Founded in 2008 and partially acquired by Fora Financial in 2018, US Business Funding provides several financing resources for small businesses.
US Business Funding boasts several advantages, including SBA-approved lender status, low rates for qualifying companies, high approval rates and fast funding. Drawbacks include a lack of transparency on rates and an aggressive marketing policy that has generated complaints.
Consider US Business Funding if you:
- Have credit too low to qualify for other financing options
- Need funding quickly
- Can tolerate spam
US Business Funding SBA Loans
US Business Funding facilitates SBA loans, which receive backing from the federal agency — reducing the risk to lenders and enabling them to extend financing at lower rates.
US Business Funding offers 2 types of SBA loans:
- 7(a) loans, SBA’s main type of financing, which have an interest rate that can’t exceed a maximum set by the SBA
- 7(a) Express loans, which are similar to 7(a) loans but get processed faster
The funding can be used for a variety of purposes, including:
- Covering working capital
- Buying equipment
- Purchasing real estate
- Refinancing debt
US Business Funding SBA loans feature:
- Loans of up to $150,000
- Credit lines of up to $2 million
US Business Funding’s website doesn’t directly disclose interest rates. Instead, the site features an online calculator that provides examples of estimated repayment terms where a strong credit rating is assumed.
For example, if you want a loan for $10,000 to refinance debt, the calculator returns $221 a week for 52 weeks, equivalent to repaying $11,880, or 14.92%. If you change the amount to $2 million for refinancing debt, the payments change to $44,231 a week for 52 weeks, or $2,300,012, roughly 15%.
A note below the calculator stresses these rates “assume a strong credit rating.” If you have a low credit rating, your rates may be higher.
US Business Funding Equipment Financing
US Business Funding provides financing for equipment leases for small to midsize companies. This includes several kinds of leasing arrangements:
- Fair-market value lease, where you pay to use the equipment until the end of your lease term and then have an option to return it, buy it for fair-market value or upgrade it
- Dollar buyout lease (or capital lease), where you can purchase the equipment for $1 at the end of your lease
- Wrap leases, where you “close your current lease and then move that lease into a new one with financing of the new collateral”
- Business expansion, for equipment purchases tied to opening a new business as an expansion
- Refinance program, for equipment that you are refinancing
- New business leases, for businesses that have been operating for less than 2 years
- Sales leaseback, for when you have recently purchased equipment with cash and would like to sell the equipment to US Business Funding for cash and then lease that equipment back from the lender.
The 2 most popular arrangements, the fair-market value and dollar buyout leases, feature:
- Funding up to $75,000 with a simple 1-page credit application, up to $200,000 with applications only or up to $ 50,000,000 “with a full financial package”
- Term lengths of 24 to 72 months
- 100% financing
US Business Funding doesn’t directly disclose rates on its website, stating that rates vary with credit history, equipment cost and term structure. The site’s online calculator illustrates some sample rates (assuming a business owner has strong credit).
For example, for $10,000 of equipment financing, the calculator returns payments of $198 a month for 60 months, equal to $11,880, or 18.8%. For $2,000,000, this becomes $39,602 a month for 60 months, or $2,376,120, also equal to about 18.8%.
US Business Funding Working Capital
US Business Funding provides several types of financing to help businesses cover the costs of working capital expenses:
- Small business loans
- Automated clearing house (ACH) products, which are arrangements where the lender extends credit based on your average business bank balance and automatically deducts electronic payments from your account on a periodic basis
- Lines of credit, which are similar to credit cards
US Business Funding working capital solutions feature:
- Availability only to businesses that have a physical location and are 100% internet-based
- Amounts vary based on factors such as time in business, industry and monthly sales volume
- Terms from 3 months to 10 years
- Rates starting at 3.5%
US Business Funding Lending Experience
Start the US Business Funding loan process by filling out a form to request a free quote. The application seeks basic information, including:
- The amount of financing you’re seeking
- Your gross annual sales
- The number of years in business
- Intended use of the financing
- Contact information
- Legal business name
Based on the information you provide, US Business Funding will offer you a sample prequalifying quote within 60 seconds. A representative will then contact you to discuss additional information about your business and financing options. Based on the options you select, you will be asked to submit additional documentation.
If approved, funding typically becomes available within 24 to 48 hours for equipment financing and 2 to 3 business days for working capital financing, with funds available in as little as 24 hours for established repeat customers. Some applications may take longer, particularly if you’re seeking higher amounts or an SBA loan.
US Business Funding Pros
- Ability to provide SBA loans
- Multiple equipment financing options
- Willingness to work with business owners who have low credit scores
- Fast approval and funding process
US Business Funding Cons
- Lack of transparency about rates, with calculator-generated examples assuming you have a strong credit score, leaving you in the dark about what to expect if you have a lower score
- Aggressive spam marketing, according to complaints filed with the Better Business Bureau (BBB)
Spam seems to be the most frequent consumer complaint about this lender. US Business Funding BBB feedback contains multiple complaints about failure to honor requests to unsubscribe from company messages. If you work with this lender, you might consider setting up a separate email to contact them.
US Business Funding Requirements
Requirements vary with the loan product.
For equipment financing, you’ll need:
- Typically at least 2 years in business, although some options are available for businesses that are 6 months old with strong credit scores
For working capital financing, you need:
- At least 12 months or more operating at the same location
- 3 to 6 months of bank statements
- No outstanding bankruptcies or tax liens that aren’t on a payment plan
- Must have a physical location and be 100% internet-based
- Certain types of industries are ineligible
The US Business Funding site doesn’t list requirements for SBA loans.
What You Need to Apply
When applying for equipment financing:
- Freelancers must demonstrate time in business through a business checking account or a tax return Schedule C
For working capital financing, you must provide:
- At least 3 to 6 months of bank statements
Final Say: US Business Funding
US Business Funding offers some options that may be useful for business owners with lower credit scores. If you have strong credit, you may qualify for lower rates elsewhere.
