The Credit Junction is an online-only lending platform that provides small and mid-sized businesses with working capital and supply chain financing solutions. It strives to provide fast, efficient flexible access to capital.
Private capital funding for loans from $500,000 to $7,500,000 and a loan approval process that uses the latest technology to get you your money in as little as 10 days with no upfront costs or hidden fees. The Credit Junction offers both term loans and lines of credit that can expand with your business.
- Loans from $500,000 to $7,500,000
- Revolving or term credit
- Asset based lender
- Funds in as few as 10 days
- No minimum credit score needed to apply
- No upfront Costs
- No closing costs
- APRs from 12.00% to 18.00%
- Shorter terms, from 6 to 24 months
- Prepayment penalties
- Origination fee applies and varies by applicant
What Types of Businesses Will Benefit The Most
The Credit Junction provides loans to small or mid-sized businesses, because these types of businesses not only account for more than 65% of new job creation, but because they often find it difficult to borrow the funds they need to keep growing.
If your business has been delaying payments to goods and services suppliers, putting pressure on your supply chain, and are having difficulty accessing funds to keep that supply chain in motion, then you are encouraged to apply.
The Credit Junction uses asset-based lending, similar to a traditional lender, but where traditional lenders only offer loans of $2 million or more on an asset bases, The Credit Junction can offer loans as low as $500,000. The Credit Junction brings a middle-ground approach to financing – offering smaller loans on an asset basis, and getting money to you faster.
How To Apply
When you get ready to apply for a loan from The Credit Junction, you should have the following information available, at a minimum, as the application requires a lot of financial information:
- The amount of loan you’re requesting, from $500,000 to $7,500,000
- Your business’ industry
- 2 years of tax returns, to verify annual revenue
- The amount of any current business debt
- Business tax ID
The Credit Junction’s application process is a “technology enabled” process that is fast and transparent.
When you submit your initial application for funding through the website, you will be asked for general financial information about your business, that will be verified.
Within the next 24 hours, you will receive a call from The Credit Junction to discuss your individual needs and the purpose of your loan, to gather the information that it needs to begin the loan process.
Over the next 10 days your application will be reviewed, as will your credit. If The Credit Junction decides to extend credit, you could receive a loan offer in as little as 10 days from the start of your application.
Fine Print Alerts
It should be noted that, although we reached out to The Credit Junction for the exact fees for late or missed payments, or the extraneous circumstances in which it would charge closing costs, multiple attempts to clarify the exact terms of the loan went unanswered. If you choose a small business loan from The Credit Junction, make sure to read all documentation carefully and clarify whether or not closing costs will be charged as well as the charges for late or missed payments.
There is a prepayment penalty, should you choose to pay the loan off early. As with any loan, make sure that you can make your payments on time, because hefty late fees apply to missed or late payments.
How It Stacks Up
Accion offers loans up to $50,000 with an average APR of 8.99%. In order to apply your credit score must be at least 575, you must have had no bankruptcies or late payments on your mortgage within the last 12 months and you must show that your business had good cash flow.
Bond Street allows small businesses to borrow between $50,000 and $1,000,000 with APRs of 8.00% to 25.00%. In order to apply you must have 2 years or more of operating history and at least $200,000 of annual revenue. There is an origination fee of 3.00% - 5.00%, but you could receive your funds in as little as 1 week.
Small business loans of less than $200,000 are readily available to small business owners through many online lenders. However, if you need a loan larger than that, you may find that obtaining financing the traditional way can not only be time-consuming, it requires massive amounts of paperwork and may leave you without access to capital in the end.
While The Credit Junction’s application requirements and process vary greatly and are based upon each individual business, it provides a non-traditional approach to financing that can give your small business the working capital it needs.