StreetShares Lending Review for 2020

Overview

StreetShares is an online lender that offers small business loans of up to $100,000. They offer secured business loans, unsecured business loans, business lines of credit, and contract financing. A veteran-owned and operated lender, StreetShares also seeks to increase funding access to veteran-owned businesses throughout the underwriting and application processes.

It’s worth noting that StreetShares is not a lender, instead they offer a peer-to-peer lending model that connects borrowers with investors who lend them money.

Pros and Cons

Pros
  • Veteran friendly: StreetShares is a particularly good option for veteran business owners—veterans themselves own and operate StreetShares, and they’re dedicated to helping their fellow veterans succeed in business. Although it’s certainly not a requirement, many StreetShares customers are military affiliated. 
  • Affordability: StreetShares will never charge an APR greater than 39%, which makes it more affordable than many other short-term lenders. Plus, the speed and size at which StreetShares funds loans is great for business owners who need capital in a pinch. Loan sizes are slightly smaller than what you might be able to access with longer-term lenders, but this product is a good fit if you don’t need access to a huge sum of financing, but you do need it quickly.
  • Accessible for new businesses: If you’re a newer business, it’s still possible to get funding through StreetShares. Most short-term loan lenders ask for a one year minimum time in business, but StreetShares will work with business owners who have been operating for as few as six months. Just keep in mind that if you are very new, you might have to show higher business revenues to qualify.
  • The term loan product is a fully amortizing loan: And the term loan doesn’t come with a prepayment penalty. So, if you have reason to believe you might be able to pay off the loan earlier than the term length, you’ll save money by avoiding some interest payments.
Cons
  • If you have a credit score below 600: StreetShares won’t be an option for you. For this reason, StreetShares can be tough to qualify for if you’re building up a credit history. Some other short-term lenders will work with borrowers who have lower credit scores.
  • If you’re in a rush: StreetShares moves quickly, but not as quickly as some short-term lenders do. A few short-term lenders will provide same-day or next-day financing, which is faster than StreetShares’ two to five day average.
  • Qualifying for large loan amounts can be challenging with StreetShares: They typically qualify borrowers for no more than 20% of the business’s annual revenue. For example, if your yearly business revenue is $100,000, your loan would be capped at approximately $20,000. If you need to make larger business investments, an SBA loan or bank loan would be a better fit.
  • If you need to build your credit: StreetShares doesn’t report repayment activity to the personal credit bureaus when you take out a term loan with them. So if you’re trying to build your credit score with good borrowing habits, it’s better to work with a lender that will report to the personal credit bureaus. That said, StreetShares does report repayment activity to Equifax on their line of credit product.

StreetShares Term Loan Product

StreetShare advertises their term loan product as being easy to obtain quickly and as having competitive rates. They will deliver your funds in one lump sum.

StreetShares Term Loan Product

  • Maximum loan amount

    $2,000 - $100,000

  • Loan term

    3 months - 3 years

  • Interest rate

    7% - 39%

Qualifications for StreetShares Term Loan Product

  • Annual revenue

    $25,000

  • Personal credit score

    600

  • Time in business

    6-12 months

StreetShares Line of Credit Product

When it comes to their line of credit product, StreetShares markets this product as a very flexible option at a low cost.

StreetShares Line of Credit Product

  • Maximum loan amount

    $5,000 - $100,000

  • Loan term

    3 months - 3 years

  • Interest rate

    6.5% - 39%

Qualifications for StreetShares Line of Credit Product

  • Annual revenue

    $25,000

  • Personal credit score

    600

  • Time in business

    6-12 months

Restricted Industries

Regardless of the product you choose, StreetShares won’t work with businesses in the following industries:

  • Construction contracting
  • Housing construction
  • Real estate flipping
  • Law firms
  • Loan brokerage
  • Tax preparation/accounting firms (unless there is a CPA on staff)
  • Aquaculture
  • Gaming
  • Adult entertainment
  • Money service businesses (including check cashers)
  • Lenders of any description including factors
  • Multi-level marketers
  • Cell phone service providers
  • Cannabis and nicotine resellers/retailers
  • Bail bonding

StreetShares Borrower Eligibility

You may be eligible to borrow from StreetShares if you meet the following criteria:

  • StreetShares requires you to have a business bank account unless you operate as a sole proprietorship.
  • StreetShares requires that the loan applicant(s) own at least 25% of the business (51% of the business for loans larger than $50,000).
  • StreetShares requires a personal guarantee and will sometimes ask for multiple guarantors.
  • StreetShares looks at a borrower’s business credit score through the Small Business Financial Exchange (SBFE), but they don’t set a minimum required business credit score. 
  • StreetShares requires that three years have passed since a borrower has filed bankruptcy.
  • StreetShares can work with borrowers with open liens, as long as they are on a payment plan.

Streetshares does not offer funding to businesses:

  • That operate out of a home address.
  • That are sole proprietorships in Nevada, North Dakota, South Dakota, Nebraska, Wisconsin, New York, or Delaware.
  • That are partnerships in New York (for term loans).

What You Need to Apply

  • Social security number of business owner or employer identification number (EIN)
  • Total outstanding business debts
  • 6 most recent business bank statements
  • Most recent business tax return
  • Most recent personal tax return
  • DD214 for military veteran borrowers
  • Financial statements, such as a balance sheet, might be required in some cases

How to Get a Loan With StreetShares

If you think one of StreetShares’ products may be a good fit for your financial needs, take a look at what their application, post-funding, and repayment process will look like.

Application and Underwriting Process

Once you submit your StreetShares application online, they will provide you with a pre-approval decision within just a few minutes. StreetShares will do a soft credit pull as part of the application process. If you’re pre-approved, they will begin collecting documents from you to support your application.

When StreetShares reviews your application, you’ll likely need to get on the phone with one of the sales representatives to facilitate the underwriting process. StreetShares sometimes will need to have their credit team join the call with you.

Once StreetShares has gone through the underwriting process, they extend an offer and perform a hard credit pull. If you accept the offer, StreetShares files a blanket UCC lien (for loans over $50,000), and the funds will be in your account as soon as 24 hours. 

It’s important to note that the approval process for the StreetShares line of credit is different. At the moment, the StreetShares line of credit product is only available to applicants who get initially approved for at least $20,000 in funding or those who don’t accept a term loan offer from StreetShares. 

If you get bad news back from StreetShares, don’t worry—you can re-apply 60 days later.

Post-Funding Process

With the line of credit product, StreetShares sets a minimum draw amount of $5,000 and doesn’t allow more than three credit line draws in 60 days. It’s also important to note that, while the term loan product comes with no other fees than the origination fee, the line of credit will also come with a draw fee of 2.95%.

As for the StreetShares line of credit products, StreetShares will require that you draw from your credit line within 60 days of it being funded. If you don’t, you’ll have to reapply for your line of credit again.

Repayment Process

If you accept your term loan offer from StreetShares, your weekly payments will start exactly one week after the loan funds. With a positive repayment history, you can become eligible for a loan or line of credit renewal from StreetShares, but only after six months have passed or after you’ve paid down 60% of a term loan.

One week after you draw from your line of credit, StreetShares will set a fixed repayment schedule that will have weekly repayments, similar to the term loan.

If you want to check on the progress of your loan or line of credit at any point, you’ll have access to an online portal, or you can simply get on a call with your StreetShares representative. StreetShares will also provide you with email statements when you have a payment due.

StreetShares Customer Service

For customer service, you can call StreetShares at 1-800-560-1435, email them at support@streetshares.com, or send them mail at StreetShares, Inc., 1900 Campus Commons Drive, Suite 200, Reston, VA 20191.

StreetShares Customer Reviews

Some customers of StreetShares complained about their website being difficult to navigate. This can be especially frustrating if the customer is already struggling to use the service. For example, in April of 2020, a customer expressed frustration to the Better Business Bureau that StreetShares held onto funds for an entire week after they were available for deposit. Working with StreetShares may require a little extra patience. 

Customers have also reported positive feedback about their experiences working with StreetShares, saying it is a convenient option thanks to a fast and easy application process. They’ve also found their customer service representatives to be helpful and friendly. Plus, they love that this platform offers diverse financing products and is veteran-friendly.

Top Alternatives to StreetShares

StreetShares

Fundera Score

4

Funding Circle

Fundation

OnDeck

Kabbage

Fundera Score

5

Fundera Score

5

Fundera Score

5

Fundera Score

5

Products Offered

Term loans

Products Offered

Term loans; lines of credit

Products Offered

Term loan; lines of credit

Products Offered

Lines of credit

Interest rates

Starting at 4.99%

Interest rates

8% to 30% APR

Interest rates

Starting at 35.1%; 31%

Interest rates

1.5% to 10% per month

Minimum credit score required

620

Minimum credit score required

600; 660

Minimum credit score required

600

Minimum credit score required

No minimum
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Frequently Asked Questions

Is StreetShares in Fundera's Network?

StreetShares is not in Fundera’s Lender Network. The Fundera team carefully vets all of the lenders in our network, and have determined that StreetShares 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.

Senior Contributing Writer at Fundera

Priyanka Prakash, JD

Priyanka Prakash is a senior contributing writer at Fundera.

Priyanka specializes in small business finance, credit, law, and insurance, helping businesses owners navigate complicated concepts and decisions. Since earning her law degree from the University of Washington, Priyanka has spent half a decade writing on small business financial and legal concerns. Prior to joining Fundera, Priyanka was managing editor at a small business resource site and in-house counsel at a Y Combinator tech startup.

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