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

Small business owners have many options for financing, but SBA loans remain the gold standard. The drawback to SBA loans is that most lenders have strict qualifications, and getting your funds takes weeks or months.

Some lenders, like Ready Capital, can help expedite the process as an SBA-preferred lender. The company also offers USDA B&I loans. However, it might not be the right fit for every small business.

We can help you determine if the non-bank lender meets your financing needs by providing the pros, cons, and how to apply. Specifically, we’ll answer these questions and more:

We will help you grow your small business.

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    What is Ready Capital?

    finance, facade, reflection, interest rates, real estate, maximum rates

    Ready Capital is a multi-strategy real estate finance company that provides commercial real estate (CRE) loans, residential mortgages, and small business loans. Its subsidiary, ReadyCap, primarily handles its small business loan programs, which are SBA loans and USDA B&I loans.

    The company launched in 2012. It is based out of New York, NY. Most of its loans are backed by CRE holdings.

    How does Ready Capital work?

    Larger enterprises can pursue various CRE loans with the company, but today we’re focusing on their small business offerings under the ReadyCap brand. The lender offers two loan options for small businesses.

    SBA 7(a) loans

    • Loan amounts: $350k – $7 million.
    • Terms: Up to 25 years for CRE loans.
    • Rates: Prime + 4.75%.

    United States Small Business Administration logo, interst rates, packaging fees,

    The US Small Business Administration (SBA) oversees the SBA loan program. Instead of applying to the SBA, potential borrowers must apply to an approved lender, like ReadyCap.

    The government agency sets rules for lenders to follow, including capping interest rates and fees. The SBA also partially guarantees up to 85% of the loans.

    With backing from the federal government, lenders can offer higher borrowing amounts at lower interest rates and longer repayment terms.

    As an SBA-preferred lending institution, ReadyCap can expedite certain aspects of the SBA loan application, which usually takes between a few weeks and two months. You can use the funds for most business purposes, including commercial real estate, marketing, working capital, expansion, acquisition, and refinancing business debt.

    USDA B&I loans

    • Loan amounts: $1 million – $10 million.
    • Terms: 10-30 years.
    • Rates: Unlisted.

    The US Department of Agriculture (USDA) Business & Industry (B&I) loans help support small businesses in rural communities. ReadyCap is licensed to offer USDA B&I loans in most states.

    What are the qualifications for Ready Capital?

    list, icon, symbol, personal credit score, interest rates,

    The qualifications depend on the loan type.

    SBA Loans

    ReadyCap indicates you need a minimum personal credit score of 680 to qualify for an SBA loan. Unlike other lenders, it doesn’t list a minimum annual revenue. It’s also one of the few lenders that offer SBA funding to startups, so there’s no time in business requirement.

    Applicants must also meet the SBA’s eligibility criteria, which are:

    • Be a for-profit business.
    • Operate and be physically located in the US or its territories.
    • Meet the small business size standards as defined by the SBA.
    • Have the cash flow to handle loan repayments.
    • Not be eligible for or receiving credit elsewhere.

    USDA B&I Loans

    The lender does not list qualifications for USDA B&I loans but provides access to USDA’s convenient eligibility tool.

    For ReadyCap, You Need to Know That:

    startup, meeting, brainstorming, not better business bureau accredited

    To be eligible for SBA loans, the lender requires a debt service coverage ratio (DSCR) between 1.15 and 1.30. You must also make an equity injection (down payment), usually around 10% of the total loan amount.

    USDA B&I loans are only available in areas with a population of 50,000 or fewer. Most small business owners would qualify for SBA loans over B&I loans.

    ReadyCap offers SBA loan options for veteran-owned businesses (at least 51% of ownership). The program makes it easier for veterans to obtain an SBA loan.

    The SBA requires lenders to report SBA loan information to the major credit bureaus. With most business loans, reporting to the credit bureaus is optional. That means you could potentially build your business credit with a ReadyCap SBA loan.

    The lender’s website does not publish information on a business loan referral partner program, but some online reviews mention using partners. ISOs and business loan brokers should contact the lender directly to ask about offering its services to their small business clients.

    How to apply to Ready Capital:

    ReadyCap uses LenderAI to streamline the borrower and broker experience. Follow these steps to apply.

    Step 1: Complete the Online Form & Contact the Lender

    ReadyCap provides an online contact form to start the process. You can also call the lender to get started. Either way, you’ll provide some basic information about yourself, your business, how much you’re borrowing, and how you’ll use the money.

    Step 2: Work with a Representative

    Once you start the process, a ReadyCap representative will reach out to help you complete the process.

    You will likely need to provide extensive documentation, which could include the following:

    • Driver’s License.
    • Business license or certificate.
    • Voided Business Check from your business account.
    • Bank Statements.
    • Credit Report/Statement of Personal Credit History.
    • Business Tax Returns.
    • Credit Card Processing Statements.
    • Personal Tax Returns – 3 Years.
    • Business Tax Returns – 3 Years.
    • Business Plan (Not in all cases).
    • Personal Financial Statement.
    • List of Real Estate Owned or Business Leases if applicable.
    • Debt Schedule/Loan/Rent/Lease Documentation
    • Deeds/Title/Ownership documentation for any collateral/Security
    • Current Profit & Loss Statements and Balance Sheet Year-to-Date

    Step 3: Finalize the Loan and Get Funded

    The SBA loan process is complex, and some businesses might need to provide more information than others. Your dedicated representative will help you complete the process and get funded.

    ReadyCap, Post Funding:

    The repayment process for an SBA loan is straightforward. You will repay the amount you borrowed (principal) plus interest and fees in fixed monthly payments.

    In most cases, you’ll set up automatic payments using an ACH transfer. Alternatively, you can work with the lender to make other payment arrangements.

    Small business owners who get a USDA B&I loan will also have fixed monthly payments. The ReadyCap website does not publish information on renewals.

    You can typically save interest on ReadyCap business loans if you pay them off early. Most times, there won’t be an early repayment fee unless the loan terms are for 15 years or more. In that case, there is a prepayment penalty if you pay it off in the first five years. The penalty reduces each year.

    What are the advantages of Ready Capital?

    One of the primary benefits of the lender is that it is an SBA-preferred financing company, meaning it can help get loan approval and funding faster. It can also offer high borrowing amounts at low rates.

    The company charges very few extra fees, partially because the SBA caps what a lender can charge. It’s also one of the few SBA lenders that offers startup and franchise financing.

    Veteran-owned businesses can also benefit from the company’s veteran business loan programs. Small business owners get longer repayment terms, which lowers your monthly payments.

    What are the disadvantages of Ready Capital?

    While the ReadyCap website provides helpful information, it doesn’t publish its rates and fees. SBA lenders sometimes include additional charges like packaging fees. Potential borrowers must contact the lender or apply to get their rates and fee structure.

    Despite being a non-bank lender, ReadyCap doesn’t offer an online application. You can complete a contact form to start the process, but you won’t get information on pre-qualification until you speak to a representative and follow the instructions to apply.

    Government-backed loans typically have strict qualifications and take a while to finalize. You should also be aware that the company has negative reviews. However, most of those are related to the now-defunct PPP loan program.

    Pros & Cons

    Here’s a quick summary of the benefits and drawbacks of ReadyCap small business loans.

    pros, and, cons, green thumb up, red thumb down


    • SBA-preferred lender.
    • Large borrowing amounts with low maximum rates.
    • Few fees & extended repayment terms.
    • Offers startup and franchise funding.
    • Special programs for veteran business owners.


    • Lack of transparency regarding rates & fees.
    • No way to apply online.
    • SBA loan applications are complex.
    • Negative online reviews & reputation.

    Apply for business funding through United Capital Source today.

    Ready Capital Frequently Asked Questions

    Is Ready Capital legitimate?

    Yes, Ready Capital is a legitimate lender. It is a publicly-traded company and licensed lender. While it does have many bad reviews, it’s still a legit company.

    Is ReadyCap an SBA-preferred lender?

    Yes, ReadyCap is an SBA-preferred lending institution, which means it can bypass the SBA review process and approve loans more quickly. Not only is it a preferred lender, but ReadyCap is one of the most active lenders for SBA 7(a) loans.

    What do Ready Capital reviews typically focus on?

    peer review icon, peer review, review

    ReadyCap has many negative reviews but some positive ones as well. It has a D- rating at the Better Business Bureau (BBB). It has a 1 out of 5 BBB rating on 59 customer reviews, and there have been 76 complaints closed in the last three years.

    It is not BBB accredited. Lenders tend to have much better ratings on Trustpilot, but it only has a 3.6 out of 5 rating on over 950 reviews.

    Most of the negative reviews and BBB complaints center on the PPP loan program enacted during the Covid-19 pandemic. Many online and non-bank lenders were ill-prepared for PPP loans, and the program was very complicated. Even so, a few customers mentioned they went out of business because the online lender did not disburse the loan proceeds on time.

    There are also some non-PPP complaints about the customer service team and mix-ups surrounding loan proceeds. A few customers mentioned the company trying to pressure them into buying insurance.

    We should mention that despite the high volume of negative reviews, 64% of the company’s reviews on Trustpilot have 5 stars. The positive reviews discuss the customer service team and the smooth process.

    Several customer reviews state the company helped save their business during the pandemic. Multiple users called out their customer service representatives by name when praising the service.

    What if ReadyCap denies my loan request?

    The lender doesn’t publish much regarding qualifications, except that SBA loans require a credit score of 680. Otherwise, the only way to determine eligibility is to contact the company directly and speak with a representative.

    If you applied and were declined, the denial letter should explain why. If not, you can contact the lender directly for more information.

    Fortunately, there are many alternative lenders to consider if ReadyCap doesn’t work out for you. You can find lenders offering SBA loans, several of which provide a convenient online application.

    If you were denied because you’re not eligible for an SBA loan, many loan options have lower qualifications. You might be interested in one of the following small business loans:

    Making Your Decision

    doors, choices, choose

    ReadyCap is best suited for small business owners seeking an SBA loan or USDA B&I loan. The process for getting these loans can take weeks, but the company can help expedite SBA loans as a preferred lender.

    Business owners with a credit score below 680 or those that need quick funding must find a different lender. Some lenders offer same-day funding, for example. Additionally, as the company doesn’t provide an online application, you could potentially receive the same loans with a similar application process at the local branch of a traditional bank or credit union.

    Even so, the non-bank lender’s AI tool and convenient online customer service might make it worth it. Ensure you understand all the lender’s details and costs before you decide on a loan.

    Based on user reviews, available products, and website transparency, we rate ReadyCap as 3.5 out of 5. The lender is definitely worth considering for SBA loans, but the lack of additional lending products and the negative user reviews hold it back from a higher score.

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

    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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