World Business Lenders
World Business Lenders is a leading small business lender in the U.S. We provide small businesses with the working capital they need when they need it. We are a direct lender, which allows us to make every small business the focal point for our loan decisions. Where a bank may deny a strong business based on an owner’s personal credit score, we look at the overall health of each small business using our own set of underwriting guidelines. We also arrange a wide array of unsecured and collateralized products for our customers as well. All we need to get started is a completed one-page application and 6 months of bank statements. Apply now with World Business Lenders, and receive funding of up to$2,000,000 in as little as 3 days.
WBL representatives were very persistent and very helpful. The funding process only took about three days. I had a great experience with WBL and they also gave hope to our fairly new company because its important to have a financial institution that can provide financing for my business now and in the future. Keep up the great work!!!
Established in 2011, World Business Lenders is a New Jersey-based lender that provides funding for small- and medium-sized business borrowers who can’t otherwise qualify for traditional loans. It offers short-term loans and brokers merchant cash advances, leasing and loans backed by the Small Business Administration. It can charge high interest rates and require real estate collateral.
Merchant cash advances. World Business Lenders offer merchant cash advances, a risky lending product. These are not loans, but rather the future purchase of receivables. Cash advances often are significantly more expensive than traditional loans and come with high fees and fast repayment schedules. Payments are typically made daily or weekly. In some cases, a struggling business may take out another advance to cover a current one, a practice known as stacking that can lead to a debt spiral.
Risky loans: To cover its risk exposure to borrowers with spotty credit history, World Business Lenders charges substantial interest rates, in one case up to 75% of the loan amount. It often requires loans to be secured by property and/or obtains personal guarantees. Borrowers must make daily or weekly payments directly from their bank accounts, which could result in a cash flow problem if sales are slow.
The lender offers very few details on its website about the types of lending products it offers. There is no mention of merchant cash advances, leasing or SBA loans, even though its press release notes these products. Attempts to contact the lender for more details were unsuccessful.
Instead, the website focuses only on short-term business loans that it offers. There is no minimum credit score, only a minimum of six months of business history. Payments can be made either daily or weekly. Loan sizes can be up to three times a business’ average monthly deposits.
|World Business Lenders: At a glance|
|Loan product||Loan amount||Loan term||APR range/ factor rate||Fees||Time to funding|
|Merchant Cash Advances||Not provided||Not provided||Not provided||Not provided||days|
|Short-term business loans||$5,000-$2,500,000||6 – 36 months||Varies*||Not provided||days|
Rates effective through 6/10/18
*The lender does not offer a range of interest rates on its website, but it has offered at least one $250,000 loan with a 75% interest rate. On its website, World Business Lenders says a borrower’s cash flow, payment history and financial strength are factors that help determine what interest rate it offers to a business.
Approvals are based largely on the revenue of the business and not the personal credit score of the owner. However, World Business Lenders does review the credit history of the business and owner to identify any current judgments, open bankruptcies, tax liens and other risk factors.
Other factors the lender considers on an application are the age of the business, revenue history and assets.
World Business Lenders does not provide loans to start-up businesses that have been operating for less than six months. The lender does not provide details on eligibility for its merchant cash advances.
You can apply by filling out the loan application online. You don’t need to provide personal or business financial statements, business plans, tax returns, credit card processing statements or financial projections. All that is required is the most recent six months of bank statements for the business.
The online application includes four forms. The first form collects information on your business including legal name, structure, federal tax identification number, industry, business address and phone number. The second form requests information on the business owner including marital status, Social Security number and driver’s license number. The third form asks for information on a co-applicant if there is one. The last form requests the funding amount and intended use of funds.
|Provides access to funding to borrowers who might not qualify for traditional loans.||Much higher interest rates than traditional banks.|
|Quick approval process.||Daily and weekly payments are required that could create cash flow problems.|
|Can use personal property as collateral||Personal assets could be at risk.|
Newer businesses that need money fast and can’t qualify for traditional- and cheaper loans – would be most likely to turn to the more expensive lending products offered by World Business Lenders.
This lender does not disclose the details of interest rates, factors, and fees – as well as other terms that are critical to know beforehand to evaluate the deal you are offered. Attempts to use the online chat with a support agent were unsuccessful and messages left by phone were never returned, so it’s difficult to get more information before submitting the online form. Make sure to read any offer carefully before signing up for a lending product from World Business Lenders.
World Business Lenders is one of a growing number of alternative lenders working with small- and medium-sized businesses that typically can’t qualify for traditional loans. But the money it provides can come with a hefty price tag. It’s important to always shop around and compare small business loan offers from different lenders to make sure you’re getting the best deal. Watch out for lenders that charge significantly higher interest rates than other lenders and fees that exceed 5% of the loan value.