Reliant Funding provides short-term loans to small businesses, but its fast loans and merchant cash advances may carry higher fees than those from more traditional lenders. The San Diego-based company, found in 2008, also provides equipment financing to small businesses. Reliant Funding may be best for companies that need relatively small loans quickly but are also able to repay them quickly. Its short term loans are capped at $$500,000 to be repaid in 18 months or less.
Reliant Funding overview
Reliant Funding provides three funding solutions for business owners:
- Short term loans
- Merchant cash advances
- Equipment leasing
Small business loans and merchant cash advances are similar in that both front you money you need to carry out your business. However, small business loans are paid back in fixed installments, whereas with merchant cash advances, Reliant Funding will offer the option of fixed daily payments or a daily payment based on a percentage of sales.
Equipment leasing, on the other hand, provides you with the equipment you need to do business and is fulfilled in partnership with other companies, with payments made to Reliant Funding. These may be leases where equipment goes back to the owner at the end of the lease period or you own the equipment at the end of the lease.
The main advantage of using Reliant Funding is that you can get your money quickly, typically within one day, and with minimal hassle. You’ll know within a few hours of applying whether you’re approved. Reliant Funding has less strict underwriting criteria compared with other lenders, meaning that your odds of approval are likely good in many cases. However, with any sort of convenience like this, you generally pay for it in the form of higher prices. Business financing from alternative lenders such as Reliant Funding is typically expensive.
Like other alternative online lending companies, Reliant Funding is less strict about who it’ll approve for business financing than traditional banks. In fact, it advertises on its website that 70% of applicants are approved for a loan. But there are some criteria you’ll need to meet:
- Have at least $100,000 annual revenue
- Be in business for at least 12 months (some exceptions are possible for 7-11 months)
- No open bankruptcies
- No negative landlord references
- No significant judgements or liens against you without payment plans set up
Features, rates, terms
Keep in mind that financing prices with factor rates can be an more expensive than financing priced in an other way. That’s because you pay all of the financing charges on that upfront amount, and thus won’t save money by paying off the loan early; you’ll just be free of your obligation sooner. It’s more expensive than the more well-known annual percentage rate, which charges interest on a gradually reduced balance. It’s especially tricky when payments are made as a percentage of daily sales — if sales are high, payments are larger and therefore borrowing becomes more expensive. You could become trapped in a debt cycle, needing another merchant cash advance to cover the first, due to the high frequency of payments.
Here are the details for Reliant Funding’s short term loans:
- Funding amount: $5,000 - $500,000
- Term length: 3 - 18 months
- Factor rates: 1.15x - 1.49x
- Fees: Origination fee: $495 on loans up to $50,000. No origination fee on loans over $50,000
For Reliant Funding’s merchant cash advances, you can expect these terms:
- Funding amount: $5,000 - $500,000
- Term length: $5,000 - $500,000
- Factor rates: Not disclosed
- Origination fee: 0%-2% on loans of $50,000 or less. No origination fee on loans over $50,000
Finally, for Reliant Funding’s equipment financing, you can expect these terms:
- Term length: Up to 5 years
- Rates: Not disclosed
- Fees: First and last month’s payment, plus unspecified documentation fees
Reliant Funding’s application process is fast, and the company is lenient in choosing who to approve. It takes less than a minute to fill out an application online, or you can apply over the phone by calling 888-239-7865. After that, the company will check your credit report and issue a decision though decisions are not based solely on credit history. If you’re approved, the money could be deposited into your account as soon as the next business day.
You’ll need to have a few details on hand, such as:
- Phone number
- Business name
- How long you’ve been in business
- Your annual gross sales
You may also need documentation to provide further details, such as recent bank statements or tax returns. You may also receive a credit card-like advertisement in the mail that prequalifies you for business financing. If you decide to pursue this option, all you need to do is enter the 16-digit number on the Reliant Funding website to get the application process started. There are numerous complaints with the Better Business Bureau (BBB) website for people who have been confused or are concerned about these advertisements falling into the wrong hands. It is also somewhat confusing due to the fact that the company doesn’t offer any credit card products.
Should you apply for business financing with Reliant Funding?
If you need cash for your business fast and you aren’t able to qualify with more traditional or transparent lenders, then Reliant Funding is worth at least applying with to see what terms the business can offer you. However, companies like Reliant Funding are often expensive, and could even put your business’s future in jeopardy if you can’t afford the high price tag that typically come with this type of funding.