SBG Funding is an online lender and offers short-term business loans, business lines of credit, PPP loans, bridge capital, equipment financing, and other loan programs for small businesses.
You guys may know, we already reviewed more than 5+ online lenders around the USA. Today we are going to review SBG Funding. We will explain all the pros and cons, loan programs they offer, interest rate, payback terms, how to apply, and more. And it will help you to decide should you take a loan from SBG Funding or not.
Upsides Of SBG Funding
Like other lenders, SBG Funding has some upsides and downsides as well. Let’s have a look at the pros of SBG Funding.
1. Fast Approval
Sometimes it is like a blessing to get a business loan on the same day. SBG Funding offers same-day business funding with 6 months to 5 years term. And you can get up to 5 million in funding for your business. You just need to apply for the loan program and submit some basic paperwork to get funded. If everything is fine they can fund you on the same day.
2. Easy Qualification
To get a traditional loan you need to submit a lot of paperwork and must have a good credit score. But if you want to get loan approval for your small business from SBG Funding, you don’t need to submit a lot of paperwork. You just need to show your last 6 to 12 months’ bank statements, driving license, and other basic paperwork. And if you have a 500+ fico score and a $150000 annual revenue you are good to go.
3. Great Customer Support
The SBG Funding has a great underwriting team. I will say they are always ready to explain what you want to know about them or the loan program. If you don’t understand how to apply or how does the loan program works they will assist you.
4. Bi-weekly and Monthly payment options
Most online lenders don’t have monthly and bi-weekly payment options. And it is really hard to pay loans daily or weekly. And if you are looking for a lender who offers monthly and bi-weekly payment options then you can take a look at SBG Funding.
5. No Upfront fees or Pre-payment
Another best part of SBG Funding is to get a business loan approval you don’t need to pay any upfront fees or no pre-payment needed. That’s really cool. It is also similar to Credibly Business funding.
6. Second Position Funding and Refinance
If you have an existing loan then it is not easy to get approval for new business funding. But in our review, we can see SBG Funding is like a high-risk lender. If you are looking to refinance or pay off your existing loan they can help you out. You just need to talk to their underwriting team and explain what you need.
Downsides Of SBG Funding
When you know all the pros and cons of a product or service it helps you choose the right thing. And we all know that all online lenders have upsides and downsides as well. So let’s have a look at the cons of SBG Funding.
1. No for all industries
The first thing I didn’t like about SBG funding is they don’t have a loan program for all industries. The loan program is available only for Construction, Manufacturing, healthcare, HVAC, restaurants, automobile service, retail, veterinarian, trucking and transportation, beauty, and wellness business. So if you are a real state business owner or out of any of them they are not going to qualify you.
2. Minimum Revenue Required
We know small businesses don’t have much monthly deposit or annual revenue. Most of them have a monthly deposit anywhere between 5 thousand to 12 thousand USD. But if you get approval from SBG Funding you must have $150000 or more annual revenue. I think for the small business owners it is quite hard to make 150 thousand a year.
3. Shorter Term
Most of the small business funding company offers shorter term. And their term is anywhere between 6 to 18 months. Sometimes they can go up to 24 months. Though SBG funding says they have 5 years term loan I think it is not 100% right. But maybe possible.
4. A Good FICO score required
FICO score or personal credit score is a big issue when you are going to apply for a loan program. If you search online almost all online lenders say bad credit is not a factor. But I think it is a big factor for getting a better rate and terms. But at the end of the day the better your personal credit score, the better the interest rate and terms you will get.
5. Extra Fees
As SBG funding has partner programs and the loan program done online. Then you have to pay some extra fees like processing fees, broker fees, and more. So, at the end of the day, it could be an expensive loan program for you. But if you need urgent then it is not a big deal.
SBG Funding’s Lone Programs
SBG Funding has multiple financing options. But their main loan program is MCA or merchant cash advance. Small Business Term Loan is basically merchant cash advance. Besides it, the following loan programs are available at SBG Funding:
- Small Business Term Loan
- Business Line Of Credit
- Bridge Capital
- Equipment Financing
- Invoice Finance
SBG Funding PPP Loan
Besides the loan programs we mentioned above, in this Covid situation, SBG also offers PPP programs for small business owners. To get a PPP loan you must have 300+ employees and must show a 25% or greater drop in revenue in any quarter of last year.
Qualifications for the loan programs are quite simple and easy. First of all, you don’t need to submit a lot of paperwork and no collateral is needed. But if you want to get a business loan with a better rate and terms you must have a good background like a good personal credit score and a good amount of monthly deposit into your business checking account. Besides no negative days, settlement with the previous lending company is also important to get a better offer.
SBG Funding Interest Rate And Payback Terms
The lending institute claims the interest rate starts from 1.75% a month. But SBG Funding’s interest rate is anywhere between 15% to 40%. And payback term is anywhere between 6 to 24 months. Sometimes it could be a little more or less.
How To Appy To SBG Funding?
It is easy to apply for a business loan to SBG Funding. You just need to visit their official website and you will see a apply now button. Just click apply now, select how much fund you need, and put some of your basic personal and business information. One of the loan guys will call you or assist you via email. Or you can directly call them.
Customer Service and Support
When you come to loan programs customer support is one of the big issues. SBG Funding did a good job here. They have great customer care support. If you want to know about their programs or need any kind of help to submit a loan application they will assist you. When we called them we found the customer relationship officer and loan manager are really helpful and friendly.
If you want to be a broker then SBG could be a good option for you. They offer partner programs. Just apply for partner programs and find out who is looking for money. Just introduce your merchants with SBG funding they will fund your clients and you will get your commissions. For more details, you should talk to them. Read more on how to start a merchant cash advance business.
Like other online lenders, SBG Funding is also expensive. But if you really looking for quick money for your business and looking for hassle-free business funding solutions then you can go ahead and work with SBG Funding.