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The rise of online business lenders has transformed how small business owners access funding. For those struggling to qualify for conventional financing, these alternative lenders provide tailored solutions to meet diverse business needs.
One such lender is Breakout Finance, a company known for its versatile financing products and commitment to helping small businesses thrive. However, it might not be the best funding option for every small business owner. Understanding Breakout Finance’s products, eligibility requirements, and application process is crucial to making a decision.
This comprehensive review explores Breakout Finance’s online reviews, advantages, and drawbacks to help potential borrowers decide whether this lender fits their needs. Specifically, we’ll answer these questions and more:
Breakout Finance (formerly Breakout Capital) is an online business lender that provides various financial products to support small business growth. The company offers funding solutions for businesses facing cash flow challenges or seeking expansion opportunities. By providing alternatives to traditional financing, Breakout Finance empowers business owners to access working capital without navigating the lengthy processes typical of conventional lenders.
Founded as Breakout Capital, it rebranded as Breakout Finance in 2023. The company has deployed nearly $500 million in funding to small businesses across all 50 states and Washington, D.C., since its founding in 2015. As a direct funder, the company handles funding decisions and disbursements in-house rather than referring borrowers to third-party lenders. This approach allows for faster approvals and a more personalized lending experience.
Breakout Finance offers various financial products, including working capital term loans, invoice factoring, asset-based loans, and purchase order financing. Over the years, the company has funded thousands of small businesses across various industries, supporting their growth and operational needs.
Breakout Finance is known for its transparent terms, use of advanced technology to streamline the application process, and dedication to meeting the unique needs of small businesses. Whether a business needs short-term financing or help with unpaid invoices, Breakout Finance aims to provide tailored solutions.
In addition to its diverse financing products, Breakout Finance leverages tools like the SmartBox to clarify factor rates, APR, and repayment terms, ensuring borrowers clearly understand their financial obligations. Breakout Finance has established itself as a key player in the online lending industry, focusing on transparency, innovation, and customer service.
Breakout Finance offers a streamlined application and funding process designed to meet the unique needs of small businesses. The company offers a range of financing options under one roof, making it easy for business owners to find the right solution for their specific needs.
Breakout Finance’s working capital term loans are designed to help small businesses manage cash flow, purchase inventory, or cover other operational expenses. These loans typically feature competitive interest rates and flexible repayment terms, providing a valuable option for businesses with strong revenue that need immediate funding. Loan amounts vary based on the business’s financial situation, and repayment terms are customized to align with cash flow needs.
Breakout Finance’s invoice factoring service can provide much-needed cash flow for businesses with unpaid invoices. By selling outstanding invoices to Breakout Finance at a discount, businesses can receive same-day funding to cover operational expenses without taking on additional debt. This option is particularly beneficial for businesses that need to bridge gaps between billing and customer payments. Factor rates are transparent, and the process ensures that businesses maintain steady operations.
Breakout Finance’s asset-based loans are ideal for businesses with valuable assets such as equipment or inventory. These loans allow businesses to secure funding based on the value of their assets, offering a flexible financing option for growing companies.
Asset-based loans can be structured as either a term loan or a revolving line of credit, allowing borrowers to choose the repayment structure that best suits their needs. This product is particularly useful for companies that want to leverage their existing assets for growth.
Breakout Finance’s purchase order financing helps businesses fulfill large orders by providing funding to cover supplier costs. This option is particularly useful for businesses with outstanding purchase orders that need immediate capital to meet demand.
With this financing solution, businesses can avoid turning down lucrative contracts due to a lack of funds. Breakout Finance handles supplier payments directly, ensuring that orders are fulfilled on time and businesses can maintain strong relationships with their clients.
To qualify for Breakout Finance’s products, businesses must meet specific eligibility criteria that vary based on the financing option:
The minimum credit score required can vary depending on the product, but potential borrowers should have a minimum FICO score that demonstrates their creditworthiness.
Breakout Finance aims to offer a one-of-a-kind approach by combining multiple financing products under one roof. The company is recognized for its easy application process and quick funding times, often providing funding on the same day as approval. The SmartBox tool offers transparency by clearly outlining the APR, loan terms, and factor rates, helping business owners understand the true cost of borrowing.
The company caters to businesses in various stages, from those in growth phases to those navigating temporary cash flow gaps. Entrepreneurs looking to capitalize on new ideas and opportunities increasingly look to Breakout Finance for its tailored solutions. Breakout Finance’s ability to accommodate diverse business needs—whether through short-term financing or more structured long-term solutions—makes it a valuable partner for growing companies.
One of the standout features of Breakout Finance is its emphasis on customer education. The company provides detailed resources and financial tools, such as the SmartBox, to help potential borrowers make informed decisions. This tool’s transparency sets it apart from many competitors, offering clear insights into factor rates, repayment schedules, and the total cost of borrowing. It also offers an APR Loan Calculator to help users determine annual percentage rates (APRs) for business financing.
Additionally, Breakout Finance’s customer service team is known for guiding applicants through the process, answering questions, and ensuring that businesses receive the best possible financing product for their unique situation. This hands-on approach helps businesses feel supported from the application stage through post-funding repayment management.
Although the company recently rebranded as Breakout Finance, some reviews still discuss Breakout Capital loans. Read a Breakout Capital review for more information on the company’s history.
Breakout Financing offers a business loan affiliate program. ISOs and business loan brokers can register to offer the company’s products to their small business clients.
Applying to Breakout Finance involves a simple online form. The loan application process typically requires basic information and documentation about the applicant’s business.
Here’s a step-by-step guide:
Fill out an online application form with details about your business, including revenue and time in business.
Submit documents such as bank statements and outstanding invoices (if applicable) to support your application. Other common required documents for business loans include proof of income and business-related financial statements. Breakout may require applicants to submit a minimum of two years of financial statements.
Breakout Finance’s team will review your application and determine eligibility criteria for the requested product. Annual revenue can influence loan eligibility and the amount that can be borrowed.
If approved, you’ll receive a funding offer with terms that vary based on the product and your business situation.
Sign the agreement to receive funds, often on the same day.
After receiving funding, businesses work with Breakout Finance to establish a repayment schedule tailored to their specific loan product. Term loans come with fixed payments, while invoice factoring involves repayments as customers settle their invoices. The SmartBox tool helps borrowers stay informed about repayment terms and factor rates.
Breakout Finance offers numerous advantages for small business owners. The company’s wide range of financial products ensures that businesses with diverse needs can find suitable financing. The easy application process, fast funding times, and transparent SmartBox tool are additional benefits that set Breakout Finance apart from typical lenders.
The company’s flexibility in offering both term loans and revolving lines of credit provides options for businesses seeking either structured repayments or ongoing access to funds. Additionally, its willingness to work with growing companies makes it ideal for businesses navigating expansion or tackling large orders.
Another advantage is Breakout Finance’s focus on customer education. The SmartBox tool offers unparalleled transparency, helping potential borrowers understand factor rates, repayment schedules, and the actual cost of borrowing. The availability of same-day funding further underscores the company’s commitment to supporting urgent business needs.
The customer service experience is also worth noting. Many borrowers have praised Breakout Finance for its responsive and knowledgeable team, who assist at every step of the process.
Breakout Finance may not be suitable for every business despite its many benefits. The interest rates and factor rates can be higher than those of conventional financing options, which might deter cost-sensitive borrowers.
Eligibility requirements may be restrictive for businesses with low credit scores. The company often prefers borrowers with a minimum FICO score and strong revenue history, which can limit access for newer businesses or those recovering from financial setbacks.
Additionally, while the application process is generally quick, the documentation requirements for certain products, such as asset-based loans, can be more extensive than some competitors. Breakout Finance’s focus on transparency means that all costs are clearly outlined, but the factor rates may still appear high compared to traditional lenders.
Pros:
Yes, Breakout Finance is a legitimate online lender with positive reviews from many small business owners. The company is recognized for its reliable financial products and transparent processes. Breakout Finance is accredited with the Better Business Bureau.
Breakout Finance has generally favorable reviews, with a 4.6 out of 5 rating on over 170 Trustpilot reviews. Online reviews often highlight the company’s fast funding process, helpful customer service, ease of application process, and ability to provide funding quickly.
Positive Reviews:
Customers appreciate the straightforward application process and the ability to receive funds on the same day. Many also praise the customer service team for their professionalism and support. Business owners often highlight the company’s willingness to provide tailored solutions that meet their unique needs. The transparent SmartBox tool also receives positive mentions for offering clear insights into loan terms and costs.
Some borrowers noted that Breakout Finance’s quick decision-making process allowed them to seize new business opportunities without delay. Many customers praise the speed at which they receive funding from Breakout Finance, often within 48 hours.
Negative Reviews:
Some negative reviews focus on the higher interest and factor rates than other lenders. This has been a concern for cost-sensitive businesses, especially those accustomed to lower rates from traditional lenders. Additionally, a few customers mention challenges with meeting the eligibility requirements, particularly around credit score thresholds and revenue criteria.
Occasional complaints also arise about the extensive documentation required for asset-based loans and other secured products. While Breakout Finance’s transparency is appreciated, some borrowers feel overwhelmed by the detailed cost breakdowns and factor rate explanations. A few users also expressed frustration with communication delays during the documentation review process.
Breakout Finance might deny a business loan application for various reasons. Potential denials could result from credit scores, revenue requirements, collateral value, etc.
If you applied and were declined, the denial letter should explain why, provide details on improving your creditworthiness, and when you can apply again. If not, or if you need more information, contact Breakout Finance directly.
Fortunately, small business owners have diverse lender options if Breakout Capital doesn’t work for them. Different lenders offer similar products, and there are additional business financing options outside of Breakout’s options.
You may be interested in one of the following small business loans:
Breakout Finance offers a robust selection of financing products that can meet the needs of many small business owners. Companies with strong revenue and moderate credit scores may find this lender particularly beneficial for managing cash flow and funding growth initiatives.
However, businesses seeking lower rates or more lenient eligibility criteria may want to consider other lenders. Ultimately, Breakout Finance’s transparent approach and comprehensive product lineup make it a worthwhile option for potential borrowers seeking alternative financing solutions.
Based on the available information, we rate Breakout Finance at a 4.2 out of 5. It’s worth considering if your needs align with the company’s offerings, but other lenders may offer more diverse products or lower rates.
Disclaimer: The Breakout Finance trademark is owned by Breakout Finance LLC, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Breakout Finance 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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