To learn more about BoeFly and decide if it’s right for your needs, please continue reading:
Most small businesses need financing at some point, whether to fund startup costs, expansion, or manage working capital. However, the number of available lenders makes it daunting to find the best option.
Lending marketplaces like BoeFly try to solve that challenge by connecting borrowers directly to the lenders that best match their needs. However, it might not be the right fit for every business or funding need.
We can help you decide if BoeFly suits your company by breaking down the pros and cons and how to apply. Specifically, we’ll answer these questions and more:
BoeFly is a small business lending marketplace and leading financial technology company that helps connect business owners to its vast lending partner network. The company does not directly fund loans but helps facilitate the lending process by finding lenders where businesses are most likely to qualify, securing necessary documentation, and providing customer service. It states it wants to “accelerate your business forward.”
One area that sets the company apart from similar lending marketplaces is the emphasis on franchise funding. The financial institution works with various franchisors to help vet and secure financing for franchisee leads.
Small business owners benefit from the company’s financial technology, which helps quickly identify how fundable the business is. BoeFly’s proprietary data collection system analyzes a borrower’s credit history, revenue, and time in business to identify suitable lenders. Many borrowers can benefit from BoeFly’s focus on serving small businesses with less-than-perfect credit. This helps match you with lenders that can service your credit profile.
BoeFly, based in New York, NY, launched in 2010 to connect small business borrowers to lenders. Various franchise brands began approaching the company about securing financing for their franchisee candidates, which helped propel the company’s growth into its current status.
The lending marketplace’s network of lenders offers a wide range of financing options for small business growth. Unfortunately, it also means they don’t list borrowing amounts, rates, or terms, as those vary significantly depending on the small business lender. Funding can help with cash flow, equipment needs, marketing efforts, and more.
Here are the small business loans and services available through the online marketplace.
The company provides various services to facilitate the franchising process, including business loans for franchisees. Franchise owners get a convenient tool, bVerify, to streamline doing due diligence on franchise candidates. Franchise financing options are tailored to cover costs like franchise fees and equipment purchases.
Some financial companies in the marketplace’s network are SBA-approved lenders. It does not specify which SBA loans are available. The US Small Business Administration (SBA) oversees the program and partially guarantees up to 85% of the loans. With backing from the federal government, lenders have the security to offer higher borrowing amounts at lower fees and longer terms.
Conventional loans refer to financing that does not involve a government entity like the SBA. The marketplace’s lenders include banks, credit unions, and alternative lenders that can offer conventional loans. These term loans offer a large borrowing amount, repaid with interest and fees in fixed monthly payments.
Other financing options include:
The qualifications largely depend on the financing product. Unfortunately, BoeFly does not publish the minimum eligibility requirements for each product offered. However, the minimum credit score to qualify for loans through BoeFly typically starts around 600, which is lower than many traditional banks require.
Additionally, businesses typically need to demonstrate a minimum annual revenue of around $100,000 to qualify for most loan products on the BoeFly platform. Lenders on the BoeFly platform typically require businesses to have been operational for at least six months to one year.
Traditional lenders generally require higher credit scores, often 680 or higher, compared to BoeFly, which can accept scores as low as 600. Applicants typically have to provide personal financial statements.
While the company has innovative online tools, it does not provide direct funding. Instead, potential borrowers complete the application. The company’s financial technology (fintech) analyzes your credit history, revenue, time in business, borrowing needs, and other factors and then matches that to lenders in its network. BoeFly’s system generally requires businesses to have been operational for at least six months to one year to qualify for loans. After submitting the initial application, borrowers typically need to provide supporting documents like financial statements and tax returns.
Customers with excellent credit are more likely to qualify for SBA and conventional loans, while lower credit score business owners are more likely to qualify for MCAs or invoice factoring.
The company uses a proprietary data collection system to match you with the right lenders. For example, in one case, a borrower with a lower credit score was able to secure a loan with favorable terms by providing comprehensive financial documentation. While there’s no guarantee that you will get approved, the process will significantly increase your approval odds. However, due to its flexible credit requirements, higher interest rates are often associated with loans accessed through BoeFly. Traditional lenders often offer lower interest rates for well-qualified borrowers than BoeFly, where rates may vary significantly and could be higher. The reliance on algorithms for matching loans may overlook the personal stories of the borrowers.
Some online reviews suggest the company may charge an origination fee. However, it is unclear whether BoeFly charges the fee or the loan broker charges it. Depending on the lender you work with and the financing you get, there might also be a prepayment penalty if you pay off the debt early.
While the company matches you to the lenders where you have the highest chances of approval, it’s up to you to decide if that lender is right for you. Carefully review all disclosures to ensure you understand the rates, fees, terms, and responsibilities.
There is no minimum credit score requirement for applying. The company will access your credit report with a soft credit pull, which won’t impact your credit score. The marketplace doesn’t provide much detail on the available loans, but you can get some helpful information on the BoeFly FAQ.
BoeFly offers a business loan referral partner program for independent sales organizations (ISOs) and business loan brokers. Brokers can use the company’s fintech platform to connect their small business clients to its lender network.
It also offers a white-label option, which allows you to put your branding on the company’s platform so your customers only see your information. The service gives brokers full insight into the loan process to advise clients and set and manage expectations.
BoeFly’s application process helps connect directly to lenders, where you will finalize the process. Follow these steps to apply. The process includes submitting a unified online application with essential business information to multiple lenders.
As a small business owner, you’ll get the ball rolling by creating an account and providing some basic information. The company analyzes your finances to determine how fundable your business is.
Next, you’ll complete a single application that goes to multiple lenders. BoeFly gives you transparency in the process so you can track the status of your loan application.
The company connects you with lenders where you’re most likely to qualify. At this point, you’ll follow the lender’s process to complete the application. Some lenders offer personalized services to continue the process.
Once you finalize and close the loan, the lender issues you the loan proceeds. Funding times can vary significantly depending on the product. The process of securing funding through BoeFly can take approximately 2 to 4 weeks from application to receiving funds.
Some small business loans, like SBA loans, can take weeks to close and fund. Others, like a merchant cash advance, could provide funding within 48 hours. Traditional lenders often have lengthy approval processes, sometimes taking weeks to months from application to funding.
The repayment process varies depending on your small business loan. Term loans will carry fixed monthly payments. BoeFly connects businesses with a network of lenders that offer various financial products, including term loans, lines of credit, and SBA loans.
Other financing structures might require weekly or daily payments. Ensure you understand the repayment process before agreeing to a loan contract.
One of BoeFly’s primary benefits is its franchise expertise. The company has a robust platform to facilitate the franchise process, including loans to acquire a franchise or multi-units.
Small business owners at all levels of creditworthiness can apply because it works with such a diverse group of lenders. The range of lenders also means you can get flexible terms.
The company provides a single application that goes to multiple lenders. This saves you the time of researching and applying to multiple individual lenders.
Fast funding is available depending on the lending product. If you indicate you need urgent financing, the company will try to match you with a lender that provides quick funding times. BoeFly facilitates faster funding than traditional banks, often providing loan offers within days. BoeFly’s platform often results in faster funding than traditional bank loans, with many borrowers receiving offers within days and funding within 1-2 weeks.
The website is secure and provides secure document storage. You can be assured your information is safe with the lending marketplace.
It isn’t easy to ascertain the company’s available lending products, borrowing amounts, rates, and terms. This is one of the drawbacks of its vast lender network.
The timeframe for approval and funding is open-ended. While the company will try to match you to fast business loans if you need urgent funding, it cannot guarantee quick funding and does not provide a timeline for how long it takes to get funded.
Pros:
Cons:
Yes, BoeFly is a legitimate online small business financing marketplace and fintech platform. The company is accredited by the Better Business Bureau (BBB) and has an A+ rating on the watchdog site. BoeFly’s services include educational resources and support for businesses to help them navigate the financing process effectively.
Despite more than a decade in business, BoeFly has a surprising lack of customer reviews. On a loan broker review site, a broker referred to the company as a stealthy giant.
It has no Trustpilot or Google reviews, only three on the BBB, and a few reviews scattered across various other sites.
Based on the available feedback, the company has a mostly positive reputation. Several customers talked about the company’s customer service team, with a few mentioning their agent by name. There are also multiple customer success stories on the BoeFly website.
One of the only negative reviews available comes from the BBB, where a customer complained about not receiving a PPP loan. A negative review from a customer on Best Company claims they paid a fee of $1,200 but never received their loan or a refund on the fee.
When you apply to lenders through BoeFly, there are two chances of being denied. The company may determine you don’t have the financials to be fundable. The second option is that BoeFly matches you to a lender who might deny the loan application during lending. However, the company tries to avoid the latter by ensuring it matches you where you’re most likely to qualify. Approval rates for traditional banks are typically lower than those for BoeFly due to stricter eligibility criteria.
If your application is declined, the denial letter will explain why. If you need more information, you can contact the company directly.
Fortunately, if BoeFly doesn’t work for you, there are plenty of lenders and lending marketplaces to consider. Several lenders offer SBA loans and business term loans.
You might also want to consider one of the following small business finance options:
BoeFly is best suited for small business owners who need financing but are unsure where to start. It’s an excellent option for business owners looking to open or expand franchise locations. The platform helps both franchisors and franchisees complete the lead-to-close process.
Entrepreneurs and business owners who want more control over where their information goes or which loan they receive might want to look for a different service. A highly qualified borrower can likely get more advantageous loans directly from a lender.
Based on BoeFly’s available products, reviews, and platform, we rate the lending marketplace and fintech platform as a 3 out of 5. The company is a solid option for franchise businesses, but its lack of transparency could be an issue for other small business owners.
Disclaimer: The BoeFly trademark is owned by BoeFly Inc. and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from BoeFly Inc.
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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