Small businesses often need financing help at some point. But most traditional lenders like banks and credit unions have stringent qualifications and rigid repayment structures.
Some alternative lenders, like SOS Capital, provide quick funding, flexible terms, and accessible qualifications. However, the online lender might not be the right choice for every small business.
We can help you decide if SOS Capital suits your business funding needs by covering the benefits, drawbacks, and application process. Specifically, we’ll answer these questions and more:
SOS Capital is an alternative online business lender utilizing industry-leading technology to solve small business financial demand. It’s comprised of industry veterans with the stated goal of funding small businesses faster and more reliably than traditional financial sources, such as banks or credit unions. It was named after the founder’s father.
The company is a direct lender/funder with ranges between $25,000 – $10 million. It provides flexible term loans customized to each business’s needs. The efficient process involves a quick and easy application and consultative approach to funding.
SOS Capital aims to provide same-day approvals with next-day funding. The company states it has a 95% approval rate. It launched in 2014 and is based in New York, NY.
Small business owners apply for funding through the SOS Capital site. Once you apply, the company’s customer service and underwriting team will work with you to develop a flexible, customized plan for the right funding and repayment structure.
Unfortunately, SOS Capital doesn’t provide information on rates or fees for its funding products. The lender appears to offer two main products: term loans and business cash advances.
Both products offer:
Term loans are traditional business loans where you receive a large lump sum disbursement and repay it plus interest in fixed intervals.
With a business cash advance, SOS Capital purchases your future receivables at a discount. You repay the advance with a remittance of your daily or weekly sales.
Business owners need a personal credit score of 600 or higher to qualify. Its underwriting team considers your business’s cash flow and time in business but doesn’t publish minimum requirements. The funder states it looks past an applicant’s present to the financial goal it can achieve in the near future.
In addition to providing capital, the company aims to build a lasting relationship with its customers. This is reflected in some user reviews where customers mentioned getting multiple financing rounds with the company.
Its website doesn’t provide much clarity on how its products function. This may be in part because it takes a unique approach to funding. The SOS Capital website states:
“All we focus on is the best way to cater to your funding requirements with the most-tailored approach. We abide by your vision, focusing to give the required boost to your business.
Regardless of the peculiarity of your demand, we accommodate it all. We say YES, proudly with 95% approval rates, while others say no!”
The company may use a hybrid model combining features of a traditional term loan with that of a business cash advance. However, we can’t confirm this as the company’s business loan details can be vague.
SOS Capital provides a business loan affiliate program. ISOs and business loan brokers can sign up to offer the lender’s products to their small and medium-sized enterprise (SME) clients.
The application process is quick and simple. Follow these steps to apply.
The simple application asks for information about your business and the company’s ownership. Part of the application is providing business bank account information to verify income. You can connect your account using the read-only Plaid app or upload business bank statements from the previous three months.
The funder aims to complete the underwriting process within six hours. It will reach out if additional information is required. After approval, the funds are sent to your business bank account electronically. There are no restrictions on how you can use the funds.
You’ll repay the business loan with weekly or daily payments via ACH pulls. You won’t have to worry about scheduling and manually processing payments because SOS Capitals sets it up automatically.
The company states there are no pre-payment penalties. It doesn’t publish information on renewals, so you’ll have to ask about when you can renew and how that process works.
The primary advantage of SOS Capital is that it offers fast access to capital with a simple application process. Applicants can receive same-day approval with next-day funding. The lender aims to approve and fund companies faster than traditional lenders. The company boasts a 95% approval rate.
SOS Capital also provides a large borrowing range, with options between $25,000 and $10 million. It also doesn’t restrict how you can use the funds.
The two most significant drawbacks are the lack of information and the costs. It doesn’t publish interest rates or fees, which is concerning. Both positive and negative customer reviews state that the costs were very high.
Most alternative business lenders charge a higher rate than traditional financing companies. That’s the tradeoff for simple applications with minimal documentation, quick and easy approvals, and fast funding times.
The financing options are short-term, meaning they must be repaid in the near future. They also carry frequent repayments.
Business owners must have a personal credit score of 600. While that’s much lower than traditional lenders, it also means the company doesn’t offer bad credit business funding options.
Aside from a minimum credit score, SOS Capital doesn’t provide transparency on other qualifying factors like minimum revenue or time in business. Applying is the only way to know if you have the required cash flow and business history.
Yes, SOS Capital is a legitimate alternative business lender. It is a verified company on Trustpilot.
The direct funder has primarily positive reviews, with a 4.9 out of 5 rating on 176 Trustpilot reviews. The positive reviews discuss the ease of the process, the knowledge and professionalism of the SOS team, and fast funding times.
Several customers mentioned their service reps by name, stating the process was a team effort when praising the company. A few customers noted the online application, and the SOS team made the process smooth.
Of the few negative reviews, one of the complaints was about the cost. Another customer stated the company didn’t work well with their current factoring company. One customer complained the company took too long to respond.
SOS Capital aims to make funding available for small business owners, but you must have a credit score of 600 or above. Other factors like your time in business and cash flow play a role in approval decisions, but the lender doesn’t provide detail on those minimums.
If you were declined, the denial letter should explain why. You can call the company directly if you need more information.
Fortunately, there are many online lenders and marketplaces to consider if SOS Capital doesn’t work for you. Most funding options can provide business term loans and merchant cash advances.
You might also be interested in one of the following small business funding options:
SOS Capital is best suited for small business owners with a credit score over 600 looking for flexible funding options. The lender’s consultative approach to term loans and business advances allows you to develop a funding and repayment structure that aligns with your unique business needs and revenue cycles.
Established businesses with excellent credit and high revenue can likely qualify for lower-cost financing options. You might also have fast funding options with more competitive rates.
Based on user reviews, the lender’s website, and the available information, we rate SOS Capital at 3.9 out of 5. It’s worth considering, but the lack of transparency on costs and qualifications is a concern.
Disclaimer: The SOS Capital trademark is owned by SOS Capital Inc., and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from SOS Capital Inc.
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