Shield Funding Business Loans Review
 | Rate range: 4.00% to 49.00% Loan amounts: $5,000 to $1,000,000 Our Verdict: Shield Funding’s low minimum credit score and time in business requirements make it an ideal choice for startups and bad credit borrowers, but rates vary widely, so you may want to compare loan costs with other offers. |
Pros and cons of Shield Funding
Pros
- One application for multiple loan types
- No application fees or prepayment penalties
- Loans may be funded as soon as the same day you apply
Cons
- Confusing website structure with unclear financing options
- Collateral and/or personal guarantee may be required
- Some loan options may require daily or weekly payments
Shield Funding small business loans review
Shield Funding is a marketplace lender that connects business owners with direct lenders to find the best small business loan for their needs. You can fill out Shield Funding ’s form online or over the phone, and your business will be considered for a variety of loan products, including term loans, lines of credit and merchant cash advances.
Both secured and unsecured financing options are available, though higher credit scores are required for unsecured loans and loans may require a personal guarantee. Depending on the loan type and amount, borrowers may be able to receive their funds as soon as the same day they apply, though it could take up to five or more business days in some cases.
Overall, Shield Funding has good ratings, with many customer reviews highlighting the ease, speed and level of service provided. The lender is rated 4.9 out of 5 stars on TrustPilot and has an A rating with the Better Business Bureau.
Note that while Shield Funding offers financing in all 50 states, it operates under the name Ascendancy Corp. West in the state of California.
- Business owners with bad credit. Shield Funding offers term loans and cash advances for borrowers with credit scores as low as 500, making this a viable option for business owners who don’t meet credit criteria elsewhere.
- Early-stage startups. While many lenders require businesses to be in operation for at least a year to be eligible for financing, Shield Funding only requires a four-month business history.
Shield Funding small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated rate range | Fees |
|---|---|---|---|---|
| Business term loans | $5,000 to $1,000,000 | 3 to 36 months | 12.00% to 45.00% | Not disclosed |
| Business lines of credit | $5,000 to $1,000,000 | 3 to 36 months | 4.00% to 25.00% | Not disclosed |
| Merchant cash advances | $8,000 to $1,000,000 | 3 to 36 months | 12.00% to 49.00% | Not disclosed |
Term loans
Shield Funding advertises multiple types of small business loans, including short-term loans, same-day loans and unsecured loans. These are all types of term loans, and the funds can be used to cover a variety of business expenses — Shield Funding claims there are no restrictions. Loan amounts range from $5,000 to $1,000,000, though same-day loans require a minimum loan amount of $10,000 or more.
Repayment terms typically span from 3 to 36 months. However, loans for borrowers with bad credit may be limited to 18-month terms and borrowers with scores below 600 may need to provide collateral — in addition to a personal guarantee — to secure financing. Interest rates start at 12.00% but can reach as high as 45.00%.
Lines of credit
If you’re looking for a more flexible form of financing, Shield Funding also offers business lines of credit, which allow you to borrow money as needed up to a predetermined amount. As you pay down your balance, your credit line replenishes, allowing you to borrow again and again.
Be aware that while the website states that all funding programs go up to $1,000,000, Shield Funding notes that most lines of credit are $250,000 or less.
Rates for lines of credit are lower than term loans, with a starting rate of 4.00% and a maximum of 25.00%. However, you’ll need a stronger credit profile to qualify. Shield Funding’s business lines of credit require a minimum credit score of 660 or higher.
Merchant cash advances
If you have less-than-perfect credit, you can also consider Shield Funding’s merchant cash advance, which allows you to borrow against your future debit and credit card sales. This form of financing might be ideal for seasonal businesses, as instead of fixed payments, you’ll repay your borrowed funds with a percentage of your sales — meaning the cost of your payments will fluctuate alongside your business revenue.
Merchant cash advances are available from $8,000 to $1,000,000, though the exact amount you’re able to borrow will depend on your business revenue and other factors. Rates start at 12.00 but can go up to 49.00%, making this the most expensive option offered by this lender.
Shield Funding borrower requirements
| Minimum annual revenue | $120,000 |
| Minimum time in business | 4 months |
| Minimum credit score |
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To get a business loan from Shield Funding, you’ll need to meet the lender’s loan requirements, and the exact requirements depend on the loan type. For example, term loans are offered to borrowers with personal credit scores as low as 500, but lines of credit require a minimum score of at least 660. Regardless of the type of financing you’re interested in, you’ll need to be in business for a minimum of four months with $120,000 in annual revenue to qualify.
Depending on your creditworthiness, you may also need to provide collateral to secure a loan. And though some loan options are marketed as unsecured, all loans typically require a personal guarantee.
Required documents
To get a quote, you’ll need to provide certain documents, including business bank statements for the last four months. Though Shield Funding does not disclose the full list of documents that might be required, its website states that very little documentation is needed, which can potentially expedite the application and approval process.
Alternatives to Shield Funding
| Shield Funding | OnDeck | Credibly | |
|---|---|---|---|
| Minimum credit score |
| 625 | 500 |
| Loan products offered |
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|
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| Time to funding | Same day to 5+ days | Same day to 3+ days | As soon as same day |
| Starting rates |
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| 1.11 factor rate |
| Maximum loan size | $1,000,000 |
| $600,000 |
| Minimum annual revenue | $120,000 | $100,000 | $180,000 |
Shield Funding vs. OnDeck
If you’re looking for fast funds to cover cash flow gaps or take advantage of a sudden business opportunity, business loans with Shield Funding’s partners can fund as soon as the same day you apply.
However, depending on the documentation required, you could be waiting as long as five business days for your funds, which may not be ideal for businesses with urgent needs. Because Shield Funding isn’t a direct lender, the funding timeline can also depend on which lenders you’re matched with.
By comparison, OnDeck offers lower maximum loan amounts (up to $250,000), but you might be able to receive your funds sooner. Term loans up to $200,000 are typically eligible for same-day funding when the application is submitted before 10:30am EST. In all other cases, funds will be deposited into your business bank account within two to three business days. While this is a slightly faster turnaround time than Shield Funding, keep in mind that the cost of borrowing may be higher.
Shield Funding vs. Credibly
Shield Funding could be a good choice for borrowers with bad credit, but there are other options to consider. Like Shield Funding, Credibly offers business loans and merchant cash advances for borrowers with credit scores as low as 500. Loans can be funded as soon as the same day with loan amounts up to $600,000.
That being said, you’ll need to generate more revenue (at least $15,000 a month) to qualify. It’s also worth noting that Credibly uses a factor rate to represent the cost of borrowing, which can make it harder to compare costs between lenders. To better compare loan offers, consider converting factor rates into interest rates.
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