Accion Review

Accion is a nonprofit lender that began life back in 1961 as a micro-lending specialist based in Venezuela. It arrived in the US in 1991 and has since lent more than $500 million to 60,000 businesses across the country.

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    What Loans Accion offers

    The lender only has one type of small business loan on offer. It’s focused on making the process as simple as possible in order to help out smaller organizations that might be intimidated by the wealth of choice offered by other lenders. It has also partnered with different city and state authorities across the country and offers related products specific to local regions.

    For example, if you live in Illinois or Indiana, you’ll get access to emergency payroll loans, while those living in New York State get lower starting interest rates than others. You can check out all the local offers on the website.

    How Accion works

    Outside of specific local loan offerings, you’ll find the following standard terms available nationwide:

    • Borrow between $300 and $1 million
    • Interest rates between 7% and 34%
    • Repayment terms up to 25 years
    • Origination fees between 2% and 6%

    While many alternative lenders pride themselves on getting money to you as quickly as possible, Accion is slower than most, with the whole process taking around two weeks. This is because multiple factors are taken into consideration to gauge your eligibility, which slows down the process.

    How do I qualify for Accion?

    • You’ll need a minimum credit score of 575
    • There are no limits to how long you’ve been in business. Startups are welcome, but you’ll need to evidence an additional income stream
    • There are no revenue limits, you just need to evidence you can meet your monthly payments
    • You must have had no bankruptcies in the last 12 months

    Accion Pros And Cons

    Pros

    • Long loan terms available
    • Multiple factors are considered when determining your eligibility
    • Up to $1 million in funding available

    Cons

    • Potentially high interest rates
    • High origination fees
    • Lengthy application process

    How do I apply for Accion? 

    You’ll start by filling out the online application form, which can be completed in around 10 minutes. You’ll then be contacted by an Accion representative within two business days to discuss your specific lending needs. They’ll run through options, requirements, and documentation with you, and the whole process generally lasts two weeks before you receive your funding.

    Documents I need to apply for Accion 

    This will vary depending on your application. Your assigned customer representative will discuss specific documents needed based on your application. You should typically expect to provide business bank statements and proof of ID.

    Accion for bad credit

    The lender doesn’t have the lowest credit requirements on the market, but it does state that it will go out of its way to find other ways to assess your application using criteria other than your credit rating. However, there are firm requirements on past due debt payments so it might not be the best option if you’re struggling with bad credit.

    Accion customer support

    You can get in touch via a customer service helpline.

    Conclusion

    If you’re a startup, or have a limited credit history, Accion could be the right choice for you. However, the lengthy application process and high interest rates mean it certainly won’t be for everyone.

    You instead might want to try a loan introduction service like Fundera. It can put you in touch with multiple lenders that offer a wide range of products to help out startups.