Become Business Loans
Become helps business owners and aspiring entrepreneurs find the financing they need from a network of lenders. The application process takes just minutes and can be completed entirely online.
Formerly Lending Express, the company changed its name to Become in July of 2019. They pair applicants with lenders offering $5,000 to $500,000 business loans.
Businesses with at least three months of history during which they can show $10,000+ in revenue and those with 6+ months of revenue exceeding $2,000 per month are eligible to apply. The loan providers working with Become do not require perfect credit or a long history of profits, which is a great advantage for new businesses or those looking to expand. There are no fees to apply, and applicants aren’t under any obligation to accept a loan offer.
Become generates a LendingScore™ for each applicant between 0 and 100 based on factors that lenders user to judge loan eligibility, such as business age, monthly revenue, business financials, and credit score. A higher score means the business qualifies for better terms and more types of financing. Through Become, you’ll find out how to improve your score.
Become Financing Types
Become’s financial products include unsecured business loans, invoice factoring, merchant cash advances, line of credit, SBA loans, and commercial vehicle and business equipment loans.
Unsecured business loans
This type of financing works well for businesses that are just starting out. New businesses may not have collateral, but equipment, inventory, and staffing are necessary. An unsecured business loan doesn’t require collateral like a vehicle, loan, or savings to secure the loan.
- Loan amounts: Generally $8,000 to $500,000, but Become has access to one lender that will approve certain loans for up to $5 million
- Loan terms: One year to five years
- Requirements: In business for six months with $4,000 monthly revenue, minimum credit score of 500
There are no application fees or funding fees associated with Become’s unsecured business loans offered through lending partners. The application is fast and if approved, applicants have access to their funds in a short as three hours. Interest rates start at just 7.5%. Although the rates are relatively high compared to some credit cards or other types of financing, there’s no risk to personal or business assets with an unsecured business loan.
Line of credit
This type of credit is best for businesses that have undefined and ongoing financial needs. They can use what they need when they need it, while paying interest only on the money they’ve borrowed.
Become offers four types of business lines of credit:
Revolving: As the debt is paid, the credit renews, which is great for businesses that are building their credit scores.
Non-revolving: Small businesses that don’t have an established credit history may be eligible for this type of starter line of credit. As the debt is paid, the credit line does not automatically replenish.
Secured: This line of credit is guaranteed by an asset (business or personal) such as real estate, equipment, inventory, accounts receivable, or a vehicle.
Unsecured: This line of credit does not require collateral but may have a higher interest rate to offset the lender’s risk.
- Loan amounts: $8,000 to $500,000
- Loan terms: Three months to five years
- Requirements: FICO credit scores as low as 500, three months in business with monthly revenue of at least $4,000
Newer businesses without an established credit history that need funding quickly and require some flexibility may find that a business line of credit is the right choice. Interest rates start at 4.66% for well-qualified businesses. Applicants could have access to their line of credit in just four hours if they are approved.
Invoice Factoring/Financing or Freight Factoring
This type of financing frees up capital by allowing the borrower to collect overdue payments from slow-paying customers in exchange for instant access to cash. This is a great option for trucking companies, who can use freight factoring to get access to money tied up in unpaid invoices.
- Loan amounts: Varies by industry, business history, and invoice amount
- Loan fees: 2% – 4.5% monthly
- Loan terms: Invoice factoring provides between 85% and 90% of the invoice amount upfront to the business owner; they then collect the debt from the customer directly
Become works with three companies offering invoice financing, which is a loan to provide access to cash tied up in outstanding invoices that the borrower will collect to repay the loan:
- Fund Box: Loans up to $100,000 with terms of three to six months; minimum of three months in business
- Blue Vine: Loans up to $5,000 with terms of up to 12 months; minimum of six months in business and minimum FICO credit score of 500
- Loan Me: Loans up to $250,000 with terms starting at 24 months; minimum of three months in business with minimum FICO score of 500
This type of financing may be easier to qualify for than other types of business loans, since outstanding invoices work as a type of collateral.
Merchant Cash Advance (MCA)
An MCA loan offers business owners a lump sum of money in exchange for a percentage of each future credit and debit card transactions made to the business by their customers. Interest rates are higher with this type of financing than with other options, so many businesses consider them a last choice. They are good for businesses that don’t have other more affordable options. An MCA loan is one of the easiest to get for businesses with many customers that pay via credit or debit card.
- Loan amounts: Depend entirely on the company’s average revenue
- Loan terms: MCA’s require a factor rate agreement as opposed to an interest rate, which means that the total amount of the loan multiplied by a rate of 1.14 to 1.48 is due. MCA repayment terms include a set percentage of every debit and credit card transaction which varies according to the lender
- Requirements: Three months in business with a minimum monthly revenue of $4,000 and a minimum repayment term of four months
Compared to other types of financing, MCA loans are expensive. Since the lender automatically takes a percentage of every card transaction immediately, non-repayment typically isn’t an issue.
Small Business Administration (SBA) Loan
An SBA loan is for businesses who have tried other funding options without qualifying. They may require collateral or a down payment and could be difficult for startups to get. However, there are many types of SBA loans and Become can help applicants through the process of choosing the best one.
- Loan amounts: Up to $20 million
- Loan terms: Up to 25 years for real estate, up to 20 years for land, up to 10 years for equipment or anything else
- Requirements: Vary widely by lender and type of SBA loan; generally, minimum FICO credit score of 500, three months in business, minimum monthly revenue of $4,000
An SBA loan could be the perfect answer for businesses who can’t get financing through other channels. In most cases, the lender will require a 20% – 30% down payment, a business plan, and proof the that majority of the business is owned by a United States citizen.
Equipment Loan or Commercial Vehicle Loan
With an equipment loan or commercial vehicle loan, the equipment of vehicle serves as collateral for the loan. Businesses without a lot of collateral can still buy the equipment, including vehicles, they need with this type of loan.
- Loan amounts: Varies according to lender, value of collateral, down payment, and borrower qualifications
- Loan terms: 18 months to ten years
- Requirements: Minimum FICO score of 450, minimum of three months in business, monthly revenue of at least $4,000
This type of loan works well for many types of businesses who need specific equipment to operate. It’s typically easy to qualify for the loan and access to funds takes just a few hours. Since the loan is secured with property, borrowers risk having their important business equipment or vehicles repossessed if they don’t repay the loan as agreed.
Pros & Cons of Financing with Become
- Compare multiple funding offers to choose the best one for you.
- Access to 20+ reputable lenders with one application
- Assistance with working toward better credit
- Good reputation and positive online reviews from Become users
- Brand new businesses (those in business fewer than three months) and those seeking funding to start a business can’t qualify
- Does not offer personal loans
- It is unrealistic that users will qualify for $500K unless their business has very high monthly revenue
- Become connects users and lenders, so while it provides lots of information, ultimately users will receive the final info and funding from the lender
Prospective applicants start by selecting a loan amount and answering a few questions about their business. Become requires general contact information, as well. The site offers preliminary offers from lenders they work with, based on the application information.
The applicant can choose to work with the lender offering the best terms. The lender will contact the applicant to complete the application and finalize the loan.
While various lenders may have differing loan requirements, Become requires a single, simple, application to connect businesses to their network of lenders.
Lenders may require business bank statements and other documents to prove monthly revenue.
Privacy & Security
Become offers a means by which to partner with any of 20 trusted lenders. Their partners include LoanBuilder by PayPal, Kabbage, BlueVine, FundBox, Target Advance, FOR A Financial, idea Financial, On Deck, and others.
With a Trustpilot score of 9.6 and 466 reviews (91% of which are Excellent) as of the publish date of this article, Become has a solid online reputation. They are ranked 76 out of 326 businesses in the Business to Business Services category on TrustPilot’s website.
Applicants should expect a soft pull of their credit, which will help Become match them with lenders. A hard pull of credit comes after borrowers submit a formal application with a lender and give permission for the credit check.
Become’s applicants have access to customer support via an 800 number. Applicants who don’t meet the minimum funding requirements, which include time in business and monthly revenue, receive step-by-step help with improving their odds of getting approved in the future. Become notifies applicants who were previously denied if they become eligible for financing in the future.
Become offers businesses with a short history and small amount of revenue an opportunity to find a lender through their online lending marketplace with a single application. Many of Become’s lending partners accept low credit scores, although borrowers will pay higher interest rates for access to the funds. In general, reviews from the platform’s users are positive. Become may be the right choice for busy entrepreneurs who want to compare their funding options in one place, and who need fast funding and instant access to multiple big-name lenders who regularly work with small and medium-sized businesses.
400 Concar Dr, San Mateo, CA, 94402.