SmartBiz: Small Business Loans Reviewed and Explained

The concept for SmartBiz came from the 2008 financial crisis, where the major banks couldn’t adequately offer small businesses the funds they needed for growth and to help stimulate the economy.

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    When banks couldn’t fulfill small business loans, alternative lenders stepped in to charge high prices – so SmartBiz developed a solution to help these small businesses.

    Through the use of innovative technology, SmartBiz aims to solve the problem of small business funding. The small business loans offered by SmartBiz have long repayment terms, competitive APRs, and affordable monthly payments. SmartBiz loans are founded on a platform of technology that makes the process of enquiring about small business loans, and for banks to provide these to be, more cost-effective and quicker, making SmartBiz loans an attractive proposition for both parties. The SmartBiz loans strategy worked and means that banks are able to offer the most competitive small business loans, while the funds come with a lower cost to the small business and with higher approval rates to enable more people to have access to the small business loans that they need.  

    What is SmartBiz Loans?

    When considering looking into small business credit products – or SBA loans – it’s important to look into the company that would be providing you this product, which can be done through SmartBiz loan reviews. SBA loans work through the Small Business Administration who act as a guarantor on the loan should there be a default, but don’t actually provide the loan themselves. This guarantee means the bank can offer lower interest rates and more attractive repayment terms. SmartBiz SBA loans offer government-guaranteed SBA loans with a long term and smaller interest rate – as they know that the loan will be repaid, so the risk is lower. SmartBiz operate as an online marketplace of the best SBA loans for small businesses, isolating the best lenders as the Smartbiz loans reviews show. The marketplace contains many lenders with varying requirements for accessing their funds. The proposed small business can be matched up quicker with a bank more likely to offer SBA loans. Therefore, SmartBiz SBA loans are a faster alternative than trying bank after bank.

    How SmartBiz Works?

    While the repayment terms differ for each institution found on the SmartBiz marketplace, there is an imposed maximum amount that can be charged for SmartBiz loans. The SBA loans have variable interest rates and depend on the loan amount. There are two major types of SBA loans offered by SmartBiz – commercial real estate and debt refinancing or working capital loans. Each come with different SmartBiz loan requirements. The SmartBiz SBA loan reviews help to assess which kind of loan would be suitable for your business.  

    The SmartBiz loan requirements for commercial real estate range from borrowing $500,000 to $5million, with an interest rate of between 6.25% and 7.5%. The term can last around 25 years, with small businesses needing to pay referral fees (0.5%), packaging fees (0.5%), guarantee fees (2.25%-2.76%), and bank closing costs. The loan will be borrowed against personal guarantee and lien on the real estate. Commercial real estate loans are also subject to prepayment fees, ranging from 1% to 5% - though these fees are waived if prepayment occurs after the third year. While debt refinancing or working capital loans that fit the SmartBiz loan requirements offer between $30,000 and $350,000 with an interest rate between 7.5% and 8.5%. The term for the loan lasts around 10 years, and you will need to pay a referral fee (2%), packaging fee (2%), guarantee fee (1.75%-2.25%), and a bank fee. The loan will be borrowed against a personal guarantee and the assets of the business. There are no prepayment fees.

    How Do I Qualify?

    To determine whether you qualify for a SmartBiz loan, it depends on the type of loan you are wanting to procure. For all types of loans with SmartBiz, you must have no previous defaults on government-guaranteed loans. There is also access to a SmartBiz loans promo code to take into account when considering each loan and the fees involved. 

    For working capital and debt refinancing loans, your business must be for-profit. Your business cannot have tax liens or foreclosures or bankruptcies in the previous three years. You must be a US citizen or permanent resident. While specific income figures aren’t necessary, your business must prove it has the money coming in to be able to meet the loan payment criteria. You must have been in business for at least two years, with a personal credit score of at least 650 and a business credit score of at least 150. For commercial real estate loans, you must have been in business for at least three years, with a personal credit score of 675 and, once again, enough money to be able to make the repayment terms. The real estate you purchase must be 51% owner-occupied.

    There is a SmartBiz loans promo code available, which helps reduce some of the closing fees, while another SmartBiz loans promo code is available for those who spend $500 or more.

    Advantages and Disadvantages of SmartBiz Business Loans

    Advantages

    • Compare and contrast the best possible loans to save your business time and find the terms most suited to you.
    • Competitive rates for the loans.  
    • The term repayment length is long, giving you the best possible option for spreading out payments.  
    • The amount you can borrow is high yet has fewer requirements than some other lenders.  
    • Approval rates are high.   
    • Turnaround for loan approval is fast.

    Disadvantages

    • Businesses need to have steady income in order to meet the minimum loan repayment criteria per month.  
    • There are prepayment fees for some of the SmartBiz loans, covering the first few years of the term. 
    • Personal credit needs to be good.

    How Do I Apply?

    • Select the loan you need
    • Review loan terms and fill out your business information
    • If you’re approved, continue to complete application by providing information about yourself and your business’ finances
    • If you’re applying for a commercial real estate loan, accept a letter of intent so that you can start to negotiate the terms of your real estate deal
    • Carefully read your loan’s terms before signing the promissory note.
    • Wait for your funds to be disbursed.

    Documents Needed to Apply 

    • Income tax returns.
    • Personal financial statements.
    • Profit and loss statement.
    • Business debt schedule.
    • Proof of collateral.

    SmartBiz Loan for Bad Credit

    SmartBiz loans aren’t completely out of the question for those with bad credit. While the credit score needed to procure the loan needs to be good, there are some options with the SmartBiz online marketplace for those who have previous bad credit. A healthy credit score and business credit score and a lack of outstanding liens or previous defaults could remedy any past bad credit and allow you to be approved for SmartBiz loans. Check Smartbiz online to see if you would qualify.

    SmartBiz Customer Support

    There is a good FAQ section for SmartBiz for those looking for small business grants or small loans, which aims to answer any preliminary questions. There is also a connected email and phone customer support service for questions about small loans and small business grants that might not be present on the FAQs. Once the process is underway, each borrower is given a relationship manager to take them through the small business grants and small loans process. This level of customer support shows a commitment to ensuring their customers are fully looked after throughout the application and beyond.

    A Pivotal Asset for Small Businesses

    As other SmartBiz loans reviews will attest, SmartBiz loans are suitable for small businesses who have a good standing, good credit, and a healthy income in order to borrow extra. SmartBiz loans are more accessible and have a high approval rate due to the online marketplace feature of how loans are compared from various banks. SmartBiz loans review all cases and ensure you have access to capital at low rates to help your business grow.