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SBG Funding Review

Best Alternative Lender for Startup Loans

A Business News Daily Review

Product and service reviews are conducted independently by our editorial team, but we sometimes make money when you click on links. Learn more.

Startups are a subset of businesses that need funding the most. As fledgling companies, many banks and lenders won't provide loans because they're not an established business. Luckily, there are some lenders out there who not only provide startups with loans but specialize in them.

After much research and analysis, we recommend SBG Funding as our 2018 pick for the best alternative lender for startup loans. To understand how we selected our best picks, as well as a comprehensive list of alternative lenders, visit our best picks page.

While SBG Funding doesn't have a startup-specific loan, its loan requirements are in line with what new businesses can qualify for. You only need to be in business six months and have modest monthly revenue and credit scores. Here's a breakdown about why SBG Funding is one of our best picks.

Editor's Note: Trying to find a business loan that's right for you? Fill in the questionnaire below, and you will be contacted by our partner alternative lenders, who will help you find the right loan for you.

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SBG Funding had some of the most relaxed qualifications and requirements of any company we reviewed. It's willing to partner with new and growing businesses, and it can provide ongoing financial support. If you're looking to partner with SBG Funding, you must:

  • Have been in business for at least six months
  • Have a credit score over 500
  • Make $150,000 in annual revenue

These qualifications allow businesses of all sizes to get the funding they need. Keep in mind that while these are considered baseline requirements, SBG funding can likely work with you on finding the right financing if your business doesn't quite meet the thresholds listed above. SBG Funding also works with several industries. Some alternative lenders we reviewed didn't work with certain types of businesses or businesses within certain industries.

In addition to these qualifications, SBG funding will likely want to examine some basic bank statements and other financial documentation to verify your business's income and time in operation. These qualifications are for SBG Funding's small business loan product. Its lines of credit, equipment financing and invoice financing have qualifications that vary but are still relaxed compared to other lenders we evaluated. Depending on what your business needs, you can qualify for up to $1,000,000 in funding.

SBG Funding provides flexible rates and terms for small businesses and startups. Terms range from six months to five years, meaning SBG funding supports both short- and long-term funding. This versatility is almost unmatched by other lenders – generally, companies either offer short- or long-term funding options, not both.

SBG Funding's rates range from 5 to 35 percent, depending on your business's financial history. This flexibility mirrors SBG's terms: shorter terms will likely have higher rates. When we spoke to SBG loan representatives, they told us businesses typically get funded for between 7 and 12 percent on a quick funding option and 4 to 6 percent on a longer review process. Keep in mind that rates vary highly based on your business's financial situation.

Businesses can pay back their 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 transferring money at the right time. You can pay your loan off at any point, as SBG Funding doesn't have any pre-payment penalties. However, SBG funding charges an origination fee. This varies depending on your loan agreement, so if you're concerned about it, ask your loan representative upfront.

SBG Funding doesn't require additional collateral to secure a loan. Many alternative lenders we evaluated require business or personal assets to get financing. With SBG Funding, business owners can get approved without risking business or personal assets.

In addition to small business loans, SBG funding provides lines of credit, invoice financing and equipment financing at varying terms and lengths. For the purposes of this review, we focused on the small business loans, because they had the most favorable qualifications for startups. Depending on your business's financial situation, however, it might be worth investigating SBG Funding's other offerings. Requirements are slightly different, but the lines of credit and invoice financing options require businesses to have been established for six months to secure 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, like business address, name, contact information and revenue. You also must provide your federal tax ID, date of birth and your business's legal entity type.

SBG's application also requires some financial information as well. You'll have to disclose yearly revenue, average daily bank balance, monthly credit card sales, intended use of funds and how much money you're requesting. SBG Funding doesn't require a lot of extra documentation, but interest business owners will have to provide the most recent three months' bank statements.

Once you've applied online or via phone with an SBG loan specialist, a representative will contact you and discuss 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 within 12 to 48 hours, with funding to follow shortly after that. SBG Funding's application process is longer compared to other companies we reviewed, but the company provides solid funding to small business owners looking for financing.

We posed as small business owners and called SBG Funding looking to learn more about the company's small business loans. In all instances, SBG lenders were polite and answered our questions without pushing for a sale. They provided a good look into the alternative lending industry and helped us understand all areas of the company's loan process.

Many alternative lenders we spoke to were concerned on selling their company as opposed to helping us understand more about the small business loan industry. Overall, we were pleased with SBG Funding's customer service and its commitment to helping us learn more about the process.

SBG Funding also has a solid online reputation, earning an A- accreditation with the Better Business Bureau. As of June 2018, there were no customer complaints on the page, but there were also no reviews, positive or negative.

SBG Funding only provides loan options to businesses with a brick-and-mortar location. If you're running an online business, you won't be able to get funding with SBG funding. While this is a minor limitation, SBG funding requires a business address to provide loans. Other than this, we saw no major limitations in SBG Funding's service offering. It's a company that offers various small business loans and solid funding options for a variety of businesses, especially startups.

Ready to choose an alternative lender? Here's a breakdown of our complete coverage:

Editor's Note: Trying to find a business loan that's right for you? Fill in the questionnaire below, and you will be contacted by our partner alternative lenders, who will help you find the right loan for you.

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Matt D'Angelo

Matt D'Angelo is a B2B Tech Staff Writer based in New York City. After graduating from James Madison University with a degree in Journalism, Matt gained experience as a copy editor and writer for newspapers and various online publications. Matt joined the Purch team in 2017 and covers technology for Business.com and Business News Daily. Follow him on Twitter or email him.