Reliant Funding is a lending institution specializing in merchant cash advances for small and medium-sized businesses. Like most alternative lenders, the company offers an easy online application and faster funding than traditional lenders.
Merchant cash advances are typically more expensive than traditional small business loans, but Reliant Funding offers some unique features worth considering. In particular, the company provides quick access to working capital to help your business grow.
If you’re considering a Reliant Funding business loan, we can help guide you with answers to these questions:
Reliant Funding is an alternative lending institution providing financing to small businesses. The San Diego-based company launched in 2008.
The company was founded on the mission to help provide working capital to small and medium-sized businesses (SMBs) underserved by traditional banks and lenders. Since launching, Reliant Funding has provided over $1.5 billion in funding to more than 10,000 businesses.
Reliant Funding provides an easy application with a fast funding time. In some cases, it’s possible for same-day funding, but generally, it takes 1-5 days after applying.
Let’s review the available financing options.
Reliant Funding offers merchant cash advances as its primary product. Reliant Funding’s merchant cash advance ranges from $5,000 to $400,000.
You will repay the advance with daily or weekly payments. The company allows you to repay using an ACH transfer or from a portion of your daily credit card sales.
The Reliant Funding website mentions several other forms of business financing, such as SBA loans and equipment financing. However, it appears that in most cases, the company recommends its merchant cash advance as the main solution out of their available financing options.
It’s much easier to qualify for Reliant Funding than most forms of business financing. The company developed its platform specifically to help younger businesses and business owners with poor credit scores.
The minimum qualifications are:
The company only offers merchant cash advances. Their loan products list things like Equipment Leasing and Bridge loans – but they offer the merchant cash advance as a solution to those funding options. For example, it lists SBA loans but isn’t an approved SBA lender. Instead, it offers merchant cash advances as an alternative to SBA loans.
Reliant Funding charges a factor rate instead of an APR, and the company’s rates are between 1.10 and 1.40. With a factor rate, you multiply the principal borrowing amount by the factor to see how much you’ll pay. For example, if you borrowed $50,000 at a rate of 1.25, it would look like this:
$50,000 x 1.25 = $62,500
You would pay $12,500 in interest to borrow $50.000. The only way to discover your rate is to apply and receive a quote.
The application is quick and easy, and Reliant Funding can potentially provide funds the next day. One of the company’s main selling points is the fast turnaround on funding.
Reliant Funding financing does come with an origination fee, but the company doesn’t disclose the fee range. You must apply and receive an offer to find out what your fee is.
The company provides funding through a mix of its internal lending and partnerships with other lenders. Its merchant cash advances are unavailable in North Dakota, South Dakota, or Vermont.
After an initial online application, you’ll receive a quote, provide documentation, and can potentially get your funds the next day.
You can apply for Reliant Funding directly through the United Capital Source one-page online application. You need to provide basic business information.
After you apply, Reliant Funding will determine your eligibility. If eligible, the company sends you an offer, and if it looks good, you can accept and move to the next step. You can also choose to connect with the Reliant Funding representative who sent the offer.
Once you accept an offer, you must provide additional information about your business operations to complete the underwriting process. The company only performs a soft credit pull, which shouldn’t affect your credit.
Be prepared to provide:
Once everything checks out, and Reliant Funding completes the underwriting process, the company releases your funds.
You can set up repayment as either daily or weekly payments. You can also choose between setting the payment up as an ACH transfer from your business bank account or as a fixed percentage of your daily credit card sales.
Borrowers potentially become eligible for additional funding after paying off 50% of the advance amount, but that is not guaranteed. Renewal options depend on your financing agreement.
The most significant advantage of Reliant Funding is the quick funding time. It’s ideal for companies needing an immediate influx of funds for cash flow and working capital.
The company also provides a simple application process, especially compared to traditional lenders. In most cases, you can apply and receive a credit determination on the same day.
Borrowers also benefit from the company’s lower qualification requirements. It’s much easier to get approved, which is good news for younger companies, businesses without high annual revenue, and any business owner with a low credit score.
The company also offers outstanding customer service. You can generally rely on getting an expert representative who can help guide you through the process and find funding to meet your needs.
The biggest disadvantage comes from the cost of merchant cash advances, one of the more expensive forms of business financing. The company’s rates are competitive with similar lenders, but it’s still a costly way to borrow money.
Frequent repayments are also difficult for some businesses. You expect to pay daily or weekly either from your business bank account or a portion of credit card sales. Either way, the high cost and frequent repayments affect your daily cash flow.
The lack of transparency also makes it difficult to compare prices with other lenders. You must start the application process before you get information on your rate and fees.
We prepared a pro and con list for a quick summary.
Yes, Reliant Funding is a legitimate alternative lender. The Better Business Bureau accredits the company with an A rating, and it has a 4.7 rating on over 1,400 reviews on Trustpilot.
Reliant Funding provides merchant cash advances to small business owners. Their process is quick and easy, with lower qualifications than most traditional banks.
Traditional banks deny an estimated 80% of small business loans. It provides a convenient solution for underserved businesses. The minimum credit score requirement of 525 is excellent for bad credit borrowers.
In addition to providing funding where other lenders won’t, the company provides a streamlined application with a quick turnaround on funds. Merchant cash advances are an expensive way to borrow money, but it might be worth it if you need quick funding and can’t get approval from a traditional lender.
Currently, the company only offers their merchant cash advance product. There is some information about other business loans on their website, but it provides the merchant cash advance as an alternative solution to those funding needs.
Reliant Funding has a mix of reviews online, but most tend towards positive. Positive reviews talk about the speed of funding and ease of applying for business financing.
Many customers praised the company’s customer service, with multiple users calling out their representative by name. Users talk about their agents being compassionate, knowledgeable, and transparent.
Negative reviews focus on the cost of financing and the frequency of the repayments. While many users felt the rates were competitive with other lenders, merchant cash advances generally tend to be more expensive financing.
There are a few complaints about misleading advertising tactics. Most of these have to do with a mail campaign promoting a line of credit product that the company currently doesn’t offer.
Other customers complained about a lack of transparency. The website doesn’t provide much information about factor rates or origination fees. You can only determine the financing costs by applying and receiving a quote.
Reliant Funding offers a lower barrier to entry than most small business lenders. The company was founded on the principle of providing funding to small businesses that struggle to qualify for traditional financing.
It is still possible that the company denies your request. Your company might not meet its minimum requirements, or there could be cash flow issues.
Also, Reliant Funding’s merchant cash advance isn’t available in the following states:
If you apply and get rejected, the company sends a denial letter, which should explain the reasons for the rejection. If not, or if you need more information, you can contact the company.
Reliant Funding works for many small business owners but not for others. If the company doesn’t work out for you, there are plenty of other lenders to consider. Most companies offer a mix of small business loans, including a merchant cash advance.
Reliant Funding is best for younger businesses needing urgent funding. The company’s quick application process, fast turnaround times on funds, and lower qualification requirements make it an excellent option for business owners with low credit scores who need financing to grow their businesses.
More established businesses with good to excellent credit can find less expensive business loan options with higher borrowing amounts. Even so, not many companies can provide funding as quickly as Reliant, making them a good option if you need the money now.
Based on user reviews and our experience working with Reliant Funding, we rate the company at 3.75 out of 5. The company is an excellent option for merchant cash advances, but the lack of funding options holds it back.