Finance Factory Lending Review for 2020

Overview

Finance Factory is an online business finance consultant that offers brokerage and educational services. If they secure funding for your business, though, you will have to pay them for their services, on top of any fees and interest the direct lender will charge you.

Pros and Cons

Pros
  • Accessible: New business owners can pursue startup funding.
  • Flexible: There are a wide variety of products available to suit different business and personal needs. Very few online brokers offer personal loans, retirement funding, and credit line builders.
Cons
  • Cost: You have to pay Finance Factory for their services. Some Finance Factory reviews from customers even say that they were charged 10% of the credit line that Finance Factory secured them. 
  • Fees: There are origination fees on top of any fees and interest that the direct lender charges.

Finance Factory Unsecured Business Finance

Finance Factory’s Unsecured Business Finance program is FICO driven and designed for credit worthy applicants. With the Unsecured Business Finance offering, collateral is not required, but a good credit score is necessary to qualify.

Finance Factory Unsecured Business Finance

  • Loan amounts

    $50,000 to $250,000

  • Loan term

    Revolving credit accounts

  • Interest rate

    0% for up to 21 months

Qualifications for Finance Factory Unsecured Business Finance

To qualify, you must provide:

  • Ideal annual revenue

    $0

  • Ideal credit score

    600 to 800

  • Time in business

    No time in business required

Finance Factory Startup Funding

  • Loan amounts

    $5,000 to $350,000

  • Loan term

    0 to 7 years

  • Interest rate

    0% (for up to 21 months) to 15%

Qualifications for Finance Factory Startup Funding

To qualify, you must provide:

  • Ideal annual revenue

    None is required

  • Ideal credit score

    680 to 800

  • Time in business

    None is required

Finance Factory Borrower Eligibility

Alongside the more general information included above, to be eligible for consideration, you will have to provide the following documentation.

What You Need to Apply

  • Business tax returns
  • Business cash flow
  • Personal credit history
  • Industry code
  • State, location of business, and officers
  • Your business’s contact information
  • Your legal business name
  • The industry your business is in
  • The type of business it is
  • Total annual income
  • Your Federal Tax ID
  • Your legal name
  • Your personal contact information

How to Get a Loan With Finance Factory

If you’re considering taking out a Finance Factory loan, this is everything you need to know about their application, underwriting, post-funding, and repayment processes.

Application and Underwriting Process

As with most online lenders, the initial step toward funding with Finance Factory will be an online application. However, with Finance Factory’s online application, you will have to fill out a lot more information than you would with other online lenders—especially in the first step. With the first page of their application application, Finance Factory asks you to self-report the following information on yourself and your business:

  • Desired loan amount
  • Intended loan use
  • Credit score
  • Business start date
  • Monthly revenue
  • Personal income
  • Total value of personal assets
  • Type of collateral
  • How soon you need funding

And you’re not even finished after you’ve provided this information—the next page will ask for contact and identification information like your name, business name, home address, email, and phone number. Plus, they’ll ask you to upload documents like credit reports or bank statements before you submit this second page. To say the least, the Finance Factory application certainly isn’t the most streamlined on the market.

After you submit your application to them, Finance Factory reviews your information and then checks which of their funding options are available to you. They offer everything from personal loans to credit line builders to SBA loans, so there will more than likely be an option for you.

If you accept an option that Finance Factory is able to offer you, they’ll then undergo formal underwriting to verify your credentials before funding you. In the case of the credit line builder, they will reach out to banks to apply for credit card accounts on your behalf and stitch together a combined credit line for your business. The Finance Factory website says that they are able to fund within 48 hours, though they don’t specify which of their products fund the quickest.

Post-Funding Process

Because Finance Factory funding is so diverse, their post-funding experience will be a completely mixed bag. You’ll want to confirm what the post-funding process looks like for the specific product you’re interested in when working with Finance Factory.

Repayment Process

On their website, Finance Factory says they’re able to offer 0% intro APR for up to 21 months through the Unsecured Business Finance product and 0% (for up to 21 months) to 15% for the Startup Funding product, so you might be able to access long-term, low-cost financing if you have stellar personal credit.

That said, if you’re unable to pay off your entire balance each month, which is likely for such a huge credit line for a new business, your personal and business credit scores could suffer.

Finance Factory Customer Service

You can contact Finance Factory customer service by calling (800) 691-6727 or by chatting with their support team via the support pop-up on the website.

Finance Factory Customer Reviews

For the most part, Finance Factory reviews from customers are actually pretty glowing. Finance Factory reviews on their BBB profile give them 5/5 star and LendingTree has named them top three in customer satisfaction for business loans. If you’re one who lends a lot of weight to customer reviews, Finance Factory should be a top contender in your search for funding.

That said, there are still a few Finance Factory complaints to be read on the internet. In fact, many Finance Factory complaints center around their credit line builder product. Essentially, customers report that Finance Factory charges applicants 10% of the credit limit they’re able to secure on their behalf. And, in all reality, you could feasibly access the same funding that a credit line builder provides for free on your own. Many complaints against Finance Factory focus solely on this frustration.

Top Alternatives to Finance Factory

Finance Factory

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3

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Credibly

BlueVine

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5

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5

Products Offered

Lines of credit

Products Offered

Term loan; lines of credit

Products Offered

Working capital loans

Products Offered

Invoice factoring; lines of credit

Interest rates

1.5% to 10% per month

Interest rates

Starting at 35.1%; 31%

Interest rates

Factor rates as low as 1.15

Interest rates

Starting at 0.25% per week; Starting at 4.8%

Minimum credit score required

No minimum

Minimum credit score required

600

Minimum credit score required

500

Minimum credit score required

530; 650
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Is Finance Factory in Fundera's Network?

Finance Factory is not in Fundera’s Lender Network. The Fundera team carefully vets all of the lenders in our network, and have determined that Finance Factory either doesn’t have the technology to work with Fundera or does not offer a financing product that competes with the other lenders in its product class. We suggest considering another lender in this product class.

See if you qualify for similar products in Fundera’s Lender Network.

Contributing Writer at Fundera

Jacqueline DeMarco

Jacqueline DeMarco is a writer and editor based in Southern California. She has written on everything from finance to travel for publications including LendingTree, The Everygirl, Coveteur, and Apartment Therapy, among others. In her spare time, she enjoys traveling, especially if going somewhere she can spend time with animals.

Read Full Author Bio