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Torro Funding Review: Pros, Cons, & How to Apply

Modern small business owners have many options for online lenders, and today we’re discussing Torro Funding. The alternative lender provides a convenient application process with a fast turnaround on approval and funding.

Torro’s specialization in startup financing is one thing that sets it apart. Many financial companies don’t lend to startups because it’s an unproven business.

However, the funding company might not be the best option for every small business owner or aspiring entrepreneur. Some of its limitations include high fees and low borrowing amounts.

We can help you decide if Torro Funding is right for your business by covering the benefits, drawbacks, and application process. Specifically, we’ll answer these questions and more:

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    What is Torro Funding?

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    Torro Funding LLC is an online alternative lender that helps business owners obtain business capital when they can’t access traditional financing. It uses a financial technology (fintech) platform to quickly review, approve, and fund loan requests.

    Unlike many alternative lenders, Torro offers startup funding. Entrepreneurs can get financing even in the “pre-revenue stage.”

    The company was founded in 2015. It’s based in Salt Lake City, Utah.

    How does Torro Funding work?

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    The funder simplifies business loans by offering only two distinct programs: working capital loans and startup capital loans.

    Companies with six months or fewer in operation must apply for the startup capital product. An existing business established for more than six months can apply for working capital.

    Qualified applicants can get approved the same day they apply. Funding is available within 24 hours of approval.

    Let’s look at how each Torro business funding product works.

    Startup Capital

    • Borrowing amount: Up to $125k.
    • Terms: 12 – 48 months.
    • Rates: Max APR of 36%.
    • Funding time: Possible within 24 hours.

    The company provides startup financing of up to $125,000 to open or grow a new business. It also provides terms that can go up to four years, which gives startups a long time to get the business going to repay the loan.

    Entrepreneurs can use the funds for most business purposes. If you’re still starting out, you can use the money for business development purposes such as licensing or patents, making necessary purchases, and establishing a runway for your business.

    You can also use the money as working capital to improve your cash flow during the first six months of business. Examples include hiring staff, renting office space, and marketing initiatives.

    Another option is to use the funds for investment purposes. You can acquire an existing company, open a franchise, or buy into a business partnership.

    Aspiring business owners can contact the company to discuss their funding options in more depth. Some user reviews suggest the funding team can provide business consulting services.

    Working Capital

    • Borrowing amount: Up to $575k.
    • Terms: 3 – 24 months.
    • Rates: Max APR of 36%.
    • Funding time: Possible within 24 hours.

    Existing businesses with at least six months in operation and $10,000 in monthly revenue could qualify for up to $575,000 in working capital. Much like the startup business loan product, you can use the funds for most business purposes, including equipment financing.

    Open-Ended Working Capital

    • Borrowing amount: Up to $125k.
    • Terms: N/A.
    • Rates: Max APR of 36%.
    • Funding time: Possible within 24 hours.

    Torro Funding also offers a subset of its working capital term loan that provides open-ended funding. This product operates like a business line of credit in that you can draw funds as needed.

    It’s an excellent option for ongoing projects, seasonal businesses, or covering unexpected costs.

    What are the qualifications for Torro Funding?

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    The qualifications vary depending on which funding product you apply for. Let’s look at the loan requirements.

    Credit Report

    • Startup funding minimum credit score: 600, but 700 is preferred.
    • Working capital minimum credit score: 400, but the higher, the better.

    Torro Funding will examine your credit history when underwriting your loan request. As with all financing and lending products, the higher your credit score, the better your odds of approval and the lower your interest rate.

    The company weighs credit scores more heavily for startup companies than existing ones. The reason is that startups don’t have a business history or proven revenue streams.

    As such, it relies more on the credit score when deciding if an applicant can successfully repay the loan. A higher credit score indicates the aspiring entrepreneur has a proven track record of paying off debt in a timely manner.

    Annual Revenue

    • Minimum annual revenue for startup funding: N/A.
    • Minimum annual revenue for working capital: $120,000.

    Most business lenders like to see consistent and high annual revenue as it directly correlates to their ability to repay the debt. Applicant companies should have an average of $10,000 per month in revenue, which works out to $120,000 per year.

    Since it provides startup capital to businesses in the pre-revenue stage, it doesn’t set a minimum for that product. However, if your business is a few months into operation, it would be best if you averaged or were on track to average $10k per month.

    For Torro Funding, You Need to Know That:

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    The funder charges an APR for its loans, so you can save money by paying them off early. For example, a company that needs funding to fuel operations ahead of a profit windfall could take advantage of the loan options and save significantly on interest costs.

    However, the company does charge a 5% origination fee for both products. That means even if you paid the loan off the next day, you’re still paying at least 5% of the loan amount.

    Several lenders charge origination fees, but the average is 1%-3%. Torro’s 5% origination fee is among the highest we’ve seen.

    The funder also charges monthly maintenance fees for ACH fund transfers. It doesn’t disclose the fee for startup funding, but the working capital product carries a $25-$50 fee every time you pay your loan.

    We haven’t come across many lenders that charge monthly ACH fees. Between that and the origination fee, your costs could pile up quickly.

    It only performs a soft credit pull when showing your funding options, which shouldn’t affect your credit score. Once you accept a funding offer and move forward, it might do a hard credit pull, which could negatively impact your credit score. It also does not set collateral requirements.

    The lender’s website provides no information on a business loan affiliate program. ISOs and loan brokers should contact the company about offering its business lending products to their small business clients.

    However, Torro has a loan syndication program. This means that the funding it doesn’t provide directly comes from its affiliate investors.

    The vast network of private investors and independent brokerages put up their own money to fund the loans and get repaid, plus profits from fees and interest. This is a possible reason why its origination fee is so high.

    If you’re a loan broker with funds to invest, you could inquire about becoming an investment partner. Several lenders offer similar syndication programs.

    How do I apply to Torro Funding?

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    The application process is quick and straightforward. Follow these steps to apply.

    Step 1: Complete the Online Application

    You can fill out the online form or call Torro Funding to apply. First, you’ll indicate how much funding you need and whether you’re seeking startup or business capital.

    On the next page, you’ll provide some basic information about yourself and your business, including your personal credit score and monthly income. Then you’ll enter your email and create a password to establish your account and see your funding options.

    Step 2: Provide Documentation

    After applying, you might need to provide the following information:

    • Tax ID number.
    • Social security number.
    • Personal tax returns.
    • Business tax returns (if applicable).
    • Business bank statements for the previous three months.
    • Business leases, if available.

    Step 3: Get Approved

    Torro Funding uses its proprietary fintech system QuickWrite® to underwrite and approve applications, typically on the same day.

    Step 4: Speak to a Torro Funding Rep (Optional)

    While the company uses innovative technology for its loan process, it aims to avoid robotic underwriting processes by providing a team of knowledgeable finance advocates to support business owners during the funding procurement process. The team listens to your unique business situation to find funding solutions.

    Entrepreneurs still in the startup process might have to call to discuss options with the team if they don’t have monthly revenue to report. You can also call them if you need more guidance during the process.

    Step 5: Get Funded

    Once approved, you could receive your funds in your business bank account within 24 hours.

    Torro Funding, Post Funding:

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    The repayment process for Torro business loans is straightforward. Borrowers have fixed monthly payments for the loan term for the startup and business capital products.

    The open-ended working capital product also has monthly payments, but the amount fluctuates as you pay back what you owe or draw additional funding. All products use an APR, so you can save money by paying them off ahead of schedule.

    There are no penalties for paying off more than what’s due or paying off the loan early. The funder doesn’t provide information on renewals.

    What are the advantages of Torro Funding?

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    The funder specializes in helping business owners searching for capital find fast business funding. It provides a convenient online application with same-day credit approval possible.

    Once approved, you could get your business funds within 24 hours. Some customers stated that they completed the whole process and got funded the same day they applied.

    As stated, one of the unique benefits of Torro is that it provides business financing for startups. Many business loan companies are hesitant about lending to startups due to the unproven nature of the business.

    There are no prepayment penalties. Since it uses an APR, you could save money by paying the loan off early.

    What are the disadvantages of Torro Funding?

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    The funder only offers two lending products. Many lenders include a suite of various small business loan options.

    Maximum loan amounts only go up to $575k for established businesses and $125k for startups. While that might be enough for some small businesses, multiple lenders offer amounts in the millions.

    The most significant drawback might be the cost. It charges an APR that can go as high as 36%, which is higher than most business or consumer credit cards.

    The 5% origination fee and monthly ACH fees are very expensive. The high costs are the tradeoff for the speed and convenience of the service, but you must ensure your business can handle repayment before signing a loan agreement.

    Pros & Cons

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    Here’s a summary of the benefits and drawbacks of Torro Funding.


    • Offers startup funding.
    • Quick & easy online application.
    • Same-day approval & funding is possible.
    • No prepayment penalties – you can save by paying it off early.


    • High maximum APR range.
    • Charges a 5% origination fee.
    • Charges monthly ACH fees.
    • It only offers two funding products.
    • Low maximum funding amounts.

    Apply for business funding through United Capital Source today.

    Torro Funding Frequently Asked Questions

    Is Torro Funding legit?

    Yes, Torro Funding is a legitimate fintech direct funder. The company has been Better Business Bureau (BBB) accredited since 2015 and has an A+ rating on the watchdog site.

    It’s also a verified company on Trustpilot.

    What do Torro Funding Reviews typically focus on?

    Torro Funding has primarily positive customer reviews, but like most financial services companies, it also has some polarizing negative reviews. The company has a 4.6 out of 5 rating on over 690 Trustpilot reviews.

    It also has a 4.7 out of 5 rating on over 90 BBB reviews. That’s quite impressive, as BBB reviews are mainly negative for most lending companies.

    The positive reviews for the credit facility largely discuss the excellent customer service team. Several users mentioned their funding manager by name.

    Another common theme in the positive reviews is the speed and convenience of the process. Multiple customers mentioned receiving funding the same day or the next day after applying.

    Other positive comments were about the company working to solve the unique challenges of their particular business. One customer mentioned how Torro Funding was able to approve them when all lenders wouldn’t due to being a victim of identity theft.

    The negative reviews primarily come from business owners who weren’t approved for funding during the sales process. Several mentioned that the company asked them to get a co-signer, and they still couldn’t approve the application.

    Others complained about receiving too many phone calls and emails after the initial application. One customer accused them of selling their information to telemarketers, but the response from Torro claimed those calls were from the funding team attempting to complete the loan request process. There are a few complaints about the high cost of financing.

    What if Torro Funding denies my loan request?

    Other than time in business and revenue requirements, the company doesn’t provide direct funding criteria. It considers your credit rating and sets suggested credit score ranges but does not set a minimum score requirement, meaning you can apply even with bad credit.

    If you were declined for a Torro Funding business loan, the denial letter should explain why. You can contact the company directly if you need more information.

    Fortunately, there are many alternative lenders to consider if Torro Funding doesn’t work out for you. Many lenders offer a wide range of working capital loans to help you support and grow your business.

    While startup funding is more difficult to come by, there are still other lenders that service that segment. You could also consider crowdfunding, equity financing, or business credit cards to help get your startup off the ground.

    You might also be interested in the following small business loans:

    Making Your Decision

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    Torro Funding is best suited for newer small businesses seeking fast funding. The company works on positioning business owners for maximum funding.

    The drawback to the company is the high costs. Its rates can run high, but the significant cost is the fees it charges.

    Established businesses with good to excellent credit and high annual revenue can qualify for lower-cost financing options. If you have an urgent funding need, Torro might be worth it, but there are other lightning-fast funders that do not charge the same exorbitant fees.

    Based on user reviews, the available products, and costs, we rate Torro Funding 3.9 out of 5. The funder is worth considering if you’re a startup or need urgent funding and are willing to pay more to get it. However, its fees, limited products, and lower borrowing amounts hold it back from a higher score.

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

    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!

    Ready to grow your business? See how much you qualify for:

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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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