StreetShares Review

Formed in 2013, this U.S. military veteran-owned and -operated lender helps small businesses get the funding they need without having to turn to payday lenders, personal credit cards and the like. StreetShares works to fill the gap set by traditional banks and gets small businesses the growth funding they need. This online lender provides secured and unsecured business loans, business lines of credit and contract financing.

Through StreetShares funding, veterans and other American business owners can expect an easy 3-step, mobile-enabled application and loan process with competitive rates. StreetShares’ review and preapproval process will not impact your credit score; the company also promises a best price guarantee and no prepayment penalties.

Consider StreetShares funding if you:

• Are a new business owner who needs fast access to capital
• Are a U.S. military veteran business owner
• Are looking for financing options
• Looking for affordable funding with short-term lenders

If your business is just starting out or is one that lacks any upfront collateral, StreetShares’ unsecured business loan options might work well for you. The company offers a range of loan amounts — from less than $5,000 up to a 6-figure loan. Flexible repayment terms mean this online lender won’t penalize you for either paying off your debt early or for whenever it fits into your business budget.

Take a look at StreetShares’ unsecured business loans terms:

• Loan amounts: $2,000-$250,000
• Credit requirements: Minimum credit score of 640
• At least 1 year in business and $25,000 of annual revenue, or 6 months in business and $100,000 in annual revenue
• Annual percentage rates (APR) ranging from 8–39.99%
• Repayment terms from 6 months to 3 years

StreetShares offers a reapplication process every 60 days for applicants whose creditworthiness might not hit the mark the first time around.

Secure business loans offer lower interest rates because they are less risky for lenders. If a business defaults on a payment, the lender can collect collateral. StreetShares offers secured loans, including equipment loans, factoring and merchant cash advances.

This peer to peer lender’s business line of credit is a good option for those needing a quick injection of cash without having to commit to paying the interest on a larger lump-sum small business loan. Most business lines of credit are more heavily scrutinized than a business credit card, so you have the best chance of securing a line when your company’s finances are in good shape. StreetShares offers both secured and unsecured lines of credit, so business owners can apply for what meets their  businesses’ needs.

Through their Patriot Express Line of Credit, expenses such as payroll or an unexpected cost such as added inventory can be covered. Then, once you pay back the outstanding balance, your full credit limit is available to use again.

StreetShares offers a lower overall APR than most business credit cards, which usually start around 14%.

StreetShares Business Line of Credit at a glance:

• Lines of credit from $5,000 – $200,000 or $250,000 for repeat customers who are contract financing clients
• Rates starting at 8% APR
• Typical loan term lengths are 6 months to 3 years
• Minimum credit score: 640
• Minimum time in business: 1 year — or 6 months in business and $100,000 in annual revenue
• Minimum annual revenue: $25,000
• No bankruptcies in the past 3 years

Lines of credit are unavailable to borrowers in North Dakota, South Dakota, Rhode Island, Montana and Nevada. They are also unavailable to sole proprietorships in Delaware, Minnesota, Nebraska, New Hampshire, New Jersey, New York or Wyoming.

When it comes to short-term funding, StreetShares offers business owners an alternative to traditional 5-10-year bank or SBA-backed loans through its short-term loan program.

If you’re looking for faster approval and funding, a short-term loan might work. Designed to cover cash flow gaps for things such as equipment purchase and repair, it’s also for companies that have a proven cash-flow stream but might not be able to get a bank loan.

StreetShares Short-Term Business Loan Offerings:

• Short-term online loans from 6-24 months
• Short-term loans available from $5,000 to $250,000
• Receive funds as quickly as either the same day or within 5 days

Experiencing customer demand that’s higher than usual? Or are you in need of some cash to fill orders and stock up on discounted inventory? If so, you’ll want to apply for StreetShares’ inventory loans.  StreetShares offers these as part of its collateral-free lending options.

Inventory Loan Terms:

• Typical repayment terms range from 1-6 months
• Financing loan amounts range from $300 – $50,000
• Average APR falls between 21-61% typical for most short-term financing rates

StreetShares working capital loans are another unsecured loan option for businesses looking for help with financing the day-to-day expenses such as payroll or accounts payable in their operations.

While these loans are accompanied by a fairly high-interest rate, they can be helpful in keeping business afloat until another source of funding comes in.

Working Capital Loan Terms:

• Rates starting at 8% APR
• Minimum credit score: 640

In addition to StreetShares term loan and Patriot Line of Credit offerings, they also provide veteran-owned businesses with contract financing. StreetShares veteran business loans offer both secure and unsecured options, depending on your needs. There is no limit of contract size and funding is based on future earnings. StreetShares guarantees no hidden fees, a mobilization line/ loan option and there is a dedicated contract specialist to walk you through the application process.

StreetShares’ peer to peer lending helps both veteran- and non-veteran-owned businesses — with annual revenues of $100,000 to $5 million. According to the StreetShares website, the company has helped with over $100 million in originations for American-owned businesses to date.

Some of StreetShares’ term loans and business lines of credit don’t require any upfront collateral, and the company aims to increase funding access to veteran-owned businesses by creating favorable terms through their underwriting and application processes. Their online evaluation process uses both AI and human underwriters to assess your credit risk by using data points such as your personal credit score, your business credit profile and length of time in business, to make a final qualifying judgment for approval.

If you’re looking to build your business’s credit score, it should be noted StreetShares does not currently report to the personal credit bureaus for any loan product. They do report to the SBFE, which can help when building your business credit.

• They offer multiple loan products, including term loans, invoice factoring and lines of credit along with specialty financing
• StreetShares’ peer to peer lending unites the borrower to investors who have similar passions or interests and “get” their business.
• With the no prepayment fee guarantee, business owners have the flexibility to pay back their loans early without penalties.
• The lender does not charge an APR greater than 39.99%, which makes it more affordable than many other short-term lenders.

• Though StreetShares offers term loans and lines of credit up to $250,000, they typically won’t approve more than 10% of a borrower’s annual revenue.
• The lender has limited reach due to lending on a state-by-state basis. It also has industry limitations. StreetShares does not lend to non-commercial construction contractors or to those wanting to flip homes or other real estate. They do lend to tax preparation and accounting firms, but only if they are attached to certified public accountants.

• StreetShares requires you to have a business bank account unless you operate as a sole proprietorship.
• StreetShares requires that the loan applicant(s) own at least 25% of the business (51% of the business for loans larger than $50,000).
• StreetShares requires a personal guarantee and will sometimes ask for multiple guarantors.
• StreetShares looks at a borrower’s business credit score through the Small Business Financial Exchange (SBFE), and takes both personal and business credit score into account.
• StreetShares requires that 3 years have passed since a borrower has filed bankruptcy.
• StreetShares can work with borrowers with open liens, as long as they are on a payment plan.

• Social security number (SSN) of the business owner
• Employer Identification Number (EIN)
• Total outstanding business debts
• 6 most recent business bank statements
• Most recent personal and business federal tax returns

In some cases, financial statements — such as P&L and balance sheet — may be required

Out of 161 reviews on Trustpilot, StreetShares has a 4-star “Great” rating. The lion’s share of customers left positive reviews about their experiences, citing great customer service, competitive rates and an easy application process.

StreetShares also holds an A+ rating with the Better Business Bureau (BBB) with no customer complaints filed or government action brought against the lender since its accreditation back in April 2015.

Most borrowers report high satisfaction rates when working with StreetShares. Built on the concept of “affinity lending,” StreetShares matches customers with investors who share similar characteristics, such as military veterans. If your small business is looking for greater APR affordability, no-prepayment penalties, and doesn’t need access to a huge sum of financing, StreetShares is a solid choice for an online lender.

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