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Finance Factory Review: Pros, Cons, & How to Apply

Small businesses, especially startups and new companies, often struggle to qualify for financing options. Determining the best loan options when you qualify can also be difficult.

Finance Factory is an online lending marketplace that provides startup funding and consultancy services. It can help small business owners and aspiring entrepreneurs find the best options to start or grow their companies.

However, you might pay more to use the service as it charges a high origination fee. Even so, the cost might be worth it if you need funding and are unsure where to start.

If you’re considering Finance Factory for your business loan needs, we can help guide you with answers to these questions:

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    What is Finance Factory?

    business owner, typing, keyboard

    Finance Factory describes itself as “a full-service business finance and consulting firm.” It’s a small business marketplace that works with a network of lenders to provide business loans.

    The company can help submit loan applications to lenders where they’re most likely to qualify. It also acts as a go-between for the business and the lender.

    Because of the diverse lending partners, the company offers a wide range of business funding solutions. One area where the company stands out is that it offers startup financing, which many alternative lending providers don’t.

    Costs can vary significantly between different lending products and the lender that ends up servicing them. In addition, businesses must pay Finance Factory’s fees, which can run high.

    The company launched in 2006 and provides small business loans in all 50 states and Washington, D.C. It is headquartered at:

    600 Fairmount Ave. #206
    Towson MD 21286

    How does Finance Factory Work?

    Finance Factory offers several small business financing programs.

    Here are the loan amounts, rates, terms, and fees for each small business loan:

    finance factory business loan options

    Unsecured Business Finance

    Funding time: 7-10 business days.

    Unsecured financing means you don’t put up collateral for approval. Instead, credit approval is based on your FICO credit score and business cash flow. The company’s unsecured business financing options include bank lines of credit and business credit cards.

    Lines of credit range from $50,000-$250,000, while it offers credit cards with limits between $25,000-$150,000. Both programs are available with 0% intro APR for up to 21 months for well-qualified applicants.

    Startup Funding

    Funding time: 7-10 days.

    Aspiring entrepreneurs can apply for startup funding through the platform. Startup financing is available as credit cards, personal loans, and lines of credit. The firm can also facilitate Business-Directed Retirement Account (BDRA) for those who want to use retirement funds as startup capital.

    The fees are potentially high for startup financing, but the introductory 0% APR for 21 months presents an excellent cost-saving opportunity. Paying it off before the introductory period expires means you’d essentially get a zero-interest loan.

    SBA Loans

    Funding time: A few weeks to 2 months.

    The lending marketplace works with various SBA-approved lenders, which means it can offer SBA 7(a) and SBA 504 loans. 7(a) loans are the most popular SBA loan options. You can use the funds for a wide range of business purposes.

    SBA 504 loans are more targeted. They’re mostly used for commercial real estate or improving a property that promotes economic growth. SBA loans are often considered the “gold standard” of small business financing. The US Small Business Administration (SBA) partially guarantees up to 85% of the loans.

    Merchant Cash Advances

    Funding time: As soon as 48 hours.

    A merchant cash advance is technically not a loan. Instead, the financing company provides upfront working capital to purchase future receivables. Borrowing amounts are determined using your previous sales. The advance is repaid with a percentage of your daily sales. The company offers a traditional MCA, which only takes repayment from your card sales, and revenue-based advances, which are the same concept but from all sales revenue.

    Equipment Financing

    Funding time: As fast as 48 hours.

    The company offers equipment leasing and financing for 100% of the cost, meaning you won’t have to make a down payment. In most equipment financing arrangements, the equipment is the collateral, so you won’t have to add additional assets. You can finance various business equipment, including computer hardware and software, office furniture, commercial restaurant equipment, construction equipment, HVAC, and more.

    Real Estate Funding

    office, architecture, glass items, commercial real estate loans, finance factory offers

    Funding time: Varies.

    The company’s commercial real estate loans include fix and flip loans, commercial mortgages, and buying rental properties. Applicants work with a Commercial Lending Advisor throughout the process.

    What are the qualifications for Finance Factory?

    The qualifications vary depending on the product. Some small business loans require a good credit score, while others accept a low score or have no minimum requirement.

    Here are the eligibility requirements by loan type.

    finance factory business loan qualifications

    For Finance Factory, You Need to Know That:

    The company offers low interest rates for well-qualified borrowers, but you might get high rates and fees if you have a low credit score. This is mainly because you won’t qualify for the lower-cost loan options.

    Since the company is a marketplace with multiple lenders, the rates and fees can vary significantly. You will benefit from your application going to various lenders, increasing your approval odds.

    The tradeoff is that you might have to pay lender fees and fees for using Finance Factory’s service. However, those costs might be worth it since the company also offers business consulting services.

    The company provides a referral partner program for ISOs and business loan brokers to offer its lending products. Some business owners prefer working with a loan broker. You can earn commissions when your clients get funding through the platform.

    How to apply to Finance Factory:

    loan, application, application form, finance factory offers, business loan

    The website doesn’t provide much information about the application process, but it states you can apply in three simple steps:

    • Step 1: See what loans are available.
    • Step 2: Choose an option.
    • Step 3: Get funding.

    The company also offers lending consultants to help you choose the best product for your needs. You must submit some documentation, but it depends on the loan type.

    It would be best if you prepared the following:

    • Business bank statements.
    • Credit reports.
    • Financial statements.

    Finance Factory Post Funding:

    calculator, calculation, insurance

    The repayment process begins after you receive your funding, but it looks different depending on your loan type. SBA loans and equipment financing carry monthly payments.

    Merchant cash advances will be daily or weekly payments. Business credit cards and lines of credit will have daily, weekly, or monthly payments.

    You can take advantage of the unsecured funding options with a 0% APR for the first 21 months. However, these products likely carry high APRs after the introductory period, so ensure you can pay it off in time.

    What are the advantages of Finance Factory?

    teamwork, cooperation, brainstorming

    The marketplace provides various small business loans to meet your needs. In addition, it provides startup funding, which is challenging to find in the alternative lending space.

    Borrowers with excellent credit can get low rates on certain products. This includes coveted SBA loan options.

    Like many alternative lending options, you get a streamlined application process with a quick turnaround on decisions. The company’s lending partners can fund some loans within 48 hours.

    What are the disadvantages of Finance Factory?

    With so many options, it can be challenging to determine the best one for your needs. While it does offer reasonable rates to borrowers with excellent credit, business owners with average or below-average credit scores will likely get higher rates and fees.

    Finance Factory charges an origination fee on top of the lender’s interest rate and fees. Some online reviews suggest the origination fee can be as high as 10%.

    Available loans, amounts, and rates are subject to change as lenders change their options.

    Pros & Cons:

    pros, and, cons


    • Multiple loan offers, including SBA loans.
    • Low rates for well-qualified borrowers.
    • Streamlined application process with a quick turnaround.
    • Fast funding is available for certain products.


    • Can be difficult to navigate loan options.
    • High rates and fees on some products.
    • The company charges an origination fee.
    • Loans can change as lenders change their offerings.

    Apply for business funding through United Capital Source today.

    Finance Factory Frequently Asked Questions

    Is Finance Factory legit?

    Yes, Finance Factory is a legitimate online lending marketplace. The Better Business Bureau has accredited the company since 2011, where it has an A+ rating.

    What do Finance Factory reviews typically focus on?

    peer review icon, peer review, review

    The company has primarily good online reviews. It has a 4.5 out of 5 rating on Trustpilot with 33 reviews and a 4.1 out of 5 rating on 88 Google reviews.

    Positive reviews discuss the straightforward process and helpful customer service. Several users mentioned their representatives by name.

    The negative reviews mentioned not receiving funding or being charged more than they thought they would. Several users complained about not getting approved and thought the service rep was rude.

    What if Finance Factory declines my loan application?

    If you were declined, you might have applied for a loan product you weren’t qualified for. Also, since it works with a network of lenders, you may be preapproved but declined during the lender’s underwriting process.

    The denial letter should explain why. You can contact the company directly for more information.

    Fortunately, many alternative lending options exist if Finance Factory doesn’t work out. Finding other lenders that offer startup financing might be challenging, but several do.

    Otherwise, you should be able to find lenders for the following:

    Making Your Decision


    choice, select, decide, Finance Factory business loan decision, explain things, right foot, credit card, phone, deal, customers, expec

    Finance Factory is best suited for new businesses and startups that require guidance on their funding options. It can also benefit established business owners with excellent credit since they can qualify for lower rates.

    The service cost can run high, but it might be worth it if you need access to funding. However, more established businesses with good credit can find lower-cost options. While it does offer quicker funding than banks, it’s not as lightning-fast as some alternative lending options.

    Based on user reviews, available loan products, and costs, we rate Finance Factory at 3.85 out of 5. It’s definitely worth considering but watch out for some of the costs, especially the origination fee.

    Disclaimer: The Finance Factory trademark is owned by The Finance Factory and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from The Finance Factory.

    Apply for business funding through United Capital Source today.

    Why Choose United Capital Source?

    Why businesses choose UCS:

    Quick funding options that won’t affect credit
    Access to 75+ lenders with multiple products to choose from
    Financing up to $5 million in as few as 3 days
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        At UCS, we understand the value of your time and want to ensure that your application has a great chance of approval. Please take note of the following details before applying:
        • To be eligible, it’s necessary to have a business bank account with a well-established U.S. bank such as Chase, Wells Fargo, Bank of America, Citibank, or other major banks. Unfortunately, online-based bank accounts like PayPal, Chime, CashApp, etc., are not permitted.
        • When describing your current average monthly sales deposits to your business bank account, please provide accurate information. Our approval process is based on your current business performance, and it’s essential to provide accurate details about your current sales in the first question on the application form. We cannot approve applications based on projected revenues after receiving funding.
        We appreciate your understanding and cooperation in ensuring a smooth and successful application process.
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