Dealstruck Small Business Loans
Dealstruck strives to be the most reputable lender for small businesses. Founded by Ethan Senturia and Russell McLoughlin in 2013, Dealstruck's commitment to honesty and transparency in lending makes them an enticing option for small businesses to consider.
They offer a variety of different lending products for small businesses. They do a traditional business loan where you make fixed payments monthly. They also offer an inventory line of credit. With this product, you receive a credit line and can use it similar to how you would use a credit card. Lastly, they also offer an asset based loan, where you can borrow an approved amount and then Dealstruck will deposit a percentage of your customers' payments into its bank account.
As you can see, they offer a wide variety of lending options. Here is a closer look into each loan, the application process and qualification requirements.
Dealstruck Loan Basics/Requirements
If you decide to do a traditional business loan, you can borrow up to $250,000. They also offer flexible repayment terms of up to 48 months, which is one of the best for small business lenders. To qualify for this loan, you need to have the following:
- A minimum credit score of 600.
- Your company's length of operation should be at least 12 months.
- And your business should meet minimum revenue goals of either $12,500 monthly or $150,000 annually.
Meanwhile, if you want to do an inventory line of credit, you can borrow up to your credit limit any time you need it with the minimum advance being $5,000. Moreover, once you make a withdraw from your credit line, you have 24 weeks to repay it with at least four weeks of interest only payments.
If you want to do an asset based loan, here is a look at how the process works with Dealstruck:
- You'll begin by submitting your eligible account receivables to Dealstruck, who then uses these reports to determine your borrowing base.
- Using this base, Dealstruck will provide you with a credit line you can use any time you need it.
- Once you borrow, Dealstruck opens a shared bank account where deposits of the account receivables go. Once you zero out the credit line, all payments go to you.
Fees Associated with Dealstruck
Dealstruck's business loans come with an APR range of 5.99% to 28%, depending on a wide variety of factors such as your credit score and company's revenue. The company also assesses an origination fee of three to four percent of the total loan amount, so if you qualify for and borrow a large amount of capital, this will be a steep fee.
Benefits with Dealstruck
The first way Dealstruck benefits small businesses is in the variety of lending options available. While traditional loans and an inventory line of credit are going to be the less expensive options, they tailor their lending products to meet the needs of your business.
Another way Dealstruck is beneficial is in the low interest rates they charge and the flexible repayment terms they offer. Their competitive interest rates make them a great option to consider, because you can borrow the capital you need without it overburdening your finances. The repayment terms of up to four years is perfect if your business requires a large amount of capital for expanding business operations and needs some time to repay it.
Overall, the variety of lending products and the affordable terms make Dealstruck a great small business lender to consider.
Drawbacks to Using Dealstruck
Due to their requirements, they won't be a great option for all small businesses. For example, if you are a start-up that needs capital, Dealstruck won't be a viable option because they require your business to be in operation for at least 12 months before you can apply.
Another drawback is Dealstruck's loans can be expensive. With an origination fee of three to four percent of the loan's total balance, it could result in a steep expense for your company, especially if you require a lot of capital. Therefore, it's important to be mindful of these things before using Dealstruck's services.
A Look at Dealstruck's Customer Service
Small business owners know that providing excellent customer service is what makes a company successful. Therefore, why should you expect anything different with lenders? Dealstruck aims to create a transparent process where you can receive the answers to your questions in a quick and professional manner.
To achieve this, they offer multiple ways to contact them. The most helpful is their live chat feature. Since you don't have a lot of time, Dealstruck offers a way to have your questions answered quickly. They also have email and phone options where you can speak with a member of their staff to have your needs addressed.
With Dealstruck earning an A+ rating with the Better Business Bureau, it shows the high level of commitment they have to providing small business owners with the service they deserve.
Tools and Education with Dealstruck
One of the unique things Dealstruck provides on its website is case studies. This is where you can read how Dealstruck's personalized lending packages helped small business owners achieve their goals. As part of the case studies, you'll learn more about each company, the loan packages from Dealstruck they used and how the capital helped them.
Dealstruck also has a blog that can be an invaluable resource for small business owners. The blog has everything from quick articles that touch on specific small business topics such as inventory strategy to eBooks, where you will learn what lenders require when you want to apply for a small business loan. They also offer other tools such as infographics and guest articles from industry leaders. This makes the blog an excellent resource you can use to adopt sound business strategies on a variety of topics from preparing for loans to adopting your technologies to meet the needs of mobile users.