.5% added by SBG Funding and 24– to 120-months repayment terms. Since the Small Business Administration (SBA) guarantees a portion of these loans, SBA financing typically comes with low-interest rates, longer repayment terms and local assistance from SBA resource partners.

Note that SBG Funding has stricter eligibility criteria for its SBA 7(a) loans compared to its other products, requiring two or more years in business and a slightly higher credit score. Startups and low-credit borrowers may want to consider other options.

SBG Funding borrower requirements

SBG Funding’s business loan requirements are relatively similar between products, with the most significant difference between SBA and non-SBA loans. For instance, most of the financing options require at least six months of business history, whereas you need to operate for a minimum of two years to be considered for its SBA loan.

If you’re looking for bad credit financing, you might have better luck with SBG Funding’s line of credit, bridge loan, equipment or invoice financing. However, it’s worth boosting your credit score before applying to increase your chances of receiving the most competitive rates and terms.

SBG Funding requires $350,000 in minimum annual revenue, regardless of which financing type you want to get. Because of this, low-revenue startups may want to consider alternative funding options like crowdfunding or personal loans for business.

Required documents

When applying for a business loan with SBG Funding, you may need to provide the following information and documents:

• Four months of bank statements
• Identification (like a driver’s license)
• Voided check

Alternatives to SBG Funding

SBG Funding vs. Newtek

Newtek is another online lender offering large loan amounts with long repayment terms. While Newtek only offers three small business products compared to SBG Funding’s six options, you can borrow up to $15,000,000 more with Newtek’s term loan.

As an SBA-preferred lender, Newtek can often deliver funds quicker than standard SBA lenders. In addition, Newtek was ranked #1 in fiscal year 2024 for providing the largest SBA funding amounts nationwide. Meanwhile, SBG Funding has limited information about its SBA loans, such as how many loans are approved each year, average funding amounts and typical turnaround times.

It’s difficult to compare rates and eligibility criteria between the two lenders since Newtek doesn’t disclose any of this information in advance. You can apply to both and see which lender offers the better deal.

SBG Funding vs. Taycor Financial

If you want access to a wider range of financing options, Taycor Financial provides 10 loan products versus only six with SBG Funding. Taycor Financial also has more lenient eligibility criteria, making it an ideal option for low-revenue startups and borrowers with limited or poor credit. For example, you can get up to 100% equipment financing with Taycor Financial if you have a minimum credit score of 550 with no business history required. In comparison, SBG Funding requires a minimum credit score of 650 with at least six months of operation.

Funding speed between the two lenders is similar, with both offering quick approvals and delivering non-SBA loan funds within 24 hours. However, Taycor Financial is better for low-revenue companies, with no revenue requirements for several of its products. Meanwhile, SBG Funding requires a minimum of $350,000 in annual revenue for all of its financing options.

Although SBG Funding’s business loan rates appear lower than Taycor Financial, it’s hard to know which lender will offer the best overall rate since SBG Funding doesn’t list its upper ranges. In addition, some of Taycor Financial’s products are listed as factor rates instead of interest or APR, making it like comparing apples to oranges. If you can’t decide which lender is best for you, try applying to both and see which provides the best offer. Just be sure to convert all rates to one metric to ensure you pick the most competitive rate.