Lighter Capital Business Loans Review

If you’re searching for a loan for your business, you may have come across Lighter Capital. Lighter Capital, which is an alternative business lender, primarily works with businesses in the tech industry. The lender also has a unique repayment structure that is based on monthly revenue, instead of a flat rate. Let’s take a look at how Lighter Capital works.

Lighter Capital Business Loan Rates & Terms

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APR range: Lighter Capital’s business loans come with APRs ranging between 10% and 25%.

Available loan terms: Lighter Capital’s repayment terms come in flexible time frames of three, four and five years.

Loan amounts: Lighter Capital’s loans start at $50,000 with a maximum of $2 million, depending on your annual revenue.

Time to fund: Lighter Capital’s loans fund within two to four weeks, and borrowers pre-qualify within one to two business days.

Origination fee: Because Lighter Capital is an alternative lender that bases repayments on the monthly revenue of its borrowers, its APRs are not based on origination fees.

Credit needed: Because Lighter Capital’s loan decisions are primarily based on the applicant’s annual and monthly revenue, the lender does not have a minimum credit score requirement.

Income needed: To qualify for a loan with Lighter Capital, you should have a monthly revenue above $15,000 for the last three months.

Soft Credit Check? Lighter Capital does perform a soft pull on your credit with your initial application.

Best for: Lighter Capital loans are best for technology companies that can wait a few weeks for cash and would rather make loan repayments on the basis of their monthly revenue, rather than paying the same amount each period. They specifically cater to high-margin, high-growth businesses that are looking to fund medium to large-sized projects.

What Is Lighter Capital?

Lighter Capital is an alternative business lender that caters to companies in the technology industry, particularly those that focus on digital media, software, SaaS and other tech services. The financing is revenue-based, so their loans function somewhat differently than a traditional term loan. Unlike a term loan, a loan with Lighter Capital is repaid on the basis of a business’ monthly revenue, meaning that if you make more in one month, your repayment will be higher than it was in the last month.

How Does Lighter Capital Work?

Advantages

• Relatively low APR, ranging between 10% and 25%
• Potentially high loan amounts of up to $2 million
• Repayment is based on revenue stream, so it’s ideal for businesses with inconsistent cash flows
• Quick pre-qualification, within just one to two days
• Flexible repayment terms offered in periods of three, four and five years

Disadvantages

• Funding takes between two to four weeks
• Difficult to qualify for, especially for businesses with low monthly revenues
• Only available to businesses in a specific industry
• Businesses cannot predict how much they will have to repay each month, as repayments are based on revenue stream

How To Apply for a Lighter Capital Business Loan

All prospective borrowers will start by completing an online application through Lighter Capital’s website that includes information about your business revenue and financial history. After the initial online application is submitted, the lender will take one to two business days to review your information. If you pre-qualify for a loan, a Lighter Capital representative will get in touch with you to discuss your application. If you decide to move forward, your first loan will fund within two to four weeks, and any additional loans that you take out with Lighter Capital will fund within just a few business days.

What You Need To Apply

Before applying, you’ll need to have a few things handy:

• Past three months of business bank statements
• Business tax returns
• Personal and business credit score

Is Lighter Capital Legit?

Lighter Capital is a legitimate lender with a generally positive reputation. However, prospective borrowers should be aware that the lender is not yet accredited by the Better Business Bureau (BBB).

How Does Lighter Capital Fund Their Loans?

Lighter Capital funds their loans by issuing the payment to borrowers in one lump sum through a direct deposit. As the entire process is online, borrowers don’t have to worry about going to a traditional bank to apply or gain access to the funds.

Lighter Capital Products and Offerings

As an alternative business lender serving businesses focused on technology, Lighter Capital’s financing is revenue-based, functioning differently than traditional term loans. We align your financial obligations with your current business performance. Lighter Capital services support high-margin, high-growth businesses,  including those in digital media, software, SaaS, and other tech services. We also allow business startups the ability to access capital without trading their equity. Our financing is ideal for companies seeking to fund medium to large-sized projects. Our loan repayments are tied to a company’s revenue, so payments fluctuate. During months when your revenue increases, your repayment will adjust and be higher.

Lighter Capital Eligibility

To be eligible for a loan from Lighter Capital, your business must have generated monthly revenues exceeding $15,000 for the past three months. Lighter Capital doesn’t require a minimum credit score because our loan decisions are typically based on your annual and monthly revenue. You can pre-qualify within one to two business days and get funding within two to four weeks.

Lighter Capital Rates and Fees

APRs for our Lighter Capital business loans vary from 10% to 25%. As an alternative lender that calculates repayments based on the monthly revenue of its clients, Lighter Capital doesn’t set its APRs according to origination fees. Our repayment terms are flexible with time frames of three, four, or five years. Depending on your annual business revenue, Lighter Capital loans range from $50,000 up to a maximum of $2 million.

Lighter Capital Pros

If your tech business generates significant monthly revenue, a loan from Lighter Capital could provide your business with financing at a lower cost than a traditional loan. Some of our other advantages include:

• APR ranges from 10% to 25%, relatively low compared to industry standards.
• Offers loan amounts up to $2 million, accommodating substantial financial needs.
• Flexible repayment structure ideal for businesses with fluctuating or unpredictable revenue.
• Quick pre-qualification process, completed within one to two days.
• Flexible repayment terms available for three, four, or five years.

Lighter Capital Cons

• Available exclusively to businesses within specific industries.
• The funding process takes two to four weeks.
• Qualification can be challenging, particularly for businesses with low monthly revenues.
• Repayment amounts are unpredictable month-to-month due to revenue-based repayment structure.

How Does Lighter Capital Compare Against Other Business Loan Lenders?

vs Lendio

Lendio is an online loan-matching platform that connects applicants to products from over 75 different lenders. If you’re still not sure what type of loan is right for you, it could be a good idea to submit an application to Lendio.

vs Fundation

Fundation offers term loans between $20,000 and $500,000, with rates as low as 8%. If you’re looking for a more traditional business loan and do not need more than $500,000 in financing, Fundation could be a good option.

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vs OnDeck

OnDeck is a traditional online lender that offers term loans of up to $500,000 and business lines of credit of up to $100,000. OnDeck has a relatively low minimum credit score requirement and caters businesses in almost any industry, so if you’re excluded from eligibility with Lighter Capital due to your business’ type, this lender could be worth taking a look at.

» MORE: OnDeck Loans Review

Conclusion

If you’re in the tech industry and have a high monthly revenue, a loan with Lighter Capital may be able to give you access to financing at a lower cost than with a traditional loan. Additionally, its pay structure can be great for businesses that have uneven or unsteady revenue streams. However, Lighter Capital’s loans can be difficult to qualify for, so if you don’t fit into their very specific set of requirements, it may be worth taking a look at other lenders such as OnDeck, Lendio and Fundation.

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