Small business owners often need financial help, but finding the right business loan can be challenging. Small business loan marketplaces like AdvancePoint Capital offer unique solutions for businesses seeking funds quickly.
The service helps connect qualified businesses with a network of lenders providing various lending options. While AdvancePoint Capital provides a streamlined application process and quick funding options, it might not be the right fit for every business.
This review explores how AdvancePoint Capital works, including the available options, benefits, drawbacks, and application process to help you decide if it suits your financing needs. Specifically, we’ll answer these questions and more:
AdvancePoint Capital is a business loan marketplace that connects businesses with various lenders to help them secure funding. This service is not a direct lender, meaning it does not provide loans itself. Instead, it helps business owners find suitable financing options from multiple sources.
Founded in 2012, AdvancePoint Capital has supported many companies across the country. The company has helped over 7,500 small business customers access over $375 million in capital.
The process is simple. Business owners fill out an online application. Then, AdvancePoint matches them with suitable lenders based on their needs. This saves time and effort compared to searching for loans alone.
Many businesses benefit from this service, especially those that may struggle to get loans through traditional banks. Startups and small companies often find it challenging to secure funding. With AdvancePoint Capital, they can explore different options and see what works best for them.
AdvancePoint Capital is located in Cherry Hill, New Jersey, but it services small businesses nationwide.
AdvancePoint Capital offers various loan products through its lender network. These products aim to help small businesses meet their financial needs.
The application process is straightforward. First, businesses fill out an online form. After that, they submit the required documents, such as bank statements and tax returns. Lenders review these materials to determine eligibility.
Once approved, borrowers can choose their best loan option, and the funds are usually available quickly. Many borrowers receive money within 24 to 48 hours. This speed is beneficial for businesses needing urgent cash.
Here’s a breakdown of the small business funding products available through AdvancePoint Capital.
Business term loans are a type of financing that provides a fixed amount of capital to businesses for a specific period, usually with a fixed interest rate and regular repayment schedule. Businesses typically use business term loan funds to finance large purchases such as equipment or real estate, support expansion projects, or cover operational expenses during slow periods.
AdvancePoint Capital also offers short-term business loans, which are easier to access but typically come with higher interest rates and more frequent repayment terms. These loans have terms ranging from 6 to 36 months, providing businesses with quick access to funds for their immediate needs.
Business lines of credit are flexible financing options that allow businesses to borrow funds up to a set credit limit. This type of credit can be used for various purposes, such as managing cash flow fluctuations, covering unexpected expenses, or investing in growth opportunities. Businesses only pay interest on the amount they borrow, making it a cost-effective solution for short-term financial needs.
SBA loans are a type of funding to help small businesses start, grow, and expand. The federal Small Business Administration (SBA) partially guarantees these loans, reducing the risk for lenders and making it easier for small businesses to access capital. SBA loans typically have lower interest rates and longer repayment terms than traditional term loans, making them an attractive option for small business owners.
Additionally, SBA loans can be used for various purposes, including working capital, purchasing equipment or real estate, and refinancing existing debt. The application process for SBA loans can be more complex and time-consuming than other types of financing. Still, the benefits of lower costs and more favorable terms make it worth considering for many small business owners.
Equipment financing through AdvancePoint Capital allows businesses to acquire the necessary equipment without a significant upfront cost. This type of financing allows companies to spread out the payments over time, making it easier to manage cash flow.
AdvancePoint Capital offers flexible terms and competitive rates, making it a convenient option for businesses investing in new equipment or upgrading existing machinery. With quick approval processes and personalized service, the company streamlines and efficiently processes equipment financing for businesses of all sizes. Its website states that it can make a decision in seconds for requests under $10k.
AdvancePoint Capital offers a financing product known as business cash advances, which are also marketed as Revenue-Based Financing and Merchant Cash Advances. Despite the different names, these products essentially provide businesses with upfront cash in exchange for a percentage of their future sales.
The factor rate is one key aspect to understand when considering a business cash advance. It is a multiplier applied to the cash advance to determine the total amount the business will need to repay. For example, if a business receives a $10,000 cash advance with a factor rate of 1.3, it must repay a total of $13,000 ($10,000 x 1.3).
Businesses must carefully consider the factor rate when evaluating the cost of a business cash advance and ensure that they can comfortably make the required repayments based on their future sales.
Invoice financing, also known as invoice factoring, is a financial tool that allows businesses to access funds quickly by selling their outstanding invoices to a third-party company, known as a factor. The factor typically advances a percentage of the invoice amount (usually around 80-90%) to the business upfront, providing immediate cash flow.
Once the customer pays the invoice in full, the factor will release the remaining balance to the business minus a fee for their services. This fee is typically based on the total invoice amount and can vary depending on the terms of the agreement. Invoice financing is a popular option for businesses looking to improve their cash flow without taking on additional debt or waiting for customers to pay their invoices.
One drawback of AdvancePoint Capital is that it doesn’t provide minimum qualifications for any of the products available through its lender network. This may be because each lender sets its own criteria. The company encourages small business owners to apply to determine their eligibility.
Credit Scores: While it doesn’t publish a minimum credit score requirement, AdvancePoint Capital emphasizes the importance of personal credit when applying. The company suggests applicants should have good credit before applying.
Time in business: Again, it doesn’t provide any minimum time in business requirements but mentions this being an essential factor. AdvancePoint Capital points out that businesses younger than two years may have more difficulty qualifying for small business loans. Generally speaking, younger businesses have more access to alternative business funding products like merchant cash advances than more traditional business loans such as term or SBA loans.
Revenue: The company doesn’t provide any indication of minimum revenue requirements. However, revenue and cash flow are typically crucial in determining business financing eligibility. This is especially true for unsecured business loans, which have no collateral, and alternative revenue-based financing options.
Financial Documents: AdvancePoint Capital states business loan applicants must provide the following financial statements and documentation:
The company serves a wide range of industries across the US. Most small businesses can apply.
While it doesn’t provide interest rates for term loans or lines of credit, potential applicants can use loan calculators to estimate costs. However, the only way to get your loan rate is to apply and see your options.
As a business loan marketplace, you may receive multiple loan offers when you apply. This provides some flexibility in choosing the right product and lender for your business goals and cash flow.
AdvancePoint Capital doesn’t publish whether it conducts a hard credit inquiry or soft credit pull. Hard credit inquiries can lower your credit score by 5 points, while soft credit pulls don’t affect credit. It may be possible to apply with the company using a soft credit pull, but once you choose a product, the specific lender may conduct a hard credit pull during underwriting.
If you’re concerned about a hard credit inquiry, check with the company before applying. The company also offers resources for no-credit-check business loans and bad-credit business loans.
Submitting the initial application to receive a quote opts you into receiving phone calls, emails, and text messages from AdvancePoint Capital. Be prepared to potentially receive multiple contact attempts.
The website doesn’t publish any information about a business loan affiliate program. ISOs and business loan brokers should contact AdvancePoint to discuss offering its products to their clients.
Applying to AdvancePoint Capital is a straightforward process. Here are the steps to apply.
You’ll start the process by completing the company’s one-page online application. The application asks about your credit rating, time in business, and revenue. You’ll also indicate the amount you’re seeking and provide basic details about yourself and your company. You may be asked to upload financial documents.
After applying, you may receive multiple funding offers from various lenders. You’ll work with an AdvancePoint Capital financing expert to determine the best lending product for your needs.
After choosing an option, you’ll complete the underwriting process with that lender. Depending on the loan product and lender, you may receive funding in as little as 24 hours.
After securing funding from AdvancePoint Capital, the post-funding process involves setting up a repayment plan for the borrowed amount. Repayment typically occurs through fixed daily or weekly payments, depending on the agreement’s terms. AdvancePoint Capital offers flexibility in repayment schedules to accommodate the business’s needs.
AdvancePoint Capital offers numerous advantages for small business owners. One key benefit is the ease of the application process, making it quick and convenient to apply for funding.
Additionally, AdvancePoint Capital provides access to various small business loan products, allowing businesses to choose the best option for their needs. This eliminates the need to apply to multiple lenders, saving time and simplifying the borrowing process.
The company doesn’t have many reviews, but the majority are positive. Many reviews mention the competitive interest rates and praise customer service. It also offers lending options for credit-challenged small business owners.
Business owners should be aware of the potential drawbacks to using AdvancePoint Capital. As mentioned, one of the primary drawbacks is the lack of transparency on eligibility criteria. The only to see if you qualify is to apply, which can be frustrating for ineligible business owners.
Another disadvantage is the potential for high costs. While it discusses competitive interest rates, alternative business financing can be more expensive than traditional business loans. This is especially true for products like merchant cash advances. AdvancePoint also charges an origination fee of up to 5%, which can significantly add to the cost of borrowing.
While it has mostly positive reviews, some customers complained about outdated sales tactics and rude customer service. However, these complaints often come from users who tried lowering their interest rates.
Pros:
Cons:
Yes, AdvancePoint Capital is a legitimate small business loan marketplace. Established in 2012, it has an A+ Better Business Bureau (BBB) rating. The website has an SSL security certificate and a privacy policy explaining how your information is protected.
AdvancePoint Capital doesn’t have many reviews, but the few available are very positive. It has a 4.8 out of 5 rating on over 60 Google reviews. It also has a single 5-star review on Best Company, and Merchant Maverick gave the company a 4.2 out of 5 in their review. While it has an A+ BBB rating, it has no reviews or complaints on the watchdog site.
Positive reviews often focus on the company’s excellent customer service, quick funding process, and transparent communication throughout the loan application process. Customers frequently mention how responsive and helpful the team at AdvancePoint Capital is, making them feel supported and informed every step of the way. Many reviewers also highlight AdvancePoint Capital’s competitive rates and flexible repayment options, allowing them to secure funding that meets their needs.
The few negative reviews discuss not being approved for loans due to revenue requirements or feeling the application process was more complicated. Some reviews complained about outdated sales tactics. However, it’s important to note that there are only a handful of negative reviews on Google, and they’re all over five years old.
AdvancePoint Capital helps many businesses with funding. However, some applicants may face denial. There are several reasons why this can happen.
Lenders often look at credit scores. If your score is too low, it can lead to a denial. They also consider your business’s financial health. If the numbers do not add up, they might refuse the application.
The denial letter should explain why your application was denied, provide information on improving eligibility, and indicate when you can apply again. If not, contact AdvancePoint directly for more clarification.
Fortunately, there are many small business lenders to consider if AdvancePoint Capital doesn’t work for you. Many lenders offer similar products and provide more transparency on eligibility.
You can also apply to a different small business loan marketplace, like UCS. You could potentially access one of the following small business loans through our lender network:
AdvancePoint Capital is best suited for small to medium-sized businesses looking for quick access to funding without the hassle of traditional bank loans. The streamlined application process and access to various lenders and products can help save time and reduce stress.
However, the lack of transparency on qualifications and rates can limit the efficiency of the process. In addition, well-established businesses with high revenue and good credit can likely find less costly financing options.
Based on the available information, we rate AdvancePoint Capital as a 4 out of 5. It’s a viable solution for small business financing needs, but the lack of transparency is a concern.
Disclaimer: The AdvancePoint Capital trademark is owned by AdvancePoint Capital LLC, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from AdvancePoint Capital LLC
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
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