SmartBiz Business Loan Review
Janet Schaaf is a freelance writer, editor and proofreader who considers reader advocacy to be her calling. After taking a few roads less traveled, Janet completed a bachelor’s degree in English Literature from the University of Missouri-Kansas City, with English Department Honors. She has been correcting grammar and checking facts since she could string a sentence together. For the past three years, Janet has focused on making personal finance topics understandable and relatable. Loan terms and credit card agreements can look overwhelming, but understanding what you’re agreeing to is paramount in grasping the impact debt can have on your life.
 | Estimated interest range: Starting rates of 9.99% to 11.25% depending on product Best for: Businesses who don’t mind paying extra fees to save time researching individual lenders on their own |
Pros and cons of SmartBiz
| Pros | Cons |
|---|---|
Relatively low minimum annual revenue requirements Option for 2% interest rate deduction if you opt for prepayment penalty, but penalty can be avoided by not paying off your loan early Fairly competitive starting rates | Packaging and referral fees, even on products like term loans Borrowing capped at $500,000 Possibility of securing cheaper financing by applying directly through partner lenders |
SmartBiz small business loans review
SmartBiz is a platform that partners with banks and other financial institutions to offer small business loans, like term loans, SBA 7(a) loans and business lines of credit. While SmartBiz may be quicker and more convenient than traditional and online lenders, you might end up paying more in extra fees for its speedy services.
Who is SmartBiz for?
- Those who don’t like comparing lenders on their own. SmartBiz’s primary value is that it shops around for the best offers for you. You’ll pay an extra fee for this service through its packaging and referral fees, which can range from 2% to 6%.
- Those needing to borrow less than $500,000. The max loan you can secure through SmartBiz is currently capped at $500,000.
- Those with lower annual revenue. SmartBiz’s minimum annual revenue requirement of $50,000 for SBA loans is notably low.
SmartBiz small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated interest range | Fees |
|---|---|---|---|---|
| Term loans | $50,000 to $300,000 | 24 to 60 months | Starts at 9.99% fixed |
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| SBA 7(a) loans | $50,000 to $500,000 | 120 months | 11.25% to 15.00% variable |
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| Lines of credit | $50,000 to $100,000 | 12 months | SOFR + 9.99% to 29.99% |
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Term loans
SmartBiz can connect you with banks and other financial institutions that offer term business loans between $50,000 and $300,000, ranging from 24 to 60 months. Interest rates are fixed, with rates as low as 9.99%.
Term loans come with packaging and referral fees of 3.00% each. The partner lender you end up borrowing money from may charge additional fees, like closing costs.
There is an option to get an interest rate deduction of 2%, but to get it you’ll have to take on a prepayment penalty of 5%. This option is best for those who don’t plan to pay their loan off early.
SBA 7(a) loans
SmartBiz partners with lenders offering SBA 7(a) loans, the flexible, general purpose loan partially guaranteed by the U.S. Small Business Administration (SBA). Although 7(a) loans can come with fixed or variable business loan interest rates, the SBA loans offered through SmartBiz appear to come with variable interest rates, currently 11.25% to 15.00%. You can borrow between $50,000 and $500,000. At this level of borrowing, there are no additional SBA fees.
You might incur fees from SmartBiz’s partner banks, such as a one-time packaging fee up to $2,500, and closing fees somewhere around $450. These fees are usually added to your total loan amount, so they can be financed.
Lines of credit
If you need fast access to revolving funds, SmartBiz now offers a business line of credit to use for a variety of working capital expenses. Credit lines range from $50,000 to $100,000, allowing you to borrow up to the credit limit as often as needed. Interest rates are based on the Secured Overnight Financing Rate (SOFR), plus 9.99% to 29.99%, although you only pay interest on the amounts you use.
A SmartBiz line of credit will incur a one-time 6.00% origination fee, a $750 flat-rate for closing costs and standard wire fees as applicable. However, you won’t have to pay any maintenance or withdrawal fees once the account is up and running.
SmartBiz borrower requirements
While SmartBiz is relatively transparent about its SBA loan requirements, it doesn’t disclose all requirements for term loans and lines of credit. If you’re interested in working with SmartBiz, contact them to discuss the full range of business loan requirements.
| Minimum annual revenue |
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| Minimum time in business |
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| Minimum credit score |
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Required documents
SmartBiz uses one fast and simple application process to help pair you with the right lender for your needs. While the required paperwork will vary by loan type, here are some standard documents you can expect to provide when applying for a small business loan:
- Business plan
- Profit and loss statement
- Personal and business tax returns
- Personal financial statement
- Projected financial statements
- History of past loan applications
- Personal résumés for each principal owner
- Collateral details, if needed
- Business licenses and permits
- Any business leases, if applicable
Alternatives to SmartBiz
| SmartBiz | Funding Circle | TD Bank | |
|---|---|---|---|
| Minimum credit score |
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| Not publicly shared |
| Loan products offered |
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| Time to funding | Two days for line of credit, seven days for SBA loans | 48 hours for term loans, one to two months for SBA 7(a) loans | Not disclosed |
| Starting interest rates |
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| Maximum loan size |
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| Minimum annual revenue |
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| Not disclosed |
SmartBiz vs. Funding Circle
Like SmartBiz, Funding Circle can refer you to partner lenders to help you get term loans, SBA 7(a) loans or business lines of credit. If you want higher loan amounts, Funding Circle provides up to $500,000 for its SBA 7(a) loan, while SmartBiz caps its SBA lending at $500,000. Both lenders can complete a term loan’s application and funding process in as little as 48 hours, but SmartBiz can provide quicker turnaround times for SBA loans — an average of seven days compared to Funding Circle’s one- to two-month timeline. Note that Funding Circle has dramatically higher minimum annual revenue requirements, making SmartBiz a better choice for companies with lower annual revenues.
SmartBiz vs. TD Bank
If you prefer to work with a traditional bank, consider TD Bank for your business financing needs. It offers more products than SmartBiz with higher funding amounts, plus no limit on your first SBA 504 loan. Since TD Bank offers its loans directly, you’ll only find packaging fees on SBA 7(a) loans, which can be waived if you maintain an active TD Bank business checking account. However, TD Bank is not extremely transparent about underwriting requirements or potential interest rate ranges. The best way to find out if you qualify based on your annual revenue and credit score is to apply. You can then compare the offered rate and term to your offer from SmartBiz to see which lender can provide the best deal for your business.