Many small business owners struggle to qualify for traditional financing from banks and credit unions. This lack of capital access makes it challenging for small businesses to compete or fuel growth.
Alternative business financing platforms like Better Business Funding aim to solve this problem by providing quick and convenient applications for borrowers with less-than-perfect. However, the company might not be the best option for every business as it has limited financing options and loan amounts.
This review explores what you should know about Better Business Funding, including the available options, pros and cons, and the application process. Specifically, we’ll answer these questions and more:
Better Business Funding (BBF) is a financing company that provides accessible funding solutions for small businesses across the United States and Canada. The company specializes in quick approvals, fast funding, and personalized service, making it a compelling option for business owners who face challenges securing traditional loans.
Small business owners can access working capital loans, business lines of credit, and equipment financing through the platform. BBF’s website also mentions merchant cash advances but doesn’t provide details on that program.
What differentiates their approach is their avoidance of one-size-fits-all loans and their focus on providing the right financing at the right time. Small business owners turn to Better Business Funding for its flexible products, simplified application process, and commitment to working with borrowers who may not qualify for bank loans. Launched in 2009 and headquartered in Solana Beach, CA, BBF has delivered over $206 million in funding to small businesses.
Better Business Funding streamlines the process of obtaining financing to meet various business needs. Offering several lending products, including working capital loans, business lines of credit, and equipment financing, BBF tailors solutions to businesses looking for fast and reliable funding.
After applying, A BBF loan advisor helps approved business owners select the best offer tailored to their needs. Here are the available business funding products.
A working capital loan from Better Business Funding is designed to help small businesses manage daily operations, handle unexpected expenses, or invest in growth opportunities. These short-term loans offer flexibility for businesses that need immediate cash flow without the rigid requirements of traditional bank loans. BBF provides a fast approval process, allowing businesses to access funds quickly and address their working capital needs.
The business line of credit from Better Business Funding allows business owners to draw funds as needed, providing flexibility to manage cash flow, pay expenses, or invest in opportunities. Once approved, businesses can access their revolving credit line repeatedly, making it a helpful tool for ongoing financial needs. Better Business Funding states that only a soft credit inquiry is performed, minimizing the impact on the borrower’s credit score.
Better Business Funding’s equipment financing product allows businesses to acquire essential equipment without a significant upfront cost. Whether purchasing machinery, vehicles, or other equipment, BBF offers flexible terms to accommodate businesses’ budgets and cash flow. This product is especially valuable for businesses looking to preserve working capital while still accessing the tools they need to grow.
Small business owners can apply for equipment up to $150,000 with a one-page application. However, applicants must submit financials for applications over $150,000.
Qualifications vary by loan type. Here are the listed minimum qualifications for each product.
Equipment financing applications require an equipment invoice from the vendor. Deals over $150k also require financial documentation.
Better Business Funding is an option for businesses with less-than-perfect credit. While the business line of credit uses a soft credit inquiry, the credit check requirements for the working capital loan and equipment financing are less clear.
BBF lists its primary products as working capital loans, equipment financing, and merchant cash advances (MCAs). However, the company does not provide detailed information about its merchant cash advance offerings. It is possible that BBF may use an MCA as an alternative to working capital loans or lines of credit.
A merchant cash advance allows businesses to receive an upfront sum of money in exchange for a percentage of future credit card sales. This product is helpful for companies with fluctuating cash flow, but it can have high costs due to factor rates rather than traditional interest.
Better Business Funding promotes repeat business, with many clients renewing their loans and staying with the company for over 10 years. BBF focuses on providing excellent customer service, fast approvals, and quick funding – a commitment reflected in its high user satisfaction ratings.
The Better Business Funding website does not list information about a business loan affiliate program. ISOs and business loan brokers should contact the company directly to request information.
Better Business Funding offers a straightforward online application process, ensuring business owners can apply for funding quickly and efficiently.
Start by completing an application online or over the phone. You must submit your four most recent monthly bank statements to demonstrate your business’s cash flow.
Within 24 hours, Better Business Funding provides a variety of funding options. A dedicated loan advisor will work with you to identify the best choice for your business’s unique needs before moving forward.
Once you choose a funding option, your loan advisor will guide you through the process of accessing the funds. BBF’s goal is to deliver same-day funding whenever possible.
The post-funding and repayment process at BFF depends on your chosen product. Many options offer the opportunity to renew funding when you need it.
Working Capital Loan Repayment Details:
Business Line of Credit Repayment Details:
Equipment Financing Repayment Details:
Better Business Funding provides several benefits for small businesses. One of the standout advantages is that it works with businesses with less-than-perfect credit, offering financing options to those who may not qualify for traditional bank loans.
The company also boasts quick approvals and fast funding, ensuring businesses can access necessary funds within 24 hours. Better Business Funding makes the process straightforward with an easy online application that requires minimal documentation.
Another key benefit is the company’s strong focus on customer service, reflected in its high customer satisfaction ratings and positive reviews.
Despite its many advantages, Better Business Funding has some limitations. One drawback is its limited funding options, as BBF primarily offers working capital loans and equipment financing.
Additionally, BBF may not offer high borrowing amounts, which could be a concern for larger businesses needing substantial funding. Some financing options, such as merchant cash advances and short-term loans, can come with higher costs that may not be ideal for all borrowers.
The company also lacks transparency regarding its merchant cash advance product and credit check requirements, leaving potential borrowers with unanswered questions. Finally, while BBF promotes flexible qualifications, some businesses may still face challenges in obtaining approval.
Pros:
Cons:
Yes, Better Business Funding is a legitimate financing platform. The company is accredited by the Better Business Bureau (BBB) and holds an A+ rating, reflecting its reliability and commitment to excellent service.
Better Business Funding has overwhelmingly positive reviews, with a 4.9 out of 5 rating on over 130 Trustpilot reviews and a 4.9 out of 5 rating on over 120 Google reviews.
Positive Reviews: Customers frequently praise BBF for its quick approval process, fast funding times, and excellent customer service. Many clients appreciate the company’s personalized approach and dedicated loan advisors who simplify the funding process. Several clients say their loan advice was extremely helpful.
Negative Reviews: Some customers report challenges with approvals or dissatisfaction with borrowing amounts. A few reviews mention a lack of transparency regarding certain loan products, such as merchant cash advances.
While the company aims to help business owners who can’t qualify for traditional bank loans, approval is not guaranteed. BBF may decline a business loan application for various reasons, such as credit scores, low revenue, short business time, or financial history issues.
If you were declined, the denial letter should explain why, provide tips on improving your application, and indicate when you can apply again. If not, or if you require more information, contact BBF directly.
Fortunately, small business owners have many lender options if Better Business Funding isn’t the right fit. Many lenders offer working capital loans. You could also potentially access a business line of credit. Additionally, equipment financing is a common practice in small business funding.
You may also be interested in one of the following small business loans:
Better Business Funding is a viable option for credit-challenged business owners seeking quick access to capital. The company’s outstanding user reviews, dedication to tailored solutions, and renowned customer service make it a solid choice for business financing needs.
The main limitation of BBF is that it only offers a few financing products and has limited loan amounts, only going up to $500k. Businesses seeking more diverse loans, such as term loans, invoice factoring, SBA loans, etc., or those needing more financing must look elsewhere.
Based on the available information, we rate Better Business Financing at 4.5 out of 5. It offers convenient and flexible solutions with excellent service.
Disclaimer: The Better Business Funding trademark is owned by Better Business Funding LLC, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Better Business Funding 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.
UCS will never communicate with a prospective client on Facebook, Facebook Messenger, or any other type of social media. Further, any email communications will always come from an official UCS email address and not a Gmail, Yahoo, or other email domain. If you believe you have been contacted by someone posing as an employee of UCS, please email [email protected].
