JoshuaStarting or growing a business takes more than just a great idea—it takes capital. For many entrepreneurs, taking out a business loan is a necessary step to fund operations, inventory, equipment, property, expansion, and other investment needs. Given the plethora of lenders and loan products to choose from, deciding where to apply can feel overwhelming.
LoanME at a Glance
Established in San Francisco in 2007, LoanME is a leading online lender that provides term loans, lines of credit, and SBA loans exclusively to small businesses across the United States. Some key things to know about LoanME include:
- Loan amounts: Ranges from $5,000 up to $3 million for term loans and up to $500,000 for lines of credit. The average loan size is around $150,000.
- Interest rates: Rates generally range from 5.99% to 35.99% depending on creditworthiness, amount borrowed, loan term, and other factors.
- Terms: Most loans have repayment terms between 1-5 years for term loans and one year for lines of credit. Some SBA loans have terms of up to 25 years.
- Funding timeline: Loan decisions typically take 1-4 weeks, depending on the completeness of the application and underwriting needs. Funds are deposited quickly once approved.
- Eligible businesses: Most types of established small businesses (at least two years in operation with at least $100,000 in annual revenue) located in the 50 US states and Washington, D.C.
- Online process: LoanME handles the entire application, approval, closing, and funding process online without the need to visit a physical branch.
So, in summary, LoanME provides flexible financing for established small businesses across various industries and locations. Keep reading to learn more specifics on their loan offerings and requirements.
LoanME’s Loan Products
LoanME offers three main loan products to meet different small business financing needs: term loans, lines of credit, and SBA loans. Let’s examine the key characteristics of each.
Term Loans
Term loans are the most common product borrowed through LoanME. With a term loan, borrowers receive a lump sum amount that is repaid in fixed monthly installments over 1-5 years based on the term chosen. Key aspects of LoanME term loans include:
- Amounts: $5,000 up to $3 million
- Terms: 1-5 years
- Use of funds: Equipment, property, inventory, working capital, consolidating debt
- APR: Depends on credit but typically 5.99%-35.99%
- Fees: Origination fee of 1-5% of loan amount
Lines of Credit
A line of credit is like a credit card for your business but at typically lower interest rates. Borrowers are granted a maximum credit limit that can be drawn from as needed and repaid over time. Main characteristics of LoanME lines of credit:
- Amounts: Up to $500,000 credit limit
- Term: 1 year but can be renewed annually
- Use of funds: Seasonal needs, managing cash flow gaps
- APR: Depends on credit but usually 5.99%-29.99%
- Fees: None at account opening or for credit access
SBA Loans
LoanME is an SBA-preferred lender, meaning they offer SBA-backed 7(a) and 504 loans for small business owners. These loan programs have lower borrowing costs than conventional loans and are easiest to qualify for. Key SBA loan program details:
- 7(a) Loan Amounts: $5,000 – $5 million
- 504 Loan Amounts: $125,000 – $5 million
- Terms: Up to 25 years for real estate and equipment
- Lower interest rates and fees compared to term loans
- Easier qualification standards than unsecured loans
Now that we’ve covered LoanME’s main products let’s explore their eligibility criteria and application process.
LoanME Eligibility and Requirements
To be considered for a LoanME business loan, applicants must meet the following basic standards:
- Business Type: Most types of established businesses are eligible, excluding PBC, real estate investment, multi-level marketing, and certain high-risk industries.
- Time in Business: Most businesses must have been operating for at least two years to qualify. Newer businesses may qualify for smaller amounts.
- Minimum Revenue: Annual revenues must generally exceed $100,000 to demonstrate financial stability and viability.
- Business Structure: Must be a legal business entity like an LLC, corporation, or sole proprietorship.
- Credit Profile: Personal credit scores of all business principals/owners are factors in eligibility decisions. Generally, a minimum score of 620 is required.
- Collateral: Term loans over $150,000 often require collateral like business assets or real estate to secure the loan.
- Location: Business must be located in the United States, and owners must be U.S. citizens or permanent residents.
The strength of your business fundamentals and credit history directly impact LoanME’s willingness to assume risk. With good financials and credit, you’ve cleared a major hurdle to securing a business loan through their platform.
The LoanME Application Process
Once you’ve assessed your eligibility based on the above criteria, it’s time to formally apply. Here are the typical steps in LoanME’s application process:
- Create an Online Account
Visit LoanME.com and click “Get a Loan” to complete a short registration form and sign some disclosures electronically. - Loan Request
Provide information about the business, ownership structure, amount and purpose of funds requested, and basic credit profile. This determines estimated loan options and rates. - Documentation Upload
Securely upload requested documents through your LoanME account dashboard, including tax returns, financial statements, organizational docs, personal financial statements, and credit reports. - Underwriting Review
LoanME underwriters analyze all application materials to assess risk factors, debt capacity, and ability to repay. This stage may include follow-up questions. - Credit Decision
Typically, within 1-4 weeks, LoanME issues a Credit Decision with outlined terms if approved or an explanation for denial. - Closing
Approved borrowers receive and sign loan documents completely online. Funds are disbursed shortly after.
It’s a streamlined digital process from start to finish without lengthy paperwork or in-person meetings. Funds can potentially be accessed within 2-4 weeks once all requested application materials are submitted promptly.
LoanME Fees and Interest Rates
When evaluating lenders and loan offers, borrowers should understand all associated costs, including application and origination fees and ongoing interest charges. Here are the typical fees and rates you may see with LoanME financing:
Fees
- Origination Fee: 1-5% of loan amount, depending on size and credit profile. Waived for SBA loans.
- Prepayment Penalty: None for early payoff of term loans or lines of credit.
- Late Fees: 5% of payment amount and $30 minimum if payment is over 15 days past due.
Interest Rates
- Term Loans: Rates typically range from 5.99-35.99% based on creditworthiness, size, and term.
- Lines of Credit: Rates range from 5.99-29.99% variable APR depending on credit profile.
- SBA Loans: Much lower rates, usually starting around 4.6% for 7(a) and around 5% for 504 loans.
Overall, LoanME aims to be transparent about all loan costs upfront. Strong credit and larger loans generally lead to lower rates and fees within their product ranges.
Questions? Get in Touch with LoanMe.
By now, you have a thorough understanding of how LoanME operates, its eligibility standards, and the application process. But if you still have outstanding questions, their customer support team is ready to help. Here’s how to get answers:
- Phone: Call toll-free at 1-800-LOAN-123
- Email: Send inquiries to help@loanme.com
- Chat: Click the “Support” tab on their website for a live representative
- Hours: Customer support is available seven days a week
A LoanME representative can walk through your specific business and financial situation to give you a clearer idea of your odds of approval and loan terms. They’ll also provide estimates and guidance on the documentation needed. This personalized service helps many entrepreneurs determine if LoanME is their best financing option before applying.
Time to Apply? Follow Up with These Steps.
If, after reviewing the information provided, you feel LoanME is a good potential lender for your business loan needs, it’s time to take the next step and apply. Here are a few tips to help wrap things up:
- Gather your documentation like tax returns, financial statements, and operating history – having these ready will speed up the process.
- Fill out the short registration form to create your LoanME account. No obligation at this stage.
- Consider applying for preapproval to get a concrete estimate of loan terms and amounts without a hard credit pull.
- Ask any remaining questions via phone or email support before formally submitting your full application.
- Once ready, log into your account and complete the online application providing all requested details accurately and completely.
- Monitor your LoanME account portal for any requests for additional info and respond promptly.
- Sit tight as LoanME reviews your materials within their standard 1-4 week timeframe. Approval notifications usually come via secured email.
With preparation and by submitting a detailed, organized application, you can maximize your chances of securing the business funding you need from LoanME. Let me know if any part of the process remains unclear!
FAQ
Here are answers to some frequently asked questions about LoanME business loans:
What is the approval rate?
While LoanME does not publish specific approval rates, a representative reports their rate to be around 50% based on the eligibility and creditworthiness of each applicant. Strong applications increase chances.
Can I get approved without collateral?
Loan amounts under $150,000 generally do not require collateral, but stronger credit may be needed. Larger loans often do secure assets or real estate as collateral to reduce risk.
How long do funds take to receive once approved?
Loan closing and funding typically occur within 7-10 business days after getting an approval notification, provided all requested loan documentation is signed and returned promptly. Funds are deposited into the business bank account on file.
What is the preapproval process?
Preapproval involves a soft credit check to assess terms and amounts without a hard inquiry. It takes 1-3 business days to receive a response without obligation. Hard full applications involve credit reports.
Can I get a business loan with bad personal credit?
It’s very difficult, but it is possible for smaller loans amounting to less than $25,000 with a proven track record and strong business financials. Credit scores under 620 make approval challenging anywhere.
Is there a prepayment penalty for an early payoff?
No, LoanME does not charge prepayment penalties. Borrowers are free to pay off loan balances in full at any time without fees. This flexibility can save on total interest costs.
What businesses are ineligible for funding?
In general, high-risk industries like payday lenders, debt settlement, cryptocurrency, gambling, and those involving adult content are ineligible. Real estate investment or rental properties also do not qualify for business loans through LoanME.
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