Best For: Immediate Funding, Poor Credit
At some point as a business owner, you might find yourself needing to find financing to fund expenses that can’t be paid out of pocket. That’s where lenders like StreetShares come in. StreetShares connects borrowers with peer-to-peer business investors who offer a wide range of products, from business lines of credit to term loans, in order to suit your business financing needs.
StreetShares Business Loan Rates & Terms
- APR range: StreetShares offers term loans with annual percentage rates ranging between 9% and 40%.
- Available loan terms: This lender’s loan terms range between three and 36 months.
- Loan amounts: StreetShares offers term loans starting at $2,000 with a maximum of $250,000, lines of credit ranging between $5,000 and $250,000 and invoice factoring and government contract financing up to $2 million.
- Time to fund: StreetShares loans fund within one to five days.
- Origination fee: This lender’s origination fees range between 3.95% and 4.95%.
- Credit needed: To be eligible for a loan or line of credit with StreetShares, you should have a personal credit score above 600. For their invoice factoring service, your credit score should be at least 540.
- Income needed: For this lender’s lines of credit and term loans, your business’ annual revenue should be above $75,000. There is no minimum income requirement to be considered for their invoice factoring service.
- Soft Credit Check?: StreetShares will do a soft pull of your credit while evaluating your application.
- Best for: Financing from StreetShares is best for businesses with smaller annual revenues who need immediate funding. While lower rates are possible for highly qualified borrowers, this lender also works with business owners with lower personal credit scores.
What Is StreetShares?
StreetShares is a business lender that offers a variety of financing services to borrowers across a range of credit scores and businesses with a range of annual revenues. Because this lender offers so many different products, including term loans, business lines of credit, invoice factoring and other specialty services, qualifying for at least one form of their funding isn’t as difficult as it might be with some of its competitors.
Types of Business Financing StreetShares Provides
Patriot Express Line of Credit
With a Patriot Express line of credit through StreetShares, businesses can get access to up to $250,000 and only draw the funds as they need them. This can provide a smart alternative to term loans if you’re not sure of the exact amount that you need.
Term Loans
StreetShares offers term loans between $2,000 and $250,000, with repayment terms ranging between three and 36 months, and APRs ranging between 8.75% and 39.99%.
Contract Financing
With StreetShares’ invoice financing service, you can sell your unpaid invoices and receive up to $2 million in funding. 90% of the value of your invoices will be advanced to you, with the rest being sent, minus the fees, once the invoices are paid.
How Does StreetShares Work?
StreetShares offers a wide range of business financing options, giving borrowers several different ways to potentially fund their business expenses. This lender offers a less conventional approach to the peer-to-peer method of lending, and works to match borrowers with investors who may share the same interests or industry specialties.
If you’re considering a StreetShares product, you can make your initial inquiry using a short, online application. If you’re approved for your chosen form of financing, you may need to submit additional documents afterwards.
» MORE: Compare peer to peer business lenders
Benefits of StreetShares
- No prepayment fee
- Lower minimum time in business, with just one year required
- Easier to for business owners with lower credit scores to get approved, because the lender primarily looks at cash flow
- Easier for smaller businesses to get approved, with minimum annual income for most products starting at $75,000
- Unique lending method and philosophy to match businesses with the right investors
Drawbacks of StreetShares
- Excludes states including South Dakota, North Dakota, Rhode Island, Vermont, Wyoming, Montana, Oregon, Nevada and Alaska
- Does not lend to non-commercial construction contractors or home-flippers
- Requires weekly payments instead of the industry standard monthly payments
How To Apply for a StreetShares Business Loan
Applying for a StreetShares loan is easy. All you need to do to get pre-approved is fill out their simple, online application with some of your financial and personal information. If you’re approved, the lender will take a soft pull on your credit and send you the offers that you’re eligible for.
What You Need To Apply:
Before you apply, you’ll need to have a few things ready:
- A compelling business story that potential investors can use to evaluate your application
- Your personal and business financial history
- Documents proving your annual revenue
You’ll also need to be an incorporated business or LLC with at least one year of operation under its belt.
Is StreetShares Legit/Safe?
StreetShares has signed the Small Business Borrower’s Bill of Rights, meaning that they agree to adhere to specific protocol when it comes to dealing with their borrowers. This protocol includes a commitment to ensuring transparency and ease throughout the application and repayment process.
The company also offers customer support via live chat, telephone and email.
- StreetShares Best Price Guarantee: Under certain conditions, StreetShares offers a best price guarantee that matches any competitor’s offer, or they’ll give you a $100 Amazon gift card if they can’t.
How Does StreetShares Fund Their Loans?
StreetShares funds its loans by partnering with investors who are interested in acting as lenders to reliable small businesses in need of financing.
How Does StreetShares Compare? Vs Funding Circle & BlueVine Line of Credit
StreetShares vs Funding Circle
StreetShares offers a wider range of products than Funding Circle that can help businesses fund larger expenses in a multitude of ways. However, if you’re looking for a business term loan of up to $500,000 and want to do so through peer-to-peer lending, you may want to consider submitting an application to this platform as well. Funding Circle’s rates are comparable, while it can offer significantly more flexible repayment terms, with a maximum term of five years. However, if you need fast cash, a loan from Funding Circle may take up to 10 days to fund.
StreetShares vs BlueVine
BlueVine offers lines of credit of up to $250,000. This lender has one of the fastest funding rates in the industry, with disbursement taking just 12 hours in some cases. While their interest rates may be higher on average, they’re also more willing to work with borrowers with low personal credit scores or low annual revenues.
How Does StreetShares Compare? Vs BlueVine & FundBox Invoice Factoring
StreetShares vs FundBox
FundBox has a more limited range of amounts, with invoice factoring capped at $100,000. This lender is best for borrowers with low credit scores who might be having trouble getting approved with other business lenders, as rates can reach 78.6%.
StreetShares vs BlueVine
BlueVine offers invoice factoring of up to $5 million, with low minimum requirements. However, their annual percentage rates on this product can reach as high as 68%, so make sure to consider other lenders before committing to BlueVine’s invoice factoring.
» MORE: Compare Invoice Factoring Options
Compare All Business Loans
If you’re weighing your business financing options and want more information, PrimeRates offers comprehensive reviews of several other business loan types, lenders and platforms. Even if you have a low credit score or own a brand new business, you still may be able to find a loan with low rates and flexible repayment terms. It’s important to take the time to understand all of your financing options before deciding on the loan that’s right for you.
