LoanDepot is no longer offering personal loans.
For small businesses just starting out, or with little collateral, funding can be extremely difficult to access. That doesn’t mean that your businesses should be limited by the funds you have on hand, it just means you should look beyond the traditional brick-and-mortar bank and find alternative financing solutions, like loanDepot
The loan is actually a personal loan, and is based on your creditworthiness, so no business assets are needed as collateral.
- No collateral required
- Can get an estimated APR without affecting credit
- No prepayment penalty
- 15-day grace period
- Receive funds in 5-7 business days, in most cases
- 36 or 60 months
- Loans unavailable in Virginia
What Type of Businesses Will Benefit The Most?
Businesses that are just starting up and need small amounts of funding and whose owners have good credit are the best candidates for a loanDepot small business loan. The owner must have good credit, but this is an excellent alternative for businesses that do not have much to show in profits or much to put up as collateral.
How To Apply
The Instant Rate Quote (see below) does not affect your credit score, and, when filled out with accurate information, will give you an estimated rate for your small business loan.
To apply you must be 18 years or older, a US citizen, and have verifiable income and bank account. In order to complete the loan application you will need:
- Your date of birth
- Email address
If you choose to accept a loan offer from loanDepot, then you will need to provide:
- Social Security number
- Bank Account routing and account number
- Employment and income verification
- If you are self-employed, loanDepot will require 2 years worth of tax returns
Once you are approved for a small business loan, the proceeds of your loan will be deposited directly into the bank account that you provided details for, generally within 2-3 days after approval. Most applicants find that the total time to receive funds, from application to the funds being deposited into their account, is 5-7 business days.
Fine Print Alerts
There are restrictions on loan amounts and APRs depending on which state you live in:
- Loans are unavailable in Virginia
- Loans to Ohio and Connecticut residents must be greater than $6,001
- Loans to Connecticut and Vermont residents must qualify for an interest rate of 12% or lower
- Loans to New Hampshire residents equal or less than $10,000 must qualify for an interest rate of 10% or lower
- Loans to New York residents must qualify for a 16% APR or lower
loanDepot charges an origination fee depending upon creditworthiness. You do not pay this fee up front. Instead, it is deducted from the loan proceeds, so if you need a specific amount of funding for your business, be sure to factor in the origination fee in the amount you request.
Loan payments are automatically deducted from your bank account. You can elect to make payments by manual check, however, there is a $15 fee for each check payment. There is no fee for automatic payments, additional payments, or prepayment.
All personal loans (small business included) have a 15-day grace period. On the 16th day without payment, you will be charged a $15 late payment fee. A $15 fee is also charged for failed payments. As with most small business loans, payments more than 30 days late may be reported to the credit bureaus and may negatively impact your credit.
How It Stacks Up
Accion is an excellent option if you need a fairly small loan amount. To qualify, you need to show that your business has good cash flow, no bankruptcies in the last 12 months, and no late mortgage or rent payments. The minimum credit score needed to apply is 525, the typical interest rate is 8.99%, and loans are available up to $50,000.
Balboa Capital offers loans, but without the typical 2 years of tax returns required. It only requires last year’s tax return and no bankruptcies or liens in the last year. You can borrow up to $250,000 with Balboa Capital.
If you need a fuss-free small business loan for a business with little to no collateral, then loanDepot is a more flexible way of financing your business’ growth.