StreetShares is a peer to peer lender that offers term loans and lines of credit. The marketplace lender matches borrowers and investors with similar passions and characteristics and is particularly well-suited for military veteran business owners. Many of the founders and employees at StreetShares are veterans, and the company focuses on providing financing with lower rates and fees for veteran business owners.
- Review: Who Should Consider Applying?
- Business Loan and Line of Credit Features
- Application Process
- How Does StreetShares Compare to Other Online Lenders?
StreetShares Review: Who Should Consider Applying?
StreetShares loans and lines of credit are great for veteran business owners and growing businesses. Those with excellent credit scores may also be able to qualify for single digit APRs. StreetShares offers loans between $2,000 and $100,000 and lines of credit between $5,000 and $100,000. You can borrow funds for terms up to three years, but you cannot borrow an amount that is greater than 20% of your annual revenue.
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To be eligible for a StreetShares business loan, your business must make at least $25,000 annually, be 1 year old and be incorporated. You’ll need to personally guarantee the loan, and if you own less than 25% of the business, additional guarantors may be required to qualify. You also must be a U.S. citizen or a permanent resident with a personal credit score of 600 or higher. Lines of credit have the same requirements as loans, except businesses must be at least 2 years old.
When you take out a loan or line of credit from StreetShares, you will be required to make weekly repayments. If you cannot afford weekly payments, then StreetShares products may not suit your business. You will be charged a $10 fee if StreetShares cannot access your funds for a repayment or if you make a late payment. However, there is no penalty for early payment.
When you apply for a loan or line of credit, you will be asked to explain your unique business situation and your reason for applying to borrow funds. Investors interested in your mission and business will compete to fund your loan. Providing a compelling business story may help you get approved faster by capturing the interest of more investors.
StreetShares cannot provide loans or lines of credit to businesses located in Oregon, North Dakota and South Dakota. StreetShares cannot lend to businesses in certain industries, including agriculture, real estate, law firms and tax preparation firms not owned by CPAs.
StreetShares Business Loan and Line of Credit Features
Loans are great if you are looking to borrow one lump sum, but if you prefer to choose a specific amount when you need it, lines of credit may be a better option.
|How Do I Qualify for a StreetShares Business Loan or Line of Credit?|
|Loan and Line Amount Range|
|APR Range||8.00% - 39.99%|
|Terms||3 - 36 months|
StreetShares Application Process
The online application has a quick, three step process. First, StreetShares will ask for the loan amount and terms you want. The lender also needs business information such as annual revenue, age, number of full-time employees and legal entity type (e.g., corporation, LLC). The second step will ask for additional business and borrower information and documents. You will need to provide your Social Security Number, Employer Identification Number and total outstanding business debts. The application also requires six months of business and personal bank statements and your most recent business tax return and personal tax return. The final step is to confirm your application with the ability to write an optional pitch if you wish to describe your business and how you will use the funds.
StreetShares usually take one to two days to make offers to fund your loan, and funds will usually reach your bank account one to two days after this.
How Does StreetShares Compare to Other Online Lenders?
StreetShares has a lot of benefits, but let’s take a look at other online lenders and competitors to compare the advantages of each.
StreetShares vs. Funding Circle
If you’re looking to borrow a larger amount, Funding Circle is a good choice. Funding Circle offers loans up to $500,000 for terms up to five years with monthly repayments. Funding Circle has stricter requirements as it requires businesses to be at least 2 years old with an annual revenue of $150,000 and an owner credit score of 620. Those with stronger credit scores can also qualify for single digit APRs with Funding Circle.
StreetShares vs. LendingClub
LendingClub is a great option if you can meet its eligibility requirement. LendingClub offers loans up to $300,000 in funds for up to five years with APRs as low as 7.77%. If you can’t afford to make fixed weekly payments, LendingClub has a monthly repayment schedule. However, LendingClub has stricter eligibility requirements than StreetShares as it requires a minimum of two years in business, an annual revenue of $75,000 and a credit score of 620.
StreetShares vs. OnDeck
If you need to borrow a larger amount, OnDeck is a good option. OnDeck offers loans up to $500,000 for up to three years and lines of credit up to $100,000 for six-month terms. To qualify for a loan, your business needs to be at least one year with $100,000 in annual revenue. Both loans and lines of credit require borrowers to have a personal credit score of 500 or higher. Similar to StreetShares, OnDeck requires more frequent repayment (either weekly or daily depending on the product).