Pearl Capital Business Funding: The Ultimate Guide

Updated on September 8, 2020
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Pearl Capital Business Funding: An Overview

So, you’ve started the search for a business loan and you came across Pearl Capital as an alternative lending source.

What does Pearl Capital business funding offer, exactly? And is it a viable option for financing your business without sending you into a spiral of debt?

We break down all there is to know about Pearl Capital business funding to help you decide if it’s the right path to take to finance your small business.

What is Pearl Capital?

Pearl Capital is one of the many alternative lenders who answered to the untapped market of small business owners who couldn’t secure business funding from banks after the recession.

Since they opened in 2010, Pearl Capital has focused on funding “under-banked and credit-challenged businesses, in just about every industry.”

Through the process of funding these businesses, Pearl Capital has become a top name in short-term small business financing.

And years later, this alternative lender continues to grow. It seems that month after month they continue to break their own monthly records for loan volume funded.

But the question that inevitably comes to mind when hearing Pearl Capital’s mission statement is, can this alternative lender fund high-risk customers without costing small business owners an arm and a leg in accumulated interest?

Here’s all you need to know about Pearl Capital business funding before you decide to work with them.

How Pearl Capital Business Funding Works

Pearl Capital employs a network of ISO’s—or Independent Sales Organizations—to secure customers.

When an ISO secures a customer, Pearl Capital underwrites the business funding themselves. The ISO walks the borrower through the underwriting process, as well, until the deal is finally closed.

Despite the multiple layers of communication involved in securing Pearl Capital business funding, borrowers can often get through the process extremely quickly.

Aside from closing “tough” deals, Pearl Capital underwriters and ISO’s also pride themselves on moving quickly to get you the funding you need as efficiently as possible.

Pearl Capital's Products for Funding

What products does Pearl Capital offer?

Well, it’s actually a product that they offer, because Pearl Capital only offers one, specialized type of small business loan.

What Is An ACH/Cash Flow Loan?

Pearl Capital business funding comes in the form of what’s referred to as an ACH loan or a cash flow loan.

  • It's Like A Short-Term Loan

    The Pearl Capital business funding is a form of short-term loan that can be disbursed quickly but often times ends up costing businesses more.

  • It's Like A Merchant Cash Advance

    Pearl Capital funding actually functions much like a merchant cash advance, but its repayment process isn’t collected on your credit card receivables as a merchant cash advance is.

  • In fact, the acronym “ACH” stands for “automated clearing house” and refers to the process in which the loan is repaid. Instead of accessing your credit and debit card receivables, the lender bills your bank account directly. This payment process functions a lot like automatic payments you might set up for any other loan you take out.

  • Essentially, Pearl Capital business funding works like a combination between a merchant cash advance and a traditional loan.

    You have the accessibility and expensive cost of the MCA with the automatic payments of the traditional loan.

Who Can Get Pearl Capital Business Funding?

Though Pearl Capital prides itself on funding “tough” deals, the question still stands—who exactly can secure Pearl Capital business funding?

  • Small Businesses with at least 3 months of business history.
  • No minimum FICO score.

But be sure to note that meeting these minimum requirements doesn’t really mean that you’ll definitely receive funding.

These requirements are simply the minimums required to work with for Pearl Capital business funding.

Depending on where your business’s credentials fall, even if you meet these minimum requirements, you might not be able to secure Pearl Capital business funding.

They only way to know for sure is to apply for funding and consult the Pearl Capital ISO you’re placed with.

Be sure to check in with an external expert about your odds of being approved before they make a hard inquiry on your credit for your application, as well. A hard credit inquiry will lower your credit, so you only want to formally apply for Pearl Capital business funding if your chances of being approved are good.

  • Is Pearl Capital Business Funding the Right Fit for You?

    So, with all of this information at your fingertips, it’s time to decide if Pearl Capital business funding is the right fit for you and your small business.

    We all know the key to making a good decision lies in spreading out each option’s pros and cons, evaluating where your priorities lie, and then making your decision from there.

    So let’s take that first crucial step in making the decision of how to fund your small business—let’s lay out all the pros and cons of choosing to finance your business with Pearl Capital business funding.

The Advantages and Disadvantages of Pearl Capital Business Funding

The Advantages of Pearl Capital Business Funding

Are you wondering what the main reasons are for considering Pearl Capital business funding among the many alternative lenders at your fingertips competing for your business?

We go through all of the advantages of funding your small business with a ACH loan from Pearl Capital.

  • It’s Accessible and Quick

    Pearl Capital prides itself on funding even the toughest deals. By “tough deals” they mean credit-challenged business owners who are searching for funding for their small businesses. Essentially, they aim to offer small business loans to those who can’t secure them anywhere else.

    And they aim to do it quickly, too.

    As they say on their website, Pearl Capital knows that ”opportunities don’t wait.” As such, they train their underwriters and ISO’s to fund under-served businesses and to do it quickly.

  • They Offer an Efficient Repayment Process

    Their efficient payment process is what sets Pearl Capital business funding apart from your everyday merchant cash advance.

    Instead of taking directly from your credit card receivables, Pearl Capital will set up automatic payments from your business’s bank account.

    You won’t have to setting up a merchant account with Pearl Capital business funding, you’ll just need a business bank account, which you likely already have.

The Disadvantages of Pearl Capital Business Funding

Pearl Capital business funding’s one and only disadvantage is a very big one, and it’s not one to take lightly.

Its main disadvantage—its expensive rates—is basically a byproduct of its advantages—quick and accessible funding.

Let’s take an in-depth look at the main reason you should hesitate in seeking business financing with Pearl Capital business funding.

  • It’s Expensive

    Let’s get down to brass tax—as an almost universal rule, the quicker the business funding, the more expensive it is. And the more accessible the business funding, the more expensive it will be, as well.

    And Pearl Capital business funding is one of the quickest, most accessible business financing options on the market, so you’ll need to know what you’re getting yourself into before you decide to dive in.

    Essentially, with a Pearl Capital business funding ACH loan, you’ll be paying extra both for the risk they take on for lending to high-risk borrowers and the speed with which they fund.

    Put simply, if you’re not a high-risk borrower and you don’t need cash right this moment, you can probably find a more affordable option than Pearl Capital business funding.

The Alternatives to Pearl Capital Business Funding

Because Pearl Capital business funding will end up costing you a lot, it’s important to search for other accessible and quick options.

If you look beyond MCA and ACH loans, you might be able to find another business funding option that is open to high-risk borrowers but won’t stifle your business’s cash flow as much as the high-cost funding options.

Business Lines of Credit

business line of credit is a great alternative to Pearl Capital business funding.

  • A business line of credit functions a lot like a business credit card.
  • You are able to spend as much as need up to your credit limit.
  • You will only pay interest on the amount you draw from the line of credit.
  • Once you’ve repaid what you’ve drawn (plus interest), your credit line gets refilled to its original amount.

The only difference between a line of credit and a credit card is that you won’t have a physical card, the APRs tend to be lower, and you won’t get rewards with a business line of credit. Plus, repayment terms tend to be less regimented with business lines of credit than with business credit cards.

  • Minimum Requirements For Business Line of Credit

    • At least 6 months of business history.
    • A credit score of at least 550.
    • At least $50,000 in annual revenue.
     That being said, at Fundera, most business owners who secured business lines of credit had been in business for over a year, had a credit score of at least 630, and made at least $180,000 in annual revenue.

    Though business lines of credit certainly aren’t accessible as the ACH loans that Pearl Capital offers (almost no loan is, really), if you qualify for them, they are by and large a much cheaper option than Pearl Capital business funding.

Business Credit Cards

Another accessible funding option that’s a great alternative to Pearl Capital business funding are business credit cards.

One business credit card in particular—the Capital One Spark Classic for Business—is one of the best business funding options is a great option for small business owners looking to build credit.

  • The Advantages of the Capital One Spark Classic for Business

    Let’s take a moment to highlight where the Spark Classic really shines:

    • You’ll get 1% cash back for every purchase you make on the Spark Classic with no cap on how much cash back you can earn. That’s a solid 1% of every dollar you spend that you can funnel right back into your balance.
    • No Annual Fee

    You won’t have to pay an annual fee to use the Spark Classic, so you’ll be able to reap these cash back rewards for free.

    • Improve Personal Credit Score

    Additionally, by spending responsibly on your Spark Classic, you’ll be able to improve your personal credit score. That’s because Capital One will report all of your activity on the Spark Classic to personal credit bureaus.

    • The Only Unsecured Business Credit Card for Average Credit

    By using the Capital One Spark Classic for Business strategically, you’ll be able to finance your business, improve your credit, and leave expensive MCA and ACH loans in the dust.

    All in all, the Spark Classic is the perfect opportunity for business owners with fair personal credit to access a line of credit or their business. Can Pearl Capital business funding do that for your business? How we see it, it can’t even come close.

The Bottom Line for Pearl Capital Business Funding

There you have it—you’ve got all you need to know about Pearl Capital business funding right at your fingertips.

Because only you know where your priorities lie for your small business, only you can decide where you stand on Pearl Capital business funding. But, here are the main points to take away from this guide:

  • Relative to all of your options for quick, accessible business loan options, Pearl Capital business funding is a fine option.
  • As far as rates go for quick, easy-to-get loans, Pearl Capital business funding is neither particularly expensive nor particularly cheap.
  • If you don’t need to fund with Pearl Capital, then we’d suggest bypassing Pearl Capital business funding.

If you’re able to secure a small business funding loan other than a merchant cash advance or a ACH loan within your necessary timeline, then you should explore those options.

If you need easy-to-get or quick business funding, be sure to do a bit more research on your options—like business lines of credit and business credit cards—before signing the dotted line fro Pearl Capital business funding.

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Meredith Wood
Vice President and Founding Editor at Fundera

Meredith Wood

Meredith Wood is the founding editor of the Fundera Ledger and a vice president at Fundera. She launched the Fundera Ledger in 2014 and 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. She is a monthly columnist for AllBusiness, and her advice has appeared in the SBA, SCORE, Yahoo, Amex OPEN Forum, Fox Business, American Banker, Small Business Trends, MyCorporation, Small Biz Daily, StartupNation, and more. Email:
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