Small business loan marketplaces like Fast Capital 360 can help connect business owners struggling to find funding to lenders who can meet their needs. You can complete a single application and receive multiple loan offers.
However, the lending facilitator might not be the right choice for every business. The costs can run high, and you don’t have as much control over which products are available.
We can help you decide if Fast Capital 360 is right for your business by covering the benefits, drawbacks, and how to apply. Specifically, we’ll answer these questions and more:
Fast Capital is a lending facilitator that helps connect small and medium-sized businesses (SMBs) to funding through its network of lenders. The company provides access to a suite of working capital loans and funding products.
It aims to make getting a small business loan easy. The lending marketplace provides a convenient online application. Powered by financial technology (fintech) tools, the company can analyze the application and provide approval within a few hours.
As the name of the business suggests, it offers several programs for quick funding. You could receive funds within 24 hours of approval, depending on the loan type.
The funding programs are designed for small business owners who can’t qualify for traditional financing at large banks. It launched in 2013 and is based out of Pennsylvania.
Potential borrowers complete a single application, and the company matches it to the lenders and funding products that best meet your needs. Here are the available business loans.
Terms loans provide a large sum of cash upfront that you repay plus interest and fees in fixed payments. You can use the loan proceeds for working capital, business development, etc.
The company also offers a medium-term loan option. These loans have lower interest rates and longer repayment terms, so your payment is lower.
The tradeoff is that it maxes out at a lower loan amount, and you need a higher credit score and annual revenue to qualify. Term loans are best for large one-time purchases or investments.
While a term loan provides a lump sum of cash, a line of credit provides a credit limit. You can draw funds from your credit limit as needed. You only pay interest on what you draw, but there may be a fee of 1%-3%.
Most Fast Capital 360 business lines of credit are revolving, which operates like a credit card. The credit line replenishes as you pay back what you draw. Lines of credit are best for ongoing projects, seasonal businesses, and covering unexpected costs.
Equipment financing allows you to purchase or lease needed business equipment on credit. It’s a form of asset-based financing where the equipment serves as collateral.
Some lenders in the platform’s network are SBA-approved lenders. The US Small Business Administration (SBA) caps the interest rates lenders charge and partially guarantees the loans.
With backing from the federal government, lenders have the security to offer higher borrowing amounts at lower rates and longer repayment terms. Given that Fast Capital 360’s SBA loans only go up to $350k, it appears they mainly offer SBA 7(a) Express Loans, which have a faster approval and funding time.
A merchant cash advance provides a large lump sum of money, usually based on your previous sales history. You repay the advance with a percentage of your future sales receipts.
Merchant cash advances provide easy access to fast funding. They’re a good fit for business owners who don’t have other financing options due to a low credit score or short time in business.
Invoice factoring allows businesses to turn unpaid invoices in their accounts receivable into immediate working capital. The process involves working with a funder that provides the cash advance.
You could receive up to 80% of the invoice value. The factoring company then collects the invoice payment from your customers. Once your customers pay, the factoring company sends you the remaining invoice amount minus its fees.
The minimum eligibility requirements vary by product.
Short-Term Loans:
Medium-Term Loans:
Business Lines of Credit:
Equipment Financing:
SBA Loans:
Merchant Cash Advance:
Invoice Factoring:
The initial application involves a soft credit pull that won’t affect your credit score. However, the lender will perform a hard credit inquiry during underwriting if you decide to proceed with the loan. This may negatively impact your credit score.
You need a minimum credit score of 500 to apply. Several products require a fair credit score, which is over 600. The merchant cash advance, business line of credit, and short-term loan products are available to borrowers with a score below 600.
Merchant cash advances use a factor rate to determine interest. This method simplifies calculating your interest, but the interest is high. It all applies when the advance is issued, so there’s no way to save money by paying it off early.
Multiply the advance amount by the factor rate to determine your interest. For example, if you received an advance for $275,000 at a factor rate of 1.15, the formula would be:
$275,000 X 1.15 = $316,250. You would pay $41,250 in interest to borrow $275k.
Fast Capital 360 provides a business loan affiliate program. Independent Sales Organizations (ISOs) and business loan brokers can sign up to offer the lending marketplace’s products to their small business clients.
The application process is quick and simple. Follow these steps to apply.
According to the website, you can complete the online application in four minutes. You may need to upload business bank account statements for the previous six months. Alternatively, using Plaid, you can securely connect your bank account to the company.
You could receive a determination within 24 hours. If approved, the company will send you loan offers from its nationwide network of lenders. You can select an offer and work with a dedicated business advisor to finalize the loan. There may be a hard credit pull at this point.
Depending on the product, you could receive your funds within 24 hours after approval.
While the company is fairly transparent about rates and fees, it doesn’t provide much insight into the repayment process. That’s because the exact terms and payment frequency depend on the product and lender.
Most merchant cash advances will carry automatic daily payments. SBA loans will have fixed monthly payments.
The other financing structures could carry daily, weekly, or monthly payments. You will work with the lender to determine your payment frequency. Some loans will have more flexible repayment options.
Fast Capital 360 states there are no prepayment penalties if you choose to pay off a loan early, but it also doesn’t state if there are any discounts. Renewal options will depend on the lending product and lender.
The primary benefit of the lending marketplace is that it offers funding options for business owners who can’t qualify for traditional financing. It works with a vast network of lenders to provide small business loans in all 50 states.
There are multiple funding options, including the coveted SBA loan program. The interest rates are reasonable for an alternative lending marketplace.
Business owners also benefit from a quick and easy application process. You can receive same-day approval and funding within 24 hours.
The fees vary depending on the lender that services the loan. That means the company cannot be transparent on the fee structure as it varies between lenders.
Fast Capital doesn’t finance startups. While the merchant cash advance is open to companies with only four months in business, most products require 1-2 years of business history.
Maximum loan amounts only go up to $500,000. While that might suit some companies, other small businesses require more funding. Its SBA offerings max out at $350,000 when the standard SBA 7(a) loan goes up to $5 million with other lending options.
Here’s a quick summary of the benefits and drawbacks of Fast Capital 360.
Pros:
Cons:
Yes, Fast Capital 360 is a legitimate small business marketplace. The company is not Better Business Bureau (BBB) accredited, but it does have an A+ rating on the watchdog site.
The lending marketplace’s reviews are mostly positive. It has a 4.6 out of 5 rating on over 120 Google reviews, a 4.9 out of 5 rating on over 800 Trustpilot reviews, and an impressive 5/5 on two BBB reviews.
The positive reviews mention the ease of the application, quick funding time, and overall professionalism of the customer service team. Several users mentioned their business advisor by name and felt they received timely responses.
One user mentioned working with multiple capital merchants and feeling that Fast Capital 360 was an honest group by comparison. A few customers mentioned getting multiple loans through the marketplace.
A common theme in negative reviews is the cost. Several funding solutions the marketplace offers, such as merchant cash advances, can be expensive. These solutions are intended for low-credit borrowers who need fast cash; the cost is often the tradeoff.
Other negative comments were about aggressive sales and telemarketing tactics. Some customers commented that the company cold-called them. Others mentioned felt that the customer service was rude.
According to its website, the approval rate for Fast Capital 360 applicants is about 80%. Issues that could trigger a denial include a low credit score, inconsistent revenue, or being in a restricted industry.
If you were declined, the denial letter should explain why. You can contact the marketplace directly if you need more information.
Fortunately, there are many online lenders and marketplaces to consider if Fast Capital 360 doesn’t work for you. Several can offer higher borrowing amounts, especially for SBA loans.
You shouldn’t have issues finding lenders or marketplaces that can connect you to the following small business loan options:
Fast Capital 360 is best suited for small business owners who don’t qualify for traditional financing lenders and are willing to pay more for alternative funding options. The marketplace offers various financing options, but the funding products for credit scores below 600 are limited and costly.
Business owners with solid business credit, high personal credit scores, and established business histories can likely qualify for the best loan options. However, the marketplace does offer the convenience of applying to multiple lenders with a single application and quick funding. Just be prepared for aggressive telemarketing practices.
Based on the available products, user reviews, and solid information on their website, we rate Fast Capital 360 as 4.2 out of 5. It’s one of our higher ratings.
Disclaimer: The Fast Capital 360 trademark is owned by Fast Capital 360 and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from Fast Capital 360.
