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GUD Capital Review: Pros, Cons, & How to Apply

There are many business lenders available today, but it can be challenging to navigate the options to determine the best one for your financing needs. Lending marketplaces and brokerages, like GUD Capital, seek to help business owners find the loans and lenders that best meet their goals.

Some lending options provide a niche focus, while others cast a wide net. GUD Capital is the latter, as it facilitates everything from small non-loan funding options like merchant cash advances for $5k to multi-million-dollar bank loans to enterprise-level businesses.

However, the lending marketplace might not be the right fit for every small business owner. The number of options, lack of transparency, and costs could be an issue for some.

We can help you decide if the lending marketplace fits your company well by covering the benefits, drawbacks, and application process. Specifically, we’ll answer these questions and more:

We will help you grow your small business.

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    What is GUD Capital?

    GUD Capital is a commercial loan marketplace. The company’s team of brokers works with a network of over 4,000 lenders who service loans for small and mid-sized businesses (SMBs) and large enterprises. There are more than 12,000 business lending products available through its network.

    The company works with traditional and alternative lenders, but most are small and community banks. The borrowing ranges extend from $5,000 to $20 million for middle market facilities.

    The marketplace launched in 2012. It’s based in Los Angeles, CA.

    How does GUD Capital work?

    Small business owners complete an online application, and the company matches that application to the lenders and lending products that meet the applicant’s qualifications and needs. Sometimes, applicants will receive multiple loan offers.

    Since the marketplace works with SBA-approved lenders, you could get an SBA loan. That means the maximum borrowing amount you could receive is $5 million. Its bank loans could go as high as $20 million for larger businesses.

    The actual amount you receive depends on your qualifications, the lender, the loan product, and your revenue. Here are the small business loans available through the lending marketplace.

    Term Loans

    • Loan Amounts: $5,000 – $5 million+.
    • Terms: 1-25 years.
    • Rates: 5%-15%.
    • Funding time: 30-90 days.

    A term loan is a traditional financing structure where the business receives a large sum of cash and repays it plus interest in fixed payments. It’s the type of loan most people are familiar with when discussing business loans. It’s a good option for large one-time purchases or investments.

    Lines of Credit

    • Credit limits: $5,000 – $5 million.
    • Terms: 1-2 years.
    • Rates: 6%-25%.
    • Funding time: 3-30 days.

    A line of credit provides available funds through a credit limit. You can draw funds from your credit limit as needed and only pay interest on the funds you draw.

    Some lines of credit are revolving, meaning your credit limit replenishes as you pay off what you use, just like a credit card. A non-revolving line doesn’t replenish and closes once you’ve used all the funds. This financing is good for ongoing projects, seasonal businesses, and covering unexpected costs.

    SBA Loans

    • Loan amounts: Up to $5 million or $10 million for 504 loans.
    • Terms: 3-20 years.
    • Rates: 5%-8%.
    • Funding time: 30-60 days.

    Potential borrowers can apply for an SBA 7(a) loan or SBA 504 loan through the marketplace’s network of lenders. The US Small Business Administration (SBA) oversees the loan program, sets rules and limits for lenders, and partially guarantees up to 85% of the loans.

    The federal government guarantee provides security to lenders. Lenders can offer higher borrowing amounts at lower interest rates and longer repayment terms with that security. SBA commercial real estate loans can go up to 25 years. Most other loans have a maximum term of 10-15 years.

    Asset-Based Loans

    • Loan amounts: Unlisted.
    • Terms: 6 months – 3 years.
    • Rates: 8%-25%.
    • Funding time: 3-21 days.

    An asset-based loan, or asset-based lending (ABL), is a form of financing where the amount you receive is based on available assets that also serve as collateral for the loan. Other forms of business financing are cash flow loans, where the amount you receive and your ability to repay are determined using your business’s cash flow.

    There are many forms of asset-based lending available. The ABL options listed on the GUD Capital website include the following:

    Bridge Loans

    • Funding amounts: $5,000 – $10 million.
    • Terms: 1-12 months.
    • Rates: 8%-20%.
    • Funding time: 3-10 days.

    Bridge loans are various short-term financing structures designed to fund quickly while waiting for longer-term financing. You can use the funds for a wide range of purposes.

    Some business owners use bridge financing while waiting for SBA or commercial real estate loans. The tradeoff for quick funding is that these loans usually carry high interest rates and fees.

    Mid-Prime Alternative Loans

    • Loan amounts: $10,000 – $500,000
    • Terms: 6 months – 5 years.
    • Rates: 7%-25%.
    • Funding time: 3-10 days.

    Alternative loans refer to financing programs from non-traditional lenders, primarily online lenders. The hallmarks of alternative lending are quick and easy applications, lower qualifications, and fast funding times. The tradeoff is that these loans are typically short-term, carry high interest rates (mid-prime), and require frequent repayment.

    Merchant Cash Advance (MCA)

    • Advance amounts: $5,000 – $2 million.
    • Terms: 3 – 24 months.
    • Rates: Factor rates between 1.16 and 1.5.
    • Funding time: Possible within 24 hours.

    A merchant cash advance is technically not a loan but a transaction wherein a funder purchases a percentage of your future sales at a discount in exchange for an immediate cash advance. The amount you receive is based on your previous sales history.

    Since your repayment comes from your sales, MCA companies don’t scrutinize your credit score like lenders do. And since it’s a B2B transaction and not a loan, funders can circumvent some business loan regulations.

    As a result, this form of financing is available to low-credit borrowers and merchants with a short time in business. The tradeoff for accessibility and fast funding is that MCAs are one of the market’s most expensive business funding options.

    Equipment Financing

    • Loan amounts: Cost of the equipment.
    • Terms: 1 – 25 years.
    • Rates: 5% – 15%.
    • Funding time: 30 – 90 days.

    Equipment financing refers to various loan and lease structures to acquire commercial or business equipment. Business owners can acquire needed equipment with an asset-based loan, lease, or sale-leaseback.

    Invoice Financing

    • Advance amounts: 70%-92% of the invoice value.
    • Terms: Net-30 -60, or -90.
    • Rates: 1%-3% of the invoice value per invoice period.
    • Funding time: 1-4 days.

    Invoice financing, aka invoice factoring or accounts receivable factoring, is a funding solution where a company sells unpaid invoices for an immediate advance. The factoring company owns the invoice and collects payment from your customers. Once your customers pay the invoice, the factoring company releases the remaining amount minus its fees.

    What are the qualifications for GUD capital?

    GUD Capital doesn’t provide credit score requirements for each loan product but suggests ranges. Terms loans, SBA loans, and most bank financing options require a credit score of 650 or over.

    Alternative loans, asset-based lending, merchant cash advances, and invoice financing typically require credit scores between 500-650. Your credit score can affect what lenders you qualify for and how much your rates are.

    For example, a small business owner with a credit score over 650 could likely get a bank line of credit with low interest. A lower credit score would probably mean getting a high-interest line of credit from a non-bank lender.

    The marketplace also doesn’t provide time in business or annual revenue requirements. Generally speaking, the more established a business is, and the higher its revenue, the more financing options are available.

    For GUD Capital, You Need to Know That:

    The marketplace does not charge an application fee. It mostly makes money from lenders that pay referral fees when the company sends them an applicant who gets approved and funded. However, if the lender you work with does not pay referral fees, GUD Capital may charge you a 1%-2% fee.

    The majority of the lenders in the company’s network are community banks. As such, approval and funding time can take several weeks or months. You should be prepared for the long waiting time.

    The marketplace’s alternative lenders and funders offer a few faster funding options. However, those faster options usually carry higher rates and fees.

    You need a minimum credit score of 500 to apply. The most advantageous and lowest-cost options usually require a minimum credit score of 650.

    The marketplace offers a business loan affiliate program. ISOs and loan brokers can sign up to offer available lending products to their SMB clients. The company pays out referral fees when clients get funding.

    How to apply to GUD Capital:

    Follow these steps to apply for a business loan through GUD Capital.

    Step 1: Complete the Online Form

    You can start the process by filling out the online form or calling the marketplace. Either way, you’ll provide your name, business name, personal and business contact information, industry, annual revenue, credit score range, how much you need, and the timeline for funding.

    Step 2: Speak to a GUD Capital Loan Broker

    After submitting the initial application, a representative will reach out to discuss your application. The call will focus on your borrowing needs and will try to narrow down the best options and develop tailored recommendations.

    Step 3: Complete the Application

    At this point, the marketplace will refer your application to a funder that provides the selected loan. You will most likely complete a more formal loan application with that lender. In most cases, the GUD Capital representative will help you finalize that application or complete and submit it on your behalf.

    Step 4: Provide Documentation

    Part of completing the application with the lender may include additional documentation. The exact requirements will vary significantly depending on the loan. For example, SBA loans require exhaustive documentation, while alternative funding options like MCAs usually only require bank statements.

    Examples of documentation requirements include:

    • Personal and business tax returns.
    • Personal and business financial statements.
    • Schedules of liabilities.
    • AR and AP aging schedules.
    • List of collateral & appraisals.
    • Vendor invoice (for equipment financing.)

    Step 5: Closing & Funding

    You will work with GUD Capital and the lender to close and fund the loan. Depending on the loan or lender, the process could take anywhere from a few business days to 90 days.

    GUD Capital, Post Funding:

    The repayment process could look significantly different depending on the lender you work with and the loan you get. SBA loans carry fixed monthly payments. Most term loans financed through a traditional lender also have fixed monthly payments.

    Business lines of credit usually have weekly or daily payments. Most merchant cash advances carry daily payments made through an automatic remittance of a percentage of your sales.

    Equipment financing typically carries monthly payments as well. However, some equipment leases give the option to pay quarterly or semi-annually.

    There’s no way to tell how your repayment schedule will look until you apply and receive offers from lenders. Ensure you fully understand the repayment schedule, amounts due, and what happens if you pay the loan off early.

    To help guide you, here are some questions to ask the lender before signing a loan agreement:

    • Does this loan have any early payment discounts or penalties?
    • What is the payment frequency?
    • Are there flexible payment options available?
    • When will my first payment be due?
    • Can I set up automatic payments to avoid missing a deadline?
    • How can I track my repayment progress?
    • Do you provide a dedicated team member in case of questions during repayment?
    • When will I be eligible to renew funding?
    • Do you allow stacking (carrying more than one loan at a time)?

    What are the advantages of GUD Capital?

    With over 4,000 lenders in its network and over 12,000 funding programs available, GUD Capital provides a massive range of options. You can get one of nine different loan types, including the coveted SBA loan.

    The marketplace primarily works with local and community banks, which helps keep costs down. A potential borrower can start the process with a convenient online application. The company’s team of brokers can help you determine the best financing type for your business, including tailored programs.

    What are the disadvantages of GUD Capital?

    The number of options can make it difficult to determine the best one. The company’s website does not provide much information about the application, funding amounts, or post-funding process, making it even harder to decide.

    If the company doesn’t receive a referral fee from the lender, you will get charged a 1%-2% fee. There are also very few customer reviews, making it challenging to make an informed decision about the marketplace.

    Pros & Cons


    • Large range of funding options with over 4,000 lenders.
    • Most lenders are small community banks.
    • Works with both traditional and alternative lenders.
    • Convenient online application to start the process.
    • Can help you determine the best loan option for your business.


    • The number of options can be overwhelming.
    • Limited transparency on the application and repayment processes.
    • You could get charged an additional fee of 1%-2%.
    • Very few customer reviews are available.
    • Long funding times for most products.

    Apply for business funding through United Capital Source today.

    GUD Capital Frequently Asked Questions

    Is GUD Capital legit?

    Yes, GUD Capital is a legitimate business loan brokerage.

    What do GUD Capital reviews typically focus on?

    One of the drawbacks of this company is the lack of online reviews. It doesn’t even have a Better Business Bureau (BBB) or Trustpilot page.

    The company does have a 4.6 out of 5 on nine Google reviews. However, most are just ratings without comments.

    Of the few that had comments, the positive reviews discuss the ease of the process and the helpfulness of the customer service team. The negative reviews mentioned a lack of communication and feeling like the company wasn’t trustworthy.

    What if GUD Capital denies my loan request?

    Potential applicants need a minimum credit score of 500 to apply. The best loan options require a credit score of 650. Beyond your credit profile, time in business and annual revenue influence your approval. It’s also possible that GUD Capital approves you, but the lender denies the request during underwriting if it uncovers an issue.

    If you were declined, the denial letter should explain why. You can contact the marketplace or the lender directly if you need more information.

    Fortunately, there are many business loan lenders and marketplaces to consider if GUD Capital doesn’t work for you. While few offer the same extensive lender network, you should still be able to find the same general types of loans.

    You shouldn’t have trouble finding a lending marketplace that offers the following:

    Making Your Decision

    choice, select, decide

    GUD Capital is best suited for SMBs and large companies that can qualify for bank loans but want to apply for different options. It’s also a good fit if you are unsure of what type of loan you want, as you can work with the company’s team to find the lending options that will help you achieve your goals.

    Small business owners who want a more focused approach or already know the loan type they want might want to consider another option. Firms focusing exclusively on small business funding can often offer more dedicated services.

    You could also potentially save on broker fees if you apply to a direct lender. However, working with a marketplace could still be beneficial as it saves you the time of applying to multiple lenders.

    Based on the available information, we rate GUD Capital at 3.75 out of 5. The marketplace’s available loans and lenders make it an attractive option. But the lack of user reviews and transparency prevents it from scoring higher.

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

    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
    1500+ 5 star reviews from happy clients!

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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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