Overview
Reliant Funding is a well established, alternative term loan provider catering to small businesses. Founded in 2008, the company’s headquarters are in San Diego, with additional offices in New York. Since its launch, the company has funded over a billion dollars for over 10,000 clients all over the U.S. Reliant Funding offers a range of unsecured loan options and is a good resource for those small businesses with healthy cash flow and a less than stellar credit history. Before deciding on a loan with an alternative lender like Reliant Funding, make sure you have explored other options by checking if you qualify for more affordable small business loans with other loan providers.
- Very fast funding – usually within 24 hours
- Personal guarantee not required
- Minimal paperwork required
- Very lenient borrower qualifications with no minimum credit score requirement
- Terms and fees are not transparent
- Aggressive sales strategies involve a lot of junk mail
- Expensive rates and fees compared to other lender
Services Offered & Types of Funding
- Type of funding short-term loans, merchant cash advances, equipment financing, lines of credit
- Minimum time in business 1+ year, 7 months for very successful businesses
- Loan amount $5,000 – $500,000
- Age of business 1+ year
- Minimum credit score none
- Time until funding 1-5 days
- Repayment terms 6-18 months
Reliant Funding offers a range of financial solutions of varying sizes and terms: short-term loans, merchant cash advances, equipment financing, and a premium product that is basically a line of credit. The terms and conditions of the various financing options largely depend on the success of the small business applying for funding. Unfortunately, Reliant Funding does not provide much information on its website and you have to contact their sales team and provide personal as well as business information to get an initial quote.
Reliant Funding’s short-term loans are fully unsecure. In most cases the company will not even ask for a personal guarantee. This is great for small business owners who do not want to risk their assets when starting their business. Once you are approved for a loan, there are no restrictions on how you should use it. The repayment terms are flexible and you can choose from a range of repayment options that suit your business the best.
Reliant Funding’s merchant cash advance offer is an interesting product for those small businesses that use card terminals to take payments. In the past few years, this financial product has established itself as a popular concept in alternative business financing, especially for retail businesses and in the leisure sector. It resembles a loan, but is actually a sum paid to you in exchange for a fixed percentage of your future daily sales. Alternatively, Reliant Funding offers to agree upon a fixed amount that will be withdrawn from your business bank account. Merchant cash advances have become an attractive financing option for small businesses with a healthy cash flow but without a flawless credit history.
Typically, a merchant cash advance with Reliant Funding will be approved a few hours after applying, with funds transferred to your business bank account as early as the following day.
The company’s equipment financing solutions allow you to fund the lease or acquisition of new or used equipment to grow your small business. Bear in mind that you cannot use Reliant Funding’s equipment financing product for purchasing disposable or consumable items and that you cannot resell the equipment you buy with this loan. Equipment bought can include software, computers, work vehicles or office furniture.
Reliant Funding’s line of credit product is called Premier Line and is a premium service, meaning it is not as widely accessible as the services described above. With lines of credit, you sign a contract for a set credit amount and you can draw money from this sum whenever you need it, instead of receiving a lump sum as happens with traditional loans. However, Reliant Funding does not disclose any detailed information on this product and you will have to contact the company’s sales team to find out more.
Borrower Qualifications
Reliant Funding’s eligibility requirements are very relaxed, with emphasis put on the success of your business rather than a solid credit history. In fact, a feature that makes this company stand out among other loan providers is that there is no minimum credit score requirement for any of the services on offer. However, the higher your credit score, the better the terms you will be offered. To qualify for a loan with Reliant Funding, you need to show that you have owned your business for at least one year (in the case of highly successful small businesses this requirement can go down to 7 months), that your small business generates an annual revenue of at least $100,000 (or roughly $10,000 per month), and that you have no open bankruptcies or negative landlord references. The company boasts an acceptance rate of 70%, which is quite high compared to more traditional loan providers (and even most alternative lenders). In most cases, no personal guarantees, pledged assets or pledged collateral are needed.
Rates and Fees
Reliant Funding is not very open about its rates, which makes it difficult to compare this company’s loan options with services offered by other short-term lenders. Basically, if you want to learn more about the company’s rates and fees through their website, you will have no choice but to provide business as well as personal information, so that a company rep can get in touch with you with an initial quote. In contrast to other short-term lenders who sometimes even provide a loan calculator that lets you estimate the costs of a specific loan, Reliant Funding’s approach is much less transparent. The company justifies its approach by claiming that its products are highly individualized and that they vary according to their clients’ specific business needs.
Reliant Funding’s short-term financing options for small businesses range from $5K – $500K with terms of 6 -18 months. There is an origination fee which is not disclosed on the website and needs to be established when applying. Just like other alternative lenders in this sector, Reliant Funding does not work with interest rates but uses flat fees instead. This flat fee is added to your loan amount you will be paying back.
If you wish to renew your loan, you can do so once you have paid back 50% of your original loan. This option, however, is reserved for those clients who can show a solid payment history.
Application Process
Applying for one of Reliant Funding’s loan options starts with providing your business and personal information to get an initial quote. This process is easy and only takes a few minutes. Once you have accepted the quote, you are invited to get in touch with your personal sales rep to finalize the contract. You will be asked to provide some more information including bank statements, a copy of your driver’s license, a voided business check and a credit check authorization to verify your business credentials. Once you have signed your contract, funding can be transferred to your business bank account within one day for short-term loans and merchant cash advances. Securing funding for equipment financing takes a little longer, and you can expect funds to be transferred to you after 3-5 days.
Help & Support
The company’s customer service has a very good reputation. Reliant Funding’s support team can be reached online through a contact form or via phone. For those who prefer getting in touch through social media, the support team can be reached through Facebook, LinkedIn, and Twitter.
Reliant Funding’s website is easy to use and features some interesting resources like a blog about various topics relating to small businesses. There is also a FAQ section which is helpful but could be more detailed.
User Reviews
Positive reviews often mention Reliant Funding’s professional customer support and the extraordinarily lenient eligibility requirements. The very fast funding is another aspect mentioned in multiple reviews. In the more negative comments, customers complain about the lack of transparency when it comes to Reliant Funding’s terms and fees as well as the high rates. Dissatisfied clients also mention the company’s aggressive sales tactics which include unwanted emails and phone calls.
Final Thoughts
If you are a small business owner who struggles to qualify for a loan because of a bad credit score, Reliant Funding can be a very helpful resource. The financing options on offer are varied and can serve a wide range of needs. Bear in mind, however, that this company’s loan offerings are not cheap. What may be even more frustrating is the obvious lack of transparency. When looking for loan options, you want to be able to compare various offers quickly, which is tricky with Reliant Funding. However, if you have the time to inquire for a personalized quote and don’t mind submitting your information to get it, it may be worth the trouble.
