Are There Quicken Small Business Loans?

More than one entrepreneur has found themselves wondering if there are Quicken small business loans. After all, Quicken is one of the biggest names in lending, and since they seem to offer fast and dependable service, Quicken Loans sounds like the perfect place to go to request funding for your new or established small business. 

This being said, Quicken doesn’t offer small business loans as we typically think of them. Instead, they offer a few different business financing options from their sister companies, Rocket Loans and Rapid Finance.

With this in mind, let’s learn a little more about Quicken Loans and their relationship to small business financing—this way, you’ll have all the information you need to determine what’s best for your business.

Does Quicken Offer Small Business Loans?

Unfortunately, as we just mentioned, if you’re looking for small business loans from Quicken, you won’t be able to find them—at least, you won’t be able to take out, say, a long-term loan or a business line of credit directly through Quicken.

Quicken Loans does not offer commercial or business loans in the traditional sense.

However, through their sister company, RocketLoans, they do offer personal loans that in some cases can be used toward small business expenses and emergencies—and this product can often be confused as a small business loan.

Additionally, through another Quicken sister company, Rapid Finance, you can access short-term loans and merchant cash advances that are actually designed for business financing needs.

This being said, if you’re searching for Quicken business loans, these are going to be your two options that will come closest to a small business loan from Quicken.

With this in mind, let’s break down these two options and discuss what you need to know to decide if they’re right for you. Then, we’ll explore some of the top alternatives to Quicken small business loans—so that you can see all of the financing solutions that are available for your business.

Business Loans vs. Personal Loans for Business: What’s the Difference?

First, when it comes to RocketLoans, you know now that these “Quicken small business loans” aren’t exactly traditional business loans, but rather personal loans that can, in some cases, be used for business purposes. But what does this difference mean, exactly, and how should it impact your decision about pursuing a Quicken loan for your business’s financing needs?

Let’s walk through exactly how these two loan products differ in order to highlight the benefits and drawbacks of each:

Personal Loans for Business at a Glance

Qualifying for a personal loan depends primarily on your personal credit score and your ability to repay the proposed debt. Lenders will look at your personal credit report to see how much credit has been extended to you in the past and how well you have managed that credit.

For some entrepreneurs, the advantage of opting for a personal loan for business is that the funding decision does not factor in any of your business’s finances or history.  This makes personal loans such as Quicken small business loans from RocketLoans an accessible option for newer businesses that have a more limited revenue history and therefore may not qualify for a more traditional business loan.

Business Loans at a Glance

In contrast, qualifying for a business loan depends not only on your personal credit history but also that of your business.

Along with your personal and business credit reports, lenders will also want to evaluate your business’s financial statements, including a balance sheet, income or profit and loss statement, and a cash flow statement—along with recent bank statements and your most recent tax return filing.

Understanding the High Risk of Personal Loans for Business

Now comes the most important way in which business loans differ from personal loans. If you default on a business loan, the lender will look first to the business’s assets to recover its loan debt. In the event that the debt can’t be fully recovered from your business’s assets, the lender’s access to your personal savings will be limited to the terms of your collateral agreement.

When a lender makes a personal loan, however, they are lending money to you as an individual—not to your business. This means if you use a personal loan for business purposes—such as with a Quicken small business loan from RocketLoans—you are 100% personally responsible for the repayment of the debt regardless of whether your business succeeds or fails.

Not only does this put your life savings, retirement accounts, children’s college funds, and even your family home at risk, but it also means that the default or non-payment of the loan will be recorded on your personal credit report.

This could make it much more difficult to obtain credit cards, personal loans, or even a mortgage in the future. And even when available, these would likely be offered at a higher interest rate due to the negative personal credit history you’ve incurred.

Are Quicken Business Loans From RocketLoans Worth the Risk?

In this case, Quicken small business loans are more accurately called personal loans from RocketLoans that are used for business purposes—and, as we’ve discussed, there are key differences between personal and business loan products. But are there instances in which choosing to use a personal loan (whether from Quicken’s RocketLoans or another source) could be a good business investment?

In some cases, the answer may be yes—but it’s important that you fully understand the risk factors to evaluate whether these risks are worth the result. They are as follows:

1. When You Need Financing for a New Startup

There’s no denying that for businesses that have high overhead costs from the outset, obtaining a traditional business loan can be difficult. Most business lenders require borrowers to have been in business for at least a year—or even three months for invoice financing or a line of credit—and many require a minimum annual revenue figure before they’ll even consider a business for qualification.

If your business is in its earliest stages but you’re in need of immediate startup funding, a personal loan for business might be your only option.

2. When Your Financial Statements Don’t Match Projections

Perhaps you’ve been in business for a sufficient period of time, but the information on your cash flow statement, balance sheet, and income statement aren’t yet positive enough to identify your business as a good credit risk for a traditional small business loan product.

Because you know your business better than anyone, though, you may be aware of income projections that justify taking the personal risk. Though not evident on traditional bank or financial statements, these funds may be for expanding your current operations to the extent that your cash flow and income projections will improve substantially in the near future.

In this case, it might be worth taking a bet by financing your business’s next level of growth through a personal loan.

3. When You Can Afford the Personal Risk

Despite all our confidence, expertise, and contingency planning, the reality is that sometimes even the most conservative of financial projections can ultimately miss the mark.

If the worst-case scenario comes to pass and your business doesn’t succeed, will your personal finances be able to withstand the cost of this loan? Will you be able to stay in your home? Retire on time? Fund your children’s education as you previously planned?

The risk of a personal loan for business is far more manageable if you know that you can afford it. But if failing in this venture could hold you back from paying your mortgage on time or putting food on the table, it’s probably worth thinking again.

Quicken Business Loans From Rapid Finance

Luckily, if you think a Quicken small business loan from RocketLoans is too risky of an investment, you have a direct alternative if you’re insistent about working within the Quicken family. As we mentioned briefly above, Quicken sister company Rapid Finance offers both merchant cash advance and short-term loan products for businesses.

With their merchant cash advance product, you can access an advance from $5,000 to $500,000 with a term of three to 12 months. Interest rates on merchant cash advances from Rapid Finance start at a factor 1.22. To qualify for this Quicken business loan product from Rapid Finance, you need at least three months in business, a personal credit score of 550, and at least $5,000 in monthly credit sales.

In addition, Rapid Finance offers three different short-term loan products. For these loans, you can access amounts up to $1 million, terms as long as 18 months, and factor rates as low as 1.11—depending on which type of loan you apply for. To qualify for these Quicken-sister products, you’ll need at least two years in business, a minimum credit score of 550, and a minimum annual revenue of $120,000.

This being said, although the Rapid Finance term-loans may not be as accessible to startups and newer businesses as the Quicken personal loans for business from RocketLoans, their merchant cash advances are available for businesses with only three months of operations. Plus, unlike the loans from RocketLoans, these Rapid Finance products are specifically for businesses, and therefore, will not pose these same risks as using a personal loan for business.

However, it is important to note that merchant cash advances and short-term business loans—especially those that charge interest as factor rates–are typically considered some of the most expensive types of business financing on the market.

Therefore, if you can qualify for a business-specific loan product with more ideal rates and terms, even if it’s outside of the Quicken family of companies, this will likely be a better option for your business.

Alternatives to Quicken Small Business Loans

Even if your business is in very early stages, you may be pleasantly surprised to discover the wide range of business loan options that are available.

If you’ve weighed all the pros and cons and are still unsure whether a Quicken loan for business (from either RocketLoans or Rapid Finance) is right for your business, you might want to consider whether one of these business loan alternatives could meet your financing needs:

Top Alternatives to Quicken Business Loans, Summarized

Type of Loan Rates Terms Top Lenders Best for
SBA loans 
Variable based on the program and the prime rate; generally 4% to 13%
Up to 25 years
First Home Bank, Celtic Bank, Five Star Bank
Highly qualified borrowers looking for long time financing
Short-term loans
Starting at 10%
Three to 18 months
OnDeck, Fundation, Rapid Finance
Short-term funding needs for newer or less qualified businesses
Equipment financing
4% to 40%
Five to six years
Crest Capital, Balboa Capital, Currency Capital
Businesses looking to purchase equipment
Business lines of credit
7% to 25%
Up to two years
BlueVine, Fundbox, OnDeck
Flexible financing for more immediate financing needs
Merchant cash advances
Factor fees of 1.14 to 1.18
Paid daily via your merchant account
Rapid Finance, CAN Capital
Less qualified borrowers who can’t access any other types of loans
Invoice financing
Up to 100% of the invoice value
Until the customer pays the invoice
BlueVine, Fundbox
B2B businesses with capital held up in outstanding invoices

1. SBA Loans

Partially guaranteed by the U.S. Small Business Administration’s various loan programs, SBA loans are a long-term (typically five years or more), low-interest financing option funded through approved intermediary lenders.

Because of the SBA’s guarantee, these loans tend to be more accessible to small business owners than traditional small business loans from a bank. However, keep in mind that the application and approval process is time and paperwork intensive, and it could take several weeks or even a few months to receive a final word of approval.

Additionally, although SBA loans are one of the most desirable loan products out there, they’re also typically harder to qualify for—you’ll need strong credit, financials, and at least two years in business to qualify.

2. Short-Term Loans

As we discussed in regards to Rapid Finance’s short-term loan product, this type of financing is similar to the traditional business term loan, with shorter terms for repayment.

Typically, these loans have terms of under one year with repayments due on a weekly or even daily basis instead of the traditional monthly deadline.

On one hand, short-term loans can be considered inherently risky. The quick turnaround for repayment can be damaging to a business’s cash flow, and they can often carry a higher interest rate than other loan products.

But if you’re ever able to generate a return on your loan investment within a reasonable timeframe to handle the payment schedule, opting for a short-term loan may be worthwhile—especially if you can’t qualify for other types of business loans.

3. Equipment Financing

Were you considering Quicken small business loans in order to finance the purchase of computers, commercial kitchen appliances, or other equipment for your company? If so, equipment financing might be a far better option.

These types of loans can be very appealing to newer businesses and startups because the collateral is built right into the loan, meaning you don’t have to put your personal assets at risk. Interest rates vary based on location, equipment type, and value of the equipment, and funding can typically be approved within a few business days.

4. Business Line of Credit

If flexibility and quick access to funds are your major concerns, the business line of credit can function as an ideal safety net for your organization’s cash flow. A line of credit is a pre-approved amount of capital that can be drawn upon as needed to meet a variety of financial needs within your business.

Similar to the terms of a business credit card, the lender sets a maximum amount that can be used at any given time. And although interest rates vary and can be higher than with traditional loan products, you only pay interest on the amount withdrawn at any given time.

5. Merchant Cash Advance

Often an ideal choice for seasonal businesses and those with unpredictable cash flow, merchant cash advances are unique in that repayment on the debt is collected as a percentage of the business’s daily credit card sales.

Instead of facing the threat of a looming loan payment with not enough cash to cover the cost, you can take out a merchant cash advance with the assurance that your loan is only being repaid at times when your business has money coming in.

The downside? As we mentioned in regards to Rapid Finance, merchant cash advances tend to be the most expensive loan products on the market—and because interest continues to accrue even when your payments have slowed to a minimum, the cost of this form of financing can quickly get out of control.

6. Invoice Financing

Is your business saddled with customer invoices that represent a significant amount of your current ready cash? Would turning these invoices into the cash they represent be the perfect financial boost? In this case, invoice financing—sometimes called accounts receivable financing—might be the solution.

With invoice financing, your business is advanced about 85% of the value of your currently outstanding invoices, with the remaining 15% held in reserve by the invoice financing company. Then, as customers repay their invoices, those payments are transferred directly to the lender, and you retain a portion of that 15% fee based on the amount of time funds were borrowed.

The Bottom Line

In your search for business financing, you’ll likely be faced with a wide variety of options that appeal to you for very different reasons.

So, although there may be some upside to pursuing Quicken small business loans, it’s worth taking the time to fully investigate your full range of loan options before reaching a decision. Ultimately, although you may consider Rapid Finance as a Quicken-sister company who offers business specific-loan products, it will likely be risky to take on a RocketLoans personal loan for your business.

Instead, therefore, you might want to consider any or all of the types of business loans we broke down above—as any of these options might be able to better serve your business.

Founding Editor and VP at Fundera at Fundera

Meredith Wood

Meredith Wood is the founding editor of the Fundera Ledger and a vice president at Fundera. 

Meredith launched the Fundera Ledger in 2014. She has specialized in financial advice for small business owners for almost a decade. Meredith is frequently sought out for her expertise in small business lending and financial management.

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