Business Backer is reimagining relationship-based business financing for the twenty-first century. The Business Backer was founded in 2007 to give small businesses an honest and transparent funding source to help them survive and develop. If you meet the criteria, The Business Backer can be a good source of quick short-term funding.
What is Backer?
The Business Backer is a viable option for quick short-term finance. The lender is eager to cooperate with consumers that have only a fair credit score. They are dedicated to providing financing that does not put debtors in a position not to repay their debt.
The Business Backer uses a methodology called “True Relationship Financing” to approach loans. The lender can match applicants with the correct type of loan based on financial information, business history, and “future ambitions” through its “True Relationship Partner” network.
It prioritizes “getting to know” consumers above simply looking at their numbers, and it strives to provide the best offers and rates to each qualified application.
Who receives the most benefits from Backer’s funding?
Merchants in need of flexible, customizable loan solutions, ranging from startups to medium-sized firms, can request funding from the Business Backer as an alternative to traditional bank loans.
For businesses with bad credit or other financial issues, there are options-
- Have been in operation for at least one year
- Bringing in $180,000 or more each year
- Have a personal credit score of 550 or higher but are unable to obtain lower-interest business loans
Loan amount-
- Depending on the loan, you can borrow anywhere from $5,000 to $350,000.
- Up to $75 million in commercial real estate
Term length
A merchant receives money from The Business Backer is determined by the option selected and the general financial condition of the company at the time of application.
The following are some ranges:
- Long-term loans range from one to four years.
- For commercial real estate loans, the term ranges from 10 to 25 years.
- Short-term and startup loans can last up to 18 months.
- SBA loans can last up to ten years.
What do you need to apply for baker lending?
There are three important steps in the Business Backer loan process:
- Fill out an application to check if you are eligible.
- Provide three months’ worth of bank statements and choose a suitable funding source.
- Sign a contract, and you might have your money in as little as 24 hours.
Borrower’s eligibility
These are general rules that may change depending on the type of funding.
- The Business Backer will begin the prequalification process once you have been in business for at least one year.
- Must have annual revenue of at least $180,000.
- Other variables may be evaluated after that to see if you qualify.
Small business loan
Business Backer offers Small company loans with pre-determined loan amounts and precise repayment schedules.
Key features for a small business loan
- Amounts up to $200,000 are available.
- Term lengths range from four to eighteen months.
- Fixed monthly interest rates range from 1.1 percent to 3.5 percent, with a monthly average of 2.2 percent and an annualized rate of 25.8%.
- Daily, weekly, and semi-monthly repayment options are available.
- Customers in good standing who pay their bills on time save 35% on unpaid interest.
- When you refinance, The Business Backer discounts 100 % unpaid interest on your prior loan and rolls over your principal into your new loan, so you don’t have to pay interest on interest.
- A 3% origination fee is charged.
Business cash advances
The Business Backer gives you money based on your expected future revenue, and you return the loan by sending the Business Backer a percentage of your future sales.
- Amounts up to $200,000 are available,
- factor rates (rather than interest rates) beginning at 12% of the amount borrowed.
- Daily, weekly, and semi-monthly installments are provided as repayment alternatives.
Line of credit
The financing works similarly to a credit card, giving you access to a revolving credit line, which you can access anytime you need it.
- Lines ranging from $5,000 to $100,000 are offered.
- Financing terms range from one to two years.
- Starting at 18 percent, annual percentage rates (APRs) are available.
How to Get a Business Loan with a Backer?
The Underwriting and Application Process
The very first step is to submit your documentation and complete The Business Backer’s online application. Because the Business Backer will only do a soft draw on your credit, completing the application will not affect your credit score.
Then, in around four hours, the Business Backer team will analyze your information and determine whether you are authorized for funding.
Post funding process
You’ll be approved for a specific balance limit after accepting a short-term loan offer. You have the option of taking the entire balance or a smaller portion of it.
If you discover that you require additional funds, you can seek access to the remaining balance of the original loan—as long as you’ve been repaying The Business Backer on time.
Fees and collateral
On their short-term loan product, the Business Backer charges a 0% to 8% origination fee, as well as a 0% to 8% purchase cost on their merchant cash advance.
Headway Capital may charge you additional costs because their business line of credit is funded through them.
The Business Backer requires a personal guarantee. In addition, for structural defaults, a personal deposit is also required for merchant cash advances (e.g., fraud on the loan application).
Pros and cons
Interest forgiveness
The Business Backer gives a discount of up to 35 percent for early repayment of small business loans, in addition to forgiving interest on renewed loans. The website doesn’t provide information on interest forgiveness for other loan products, but it’s standard practice for lenders to require factor rate fees to be paid in full regardless of when the loan is paid off.
Policy on Renewal
Merchants in need of additional capital can frequently get a second loan from The Business Backer within 60 days of receiving the first. The lender will return any unpaid interest on the existing loan and request full payment of the principal to alleviate the financial load.
Backer’s customer support
The Business Backer is based in Cincinnati, Ohio, and can be contacted via email, or by filling out a form on their website. Monday through Friday, from 8:30 a.m. to 5:30 p.m. ET, they offer customer assistance.
Final Thoughts
The Business Backer is a fantastic resource for small business owners who require funding rapidly and have only fair personal credit. In addition, small businesses will benefit from the company’s transparency and customer service.
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FAQ
What is Backer?
The Business Backer is a viable option for quick short-term finance. The lender is eager to cooperate with consumers that have only a fair credit score. They are dedicated to providing financing that does not put debtors in a position not to repay their debt.
When Backer was founded?
The Business Backer was founded in 2007.