What are the Best Business Lending Mobile Apps?
Know this: 42% of small businesses currently have a business lending mobile app, and 30% plan to build one in the future. There are mobile apps for coffee, for home automation, for social networking, for budgeting, for health tracking, and yes, for small business lending.
Although most small business owners still go to their local bank branch for their banking needs, banks are no longer the only lenders offering financing to small business owners. Now, there are alternative options that are available both online and through your mobile device.
If you’re a business owner looking for a quick, reliable, and easy-to-access lender, then it’s time to turn to a small business lending mobile app. Here’s an evaluation of the most popular business lending apps that promise to turn applications into actual loans for new and established small business owners.
1. OnDeck: Best Business Lending Mobile App for Quick Term Loans
Overview of the lender: For new business owners who have bad credit, OnDeck is a good option for obtaining short term or long term loans of $5,000 to $500,000. The lender also offers an established business line of credit, funding that typically offers more flexibility than a loan. The problem: the interest rates can be extremely high. OnDeck has been around for more than 10 years, and have therefore serviced thousands of small businesses. The mobile app, however, has only been around since 2015.
The OnDeck loan application process is less intimidating than some of the other lending mobile apps’, so if you’re a new business owner (at least one year), it’s a good option. To get approved, you are expected to have an annual income of $100,000 or more. To apply and secure a loan through OnDeck, you must provide the following information:
- Business tax ID
- Three months of bank statements
- Social Security number
- Driver’s license number
Review of the app: The OnDeck Capital app (not to be confused with OnDeck app for account and swim team management) allows you to draw funds, check your account balances, check your transaction history, make payments, and interact with customer service representatives. The company prides itself on its customer service, though its customer service isn’t always consistent or reliable.
- Pros: The basic lending app uses TouchID for added security. You can submit your application through the app, and you are expected to receive a notification within 24 hours if your loan is approved. The biggest perk of the app is that it allows you to build credit, since the company reports your payments to the credit bureau. However, this also means you need to be diligent about your payments and not miss them. If you have bad credit, you are still eligible to get approved for a small business loan through OnDeck.
- Cons: It’s only available on iOS 8.0 or later, so if you have an Android or another operating system, it won’t work for you. Though loans are often approved through the OnDeck app, regardless of bad credit scores, high interest rates accompany them. This is problematic for any business owner who’s investing in a new area, project, or platform and not expecting an immediate return on investment. OnDeck is likely to make an inquiry on your credit, which could affect your score. The app also requires fixed payments, which may disrupt your cash flow, especially since you’re expected to make daily or weekly payments. Another problem: OnDeck doesn’t work with all industries. If your business is religiously affiliated, a nonprofit, or a money service business, for example, then chances are you won’t get approved for a loan.
2. Kabbage: Best Business Lending Mobile App for a Quick Line of Credit
Overview of the lender: Kabbage offers small business owners lines of credit of $2,000 to $250,000, to be used for any business needs. Kabbage is one of the few lenders to offer such low lines of credit — and unlike some of the others, Kabbage’s has relatively high interest rates. However, if a business owner wants a quick loan and expects a quick return on investment, then Kabbage is a good option. The biggest downfall: Kabbage doesn’t offer term loans.
Small business funding is attainable through Kabbage, even if you a have a bad or poor credit score, so long as you have been in business for at least one year and you show the following:
- Proof of $50,000 or higher annual revenue
- Credit score of at least 560
- A business checking or online payment platform (Square, Stripe, etc.)
Review of the app: The application process and response time are quick. If approved, you can get funds in your account as soon as one to three days (depending on what payment method you choose), which is ideal for any business owner. What’s unique about Kabbage, compared to other online lenders, is that the more you link to your account (from your Amazon account and your vendor accounts to your Etsy account and your bank accounts), the higher the line of credit.
Review of the app: The annual percentage rate is typically high for users, but depends on what information you provide. The more accounts you connect, the better, but as a user, this can feel like an invasion of privacy and can lead to targeted advertising. It also allows Kabbage access to your financial information.
- Pros: The app is easy to understand and use, and is available on both Android and IOS, but only 11.0 or higher. If you have steady or increasing revenue and need quick funds, Kabbage is a good option.
- Cons: You have to link your bank account to apply, which can be problematic for business owners who don’t use online banking services. Loan decisions will be based largely on your credit score, so regardless of whether your business is thriving, if your credit score is low, you’ll likely get a very low line of credit or none at all. Kabbage makes automatic withdrawal of funds, so if you’re unprepared, this can be problematic. They’ve also been known to put on a lien on the initial funds.
3. Fundbox: Best App for Invoice Financing
Overview of the lender: The goal of Fundbox is to make invoice management easier for small business owners. The company offers revolving lines of credit to small business owners, as well as invoice financing (also known as factoring).
You don’t need to provide your credit number (or explain your credit history) and you can get approved within 24 hours for $1,000, or up to $100,000 in credit, which is ideal for established small business owners who are in need of fast cash. To apply and secure a loan through Fundbox, you must provide the following information:
- A business checking account
- At least two months of activity in supported accounting software, or three months of transactions
- Approximately $50,000 or more in annual revenue
- A business based in the 50 United States or in selected U.S. territories.
Review of the app: Like most lending apps, the Fundbox app allows you to check your account information, including your balances and unpaid invoices. You can also view your repayments and draw funds. It’s ideal for owners who want quick access to funds for last-minute working capital needs (like replacing broken equipment or paying small-scale invoices).
If you sell a service (plumbing, coaching, speaking) and aren’t always at a desk, you’ll like this app, because it allows you to access invoices from your phone. Fundbox makes the financing process easier, solving some unpredictable cash flow problems for business owners. The only caveat: customers are expected to pay when money is drawn (if they haven’t already). This is good for owners who aren’t able or willing to make fixed payments.
- Pros: The Fundbox business lending mobile app is available on both iOS and Android and comes with a fingerprint login for extra security. The interface, though minimalist, is easy to understand and use. Though Fundbox acts as a third party, handling your invoicing on your behalf, the company does not work directly with your customers or clients, which may or may not appeal to some of its users.
- Cons: Though Fundbox is great for the occasional business loans, the application process is much more comprehensive than other apps. It is also doesn’t offer as many in-app options as its mobile app competitors. Also, in order to use the app, you must connect your accounting software (though it seems to have problems connecting with QuickBooks), so it won’t work for business owners who only use business bank accounts. The process for connecting the account software, though comprehensive, isn’t always reliable. And if you miss a payment, you could end up paying extremely high late fees.
According to a reviewer on the Apple App Store, “This is a great service for a small business but if you use it a lot the fees and payment increase quickly!”
4. Biz2Credit: Best Overall App for Small Business Lending
Not to toot our own horn here, but we’re proud of what we offer our customers.
Overview of the lender: With Biz2Credit, an online connection service, you can get access to $5,000 to $1,000,000. Unlike the other small business lending apps, Biz2Credit offers the largest maximum. Biz2Credit doesn’t offer just one type of business loan. Instead, the company works with various lenders to provide a wide-range of loan options.
All small business owners can apply on the Biz2Credit app, and regardless of credit, will likely receive a funding option. The higher the credit, the better the offer, of course. Distinguishing itself from unlike other mobile loan apps, Biz2Credit does offer extremely low interest rates (as low as 3%). Here’s what you need to include in your application:
- How long you’ve been in business
- What amount of funding you need
- What your annual revenue is
- Your personal credit score
Review of the app: Small business owners are given access to direct funds through the Biz2Credit, regardless of years in business. The app itself, is easy to use, pleasing to the eye, and comprehensive. The more information you provide, the better. With the app, you can review your financial information and your financing requests, and you can speak directly with a loan specialist.
- Pros: Biz2Credit offers the highest maximum of available funds (through different financing options: equipment loans, cash advances, asset-based loans, etc.) so if you have a high credit score, steady or increasing revenue, and are in need of quick business funding, Biz2Credit is a great option. The app ensures that you get direct access to funds on short notice, with a network of more than 1,000 pre-approved lenders.
- Cons: The app is only available on iOS 9.0 or later. Repayment depends largely on the user’s credit history, financial needs, and business history, which can mean high or low interest rates, depending.
Biz2Credit offers a variety of financial solutions to small business owners in need of more than one lending option. Every small business has different funding needs; hopefully, one of these top small business lending apps can offer yours easy access to the loan solutions you’re looking for.