Reliant Funding Review - Business Loans
Application & Approval Process
Customer Support & Benefits
About Reliant Funding
Reliant Funding was founded in 2008 by Adam Stettner and only works with business financing, offering three main products; merchant cash advances, short-term loans, and equipment financing. Reliant Funding has a different operating model to most other business loan companies. Rather than lending money over long periods that accrue interest, Reliant offers short-term cash lending with fixed fees.
The company is known as an alternative lender in the business borrowing market, which has both its advantages and disadvantages. But the most important factor to consider is that the costs for alternative lending can be higher. Reliant Funding places more emphasis on a business’ performance rather than the credit score, so it’s good for business owners with a poor credit history and for companies that need a quick cash injection.
- Approval within hours (up to the next business day)
- No personal guarantee required
- Request takes less than 30 seconds
- Over 70% of applicants approved
- Not as transparent (a phone call is required to describe the cost and structure of borrowing)
- Daily repayments
- Identifies as an alternative lender in the business borrowing market due to its focus on the business’s performance rather than the applicant’s conventional credit score, and offering short-term loans with fixed rates, as oppose to long-term loans with accrued interest.
- Serves several different industries, not limited to construction, restaurants and bars, health care and services, franchise, auto repair, and retail.
- Champions small businesses with more than $1,000,000,000 funded over the last decade, it has also been recognized on the Inc 5000 list for seven consecutive years.
- A+ rating from the Better Business Bureau (BBB).
- Ideal for businesses requiring quick, next day funds and assistance to finance new equipment.
Application & Approval Process
The steps to apply and get approval for borrowing money from Reliant Funding is not quite clear. When you access the company’s website, you can enter some of your basic info and from there, you have to wait to receive a phone call from an Account Executive. The information you need to initially provide are:
- Full name
- Duration the business has been operating
- Annual revenue
- Desired loan amount
- Phone number
- Email address
On the phone call, you’ll be asked for more details regarding how much you’re looking to borrow and your reasons. Your business cash flow and purpose of the loan will help to determine which is the right type of borrowing for your company. You will be asked to provide documentation to confirm data about your business before getting approved.
After you’ve given your information to Reliant Funding, the company should come to a decision within a few hours. They say that around 70% of lending applications get accepted, which is more than double of 30% of applications that banks choose to fund.
Funding can normally be received the next working day after the loan has been approved for cash advances and loans. If you apply for equipment financing, the underwriting process can take up to a month.
Rates & Fees
Being an alternative lender, Reliant Funding does not charge interest rates, instead they charge fixed fees. The fees for borrowing money aren’t outlined on the company’s website, and third-parties sources suggest that there will be origination fees that are not clearly specified. However, it does outline that clients using equipment financing do not incur extra costs when paying off their debt early.
Businesses may find it frustrating to not have access to rates, fees, and costs online. Therefore, you must enquire about early payment costs, origination, and application fees, and any other costs, before you agree to borrow money.
Reliant Funding lends money over shorter periods than what you might find at a bank. You can repay your loan over 6 to 18 months, with higher fees than when you borrow over a longer term.
With both merchant cash advances and short-term loans, you will usually be expected to make payments daily. Making a payment each day means the amounts should be manageable, but you need to have regular cash flow to ensure you have money in the bank every day.
The equipment financing scheme with Reliant Funding looks more like a normal bank loan. You’ll make payments monthly until the loan is repaid or the lease is up and you can pay it off early with no fees.
Reliant offers three different types of business loans, which are:
Merchant Cash Advance
When you take a merchant cash advance, you are selling a portion of your future sales to Reliant Funding. You borrow money based on your future credit card sales and pay a flat fee for the service. Each day, Reliant Funding will debit from your business bank account a percentage of the amount borrowed until the principal and fees have been cleared. Obtaining a merchant cash advance can be quick and the terms are clear, but you need to have cash in your bank account every day to cover payments.
Much like a normal loan, a short-term loan with Reliant Funding allows you to borrow a lump sum and pay it back over time. You pay a fixed fee rather than an interest rate and the money is paid back quickly, no longer than 18 months. The repayments are made daily, which means the amount will be reasonably low, but it does put pressure on your cash flow to have money available every day.
When you need to invest in new equipment for your company, you can lease it through Reliant Funding. Your payments will usually be monthly and you can borrow for a range of needs such as software, office furniture, or company vehicles. This type of borrowing is more like a conventional loan with monthly payments rather than daily, but there are limitations on the places where you can buy your equipment.
Customer Support & Benefits
For sales inquiries, you can phone Reliant Funding between 6 AM to 5:30 PM (PST) and for operational questions, you can contact the company from 8:30 AM to 5:30 PM (EST). There is also an email address available, an online contact form, and a live chat which is accessible on every webpage.
On the site, there is not a lot of information regarding payment options, fees, or how each product works. However, the blog does have some articles that may be useful to business owners, such as “How to Build a Business Growth Strategy” and “Top Tech Tool for Construction Business Owners in 2020”.
Phone: (877) 850‑0998
Email: [email protected]
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