Seek Capital Review for 2020

Overview

Seek Capital provides third-party funding procurement services for entrepreneurs in search of small business loans. They will determine what types of small business financing you’re eligible for, create a custom funding plan, and help you apply to various lenders.

Pros and Cons

Pros
  • Wide network of third-party lenders that specialize in various financing solutions, including SBA loans, short-term loans and invoice financing
  • Open-ended source of funding that enables you to apply for more financing in the future should you meet your repayment terms
  • Accepts applicants with tax liens under $200,000
Cons
  • High origination fee that could potentially hurt your credit
  • $495 application fee
  • $495 if you’re approved but decide not to proceed with funding
  • Requires 3-4 years in business for some products

Seek Capital Business Loans

This Seek Capital review will showcase three types of financing products—term loan, business line of credit and SBA loan. Keep reading to review each product’s features and Seek Capital interest rates.

Term Loan

Term loans are a flexible financing option that you can use for nearly any purpose—working capital, payroll, repaying debt and more. The amount you can borrow can vary with flexible repayment terms and competitive rates.

  • Maximum loan amount

    $500 - $2 million

  • Loan term

    3 months - 25 years

  • Interest rate

    Varies

Qualifications for Term Loans

  • Annual revenue

    $300,000

  • Personal credit score

    680

  • Time in business

    3 years

Business Line of Credit

A business line of credit lets you access a pre-approved source of funds that you can tap into whenever you want. Moreover, you only repay the amount you borrowed, plus interest.

  • Maximum loan amount

    $1,000 - $1 million

  • Loan term

    6 - 12 months

  • Interest rate

    2.9% - 40%

Qualifications for Business Lines of Credit

  • Annual revenue

    $180,000

  • Personal credit score

    630

  • Time in business

    1 year

SBA Loan

SBA loans are backed by the government and are highly coveted by small business owners for their loan amounts and competitive terms and rates. While SBA loans are great for startup funding and other business expenses, their high qualifications make it challenging to secure for newer entrepreneurs.

  • Maximum loan amount

    $500 to $5 million

  • Loan term

    7 - 25 years

  • Interest rate

    6% - 13%

Qualifications for SBA Loans

  • Annual revenue

    $180,000

  • Personal credit score

    680

  • Time in business

    4 years

Seek Capital Borrower Eligibility

Seek Capital requirements for eligibility will vary by which Seek Capital product you choose. With that said, you may need to meet the following eligibility criteria to qualify:

Financial History

  • They can work with business owners who have declared personal bankruptcy, but one year must have passed since discharge.
  • You will need to represent at least 10% ownership for your application.
  • They can work with business owners who have tax liens, but the lien must be under $200,000.

SBA Loans

SBA loans are highly competitive and you must meet the following list of eligibility requirements:

  • Employ fewer than 500 employees
  • Average net income of less than $5 million
  • Net worth of less than $15 million
  • Average year revenue of less than $7.5 million
  • No bankruptcies, defaults or government debts
  • Have invested personal funds into your business
  • Provide proof that you need the loan

What You Need to Apply

  • A copy of your driver’s license
  • Articles of incorporation or articles of organization
  • Employer identification number (EIN)
  • Bank statements, profit and loss statements, balance sheet
  • Voided business check
  • Business plan that shows how you’ll use the loan money (for SBA loans)
  • Business debt schedule to show how you’re going to pay off the debt (for SBA loans)

How to Get a Loan With Seek Capital

If Seek Capital feels like the right lender for you, the next sections will walk you through the application, post-funding and repayment process.

Application and Underwriting Process

To apply for Seek Capital funding, the first step is to complete a quick online application. Submitting an application will incur an application fee of $495.

Seek Capital will review the information you provide only our application and will contact you for additional information. This consultation call will help both parties identify which funding products are right for you and your business.

After that call, they will run you through their proprietary underwriting technology to provide a funding estimate. This funding estimate will let you know if they will give you the funding you need and at what cost they’ll be able to do it.

Post-Funding Process

Should you accept Seek Capital’s funding estimate, they will run a soft pull on your personal credit score using Experian, TransUnion, and Equifax. With your verified personal credit score, they will apply to various lenders on your behalf. The application process can be initiated on the same day you fill out the online application, with funds available in one to three weeks. 

The loan products will vary depending on your credit profile. Candidates with the strongest credit scores can qualify for SBA loans, and candidates with the lowest scores might only be eligible for a short-term loan. The third-party lender will follow up with a hard credit pull, which will impact your credit score.

Please note an origination fee (99% of your approved loan amount) will apply depending on whether your application is approved or declined:

  • If Seek Capital doesn’t get any approval on your behalf, you won’t pay the origination fee. If they do obtain approval, then the origination fee will apply—even if you decide not to accept the funding. 
  • If you don’t qualify, you won’t have to pay the fee. You may reapply after 60 days, but remember to include the reason for decline so you may qualify the second time around.

Please note that changing your mind will incur a fee. Seek Capital will charge a termination fee of $495 if you don’t proceed with funding after receiving approval. While this termination fee may be waivable in certain cases, be mindful of this before submitting your application.

Repayment Process

Seek Capital’s repayment process will vary by the loan product you qualify for. For instance, you typically make monthly loan payments on an SBA loan, but business lines of credit and short-term loans often have weekly repayment terms.

Another thing to note about Seek Capital: They will report to personal credit bureaus and business credit bureaus. Now, this can be pretty tough on your credit. All hard credit pulls will appear on your personal and business credit reports. Plus, falling behind on payments will apply delinquencies to your personal and business credit reports.

To keep up with payment progress on your business funding, you’ll have to consult a rep rather than accessing an online dashboard or statements, which many other lenders provide.

All that said, Seek Capital is an open-ended source of funding that won’t limit how long you’ll be able to use it. If your funding fits your needs well and you’re able to keep up with your payments, you’ll be able to apply for more financing in the future.

Seek Capital Customer Service

You can reach Seek Capital customer support via phone or email. You may call the Seek Capital at 866-695-0279 on Monday – Saturday: 6 a.m. – 6 p.m., PST. You may also email customer support using their online contact form.

Seek Capital Customer Reviews

Many people are skeptical of businesses within the financial and lending industry. Even so, many Seek Capital reviews thanked Seek Capital for being transparent and honest. Many applicants complimented Seek Capital on their friendly service and were impressed with how some representatives walked them through the entire process. Moreover, Seek Capital received points for speedy funding.

Many complaints center around the application fee or termination fee. On Seek Capital’s Better Business Bureau page, several customers said they weren’t upfront about these fees. Other customers felt that the application fee of $495 was too high, given that there are no guarantees your business will receive funding.

Top Alternatives to Seek Capital

Seek Capital

Fundera Score

3

BlueVine

Kabbage

Fundation

Fundera Score

5

Fundera Score

5

Fundera Score

5

Products Offered

Invoice factoring; lines of credit

Products Offered

Lines of credit

Products Offered

Term loans; lines of credit

Interest rates

Starting at 0.25% per week; Starting at 4.8%

Interest rates

1.5% to 10% per month

Interest rates

8% to 30% APR

Minimum credit score required

530; 650

Minimum credit score required

No minimum

Minimum credit score required

600; 660
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Frequently Asked Questions

Is Seek Capital in Fundera’s Network?

Seek Capital is not in Fundera’s Lender Network. The Fundera team carefully vets all of the lenders in our network and have determined that Seek Capital either don’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.

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.

Read Full Author Bio