The Business Backer Review

The Business Backer is an alternate lender that’s been in operation since 2007. It offers simple business loan options and has helped out more than 7,000 companies since it was founded.

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Table of Contents

    What loans The Business Backer offers

    The lender aims to keep the borrowing process simple and only offers three types of loans:

    • Purchase of receivables
    • Small business loans
    • Lines of credit

    While you’ll be borrowing directly from the Business Backer for purchase of receivables and small business loans, if you want a line of credit you’ll be funded by its partner lender, Headway Capital. 

    How The Business Backer works

    Rates and terms are different across each of the loan types, and they also work a little differently to more traditional loans.

    Full details below:

    Purchase of receivables

    • The Business Backer will purchase a share of your predicted future income. Most lenders limit this type of loan to just credit card sales, but you can borrow against all sales here
    • Factor rates start at 1.2. Meaning you’ll pay 1.2 times the value of the loan
    • Factor rates will go up the longer you borrow for, up to a maximum of 1.6
    • You’ll be charged an additional 3% purchase fee of the total borrowing amount
    • Borrow for up to 18 months
    • Maximum funding of $200,000

    Small business loans

    • Interest rates start at 1.6% which is calculated monthly
    • Borrow for between four and 18 months
    • Borrow up to $200,000
    • Draw fee of up to 3% of the total loan value

    Business line of credit

    • Interest rates start at 3.3% which is calculated monthly
    • Borrow for between 12 or 24 months
    • Borrow up to $100,000
    • An origination fee of up to 2%

    How do I qualify for The Business Backer?

    Qualification criteria will vary across each loan type, but typical requirements are:

    • Annual revenue between $50,000 and $180,000
    • A credit score of at least 550
    • Your business must have been in operation for at least one year

    The Business Backer Pros And Cons

    Pros

    • Get funding within 24 hours of approval
    • Transparent rates and fees
    • Discounts for early repayments

    Cons

    • Expensive fees
    • High factor rates on receivables loans
    • Relatively low borrowing limit

    How do I apply for The Business Backer? 

    Once you’ve completed the short online application form, and submitted your documentation, you can have funding in just 24 hours.

    Documents I need to apply for The Business Backer

    All you’ll need are your business bank account statements for the previous three months. Although if you run a seasonal business, it’s recommended you provide at least 12 months of statements.

    The Business Backer for bad credit

    While the lender has minimum credit requirements of 550, meaning it accepts those who fall into the poor credit category, it’s not a bad credit specialist lender.

    You might want to try another provider that can offer more help and guidance if you’re worried about your credit history.

    The Business Backer customer support

    You can contact the customer helpline between 8:30 a.m. and 5:30 p.m. ET. Or you can send your query via email if you prefer.

    Conclusion      

    The Business Backer has some low starting rates on its business loans, but the high origination fees and low borrowing limits might put a lot of people off.

    You could try OnDeck as an alternative. It offers fast funding and low rates but has a much higher borrowing amount of $500,000.