SmartBiz Business Loans Review
10.25% to 14.00% for SBA loans, Based on the current prime rate of 7.50%. starting at 12.99% for term loans, SOFR You can find today’s Secured Overnight Financing Rate (SOFR) on the website of the Federal Reserve Bank of New York. + 12.99% to 28.99% for lines of credit
$50,000 to $500,000
Six months for line of credit and two years for SBA and term loans
Not disclosed
Pros and cons of SmartBiz
| Pros | Cons |
|---|---|
| Short repayment terms available Custom financing available outside standard products Compare quotes from multiple lenders at once with marketplace model | Higher starting interest rate compared to some competitors Potentially high fees, including referral fees for term loans Not a direct lender |
SmartBiz small business loans review
SmartBiz is a financing marketplace, which means they don’t lend to borrowers directly. Instead, borrowers can use SmartBiz to get multiple quotes from different lenders and recommendations from the SmartBiz team. They’ll then connect you to the lender of your choice.
SmartBiz primarily focuses on business term loans, SBA loans and business lines of credit. They can offer relatively competitive interest rates, though other direct lenders may offer lower interest rates outright — and you won’t know the rates you qualify for until you’re matched with a lender.
It may be a good option for business owners who want to consider multiple loan options. However, it’s important to keep an eye on referral, origination and package fees from this marketplace, as they may be higher than closing costs from direct lenders.
Who is SmartBiz best for?
- Businesses looking for short repayment periods. SmartBiz’s loan products have relatively short repayment terms, with term loans ranging from 24 to 60 months and a 36-month repayment period for lines of credit.
- Businesses that want quotes from multiple lenders at once. SmartBiz is a marketplace, allowing borrowers to review quotes from multiple lenders after the prequalification process.
SmartBiz small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated rate range | Fees |
|---|---|---|---|---|
| Term loans | $50,000 to $300,000 | 24 to 60 months | Starting at 10.99% |
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| SBA 7(a) loans | $50,000 to $500,000 | 120 months | 10.25% to 14.00% for SBA loans Based on the current prime rate of 7.50%. |
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| Line of credit | $50,000 to $100,000 |
| SOFR + 12.99% to 28.99% You can find today’s Secured Overnight Financing Rate (SOFR) on the website of the Federal Reserve Bank of New York. |
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Term loans
SmartBiz’s short-term loans have repayment terms of two to five years and relatively low loan amounts, ranging from $50,000 to $300,000. As a result, these loans may be best suited for small business owners who need a capital boost for a relatively short period of time.
SmartBiz notes that most businesses currently in good financial standing and that have been operational for at least two years are likely good candidates for their term loans. However, make sure you’re comparing potential closing costs and other loan fees, as SmartBiz’s term loans automatically include 3% referral fees and 3.00% package fees.
Line of credit
SmartBiz can facilitate business lines of credit ranging from $50,000 to $100,000. These lines of credit allow borrowers to withdraw from the available fund balance as needed during the 24-month draw period and pay it back over the 36-month repayment period. While the flexibility of lines of credit can be exceptional, especially since you’re only paying interest on the funds you’ve withdrawn, this is another product to monitor for potentially high fees.
SmartBiz calculates its lending rates for lines of credit on the Secured Overnight Financing Rate (SOFR). The SOFR changes regularly — you can see today’s rate and learn more about how it works on the website of the Federal Reserve Bank of New York.
SBA 7(a) loans
SBA 7(a) loans are government backed and provide financial assistance to small businesses, but are managed through lenders like banks and credit unions. This means that interest rates and lending terms are restricted based on the program’s requirements, which can help borrowers get more competitive terms.
SmartBiz’s SBA loans range from $50,000 to $500,000 with two- to five-year repayment terms. There may be a packaging fee and closing costs, so it’s important to review the terms of your loan before accepting.
Customized financing options
While SmartBiz focuses primarily on term loans, lines of credit and SBA loans, they do partner with non-bank lenders to offer customized financing tailored to individual business needs. These options can include:
- Business credit cards
- Invoice factoring
- Merchant cash advances
- Equipment loans
Obtaining custom funding may be faster than the other standard financing options they offer, but because they work with non-bank lenders on custom deals, there’s no disclosed information regarding loan limits, interest rates or fees.
SmartBiz borrower requirements
| Minimum annual revenue | Not disclosed |
| Minimum time in business |
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| Minimum credit score |
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Eligibility requirements may vary depending on the type of funding you’re interested in. SmartBiz has few published eligibility requirements and doesn’t disclose required annual revenue or minimum credit scores for some products. Proving that your business’s cash flow can consistently handle monthly payments will be an important part of the consideration process.
They do note that if you don’t qualify for their standard financing options, custom financing may be available through non-bank private lenders.
Required documents
The following documents are required to apply for an SBA loan through SmartBiz and are helpful to have on hand for all funding applications:
- Three years of personal and business tax returns
- Personal financial statements of all individuals owning 20% or more of the company
- Profit & loss (P&L) statement
- Balance sheet
- Proof of collateral, if required for the funding you’re applying for
- Essential documentation like business licenses, commercial leases or franchise agreements
These documents can help lenders ensure that you’re meeting their business loan requirements and qualification standards.
Alternatives to SmartBiz
| SmartBiz | Finance Factory | Bank of America | |
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| Direct lender or marketplace | Marketplace | Marketplace | Direct lender |
SmartBiz vs. Finance Factory
SmartBiz and Finance Factory are both lending marketplaces, playing a role in helping you review loan options before connecting you to a direct lender.
Finance Factory offers more types of loan products outright, including equipment financing and merchant cash advances. However, some of these additional loan products are listed under SmartBiz’s “custom financing” solution.
Finance Factory has several loan products that are available to borrowers with credit scores at 600 — or even 550 — who may not be eligible for funding at other lenders. SmartBiz doesn’t have minimum credit scores published.
Finally, Finance Factory may have slightly higher maximum loan sizes, providing more flexibility in funding for businesses who are interested in borrowing more.
Read more in our Finance Factory review.
SmartBiz vs. Bank of America
Unlike SmartBiz, Bank of America is a direct lender. Borrowers can apply for financing and receive funds from Bank of America. This can help reduce fees like closing costs and origination fees and likely eliminates potential referral fees. For example, Bank of America charges $150 in origination fees for unsecured term loans, which is much less than potential fees charged by SmartBiz.
Bank of America may also offer better interest rates for loan products, but this also comes alongside potentially more stringent eligibility requirements, such as 700 credit scores and at least $100,000 in annual revenue for term loans and unsecured lines of credit. Their secured line of credit is more flexible, requiring only six months in business and $50,000 in annual revenue, but requires a $1,000 refundable security deposit at minimum.
Borrowers who prefer to work with established direct lenders may benefit from working with Bank of America instead of a marketplace. However, borrowers who don’t meet these eligibility requirements or who want to consider multiple loan products may benefit from a marketplace like SmartBiz.
Read more in our Bank of America review.