Accion Opportunity Fund Review
8.49% to 28.99%
$5,000 to $250,000
12 months
$50,000
Pros and cons of Accion Opportunity Fund
| Pros | Cons |
|---|---|
Focuses on funding for women, people of color and low-income business owners No prepayment penalties Offers business coaching and mentorship in both English and Spanish Customized loan terms Relatively low annual revenue requirement | Not available in District of Columbia, Montana, North Dakota, South Dakota, Tennessee or Vermont Blanket lien required for loans over $50,000 Low rating on Better Business Bureau |
Accion Opportunity Fund small business loans review
Accion Opportunity Fund (AOF) is a nonprofit online lender specializing in customized loans for business owners who can’t qualify for traditional small business financing. While all business types and sizes are welcome to apply, 90% of AOF’s funding goes to women-owned businesses, minority entrepreneurs or companies with low-to-moderate income. AOF also works with ITIN-only borrowers so non-citizens can expand and grow their businesses in the U.S.
AOF offers two types of loans: working capital and equipment financing. However, its equipment financing is specifically for commercial trucks, not general equipment like computers or printers. AOF’s working capital loan can cover a variety of business expenses with no hidden guesswork — all interest rate ranges, terms, fees and general eligibility requirements are fully disclosed. And it charges low rates compared to many of its competitors.
Your business can also enjoy perks like business coaching, resources and networking in both English and Spanish, helping you gain the skills needed to take your business to the next level. However, AOF is not suited for anyone wanting to start a business since you need to operate for at least one year to qualify. Be aware that AOF is not accredited with the Better Business Bureau and has a D- rating due to a few complaints, one of which was unresolved at the time of writing.
Who is Accion Opportunity Fund best for?
- Business owners with limited or poor credit. AOF accepts personal credit scores as low as 600 but also states it looks beyond your credit score when determining your company’s overall potential for growth.
- Underserved and diverse entrepreneurs. According to AOF, 90% of its clients are people of color, women or of low-to-moderate income.
- Companies who want flexible and customized options. Your loan is designed specifically for you and your business’s unique needs.
Accion Opportunity Fund small business financing at a glance
| Product | Loan amounts | Repayment term | Starting interest rates | Fees |
|---|---|---|---|---|
| Working capital loans | $5,000 to $250,000 | 12 to 60 months | 8.49% | Origination fee: 3.00% - 5.00% |
| Equipment financing | $5,000 to $250,000 | Not specified | 8.49% | Not specified |
Working capital loan
Accion Opportunity Fund offers a working capital loan between $5,000 and $250,000 to tackle a range of business expenses like rent, utilities, marketing, inventory and more. You will receive funds as a one-time lump sum, with repayment terms ranging from one to five years — with longer terms typically having lower interest rates. Origination fees are 3.00% - 5.00% of the total loan amount.
You don’t need to provide collateral, but loans over $50,000 require a blanket lien/UCC filing on your business assets. This means that AOF can claim some or all of your business assets if you default. However, there are no penalties for repaying the loan early.
Equipment financing
Business owners can borrow $5,000 to $250,000 in equipment financing to purchase mobile food, medium duty or heavy duty trucks for their company. While repayment terms aren’t specified, there are no fees for paying your debt ahead of schedule. Low-credit borrowers and first-time buyers are encouraged to apply.
Accion Opportunity Fund borrower requirements
| Minimum annual revenue | $50,000 |
| Minimum time in business |
|
| Minimum credit score | 600 |
AOF’s business loan requirements are relatively lenient compared to traditional bank business loans — which often require two or more years of business history, a robust income stream and good to excellent credit.
For AOF’s working capital loans, your business must operate for at least one year with $50,000 or more in annual revenue. If you want an equipment loan to purchase commercial trucks, you need a minimum of six months’ driving experience. Both loans require a minimum personal FICO Score of 600, although AOF states it considers factors beyond your credit score when evaluating your application. Because of this, Accion Opportunity Fund can be a good choice for a bad credit business loan.
Note that you can’t get an Accion Opportunity Fund business loan if your company is located in District of Columbia, Montana, North Dakota, South Dakota, Tennessee or Vermont.
Required documents
AOF recommends having the following documents ready when applying for a working capital loan to help speed along the process:
- Personal info (name, date of birth, business title)
- State-issued ID (driver’s license or passport)
- Business tax returns
- Personal tax returns
- Last three months’ bank statements
Alternatives to Accion Opportunity Fund
| Accion Opportunity Fund | Fora Financial | Camino Financial | |
|---|---|---|---|
| Loan products offered | Working capital loans Equipment financing | Term loans Revenue advances | Term loans |
| Maximum loan size | $250,000 | $1,500,000 | $50,000 |
| Starting interest rate | 8.49% | 1.15 factor rate Factor rates start at 1.15, but can go as low as 1.10 with early payback provisions | 32.00% |
| Time to funding | Preapprovals in around 15 minutes; doesn’t specify processing timeline | 24 to 72 hours | 1 to 3 days |
| Minimum credit score | 600 | 570 | 670 |
| Minimum annual revenue | $50,000 | $240,000 | $30,000 |
| Minimum time in business | Working capital: 12 months Equipment financing: 6 months | 6 months | 12 months |
Accion Opportunity Fund vs. Fora Financial
Both AOF and Fora Financial work with low-credit borrowers, with Fora Financial accepting scores as low as 570 while AOF requires a minimum of 600.
If you have an early-stage startup, Fora Financial might be a better fit, allowing you to qualify after only six months of operation. However, you can’t beat AOF’s low minimum annual revenue requirement: $50,000 versus Fora Financial’s comparatively high $240,000.
That said, if you need quick access to large funds, Fora Financial provides up to $1,500,000 within 24 to 72 hours. In comparison, AOF’s maximum is $250,000, with no specified processing time.
Comparing rates between the two lenders is tricky since Fora Financial charges a factor rate instead of interest or annual percentage rate (APR). If you can’t decide between the two, try applying to both to see which lender offers the best deal.
Accion Opportunity Fund vs. Camino Financial
Similar to AOF, Camino Financial provides resources and support for women and minority entrepreneurs, as well as business owners who can’t qualify for traditional financing. If you’re still building your income stream, Camino Financial is more accessible with a $30,000 minimum annual revenue requirement — $20,000 lower than AOF’s.
While Camino Financial’s credit score requirement is 70 points higher than AOF, it evaluates your company’s overall potential when making a lending decision. Both lenders require you to be in business for at least one year to qualify for a term loan. However, Camino Financial’s term loan only goes up to $50,000, while AOF offers up to $250,000.
If you need a quick business loan, Camino can deliver funds within one to three business days. AOF takes the lead when it comes to competitive rates, ranging from 8.49% to 28.99% versus Camino’s 32.00% to 45.00%.