Accord Business Funding Review
Not disclosed
$5,000 to $150,000
Not disclosed
Not disclosed
Pros and cons of Accord Business Funding
| Pros | Cons |
|---|---|
| No hard pulls on your credit, only soft pulls Merchant cash advances are available nationwide Decisions within two to three hours Borrowers from Texas might receive preferential consideration | Can only apply through a broker Only product is merchant cash advances, which can be an expensive way to borrow Accord Business Funding does not publicly share terms or eligibility criteria for its merchant cash advances |
Accord Business Funding small business loans review
If you want to work with Accord Business Funding, you can’t apply directly — you’ll need to use an independent sales organization (ISO). ISOs are business loan brokers that serve as an intermediary between small businesses that need to borrow money and direct funders like Accord Business Funding. If you don’t plan to work with a broker, you may want to consider other lenders.
Accord Business Funding only provides merchant cash advances (MCAs). Accord aims to provide decisions within two to three hours, which makes them a good option for businesses that need a cash advance quickly.
Potential borrowers could include new businesses, seasonal outfits in need of short-term financing or enterprises with less-than-stellar credit. But keep in mind that MCAs are often a more expensive form of funding — it’s usually a good idea to compare all of your options before using one.
- Business owners who need money quickly. Although MCAs tend to be more expensive than business loans, they can provide necessary operating cash for borrowers in a crunch.
- Business owners with reliable credit and debit card sales. Because MCA lenders like Accord take repayment as a portion of sales, borrowers should ensure that their sales are steady to avoid interruptions in cash flow.
- Borrowers who want to work with a broker. You can only borrow from Accord Business Funding if you go through an ISO.
Accord Business Funding small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Merchant cash advance | $5,000 to $150,000 | Not disclosed | Not disclosed | Not disclosed |
Merchant cash advance
Merchant cash advances allow borrowers to take out cash advances with no collateral. In exchange, the lender takes a cut of the merchant’s future debit and credit card transactions. Instead of a business loan interest rate, a merchant cash advance’s borrowing cost is calculated as a factor rate, which can often reach triple digits.
MCAs do not require good credit for approval or help businesses build credit. They usually pay out faster than traditional small business loans, but they tend to cost more in the long run. To determine your total borrowing costs, multiply the advance amount by the factor rate.
Accord Business Funding provides merchant cash advances ranging from $5,000 to $150,000 and doesn’t publicly share repayment terms, factor rates or fees. This may be because you can only get a merchant cash advance through its ISO partners, which means you’ll be going through a business loan broker.
What are MCA positions?
Accord Business Funding provides 1st and 2nd position funding — meaning the company will fund second cash advances for businesses that already have an active MCA but need more funding — and specializes in B-paper transactions, also known as subprime financing. A-paper transactions tend to carry lower interest rates than subprime and are reserved for borrowers with good business credit. Borrowers with fair or recently blemished credit history might take out B-paper and C-paper advances.
Examine your business finances with a fine-tooth comb before taking out a second-position or B-paper merchant cash advance. Merchant cash advances are an expensive way to borrow, and B-paper advances tend to be a little more expensive still.
Also, if you need a B-paper advance, odds are higher that you have a history of not paying your debts on time or in full.
Accord Business Funding borrower requirements
| Minimum annual revenue | Not disclosed |
| Minimum time in business | Not disclosed |
| Minimum credit score | Not disclosed, but you’ll likely need at least fair credit. |
Accord Business Funding does not publicly share its business loan requirements, but you may be able to get more information from your loan broker. Even if you do use a broker, as Accord requires, it’s worth doing your own research on how to get a business loan to ensure that you can work with your broker to make informed decisions.
Because Accord Business Funding specializes in B-paper merchant cash advances, it’s reasonable to assume that you’ll need at least fair credit (but not necessarily excellent credit) in order to qualify. While Accord does issue MCAs nationally, the company has a particular affinity for small businesses based in its home state of Texas.
Alternatives to Accord Business Funding
| Accord Business Funding | Reliant Funding | Credibly | |
|---|---|---|---|
| Minimum credit score | Not disclosed, but presumably you’ll need at least fair credit. | 500 | 500 |
| Loan products offered | Merchant cash advances | Merchant cash advances |
|
| Time to funding | Not disclosed | As soon as same day | As soon as same day |
| Starting APR | Not disclosed | 1.20 factor rate | 1.11 factor rate |
| Maximum loan size | $150,000 | Up to $2 million for businesses that qualify | $600,000 |
| Minimum annual revenue | Not disclosed | $72,000 | $180,000 |
Accord Business Funding vs. Reliant Funding
Like Accord Business Funding, Reliant Funding only offers MCAs and uses soft pulls. That said, Reliant is more transparent when it comes to payment terms and time to funding.
Reliant applicants should have a minimum average monthly revenue of $6,000 with no overdrafts or defaults. Multiple negative-revenue days could also negatively affect borrowers’ chances for approval.
Reliant offers a far wider range of loan amounts than Accord, running all the way up to $2,000,000 for businesses that qualify. Because of the disparity in available loan amounts, Accord seems more suitable for borrowers seeking small to moderate cash infusions like 2nd position loans, while Reliant might be better for borrowers seeking large 1st position advances.
Accord Business Funding vs. Credibly
Credibly offers funding as soon as the same day, just like Reliant, and comes with a lower starting factor rate. (Because Accord does not disclose its factor rates, you cannot draw comparisons without inquiring through a broker.)
In addition to merchant cash advances, Credibly offers working capital loans, which can be a less risky financing option for those who qualify. Because the required minimum annual revenue for Credibly is steeper than Reliant, smaller businesses might prefer the latter. Those hoping to finance through Accord, meanwhile, will need to ask their broker to determine if their revenue meets the mark.