Small business owners have many lending options, from large commercial banks to small alternative lenders. Mulligan Funding is the latter, but the family-owned company provides up to $2 million in business funding.
The online lending company focuses on delivering outstanding customer service and developing lasting relationships through its renewal program. However, it might not be suitable for every small business, especially since it lacks transparency on costs.
We can help you decide if Mulligan Funding is right for your business by covering the benefits, drawbacks, and application process. Specifically, we’ll answer these questions and more:
Mulligan Funding LLC is an online business funding company specializing in quick and easy working capital loans for small and medium-sized businesses (SMBs). It also offers a business term loan that operates like a line of credit. The company seeks to develop lasting and long-term relationships with its customers.
Getting same-day approval and receiving your funds within 24 hours could be possible. The company also offers a robust renewal program for more funding at better terms and rates. The online lending institution doesn’t set a minimum credit score, but you must meet its revenue requirements.
Most of the company’s loans are issued by FinWise Bank, based out of Utah. Some loans are sourced by its subsidiary, Mulligan Loans, LLC.
The private family-owned business launched in 2008 to provide business funding when banks stopped financing services due to the great recession. It uses a team of human underwriters that take a complete picture of your business when approving loans.
Co-Founder David Leibowitz leads the company as CEO. Mulligan Funding is based in San Diego, CA.
Mulligan Funding provides various working capital loans and a business term loan. Both products have the same borrowing ranges, terms, and funding speed but operate differently.
Here are the features of both products:
Depending on your qualifications, you’ll receive funding in the amount of 6%-12% of annual revenue. The company offers unsecured financing, so there are no collateral requirements.
Let’s look at how the loan process works.
Mulligan Funding’s working capital loans provide funding in a lump sum of money. You can use the funds for virtually any business purpose. The company’s working capital products operate like merchant cash advances in many ways.
Most businesses need working capital to cover daily expenses like payroll and rent. Other times, you might need working capital to take advantage of a new opportunity.
The lending company’s working capital financing products provide fast funding to help solve cash flow gaps or make key investments in your business’s future.
The company’s small business term loans operate more like a business line of credit. If approved, you’ll have access to the maximum funds your business qualifies for. However, you don’t have to accept the total amount at once.
If you don’t need the maximum amount, you can take a smaller draw initially. If something changes or you need more capital, you can take out another increment of the approved amount.
The business only pays fees for the amount it draws. This structure allows you to only use the funds when needed.
Both products require a minimum annual revenue of $120,000. The online funding company doesn’t publish a minimum credit score requirement, but it does state its small business term loans have higher qualifications than working capital loans.
Small business term loans require a minimum of six months in business. It doesn’t list a time in business requirement for working capital loans.
You cannot have more than one business debt account with recurring payments. In addition, you cannot have any open bankruptcies.
The company doesn’t publish any rate or fee ranges. Its lack of transparency regarding costs makes it difficult to determine if its funding products are worth it. Some reviews suggest that their working capital loans are variations of merchant cash advances, although the company states they’re legitimate loans.
More reputable companies provide transparency on costs before you apply. Unfortunately, the only way to know how much you’ll be charged is to apply and receive an offer.
One company review suggests it charges APRs anywhere from 1%-99% and charges an origination fee. Some of the company’s more negative reviews complain about excessive interest rates, sometimes in the 70%+ range.
However, there’s no way to know if those reviews are accurate. Since the lender doesn’t provide any information, we cannot confirm or refute any of the claims made about its costs.
There is no application fee or prepayment fee, which is good. The funder performs a soft credit pull, which won’t affect your credit score. In addition, you don’t have to offer any collateral for the loans. The company is a direct lender for some loans, while its partner FinWise Bank issues most loans.
The lending company offers a business loan affiliate program. ISOs and business loan brokers can sign up with the partner program to refer their small business clients or offer the company’s lending product.
One of the company’s main advantages is its quick and simple application process. Follow these steps to apply.
First, fill out the online application and get a free quote on your funding options. You’ll indicate the range of funds your need along with your revenue, credit score, and time in business ranges.
After receiving your free quote, you’re invited to submit a contact form. A Mulligan Funder advisor will then contact you to finalize your application.
The company’s team of underwriters works to provide approval within a few hours. Once approved, you’ll have the chance to review your funding options, rates, and fees. Since the company doesn’t publish any cost information, carefully read the offer and consider if your business can afford repayment.
Once approved, you can receive your funds within one business day.
Borrowers repay working capital and business term loans with small daily or weekly payments. The payment is usually via ACH transfer.
For term loans, you can pay in excess of your funds to repay the amount early. You can also draw additional funds as needed. The company states there are no prepayment penalties for paying the loans off early, but there are no discounts either.
It offers a renewal program to gain more funding before paying off your existing loan. It doesn’t state what percentage of the current loan you must repay before being eligible, but most online estimates suggest at least 50%. The lending company does state that the renewal process is quicker and simpler, and you get larger borrowing amounts at lower rates and better terms.
The primary benefit of the lending company is quick access to working capital. It provides a simple application process with same-day approval possible and next-day funding.
It also doesn’t have a minimum credit score to apply. While your credit is still considered, it’s only one of the factors the company considers when approving loans.
Mulligan Funding is a private, family-owned company that delivers excellent customer service. There are no prepayment penalties, and it offers an excellent renewal program for ongoing funding.
The most significant drawback is the lack of transparency on the website. While it doesn’t charge an application fee, it doesn’t provide any information on origination, closing, or other fees.
There are no listed interest rate ranges. Online reviews suggest the company charges an APR. But some customer reviews discuss the interest as a factor rate. There’s no way to estimate any costs before applying.
While the company states the business term loan is available in all 50 states and Washington, DC, it doesn’t state where its working capital loans are available. We cannot confirm if they are even available outside of California.
Pros:
Cons:
Yes, Mulligan Funding is a legitimate business lending company. It is Better Business Bureau (BBB) accredited and has an A+ rating on the watchdog site.
The lending institution has primarily good reviews, but the negative reviews are worth noting as they discuss costs. The company has a 4.6 out of 5 rating on over 80 Google reviews and a 4.8 out of 5 rating on over 400 Trustpilot reviews. It has a 3.2 out of 5 rating on Best Company.
The positive reviews praise the customer service. Users felt the company understood their business needs and worked to help them with funding solutions. Several customers called out their funding agent by name.
Another common theme in online reviews is the smooth and easy process. Many customers liked the quick approval and fast funding time. Several reviews were from customers that have repeated business with the company through its renewal program.
As stated, the common theme in negative reviews is the cost. Several reviewers stated the service was excellent, but they rated it low because of how expensive it was. Multiple customers said their interest equaled over 50% of the loan amount. One customer stated the loan equaled a 70% APR.
In one BBB review, a customer mentioned that the company doesn’t call the payment interest since that would be illegal. Mulligan Funding doesn’t refute that claim in its response. This suggests that the company uses factor rates instead of traditional interest. However, we cannot confirm that since it doesn’t provide any cost information.
While the company states it specializes in helping bad credit borrowers get approved, it doesn’t list a minimum credit score cutoff. Some reviews suggest you need a minimum credit score of 550, but there’s no way to confirm that.
Since it doesn’t list a credit score requirement, it has the leeway to deny an application based on credit. You also must meet their time in business and annual revenue requirements. Other factors impacting approval are open bankruptcies, inconsistent revenue, or having more than one existing loan.
If you were declined, the denial letter should explain why. You can contact the company directly if you need more information.
Fortunately, there are many alternative lenders and funders to consider if Mulligan Funding doesn’t work out. You should have no problem finding another lender or marketplace offering working capital loans or business term loans.
You might also be interested in one of the following small business loan options:
Mulligan Funding is best suited for small business owners who need immediate access to working capital, want ongoing funding, and are not deterred by the lack of information on costs. Just be aware that the company’s negative online reviews state that costs can run very high.
If you prefer to get an estimate of costs before applying, you must find a different lending option. Business owners with excellent credit, established business history, and high annual revenue can qualify for more advantageous options.
Based on user reviews, its funding products, and the available information on its website, we rate Mulligan Funding at a 3.9 out of 5. It has an excellent reputation for customer service, and the fast funding times are certainly attractive. However, the complete lack of transparency on costs is a significant red flag and holds it back from a higher score. The most reputable and trustworthy lenders and marketplaces are upfront with their costs.
Disclaimer: The Mulligan Funding trademark is owned by Mulligan Funding, LLC and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from Mulligan Funding, LLC.
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