SBG Funding Review

• When choosing a small business loan, you want to find a lender that offers flexibility in the amount you can borrow and how you pay it back.
• Flexible lenders don't stop with the loan sizes and terms; they are also flexible in how you can apply for a loan and how often you make payments.
• SBG Funding stood out to us with its flexibility. You can borrow up to $5 million and pay your loan back over months or years.
• This review is for small business owners who are considering applying for a loan from SBG Funding.

SBG Funding is an alternative lender that has been serving small business owners for years. It offers a variety of loan options, including term loans, business lines of credit, equipment financing and invoice financing. We like that this lender's terms are very flexible and it doesn't charge additional fees. It's for all of these reasons and more that we've chosen SBG Funding as the best alternative lender for flexibility.

SBG Funding

Costs

The rates on SBG's business term loans and lines of credit start at 1.75% but ultimately depend on your credit score. The better your score is, the less you'll pay to borrow. Equipment financing rates start at 3.75%, while invoice factoring rates begin at 0.25%. A bridge capital loan from SBG will cost you 1.92%, assuming you have perfect credit.

Applying for a Loan

To begin the qualification process with SBG Funding, you fill out a one-page online application. This application asks for basic business information, including your business's name, address and other contact information. You also must provide your federal tax ID, date of birth and business's legal entity type.

SBG's application requires some financial information as well, including your business's yearly revenue, average daily bank balance, monthly credit card sales, intended use of funds, and how much money you're requesting.

Once you've applied online or by phone with an SBG loan specialist, a representative will contact you and discuss your financing options. This is a good way to get an understanding of what you qualify for without committing to a loan with the company. You'll generally get a decision from SBG within 12 to 48 hours, with funding to follow shortly.

To qualify for a loan, you must have been in business at least six months, have a credit score of at least 500 and at least $10,000 in monthly revenue, and provide six months of business bank statements. These are relatively lenient qualifications, making this lender a viable option for all sorts of business owners. SBG is willing to work with you to find financing for your small business if you don't meet the criteria. 

Source: SBG Funding

Loan Types

We selected SBG Funding as the best lender for flexibility because its terms and loan amounts vary widely for all its loan products. Take its term loans for starters. You can borrow up to $5 million and pay it back biweekly or monthly over six months to five years. Not all lenders offer these repayment term options. Balboa Capital, for example, has terms of only 18 months on its small business loans.

SBG offers lines of credit for up to $150,000, with repayment terms between six and 24 months. That is longer than Fundbox, for example, which caps its terms at 12 and 24 weeks for lines of credit. SBG can approve your line of credit in 24 hours and doesn't charge a penalty for paying it off early. The interest rate on its business lines of credit starts at 1.75%. 

Similar to Crest Capital, SBG Funding's equipment financing product allows you to finance 100% of the purchase. Terms on the equipment financing loans run 12 months to seven years. Payments are due each month, and you won't be hit with a prepayment penalty if you want to pay it off early.

SBG can make an approval decision in 48 hours and charges interest rates starting at 3.75%.

Did you know? Most borrowers look at interest rate alone when shopping for loans, but you should also consider the terms. If you have flexible terms, you can ensure your payments won't hurt your business's cash flow or operations.

Loan Terms

SBG Funding provides different loan lengths, among the most flexible of the companies we reviewed. Terms range from six months to five years. We like this level of flexibility from SBG, because it means it can support your needs now and in the future.

SBG doesn't require collateral to secure a loan, although a personal guarantee may be required. You can pay back your loan on a weekly or monthly basis. Payment can be deducted directly from your business's checking account, ensuring that you make payments on time and don't have to worry about late fees or dings to your credit score.

You can pay your loan off at any point, as SBG Funding doesn't charge any prepayment penalties. It does charge an origination fee, which is common in the industry. The amount of your origination fee depends on your loan agreement. 

Helpful Tips

SBG Funding requires you to provide six months of bank statements for your business in addition to basic financial information. It will conduct a credit check to verify that your score is above 500. It is a good idea to have all this information at the ready before you apply for a loan to speed up the process.

SBG Funding Features

Loan Selection

Flexibility in the choice of loan is an important attribute that all borrowers should want. We like that SBG Funding lets you choose from a variety of loan types. If its term loan doesn't make sense for your business, you can apply for a line of credit, a working capital loan, equipment financing or other funding solutions. That's a wide breadth of service for an alternative lender.

Flexible Terms

SBG Funding's terms for its loans are some of the most flexible in the industry. You can choose to pay off your loan in under a year or spread it out over five years. This wide range of repayment terms enables you to better manage cash flow. Many other lenders don't provide that wide a selection of repayment term lengths.

Various Loan Amounts

Whether you need to borrow tens of thousands of dollars or millions, SBG Funding can deliver. It can extend financing up to $5 million, depending on the loan type, to meet all of your needs. 

Key takeaway: When you choose SBG Funding for your small business loan, you get flexibility in the amount you can borrow, the length of time you have to pay it back, and how often you make payments.

Source: SBG Funding

Customer Service

SBG Funding works with most industries and has a good online reputation, with an A+ and accreditation from the Better Business Bureau. It also has a strong track record on sites like Trustpilot, where users have given it 4.9 out of 5 stars.

Based in New York City, SBG provides customer support during standard business hours by phone and email. It also operates a regularly updated blog and a COVID-19 resource center.

Drawbacks

SBG Funding requires a fair amount of information about your business during the application and approval process. This includes your federal tax ID, legal entity type, yearly revenue, average daily bank balance, and monthly credit card sales. Some of the other lenders we reviewed allow you to connect your bank account to the application, which reduces the documentation you have to provide. It also requires businesses to have about $10,000 in monthly sales to qualify, which may prevent a lot of new businesses from borrowing.

Summary

SBG Funding is a flexible lender that provides a wide range of loan products at different terms.

We recommend SBG Funding for:

• Borrowers who want a variety of loan options
• Businesses that have been in operation for at least six months and bring in at least $10,000 in monthly sales

We DON'T recommend this lender for:

• Business owners with a low credit score who can't afford the high interest rates they will be charged
• Startups that have been in business less than six months and make less than $10,000 a month in sales