Elevation Capital Review: Fast Financing With No Credit Score Requirements

Elevation Capital
Elevation Capital

Elevation Capital Review: Fast Financing With No Credit Score Requirements

We recommend Elevation Capital to borrowers who can't qualify for more traditional forms of financing and to those who need financing quickly.

Good for

  • Fast financing.
  • Borrowers who have lower personal credit scores.
  • Borrowers who can't qualify for a loan elsewhere.

Bad for

  • Cheap financing.
  • Borrowers looking for traditional loans like term loans or business lines of credit.
  • Borrowers who don't have high credit or debit card transactions.

Editor's Rating

3.5/5.0

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Elevation Capital is unique in that it doesn't require a minimum personal credit score to apply and it also specializes in merchant cash advance (MCA) financing. Small-business financing has been notoriously hard to access for those with a less-than-stellar credit score, so lenders like Elevation Capital are providing access to capital that has long been gated off for many small businesses.

Elevation Capital Overview

Elevation Capital is one of the few lenders to deal solely with MCA financing. We typically recommend MCA financing only as a last resort because of its comparatively high fees. Many lenders will characterize MCA rates as factor rates, which mask the true cost of the loan.

MCAs are cash advances that lenders provide in exchange for a small percentage of the business's credit or debit card sales. The company's credit card processor will typically reserve that percentage of sales automatically. MCAs have proven to be viable forms of financing for businesses with high card-transaction volumes, lower personal credit scores or newer businesses.

As long as you're confident that your business will experience a net gain from the financing despite its high costs, it's well worth applying. Elevation Capital also excels in providing financing quickly. Many alternative lenders now provide financing within as little as a few business days, and Elevation takes it a step further by providing financing within 24 business hours.

ProductDetails
Merchant cash advance
  • APR: 1.10x - 2.00x
  • Loan amount: $5,000 - $500,000
  • Minimum credit score required: No minimum

Elevation Capital: Worth Applying?

Elevation Capital is one of the few lenders that caters to business owners with low credit scores. Most lenders have a minimum credit score requirement. Elevation also offers relatively large financing compared to similar lenders that also offer MCAs. We'd recommend Elevation Capital to any business that can't obtain financing from another lender but still needs relatively large financing.

However, borrowers should still make sure they'll incur a net positive gain with Elevation Capital's financing. Fees tend to be extremely high with MCAs, and while an immediate influx of cash can always be useful, you need to be absolutely sure your business comes out ahead.

No credit score requirements: Anyone with a less-than-stellar credit score who has tried to obtain a small-business loan or any type of business financing knows how difficult it is to find a willing lender. However, Elevation Capital is one of the few lenders that doesn't require a minimum credit score, which makes Elevation one of the only options for those with particularly poor credit scores.

Large financing: Most lenders that offers MCAs will lend up to $250,000. However, Elevation offers up to $5,000 - $500,000, which is double what we've normally seen. Larger financing allows for much more flexible uses.

Fast funding: We've typically seen online lenders offer funding within two business days, but Elevation Capital sets itself apart by committing to funding within 24 business hours. Business owners need cash fast for many reasons, and Elevation could be worth considering for that fact alone.

Elevation Capital Downsides

While Elevation Capital does provide access to financing that other lenders don't, it isn't without its own downsides.

High rates: While MCAs come with some obvious benefits like fast financing and lenient requirements, they also come with high costs. Factor rates, when converted to traditional APRs, can dip into the triple digits. We strongly caution that you carefully consider whether you can afford a MCA when applying.

Lack of variety: We only recommend that borrowers consider a merchant cash advance if they've exhausted all other options. Merchant cash advances typically come with exorbitant fees that can cause borrowers to go into a debt spiral. Since Elevation Capital only offers MCAs, borrowers are quite limited in their options.

Elevation Capital Compared to Similar Lenders

Borrowers should shop around to make sure they're getting the best deal on small-business financing.

Elevation Capital vs BFS Capital

BFS Capital
BFS Capital

Both Elevation and BFS Capital offer MCA financing with large limits. When it comes to the cheaper option, BFS Capital is the clear winner with a maximum factor rate of 1.49x versus Elevation Capital's maximum of 2x. Another key difference is that BFS Capital requires a minimum personal credit score, while Elevation doesn't. If your personal credit score fits BFS Capital requirements, then this lender is the better option. But if your credit score doesn't meet requirements, then you may have to go with Elevation Capital.

Highlights

  • APR: 1.11x - 1.49x
  • Amount: $5,000 - $500,000
  • Terms: N/A
  • Repayment: Varies

Elevation Capital vs CAN Capital

CAN Capital
CAN Capital

CAN Capital also offers MCA financing, but it has slightly stricter requirements than Elevation Capital. Elevation also offers larger MCAs than CAN Capital. However, Elevation Capital charges much higher rates than CAN Capital.

Highlights

  • APR: 1.15x - 1.35x
  • Amount: $2,500 - $250,000
  • Terms: 6 - 18 months
  • Repayment: Daily

Elevation Capital vs Rapid Finance

Rapid Finance
Rapid Finance

Rapid Finance's MCA offering is very similar to Elevation's in that they both have maximum limits of $400,000. The downside to Rapid Finance is that it requires a minimum credit score, whereas Elevation doesn't. We'd recommend Rapid Finance to borrowers with credit scores above 500 and Elevation Capital to those who don't.

Highlights

  • APR: 1.15x - 1.49x
  • Amount: $5,000 - $400,000
  • Terms: 6 - 17 months
  • Repayment: Daily or weekly

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