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Know the Best Way to Get the Loan from SmartBiz

SmartBiz has streamlined and simplified SBA lending. SmartBiz does not directly issue loans — instead, it uses technology to match eligible applicants up with a lender in its network of preferred SBA bank lenders. SmartBiz can determine whether you will likely qualify for an SBA loan from one of its partners within a few minutes. SmartBiz and its partner banks participate in the SBA’s most popular loan program: the 7(a) business loan program.

While SmartBiz eliminates some of the undesirable elements of SBA loans, it can’t remove them all. Because the government backs SBA loans, SmartBiz still requires a fair amount of paperwork. Additionally, startups and businesses with poor credit are not eligible for borrowing. Despite the long process, SmartBiz is an excellent resource for merchants who want an SBA loan or even a non-SBA bank loan, which SmartBiz also offers.

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SmartBiz reviews from users of the service are overwhelmingly positive; if your business is eligible and you’re looking for a low-cost business loan, SmartBiz loans may be just the ticket.

Reasons to use SmartBiz

Business Technology - SmartBiz Loans

Inexpensive financing

It would be tough to beat the low rates of SBA financing from SmartBiz, which range from an APR of 6.73% to 10.29% for regular term loans and from 5.04% to 5.09% for commercial real estate loans. SmartBiz’s online platform makes the process less intimidating and cuts the application time significantly, from months for a traditional bank to as little as a week.

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Manageable financing for growth and other needs

Whether you’re looking to increase inventory, buy equipment or hire more employees, getting an SBA loan from SmartBiz can help you to grow your business. You get the funds you need on manageable repayment terms and at relatively low rates, which also potentially makes it a viable option for refinancing higher-interest debt.

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Low-cost financing for buying commercial real estate

Besides standard term loans, SmartBiz also offers 7(a) SBA-backed commercial real estate financing from $500,000 to $5 million. With low borrowing costs and no balloon payments, these loans are a good option for business owners looking to buy commercial real estate or refinance a commercial real estate loan. SmartBiz commercial real estate loans can’t be used for new construction. The APR for the loans, which have a 25-year term, ranges from 5.04% to 5.09%. Additional fees may apply depending on the property type and other factors, according to the lender.

For commercial real estate loans, at least 51% of the property you’re buying has to be occupied by and used by your business. SmartBiz says its partner lenders typically require a 15% down payment, although a 10% down payment “with additional collateral” could be acceptable.

There’s a prepayment penalty in the first three years of a 25-year commercial real estate loan. You must pay 5% of the loan amount if you pay back the loan in the first year, 3% in the second year and 1% in the third year. There are no prepayment penalties after the third year for the remaining life of the loan.

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Minimum qualifications for SmartBiz’s commercial real estate loan:

  • 675+ personal credit score.

  • At least two years in business.

  • $50,000+ in annual revenue.

Marketplace matches borrowers to lenders

SmartBiz’s platform is a marketplace in which your application is evaluated against the credit requirements of SBA preferred lenders; it currently has eight bank partners. The advantage, the company says, is that it can match you to the bank best suited to your needs, boosting your chances of getting approved.

SmartBiz also offers a free online tool, called SmartBiz Advisor, that shows your probability of loan approval and advice on how to increase your approval odds. The tool provides personalized insight into factors used by lenders to evaluate your business, such as its debt coverage, debt usage and business revenue trends.

How to Qualify for a SmartBiz Business Loan

What Are SBA Loans & How Do They Work? A Guide For Small Businesses

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Business loan applications are approved or declined based on a number of factors. All lenders have their own unique underwriting requirements, but these typically include information from an applicant’s credit profile and other factors that demonstrate the ability to repay the loan, such as business revenue. Meeting the requirements below won’t guarantee approval, but they can help you decide if a business loan is the right fit for you.

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Personal Credit Score

SmartBiz requires a minimum personal credit score of 660 to qualify for a business term loan. Business owners applying for SBA loans must have a minimum score of 650 for an SBA 7(a) loan and 675 for a commercial real estate loan. These requirements may be slightly higher than other lenders.

Time in Business

Businesses must have at least two years of history to qualify for an SBA or business term loan. Some lenders, such as those that offer startup business loans, may only require a minimum of six months of business history to qualify.

Annual Revenue

Although SmartBiz does not disclose its minimum annual revenue requirements, most businesses that qualify for a SmartBiz loan have more than $100,000 in annual revenue.

SmartBiz SBA loan requirements

Whether you are applying for an SBA loan or a term loan, there’s just a single application to fill out. In three simple steps, you can start the process toward getting matched with a lender that’s most likely to approve you. In five minutes, the SmartBiz platform can see if you prequalify for up to $350,000. According to SmartBiz, about 90% of the applications it refers to banks in its network are approved. Here’s the three-step process:

Step 1

Choose what you will do with your loan proceeds. The two choices are to grow your business/refinance an existing debt or purchase/refinance commercial real estate.

Step 2

Indicate how much you want to borrow, $30,000 to $350,000 for working capital loans and $500,000 to $5,000,000 for commercial real estate loans.

Step 3

Provide personal information, such as your name, email address, phone number and business name.

After these simple steps, you’re on your way to finding out if you prequalify. There is no effect on your credit score.

If you’d rather apply over the phone, you can call SmartBiz at (844) 256-6541 from 7 a.m.- 5 p.m. PST Monday through Friday, or from 8 a.m.- 5 p.m. PST on Saturday.

SERVICES OFFERED

SBA LOANS

SmartBiz offers two main types of  SBA-guaranteed installment loans through its bank partners: SBA Working Capital & Debt Refinancing Loans, aka 7(a) loans, and SBA Commercial Construction Loans.

NON-SBA BANK TERM LOANS

In addition to SBA loans, SmartBiz also offers non-SBA bank term loans to small businesses through some of its partnered banks. Though these loans have somewhat higher costs than SBA loans, they could be suitable for businesses that don’t qualify for an SBA loan or businesses that need their loan faster. Non-SBA SmartBiz loans are typically deposited within three to seven days compared to two to six weeks with SBA loans.

CUSTOM FINANCING

If you don’t qualify for an SBA loan or a non-SBA bank term loan, SmartBiz also offers custom financing. This type of funding is ideal for startup businesses, businesses that don’t meet the requirements of SmartBiz’s other funding options, or businesses that need cash fast.

The SmartBiz team will work with you to find the right funding type, with options such as equipment loans, invoice factoring, business credit cards, lines of credit, and merchant cash advances.

BORROWER QUALIFICATIONS

Eligibility varies depending on the loan you’re interested in. You need at least two years in business and fair to good credit for SBA loans and non-SBA bank term loans. If you don’t meet these minimum requirements, you can reach out to SmartBiz to learn more about custom financing options.

 

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