| Takeaway | Details |
|---|---|
| 🚀 Fast Funding Speed | L3 Funding is known for quick approvals and funding, often providing same-day or next-day access to capital after contracts are signed. |
| 💼 Who L3 Funding Is For | The company primarily serves small businesses that may not qualify for traditional bank financing due to credit challenges or time in business. |
| 💳 Funding Options Available | L3 Funding offers merchant cash advances, access to business loans, and business lines of credit through its lending network. |
| 📊 Flexible Approval Criteria | Approval decisions focus more on revenue and cash flow than on credit score, resulting in a higher approval rate than most banks. |
| ⚠️ Cost Considerations | Merchant cash advances can be more expensive than traditional loans, so it is essential to understand the total payback amount. |
| 📞 Sales & Communication | Some customers report persistent sales calls, even after filing complaints and complying with Do Not Call regulations. L3 Funding states it addresses complaints and enforces Do Not Call compliance. |
| 🧾 Mixed Customer Reviews | Reviews highlight fast service and helpful representatives, but also raise concerns about aggressive outreach and the authenticity of reviews. |
| ⭐ UCS Rating | United Capital Source rates L3 Funding 3.3 out of 5, indicating it may be helpful in some cases but not ideal for every business. |
Traditional banks have long been a primary source of business loans. However, strict underwriting standards, slow approval timelines, and extensive documentation requirements have made capital access difficult for many entrepreneurs.
As fintech innovations have accelerated, a growing number of alternative business lending companies and merchant funding providers have entered the market, offering faster and more flexible financing solutions. Companies like L3 Funding are part of this shift, positioning themselves as accessible funding options for businesses that may not qualify for traditional business loans.
While the increase in funding choices gives business owners more opportunities than ever to secure capital, it also makes it more important to evaluate each funding company carefully. Understanding how a funder operates, what products they offer, and what past clients have experienced can help protect a business from costly business loan mistakes and ensure the financing arrangement is the right fit for its needs.
In this review, we’ll explore how L3 Funding works, including the available options, pros and cons, and the application process, to help you decide if it’s right for your small business. Specifically, we’ll answer these questions and more:
L3 Funding is a merchant funding company that provides alternative financing solutions to small and mid-sized businesses across the United States. The company focuses on helping business owners who may struggle to access traditional bank financing due to credit challenges, limited operating history, or urgent funding needs. L3 Funding offers three main types of merchant funding: business cash advances, business loans, and lines of credit.
By prioritizing speed and flexibility, L3 Funding aims to identify the best solution for businesses that need capital quickly to run day-to-day operations or capitalize on growth opportunities. L3 Funding claims to have provided more than $500 million in funding to over 7,000 businesses in the United States.
The company is headquartered in Ridgefield Park, New Jersey, and offers funding options nationwide. It also has a secondary funding office in Clearwater, Florida.
L3 Funding positions itself as a service-oriented organization, emphasizing personalized assistance from a dedicated team that works directly with clients to determine which funding option best fits their situation. Its target market includes businesses across industries such as retail, restaurants, hospitality, construction, and professional services.
L3 Funding evaluates a business’s financial activity rather than relying solely on traditional credit metrics, making financing more accessible to companies that may have been declined elsewhere. The funding process begins with a small business loan application and a review of recent bank statements, which help L3 identify revenue trends, cash flow stability, and the business’s overall ability to repay the loan. This review process is designed for quick evaluation and disbursement, often resulting in same-day or next-day business funding.
The core goal of the L3 review is to identify the best financing solution for each business, with a focus on speed and accessibility. Once contracts are signed and requirements are completed, funds are sent via wire transfer or ACH, frequently within 24 hours. Merchant funding obtained through L3 can be used to sustain business growth, cover unforeseen expenses, or stock up on inventory during sales booms.
A merchant cash advance (MCA) from L3 Funding provides a lump-sum capital advance in exchange for a percentage of future sales or daily business revenue. Unlike traditional loans, repayment is typically structured as daily or weekly withdrawals based on business performance, making it more flexible during slower periods.
An MCA provides an instant influx of funds to help run a business and is not based on a credit score. This type of cash advance differs from a traditional business loan because it is not a loan under the law and does not carry an interest rate; instead, the cost is determined by a factor rate agreed upon in advance. While merchant cash advance companies can offer quick access to funding, they often come with higher fees than bank financing. Hence, business owners need to understand the full terms before moving forward.
In addition to merchant cash advances, L3 Funding helps business owners access more traditional financing through its network. These options may include term loans with structured repayment schedules and longer terms than MCAs.
L3 Funding’s business loans can provide up to $10 million with less paperwork than traditional banks. These loans may be suitable for businesses seeking larger funding amounts or more predictable repayment terms. However, availability and pricing depend on the applicant’s financial profile and the specific lender’s requirements.
L3 Funding also offers access to business lines of credit, which provide ongoing access to capital rather than a single lump sum. A revolving line of credit can be handy for managing cash flow gaps or covering short-term expenses.
The line of credit from L3 Funding allows businesses to draw funds as needed and pay only for what they draw. While lines of credit offer flexibility, companies should pay close attention to draw fees, repayment terms, and renewal conditions when evaluating this option.
L3 Funding does not publish strict minimum requirements on its website, but approval is generally based on business revenue, time in operation, and bank account activity. Most applicants are expected to have an active business bank account and a consistent monthly deposit history. Because a credit score is not the primary factor, businesses with past credit issues may still qualify.
The company’s emphasis on cash flow rather than personal credit enables it to approve a higher percentage of applicants than traditional banks. However, funding amounts, terms, and pricing vary based on the business’s overall risk profile.
L3 Funding primarily operates as a merchant cash advance provider, though it also offers access to business loan products through its lending network. Merchant cash advances differ significantly from traditional business loans in structure, repayment, and cost. Instead of fixed monthly payments and business loan interest rates, MCAs are repaid as a percentage of daily or weekly revenue, which can fluctuate with sales performance.
This repayment structure offers both benefits and risks: on the positive side, payments adjust with revenue, which may help businesses during slower periods, but on the downside, the effective cost of funding can be high, and frequent withdrawals may strain cash flow. For this reason, it is essential for business owners to carefully review any funding agreement and fully understand the payback amount, remittance schedule, and impact on daily operations.
Online feedback for L3 Funding reflects a mix of experiences. Some clients praise the service, while others have raised concerns, including reports of persistent cold calls. Multiple complaints allege that the company won’t stop calling them, even after adding their phone number to the Do Not Call (DNC) list.
L3 Funding has a process for addressing complaints about its calling practices and states that it takes disciplinary action against employees who do not comply with the Do Not Call list. Additionally, there are allegations that some positive reviews may be fake, as indicated by discrepancies on other review sites.
Despite these concerns, L3 Funding approves almost 80% of applicants, highlighting its focus on accessibility and providing financing to businesses that may struggle to secure funding elsewhere.
L3 Funding offers a business loan affiliate program. ISOs and business loan brokers can sign up on the company’s website to partner with them.
The application process at L3 Funding is designed to be quick and easy, enabling business owners to move from inquiry to funding in a short time. The company emphasizes fast business funding, minimal paperwork, and direct communication throughout the process.
The application process for merchant funding through L3 Funding involves filling out a one-page application and providing four months of business banking statements.
L3 Funding’s software processes the application and banking statements to assign a score based on criteria such as revenue trends and cash flow.
Once the review is complete, an L3 Funding representative contacts the applicant to discuss available funding options, terms, and pricing.
After the business owner agrees to the terms and signs the contract, funds are typically sent within one business day.
Once funding is issued, repayment terms depend on the product selected. For merchant cash advances, repayments are generally made through daily or weekly automatic withdrawals. Business loan and line of credit repayment structures vary by lender terms.
L3 Funding does not publish detailed information about prepayment penalties, early payoff discounts, or renewal policies. Business owners should carefully review their agreement to determine whether paying early can reduce total costs or whether additional fees apply. Understanding post-funding obligations is critical to avoiding unexpected issues and ensuring the funding arrangement supports the business rather than creating disruption.
L3 Funding offers fast access to capital, making it attractive for businesses with urgent funding needs. The application process is simple, approvals are quick, and credit score is not the primary determining factor. It can be a valuable source for short term business loans.
Many clients appreciate the team’s personal attention and the ability to speak directly with a representative who can explain options and answer questions. The wide range of funding products also allows businesses to explore multiple solutions in one place.
Merchant cash advances can be more expensive than traditional loans, and frequent repayments may strain cash flow. Some businesses report persistent calling, which can be disruptive.
Concerns about review authenticity and aggressive sales practices may also give some business owners pause. As with any alternative funding company, careful review of terms is essential to avoid unfavorable outcomes.
Pros:
Cons:
L3 Funding is a legitimate merchant funding company operating in the United States and maintaining an online presence, physical office locations, and public business profiles. While the funding company is not Better Business Bureau (BBB) accredited, it does have an A+ rating on the watchdog site.
While legitimacy does not guarantee a positive experience for every client, the available evidence suggests that L3 Funding is a legitimate company offering real funding products rather than a scam.
L3 Funding has received mixed reviews from customers across various platforms. Feedback often centers on funding speed, interactions with representatives, and communication practices. L3 Funding has a 4.5/5 rating on over 90 Trustpilot reviews but a 1/5 on 15 BBB reviews.
Many customers report positive experiences with L3 Funding’s agents, highlighting their professionalism and attentiveness. Customers appreciate the quick and smooth funding process provided by L3 Funding. Several customers recommend specific agents at L3 Funding for their exceptional service and support during the funding process.
On the negative side, some reviews express skepticism about the authenticity of the high ratings on L3 Funding’s Trustpilot page, suggesting that many may be fake. Customers have noted that L3 Funding’s representatives are persistent in their outreach, which some perceive as pushy. Some reviewers claimed the company was rude when attempting to stop calls.
While several BBB reviews claim the company called them despite being on the DNC list, L3 Funding responds to messages to correct the error. The company apologizes for any misunderstanding and ensures the removal of their number.
L3 Funding may decline a business loan application due to issues with credit, cash flow, or business history. If denied, the company should provide a written explanation of the reasons. If not, or if you require more information, contact L3 Funding directly.
Fortunately, small business owners have many lender options to consider if their recent experience with L3 Funding doesn’t meet their needs. Several lenders offer similar products and additional funding options.
Working with a small business loan marketplace (like UCS) lets you apply to a network of lenders with a single application and receive multiple offers. You can then get guided support in choosing the best deal for your small business.
You may be interested in one of these small business loans:
L3 Funding may be a fit for businesses that need quick access to capital, have been declined by banks, or value speed over cost. Companies with strong cash flow but imperfect credit may find their merchant funding options appealing. However, businesses that qualify for traditional loans or SBA financing may find more affordable options elsewhere.
Based on the available information, we rate L3 Funding 3.3 out of 5. It could be a solid option in some cases, but we encourage small business owners to evaluate all options before making a decision.
Disclaimer: The L3 Funding trademark is owned by L3 Funding LLC, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from L3 Funding LLC.
