Seek Capital Business Loan Review
Pros and cons of Seek Capital
| Pros | Cons |
|---|---|
High approval rates No collateral required No minimum annual revenue or business history requirements | Some customers have had concerns about Seek Capital’s lending practices Doesn’t disclose list of partner lenders, rates or terms until you submit an official application Confusing website that misrepresents available products Approval and funding times can take longer than other online lenders Some customers complain about having to pay a hefty cancellation fee |
Seek Capital small business loans review
Seek Capital is a marketplace service that matches business owners with partner lenders based on the company’s needs. While using a marketplace service can often save time by only filling out one application to compare multiple offers at once, Seek Capital has a significant amount of negative consumer reviews on Better Business Bureau (BBB). Because of this, it’s worth proceeding with caution.
Seek doesn’t list its partner lenders in advance, making it difficult to estimate business loan interest rates and fees for available small business products. Furthermore, some consumers complain about applying for a small business loan and receiving a credit card instead. However, once you apply, Seek Capital will disclose your matched lender and rates so you make a more informed decision before moving forward.
Seek Capital small business financing at a glance
Financing options from third party lenders
Seek Capital can help match you with a partner lender providing options like business lines of credit up to $500,000 to cover various business and startup expenses, such as equipment, inventory, website design, payroll services and more. Note that Seek charges a fee of 5% to 10% to help match you with a lender.
However, Seek Capital doesn’t have access to or any control over your loan’s rates and terms since this is determined by the partner lender. If problems arise, you must contact your lender directly. In addition, some consumers have complained that Seek issued them credit cards when they were initially told they would receive a small business loan.
If you feel nervous about Seek’s business practices, you can apply with a lender that offers its own business line of credit, such as Bluevine or Wells Fargo.
Business credit cards
Seek Capital matches users with business credit cards with credit limits ranging from $10,000 to $500,000 and fees between 5% and 10%. While Seek claims it offers a 0% APR intro rate for 12-18 months, it doesn’t specify what rate you’ll receive after the intro period ends. Furthermore, some consumers have complained that Seek’s 0% APR intro offer was never honored.
In the end, you can avoid Seek’s fees and apply for a business credit card on your own. Doing independent research on credit card lenders could be worth the time involved if you want to focus on specific spending categories or rewards, such as a business credit card for travel.
Seek Capital borrower requirements
| Minimum annual revenue | Varies based on lender match |
| Minimum time in business | Varies based on lender match |
| Minimum credit score | Varies based on lender match |
Seek Capital’s business loan requirements can vary based on its current list of partner lenders and each lender’s specific qualifications. After applying, Seek will disclose your matched lender so you can learn more about what they offer and read lender reviews to determine if it’s a good fit.
Required documents
While you typically must submit extensive paperwork like business tax returns and a detailed business plan when applying for financing, Seek Capital only requires your incorporation documents.
However, depending on your matched lender, you may need to submit additional documents. Having the following paperwork on hand could help speed along the application process:
- Business plan
- Business permits
- Proof of insurance
- Business balance sheet
- Current profit and loss statement
- Personal and business tax returns
- Personal and business bank statements
- Equipment operator’s license (if applicable)
- Information about equipment you’re financing (if applicable)
Alternatives to Seek Capital
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Seek Capital vs. American Express
If you’ve had an American Express business credit card for at least a year and want a business term loan or line of credit, American Express is likely a better option. Since you’re already in Amex’s system, there’s no need for another credit check, and you can get your loan funds within a few days. Plus, American Express issues its loan products directly without the need of third-party lenders. This way you can know the loan’s terms and conditions in advance instead of waiting to get matched with a partner lender.
The downside is that American Express’s term loans aren’t always available, so you’ll need to log into your account to see if it’s an option.
Seek Capital vs. OnDeck
OnDeck works with a more diverse set of business owners, including smaller shops and borrowers looking for business loans with bad credit. If you need a quick business loan, OnDeck can deliver your funds as soon as the same business day, compared to Seek Capital’s one- to three-week timeline. In addition, OnDeck is a direct lender, meaning its in-house financial advisors can help address any questions or problems that may arise, even after you’ve received your funds.
However, you’ll likely pay a steep price for OnDeck’s speedy funding, with the average rate for its term loans at 60.9%, and 52.6% for lines of credit. Additionally, OnDeck requires businesses to operate for at least one year with a minimum annual revenue of $100,000, making it a less ideal choice for startups and low-earning companies.