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SBG Funding Review
Table of Contents
- SBG Funding's term loans feature repayment periods ranging from one to five years.
- The lender may approve borrowers with lower credit scores.
- The company's $5 million cap on term loans is significantly higher than those of similar providers.
- SBG Funding quotes a low starting monthly payment rate rather than the full annualized rate.
- Some business owners may not have the necessary documentation to apply immediately.
- If your credit is less than ideal, you'll likely pay a higher interest rate or receive less favorable terms.
SBG Funding is an alternative lender that offers small businesses several funding options, including standard loans, business lines of credit, equipment financing, bridge loans and invoice financing. It provides relatively fast funding and a range of loan terms with no additional fees, making it an excellent choice for businesses that need flexible terms. Business owners will appreciate that SBG doesn’t rely on cookie-cutter agreements. Instead, the company is willing to customize its terms to fit your needs.
SBG Funding Editor's Rating:
9 / 10
- Collateral
- 8.8/10
- Fast funding
- 8.5/10
- Loan variety
- 8.5/10
- Easy approval
- 9/10
- Customer service
- 9.3/10
Why We Chose SBG Funding as the Best for Flexible Terms
Many alternative lenders we’ve reviewed offer a limited range of options when it comes to both loan size and repayment timelines, even though different businesses have varying funding needs. Some business owners prioritize lower monthly payments with longer repayment schedules, while others prefer to minimize total financing costs.
SBG Funding provides term loans of up to $5 million with repayment periods of one to five years. The company is willing to make adjustments to its terms to help meet a variety of business funding needs, making it an ideal lender for business owners seeking flexibility. With SBG, you’ll get a more personalized financial solution than you’re likely to find elsewhere.
Loan Types and Rates
SBG Funding offers a variety of financing options, including term loans, lines of credit, bridge loans, equipment financing, invoice financing and SBA 7(a) loans. Rates and terms vary by loan type, but you can expect flexible terms, quick approval decisions and fast funding.
Term Loans
SBG Funding offers small business term loans ranging from $5,000 to $5 million. Term loans are an attractive financing option for businesses because they have fixed repayment terms and typically lower rates. SBG’s repayment terms range from one to five years, which contrasts with many competitors that tend to offer more compressed repayment periods. We also like that you have the option to make your payments either biweekly or monthly and that there are no prepayment penalties.
To qualify, you need a credit score of at least 550, annual revenue of $180,000 or more and a minimum business operational history of six months. SBG says it has an approval rate of 85 percent for its term loans and that a decision is typically made within 24 hours of applying.
Interest rates on SBG’s small business loans start at 1.75 percent per month. Keep in mind that this is not the same as an annualized percentage rate (APR), so be sure to inquire about your total APR when you speak to an SBG representative.
Bridge Loans
SBG Funding’s bridge loan is a short-term financing option — sometimes referred to as a hard money loan — that helps you obtain money quickly. These loans are often put toward working capital uses, such as payroll, equipment or inventory. SBG allows you to borrow up to $1 million for a term of six to 24 months. Interest rates start at 1.92 percent per month. Payments can be made either weekly or monthly, and SBG extends a discount for prepayments. To qualify, you need a credit score of 600 or higher, annual revenue of at least $350,000, a minimum of six months in business and four months of bank statements.
Business Lines of Credit
A business line of credit lets you obtain funding whenever necessary while only paying interest on what you’ve borrowed. SBG Funding offers businesses up to $1 million through a line of credit with repayment terms lasting six to 48 months. As with its other loan products, SBG provides an approval decision within 24 hours. You can make your payments weekly or monthly, and the interest rate on business lines of credit also starts at 1.75 percent per month. To qualify, you need a FICO score of at least 550 and $180,000 in annual revenue. You must also be in business for at least six months.
Equipment Financing
If your business relies on pricey equipment to operate, such as machinery or tools, SBG Funding can help you finance up to 100 percent of the purchase price. Repayment terms range from one to seven years, with an average monthly interest rate starting at 3.75 percent. To qualify, you need a credit score of at least 600, annual revenue of $350,000 or more, a minimum of six months in business, and four months of bank statements. You also need to show a copy of at least one equipment purchase invoice. Funding decisions are made within 48 hours of applying.
Invoice Financing
For business owners who don’t want to wait on unpaid invoices, SBG Funding offers invoice financing. (This is sometimes called invoice factoring, though the two terms can have slightly different meanings depending on the lender.) You can fund up to 90 percent of your business’s accounts receivable, which is high for the industry. Rates start at 0.25 percent per week. SBG lets you choose between weekly and monthly payment options. To qualify, you need a credit score of at least 600, annual revenue of $350,000 or more, at least six months in business, and a minimum of one invoice to finance. Approval decisions are typically made within 24 hours of submitting your application.
SBA Loans
SBA 7(a) loans are backed by the U.S. Small Business Administration (SBA). SBA loans are sought by many business owners because of their low interest rates, long repayment terms and no required down payments. As an approved SBA lender, SBG Funding can work with you to obtain an SBA loan for up to $10 million, with a repayment term of two to 10 years. To qualify, you need a credit score of at least 650, a business history of at least two years, and solid profitability and cash flow. These requirements are noticeably higher than for the products above.
Terms
Compared to most lenders we reviewed, SBG Funding’s loan repayment terms offer significantly more flexibility, as the company is willing to tailor the agreement to suit your needs. In fact, in some cases, SBG can even arrange deferred-payment loans for the first three months. Here are a few additional terms and conditions to keep in mind when considering SBG for your financing needs.
Collateral
SBG Funding term loans and business lines of credit are unsecured, which means you don’t need to put up collateral. However, SBG may require you to sign a personal guarantee, which holds you personally liable if your business defaults on the loan. For equipment loans, the equipment itself serves as collateral.
Special Documentation
To apply for a loan from SBG Funding online, you’ll need several documents on hand, including your last three months of business bank statements, a copy of your driver’s license, and a voided business check. Alternatively, you can fill out a paper application, but the same documents are required.
Application Process
You can apply for a business loan with SBG Funding by filling out an online form or a paper application, which you can send in via email or fax. After supplying basic business information and copies of the necessary documents, you can expect to hear back on your application within a day. You can get in touch with an SBG representative by phone or email if you need help with the application.
If you’re approved, you can expect funding within 12 to 48 hours. This is a fairly fast turnaround time, especially considering that SBG offers much larger loans than similar small business lenders. That said, if speed is your top concern, check out our review of Rapid Finance, which focuses on fast funding.
Customer Service
SBG Funding communicates with business owners through email, fax and phone. While faxing may seem a little outdated, it’s nice to know it’s at least an option if necessary. The company also maintains an informational business funding blog on its website, as well as an easy-to-use loan payment calculator for estimating loan eligibility. This is comparable to many competitors.
During our research, we learned that SBG representatives prefer to steer lower-qualified businesses toward smaller loan packages rather than saddle them with high interest rates. We appreciate such an ethical, customer-first approach, and it’s one of the reasons it wasn’t surprising to see many customers praise SBG’s customer service online, with very few complaints.
Limitations
SBG Funding can be a great choice for many businesses, particularly those that need flexibility, but there are a few things to be aware of:
- Higher interest rates: SBG Funding is open to working with business owners who have less-than-perfect credit or modest revenue, which can be a big help if you’re having trouble qualifying elsewhere. Just keep in mind that this flexibility often comes with higher interest rates. SBG specifies a 1.75 percent average monthly interest rate for its term loans, which is different from an annualized percentage rate and could be misleading. We recommend applicants speak with an SBG Funding representative for more information on the lowest APR available. If you’re looking for a lender with lower rates and have stronger credit, check out our review of Noble Funding, which may be a better fit.
- Voided check requirement: SBG Funding requires business owners to have a voided business check handy for uploading when applying for a loan online or to include with a paper application. Because fewer and fewer people are using paper checks these days, this may be a time-consuming inconvenience for some business owners who need funding immediately.
Methodology
To determine the best business loan and financing options on the market, we evaluated a number of loan providers and their platforms. Our examinations included credit score requirements, loan types, minimum revenue and time-in-business thresholds, customer service quality and funding speed. We also compared financial factors, like starting interest rates, loan terms and the size of loans available. To identify the top lender offering flexible terms, we closely considered repayment options, payment frequency, qualification requirements, and the financier’s willingness to customize the loan agreement.
SBG Funding FAQs
Bottom Line
We recommend SBG Funding for …
- Borrowers who prioritize flexible repayment terms.
- Business owners with lower credit scores.
- Small businesses that require multimillion-dollar loans.
We don’t recommend SBG Funding for …
- Well-qualified business owners with good credit who are focused on securing the lowest possible interest rate.
- Business owners who need immediate funding but may not have all the required documentation readily available.
- Businesses that prefer working with traditional banks or expect in-person service.
Miranda Marquit contributed to this review.
