Is US Business Funding Worth It To Try? A Review
US Business Funding has emerged as one of the leading financing providers for businesses in the U.S. They benefit companies with credit challenges or limited operational history. Business owners often ask if US Business Funding solutions are worth considering, how they compare to competitors, and whether US Business Funding Solutions is legit. A review of this lending company will answer those questions.
Overview of US Business Funding
Established in 2008, US Business Funding has since provided over $2 billion in funding to businesses across various industries. Accredited by the Better Business Bureau (BBB) and holding an AAA rating from the Business Consumer Alliance, US Business Funding also belongs to the National Equipment Finance Association. It offers a range of funding options to suit different business needs, including equipment financing, working capital loans, and SBA-backed loans.
US Business Funding’s key selling points are accessibility, competitive rates, and flexibility in working with companies with limited or poor credit history. Through its tailored financial solutions, US Business Funding makes borrowing accessible to businesses across all 50 states, offering loans that range from $10,000 to $10 million.
How Does US Business Funding Work?
The application process for US Business Funding starts with a straightforward, one-page form where business owners specify their funding needs. Once submitted, applicants receive a quote indicating potential rates and terms. Within minutes, applicants can receive a pre-qualification decision, with final approval taking longer based on the loan type.
US Business Funding representatives work with applicants to determine the best loan fit. Documents required vary depending on the loan type and may include bank statements, profit and loss statements, and personal or business credit scores. Once approved, funds are available for as little as 24 hours, especially for repeat clients. This speed makes US Business Funding attractive for businesses needing quick access to capital.
US Business Funding: Loan Options
The company offers three main financing products tailored to different needs. Each product serves a specific purpose, so business owners can choose the best option based on their goals and financial circumstances.
1. Equipment Financing
For companies needing new or upgraded equipment, US Business Funding offers equipment financing solutions. These loans cover various purchases, including office furniture, manufacturing equipment, software, and commercial vehicles. Available amounts range from $10,000 up to $10 million, depending on the business’s needs and financial profile.
US Business Funding offers several specific leasing options for equipment financing:
- Fair Market Value Lease: Offers low monthly payments with the option to either renew the lease or purchase the equipment when the lease ends.
- Dollar Buyout: Enables the business to lease equipment with the option to purchase it for $1 at the lease’s conclusion.
- Sales Lease Back: Allows business owners to sell existing equipment to US Business Funding and lease it back, freeing up capital for other uses.
These options are valuable for businesses needing high-value equipment with flexible payment structures, allowing them to retain cash for other expenses.
2. Working Capital Loans
Working capital loans offer funding for immediate business needs such as payroll, rent, or inventory. Unlike traditional bank loans, working capital loans from US Business Funding are structured as merchant cash advances, meaning the loan repayments come directly from future credit and debit card sales. This model suits businesses that rely heavily on credit and debit card transactions, providing them with flexible repayment terms.
One downside noted in some US Business Funding reviews is the potentially high repayment costs associated with cash advances, especially if sales volume decreases. However, the benefits include fast access to funds and minimal requirements regarding credit score or time in business, making it ideal for newer companies needing quick capital.
3. SBA Loans
US Business Funding also offers Small Business Administration (SBA) loans, with two main types: SBA 7(a) and SBA 7(a) Express. These government-backed loans offer competitive rates, long repayment terms, and higher borrowing limits. For instance, SBA 7(a) loans can offer up to $5 million with interest rates pegged at the prime rate plus a margin of 2.25% to 4.75%.
While SBA loans offer favorable terms, they also require substantial documentation, such as business and personal credit reports, balance sheets, and tax returns. The approval process may take longer, so SBA loans are best suited for companies that can afford a more extended application timeline.
Is US Business Funding Legit?
US Business Funding’s legitimacy can be confirmed through its BBB accreditation, AAA rating with the Business Consumer Alliance, and established reputation since 2008. Furthermore, Jora Financial’s acquisition of a significant stake in US Business Funding demonstrates industry confidence in the company’s practices and sustainability.
While no company is without its drawbacks, US Business Funding maintains a positive reputation for transparency, high approval rates, and fair lending practices. However, potential borrowers should be aware of the specific repayment structures, especially with merchant cash advances, which may carry higher repayment terms under certain circumstances.
Pros and Cons of US Business Funding
The advantages and disadvantages of US Business Funding provide a balanced view for potential applicants.
Pros
- Flexible Loan Options
- Fast Application Process
- Quick Access to Funds
- SBA-Backed Loans
- Equipment Financing Options
Cons
- High Repayment Terms for Merchant Cash Advances
- Longer Processing Time for SBA Loans
- Persistent Follow-Ups
Verdict: Is US Business Funding the Right Choice?
US Business Funding Solutions is a practical choice for small and mid-sized businesses that need fast, accessible funding. The company’s flexibility stands out, making it a good option for businesses that want quick capital without the strict rules of traditional bank loans. Companies with steady income streams may find value in the competitive rates and adaptable loan options, especially for equipment financing or SBA loans.
However, there are some things to consider. Merchant cash advances, while fast, come with higher repayment rates that could strain cash flow if sales slow down. Some business owners have also noted persistent follow-ups from representatives, which may feel a bit much.
Overall, if quick and accessible funding is what you’re after, US Business Funding is a strong choice. For businesses ready to manage variable repayment terms and looking for a reliable funding partner, US Business Funding Solutions offers a dependable option that’s worth considering.