The Business Backer Review 2021

The Business Backer is currently not accepting new applications for any of their loan products. According to their website, this is a temporary pause. The following details are for The Business Backer’s loan products as they were offered prior to this pause.

Overview

The Business Backer, founded in 2007, is an alternative lender that offers small business loans, business lines of credit (through their sister company Headway Capital), and merchant cash advances. Financing of up to $200,000 is available for business owners with credit scores of 550 or higher.

The Business Backer is a great lender to work with if you need fast financing for your small business. Plus, they’re committed to providing financing that doesn’t leave borrowers unable to pay off their debt. If you choose to work with The Business Backer, you’ll find that they look closely at your revenue, making sure that they’re providing financing that you can realistically pay back.

Pros and Cons

Green checkmarkPros
  • Fast funding
  • Variety of loan products
  • Transparent terms and fees
  • No prepayment penalty
Red X markCons
  • More expensive than longer-term funding
  • Origination and purchase fees

The Business Backer Loan Details

Short-Term Loan

  • Loan Amount

    $5,000 - $200,000

  • Loan Term

    4 - 18 months

  • Factor Rate

    Starts at 1.2

Qualifications

  • Annual Revenue

    $250,000

  • Personal Credit Score

    550

  • Time in Business

    1 year

Line of Credit (offered through Headway Capital)

  • Loan Amount

    $5,000 - $100,000

  • Loan Term

    12, 18, or 24 months

  • Interest Rate

    Starts at 3.3% monthly rate

Qualifications

  • Annual Revenue

    $50,000

  • Personal Credit Score

    560

  • Time in Business

    6 months

Merchant Cash Advance

  • Loan Amount

    $5,000 - $200,000

  • Loan Term

    12, 18, or 24 months

  • Factor Rate

    Starts at 1.2

Qualifications

  • Annual Revenue

    $250,000

  • Personal Credit Score

    550

  • Time in Business

    1 year

The Business Backer Borrower Eligibility

Besides the above criteria, in order to apply for a loan from The Business Backer, your business needs to have a dedicated business bank account.

Whoever submits an application must have at least 1% ownership in the business and authority to sign on behalf of the business.

The Business Backer uses a blend of personal and business credit in their decision-making process but doesn’t require a minimum business credit score.

They also allow up to three non-sufficient fund transactions (NSFs) per month on average. NSFs are counted separately from overdrafts, and a borrower can have up to eight overdrafts per month.

The Business Backer does not work with businesses in the following industries:

  • Gambling
  • Adult and pornographic industries
  • Illegal substances
  • Lenders
  • Multi-level marketing
  • Financial services (insurance agents are eligible)
  • Staffing and employment services
  • Travel agencies
  • Chiropractors
  • Gaming
  • Car dealerships
  • Oil and gas

Additionally, they don’t work with sole proprietorships, nonprofits, or businesses that want to refinance existing debt.

What You Need to Apply

  • Completed loan application
  • Three months of business bank statements (12 months of statements recommended for seasonal businesses)
  • Online bank login

How to Get a Loan With The Business Backer

If you’re interested in moving forward with one of The Business Backer’s small business loan products, here’s what you can expect during the application, underwriting, and post-funding processes.

Application and Underwriting Process

The first step is to fill out The Business Backer’s online application and submit your documentation. The Business Backer will do a soft pull of your credit, so there won’t be any impact to your credit score from completing the application. The Business Backer team will review your information and determine whether you’re approved for funding in approximately four hours.

If you want to move forward with the funding process, The Business Backer will send you a copy of the loan agreement. Once you review and sign, the funds are deposited into your business bank account and will be available in as few as 24 hours. If a loan is approved before 3 p.m. ET on a business day, funds will be deposited into a merchant’s bank account that same business day. If approved after 3 p.m. ET on a business day, funds will be deposited into a merchant’s bank account the next business day.

As long as your loan from The Business Backer is in good standing, you can apply for additional funding within 60 days of receiving your initial loan.

Post-Funding Process

If you accept a short-term loan offer from The Business Backer, you’ll be approved for a certain balance limit. You can choose to take the full balance, or you can elect to take a smaller amount. And if you find that you need access to more funds, you can request access for the rest of the balance you were initially offered—provided you’ve been repaying The Business Backer on schedule.

When you take out a short-term loan or merchant cash advance from The Business Backer, you can choose from daily, weekly, or semi-monthly repayment terms. If you choose the line of credit from Headway Capital (The Business Backer’s sister company), you have the option to repay weekly or monthly. The Business Backer automatically debits payments from your business bank account. For daily repayment, your first payment is due the next day after your loan funds. For weekly repayment, payments are due each Monday by default. You can choose a different day if you notify The Business Backer before signing your contract. For semi-monthly repayment, payments are due on the 15th or 28th of the month.

The Business Backer will send you periodic account statements so you can keep on top of the progress of your funding. Additionally, you’ll receive a call from a member of their growth team to make sure the financing is working well for you.

Fees and Collateral

The Business Backer charges a 0% to 8% origination fee on their short-term loan product and a 0% to 8% purchase fee on their merchant cash advance. Since their business line of credit is funded through Headway Capital, you may also have additional fees through this lender.

If you have the means to pay off your loan ahead of schedule, you will not have to pay a prepayment penalty, and short-term loan customers may receive a 35% discount on unpaid interest for paying off the loan early.

The Business Backer requires a personal guarantee on their short-term loan. A personal guarantee also goes into effect for merchant cash advances for structural defaults (e.g. fraud on the loan application).

It’s also worth noting that The Business Backer does not report to the personal credit bureaus, but they will report your payment activity to Experian business on a monthly basis, so making regular, on-time payments can boost your business credit score and open up other financing opportunities (with more favorable interest rates and terms) down the road.

The Business Backer Customer Service

The Business Backer is located in Cincinnati, Ohio, and can be reached by email, phone, or by submitting a short form directly on their website. Their customer service hours are from 8:30 a.m. to 5:30 p.m. ET Monday through Friday.

The Business Backer Customer Reviews

The Business Backer is accredited by the Better Business Bureau (BBB) and has an A-plus BBB rating, as well as many positive online reviews across other digital platforms. Some themes of these positive reviews are the easy and fast funding process, good communication from the team, and The Business Backer’s willingness to work with customers to find the right (and least expensive) product for them.

Although they are pretty rare, complaints about The Business Backer from customers do exist. Some negative Business Backer reviews focus on their shakey quote system—The Business Backer typically can’t guarantee similar rates to returning customers, and that can be frustrating if you have a long-standing relationship with them.

Top Alternatives to The Business Backer

OnDeck
CAN Capital
Kabbage
BlueVine

OnDeck

CAN Capital

Kabbage

BlueVine

Fundera Score

5

Fundera Score

4

Fundera Score

5

Fundera Score

5

Products Offered

Term loan; lines of credit

Products Offered

Term loans; merchant cash advances

Products Offered

Lines of credit

Products Offered

Invoice factoring; lines of credit

Interest rates

Starting at 35.1%; 31%

Interest rates

1.15 to 1.48 factor rate

Interest rates

1.5% to 10% per month

Interest rates

Starting at 0.25% per week; Starting at 4.8%

Minimum credit score required

600

Minimum credit score required

No minimum

Minimum credit score required

No minimum

Minimum credit score required

530; 650
OnDeck

OnDeck

Fundera Score

5

Products Offered

Term loan; lines of credit

Interest rates

Starting at 35.1%; 31%

Minimum credit score required

600
CAN Capital

CAN Capital

Fundera Score

4

Products Offered

Term loans; merchant cash advances

Interest rates

1.15 to 1.48 factor rate

Minimum credit score required

No minimum
Kabbage

Kabbage

Fundera Score

5

Products Offered

Lines of credit

Interest rates

1.5% to 10% per month

Minimum credit score required

No minimum
BlueVine

BlueVine

Fundera Score

5

Products Offered

Invoice factoring; lines of credit

Interest rates

Starting at 0.25% per week; Starting at 4.8%

Minimum credit score required

530; 650

Frequently Asked Questions

Is The Business Backer in Fundera's Network?

The Business Backer is in Fundera’s Lender Network. The Fundera team has carefully vetted The Business Backer and determined that their offering is one of the best in their product category. When working with The Business Backer, you can be sure you’re getting transparent, fair pricing on a best-in-class product.

Priyanka Prakash, JD
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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