QuarterSpot small business loans are good for businesses with low credit scores that need funds quickly and cannot afford to put up assets for collateral. This online lender offers small business loans to businesses located in the U.S. Unlike a bank or a credit union, QuarterSpot only requires a minimum credit score of 550 and no collateral.
QuarterSpot Review: Who Should Consider QuarterSpot?
QuarterSpot is good for businesses that need fast financing and that can afford to make daily or weekly repayments. The lender offers business loans up to $150,000 for nine, 12 and 18 month terms, though the average loan amount is $80,000. Like most alternative lenders, QuarterSpot’s range of APRs is higher than rates you may get from a bank.
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QuarterSpot has lenient eligibility requirements. It requires businesses to be at least 1 year old with an annual revenue of $100,000 and an average daily bank balance of $2,000. Owners must have a credit score of 550 or more, and the business must make at least 10 sales per month. QuarterSpot does not conduct a hard credit pull, so your credit score will not be affected when you apply for a loan. QuarterSpot does not require a personal guarantee. The lender also does not file UCCs, which makes the lender a good bridge to qualifying for SBA loans.
When you pay early on a QuarterSpot loan, you will be able to save money because loans are amortized on a daily basis. This means that the earlier you pay, the more you save on interest costs. There are also no prepayment penalties.
QuarterSpot will also fund loans to businesses that already have an outstanding loan (provided they meet QuarterSpot’s qualifications) and may offer more competitive rates on second positions than other alternative lenders. In addition, QuarterSpot can buy out one or two existing loans that a business already has, and they only require that the business net 20% of the loan proceeds. Other alternative lenders can require merchants to net as high as 50%, making it difficult for businesses to receive funding if they have outstanding loans.
For example, a merchant already has a $50,000 loan. QuarterSpot extends this merchant a $100,000 loan offer with fees totaling $5,000. The merchant would like QuarterSpot to pay off the original $50,000 loan. The merchant will be netting $45,000 ($100,000 - $50,000 - $5,000 = $45,000). The merchant is within QuarterSpot’s guidelines of netting at least 20% of the loan proceeds, because the merchant is netting $45,000, which is 45% of $100,000.
QuarterSpot is not ideal for businesses that cannot afford to make frequent repayments, as it requires businesses to repay on a daily or weekly schedule, which can impact the cash flow of a business. QuarterSpot does not lend to businesses located in Alaska, North Dakota, Nebraska, Rhode Island, South Dakota, Vermont and Washington, D.C. The lender also does not lend to businesses specific industries, including financial services, agriculture, auto dealerships, political campaigns and pawn shops.
QuarterSpot Business Loan Features
QuarterSpot uses factor rates, which shows the total cost of borrowing the loan divided by the total amount of the loan, for estimating loan costs. QuarterSpot has factor rates ranging from 1.1 to 1.4, which translate to APRs between 20% and 48%.
How Do I Qualify for a QuarterSpot Business Loan?
Loan Amount Range
|$5,000 - $200,000|
|20.00% - 48.00%|
|9, 12 or 18 months|
|Daily or weekly|
QuarterSpot Application Process
The online application has a few pages. First, you’ll need to enter the requested loan amount, your business’s monthly revenue, your business’s industry and contact information. You’ll need to explain what you intend to use the loan for and provide your business’s address, Employee Identification Number and bank account information. QuarterSpot will ask for your credit score, but it will only do a soft pull, which will not affect your score. The lender will also check if you have any existing loans and if so, how frequent their repayments are.
QuarterSpot partners with Intuit QuickBooks to process your information. For the underwriting process, QuarterSpot requires the last three months of business bank statements. For the funding process, the lender needs a tax return, voided check and driver’s license. You can get your funds in as fast as one to two days.
How Does QuarterSpot Compare to Other Online Lenders?
QuarterSpot has its benefits, but it’s always a good idea to look at the competition before making a choice for your business.
QuarterSpot vs. Kabbage
If you can't meet QuarterSpot's requirements, Kabbage is another available option. However, Kabbage only provides business lines of credit up to $150,000. Kabbage offers two term options for either six or 12 months with monthly repayments. Kabbage only requires one year in business, $50,000 in annual revenue and no minimum credit score to apply for a line up to $100,000. For lines up to $150,000, you'll need to be in business three years with $500,000 in annual revenue.
QuarterSpot vs. LendingClub
LendingClub is a good choice if you need to borrow more than $150,000. Both QuarterSpot and LendingClub offer business loans, but LendingClub also offers lines of credit. LendingClub can provide loans and lines of credit up to $300,000 for up to five years with a monthly repayment schedule, but your business must be at least 2 years old to qualify. If you have an excellent credit score, you may be able to qualify for APRs as low as 7.77%.
QuarterSpot vs. OnDeck
If you want to borrow larger amounts or you want more flexibility with a line of credit, you can turn to OnDeck. OnDeck offers business loans up to $500,000 and lines of credit up to $100,000 with fewer requirements than QuarterSpot: one year in business and $100,000 in annual revenue. You will also need to have a personal credit score of 500 or higher. Like QuarterSpot, OnDeck requires daily or weekly repayments.