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Clearbanc Review

Tuesday, August 9th

2022 Business Loan Provider Reviews

Clearbanc Review 4 Star Rating


4 Star Rating

Before you get started with Clearbanc, you should know that their focus is very different from most providers of business loans: unless your company is considered e-commerce, a SaaS product or a mobile app, Clearbanc will probably not approve you for funding. Since 2015, they've invested more than $1 billion in more than 2200 online businesses, making Clearbanc the biggest e-commerce investor in the world. (In fact, you can read more about the company's success in Forbes, Fast Company, and other well-known publications.)

Big loan amounts

Clearbanc prides itself on being fast, flexible and fair. You can get a business loan offer - what they call a "term sheet" - in about 20 minutes. Their funding ranges from $10,000 up to $10 million. And, they don't require you to put up equity or risk your personal credit to qualify. Sounds good so far, right? To be eligible, you'll need an average monthly revenue of at least $10,000, at least 6 months of consistent revenue history, and you have to either be a corporation or an LLC (no sole proprietorships).

2 step application

The application process has two steps. First, you'll have to give Clearbanc some basic details about you and your business, like how much monthly revenue you're generating, your URL, and your address. Once those initial details have been prequalified, you'll move on to the formal application.

Here's where it gets more in-depth. You have to connect your sales and marketing account(s) as a mandatory step to get funding. This could include e-commerce platforms like Shopify or WooCommerce, payment processors like Stripe and Square, marketplaces such as Amazon or Cratejoy, or even app stores.

Predictive modeling

Why? It all comes back to Clearbanc's novel way of funding businesses: they use AI-fueled predictive modeling to take a deep dive into your ad performance, revenue, and other third-party data to determine how much to invest - in you! There's no credit check, no collateral or guarantees required, no dilution of your investors, because their funding offer revolves solely around how your company is already performing.

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Transaction-based repayment

It also relates to how you make repayments. Instead of having to remember to make payments on a loan, you'll have a percentage of your future business revenue deducted directly by Clearbanc. That repayment percentage is typically between 1% to 20% of each transaction, so that you keep cash flow in your day-to-day operations. There's no fixed repayment date, so you're not obligated to make big loan repayments during times where business may be slower than usual. You should expect a flat fee ranging from 6% to 12.5%, depending on how you plan on using the funds. The amount of that flat fee is also gradually recouped from your future revenue.

Impressive resource center

One very significant difference when getting business funding through Clearbanc is that you're never given a lump sum payment of your "loan". Instead, you receive a Clearbanc credit card that can be used to spend on marketing, inventory, and so on. That way, the amount you borrow directly correlates to the amount you spend. We think this is a good way for you to discretely manage the actual amount of money you borrow.

Frequent praise

Overall, Clearbanc presents a revolutionary alternative to traditional business loans. Among the dozens of reviews we found from very satisfied clients, we found frequent praise for the helpfulness of their customer representatives, the speed at which the funding was made available, and particularly how Clearbanc's business model makes it possible to grow a business without dilution. If you've got any kind of e-commerce business and need funding within a matter of days, we strongly recommend you consider Clearbanc.

Who Offers the Best Business Loans?

With all the difficulties in today's economy, many people are choosing to open their own business instead of working for a traditional employer. Whether you're just starting your business, expanding your already-established business, or even hanging out a shingle as an online company, it's likely that at some point you'll need a business loan to successfully meet your customer's needs and your business goals.

In the past, small business owners relied heavily on traditional brick-and-mortar banks in order to finance their business loans. Often that meant that borrowers had to rely on their own reputation and relationship with their local bank. Getting the lowest possible interest rate was also more challenging, since there were few lending options from which to choose.

The Best Business Loan Providers Compare Business Loan Providers Compare Business Loan Provider Reviews What are the best Business Loan Providers Best Business Loan Provider Reviews

Business Loan Provider FAQ

Business loans are available for just about any need: equipment financing, merchant cash advances, working capital, and much more. While you'll have to provide details about your business to apply and qualify for a business loan, once you've received the funds you can usually use them for whatever your company needs.
There are several types of lenders when it comes to business loans. You could get funding through a traditional bank or credit union, either locally or online. There are also peer-to-peer lending platforms that allow smaller financial institutions and even private investors to fund business loans.
You'll definitely pay interest on your business loan. Rates typically range from 1.5% to as high as 36% APR. You may also have origination fees of up to 6% of the loan amount, depending on the lending partner you select.
That always depends on the lender. Some providers of business loans require you to have a certain length of time in business or a minimum amount of gross annual sales to even apply. It's a good idea to determine those requirements before you begin the application, to save yourself some time and hassle.
Most of the time, you can complete the entire business loan process, from application to funds transfer, 100% online. That's a huge convenience for busy business owners like you, who might be applying outside of traditional bank hours.
Most lenders offer business loans ranging from $2,000 to $500,000. The amount you're approved for will depend on the lender you select and your business situation: naturally, the longer you've been in business and the more profitable you've been, the more likely it is that you'll be approved for a large loan.
You should have the proceeds of your business loan in your account within a week. However, if you need the money sooner, look for a lender that offers next-business-day funding. And, keep in mind that those timeframes are based on when you accept the loan offer you get, not just when you finish the application. Your business loan may require extra verification steps, like documentation of income and expenses, before you receive a funding offer.
Any time you take out a loan, you run the risk of defaulting. Be sure to only borrow what you need and maybe a little extra, and have a clear plan for making on-time loan payments. Many providers of business loans offer education and counseling at no extra charge, if you could use help in determining how much to borrow and how to use the loan wisely to maintain and grow your company.
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Continued from above...

Fortunately, business owners today can choose among many lenders to find the best terms and interest rates available. In addition to the old local options, small business borrowers now have much more and better choices through various lenders on the Internet that specialize in small business loans.

There are many factors that you should consider before selecting a lender for your business loan. Some of these include:

  • Loan size and rate. How much will you be allowed to borrow? What interest rates do they typically offer on loans of that size?
  • Loan application process. When applying for your business loan, can it be completed online? Is the lending process easy and straightforward?
  • Requirements for business history. Can a brand-new business take out a loan, or is there a minimum time that the business must have been in operation in order to qualify? What other verification and/or collateral is required to secure the loan?
  • BBB rating. Does the lender have an established history of good business practices?

TopConsumerReviews.com has reviewed and ranked the best Business Loan programs available today. We hope this information helps you find the best loan for your small business at an affordable rate!

Compare Business Loan Providers

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