Balboa Capital - Online Term Loan
Max Loan Amount
$250,000
Min. credit score
620
Pros & Cons
Pros
- Multiple financing options available.
- Fast funding and simple application process.
- Accepts borrowers with fair credit.
Cons
- Lack of pricing information on website.
- High annual revenue requirement for standard term loans.
- May require daily or weekly repayment.
Full Review
Balboa Capital, a division of Ameris Bank, is a fintech lender that provides fast access to small-business loans. The company offers short-term loans, equipment financing and SBA loans, among other products.
Balboa is known for its robust equipment financing program, flexible qualification requirements and streamlined application process. The lender does not disclose pricing information (interest rates or fees) on its website, however, which means you’ll need to work with Balboa directly if you want to compare its costs with those of other lenders.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Balboa Capital is best for borrowers who:
- Need capital quickly. You can apply for a business loan from Balboa in minutes using its simple and straightforward application. If you apply during regular business hours (7 a.m. to 4 p.m. PST), the lender can provide a one-hour decision — and same-day financing if you’re approved.
- Want equipment financing. Balboa offers flexible equipment loans that can be used to finance new or used vehicles, supplies or machinery for your business. This experienced lender works with equipment vendors in a wide range of industries across the U.S. and only requires soft collateral for applications up to $350,000. Soft collateral typically includes items that are considered expendable, such as inventory, software and intellectual property.
- Don’t meet the eligibility criteria for other lenders. You may be able to qualify for a loan from Balboa with at least one year in business and a minimum credit score of620.
Balboa Capital loan features
Balboa Capital offers several types of business loans. The lender issues short-term loans, equipment and commercial financing, franchise financing and vendor financing. Balboa also provides SBA 7(a) and 504 loans through its parent company, Ameris Bank.
Here, we’ll focus on Balboa’s short-term and equipment loans.
Short-term loan | Equipment financing | |
|---|---|---|
Loan amount | $20,000 to $250,000. | Up to $500,000. |
Estimated APR range | Undisclosed. | Undisclosed. |
Fees | May include documentation fee and UCC filing fee. | May include documentation fee, UCC filing fee, equipment inspection fee, prorated rent and sales tax. |
Terms | Three to 24 months. | 24 to 60 months; may be shorter for low-cost equipment or equipment that depreciates quickly. |
Repayment schedule | Daily or weekly. | Monthly. |
Funding speed | Applications can be approved in as little as one hour during regular business hours. Same-day funding may be available. | Applications can be approved in as little as one hour during regular business hours. Same-day funding may be available. |
Balboa Capital loan requirements
To qualify for a business loan from Balboa Capital, you’ll need to meet the following minimum requirements:
- Minimum credit score:620.
- Minimum time in business: One year.
- Minimum annual revenue: $300,000 for short-term loans; $100,000 for equipment loans.
Balboa also requires you to have a business bank account and asks for three months of statements as part of your application. If you’re applying for equipment financing, you’ll need to provide an equipment quote from a vendor.
Where Balboa Capital stands out
Fast and simple funding
Balboa Capital offers a simple and straightforward application that can be completed in minutes. The application requires minimal documentation, and you may be able to receive a decision in just one hour. If approved, Balboa can provide fast, same-day funding, allowing you to access the capital as soon your bank processes the transaction.
In comparison, more traditional lenders typically require detailed paperwork and can take anywhere from several days to several weeks to process and fund applications.
Variety of loan options
Whereas some online lenders only offer one or two types of loan options, Balboa offers several, including a few specialized options. In addition to the lender’s short-term and equipment loans, you can apply for SBA loans through Balboa’s parent company, Ameris Bank, which is a preferred SBA lender.
Balboa also provides franchise financing up to $350,000 and is willing to work with qualified first-time franchise operators. And, if you’re an equipment vendor, you can partner with Balboa Capital through its vendor financing program in order to offer your customers in-house funding options.
Flexible qualifications
Banks and credit unions usually require that you have strong credit (a score of 690 or higher) and at least two years in business in order to qualify for a loan. With Balboa, however, you may be able to access financing with a minimum of one year in business and a credit score of
620
or higher.Where Balboa Capital falls short
High annual revenue requirement
Although Balboa’s annual revenue requirement for equipment financing ($100,000) is fairly standard among online lenders, its $300,000 minimum requirement for short-term business loans is higher than competitors, like National Funding and Triton Capital.
In fact, some traditional lenders even have lower annual revenue requirements. Bank of America asks for a minimum of $100,000 for unsecured loans and a minimum of $250,000 for secured loans and equipment financing.
Limited pricing information available online
Balboa Capital provides very limited pricing information on its website. The lender states that it offers competitive rates and the rate you receive will vary based on factors such as your credit profile, annual revenue, loan amount and repayment term.
Balboa does not, however, include any details explaining how they charge interest or what typical loan rates may look like. Similarly, the only fee information offered on the website seems to be included in the “Customer Center FAQs” section, and doesn’t give much insight into the actual cost of potential fees.
This lack of information makes it more difficult for borrowers to get a sense of Balboa’s costs — and consequently, whether the lender is a good option for their needs — without going through the process of actually submitting an application and getting a quote.
Lawsuits against Balboa Capital
In March 2023, the U.S. District Court for the Northern District of Texas granted summary judgment for a group of physicians against Balboa Capital regarding a lawsuit that was initially filed in 2017. The ruling found that Balboa Capital had failed to provide essential terms in their loan agreements.
According to the summary judgment, the lender had provided loan documents that included the number of repayment months and monthly payment, but did not include principal and interest. The separate invoice that allegedly contained that missing information was not included in the borrower’s loan agreement — and therefore, the judge ruled that the agreement was unenforceable.
Alternatives to Balboa Capital
National Funding
Like Balboa, National Funding offers both short-term business loans and equipment financing. The lender is also known for its fast funding and flexible eligibility requirements.
With National Funding, you can get a short-term loan up to $400,000 and equipment financing (or equipment leasing) up to $150,000. Interest is quoted as a factor rate and starts at 1.1 for borrowers with strong credit.
To qualify, you’ll need a minimum credit score of
600
, at least 6
months in business and minimum annual revenue of $250000
— so you may be able to access financing if you can’t meet Balboa’s criteria. Read our full National Funding review.» MORE: How to get a business loan
Triton Capital
Triton Capital offers equipment loans of up to $250,000 with repayment terms up to five years. Interest rates start as low as
6.5
%. Triton also allows you to customize your repayment schedule based on your needs, offering monthly, quarterly, annually and semi-annually options.Like Balboa, Triton provides quick business loans— typically approving applications within two to four hours and sending funds within one to two business days. To apply, you only need to include basic information about yourself and your business, as well as three months of bank statements and a quote from an equipment vendor.
To qualify for an equipment loan from Triton, you’ll need at least $
150000
in annual revenue and a credit score of 575
or higher. Generally, the lender asks that borrowers have at least 24
months in business.A version of this article originally appeared on Fundera, a subsidiary of NerdWallet.
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