Straightforward short-term loans up to $250,000
|Product Name||Breakout Capital business loans|
|Loan Term||6 months to 2 years|
|Min. Credit Score||600|
|APR||Starting at 15.01%|
|Requirements||At least one year in business, 600+ credit score, at least $10,000 in monthly revenue|
- At least one year in business
- 600+ personal credit score
- At least $10,000 in monthly revenue
First, do I qualify?
To be eligible for business financing from Breakout Capital, you must:
- Have a credit score of 600 or higher
- Be at least one year in business
- Make at least $10,000 a month
What makes Breakout Capital business loans unique?
Breakout Capital is one of the most straightforward short-term online business lenders out there. While many are unwilling to share rates, fees and even eligibility criteria, Breakout Capital generally spells out what you’re getting into in plain English.
It also allows you to renew your loan if you need more time to pay it off. If you still owe interest on the loan you renew, Breakout Capital doesn’t add that interest to your loan balance — unlike some other short-term business lenders. This means you won’t end up paying interest on interest.
Have any more questions? We were pleased to find that its customer service team didn’t beat around the bush when it came to questions we had about how it works.
What is Breakout Capital?
Breakout Capital is an online direct lender that offers unsecured short-term business loans ranging from $6,000 to $250,000. Businesses have between 0.5 years and 2 years to pay them back at rates starting at 1.25% per month — equivalent to Starting at 15.01% APR.
Before your business gets its funds, Breakout Capital deducts a 2.5% origination fee from the loan amount. So if your business qualifies for a $10,000 loan, it actually receives $9,750, but you’ll still be on the hook for paying back $10,000.
Depending on your loan amount and business cash flow, you might end up with daily, weekly or monthly repayments. Monthly repayments are more flexible, but are also typically more difficult to qualify for.
Breakout Capital FactorAdvantage loan
Breakout Capital also offers another type of short-term loan for businesses that rely on invoice factoring called the FactorAdvantage loan. Small businesses can borrow up to $500,000 for cashflow assistance that factoring doesn’t cover — like when your unpaid invoices aren’t ready for factoring but you still need funds.
FactorAdvantage comes with fewer requirements than the business term loan: There’s no minimum credit score, time-in-business or monthly revenue criteria to meet. Rates and fees are also the same as the term loan.
What are the benefits of a Breakout Capital business loan?
- Fast turnaround. As long as your business can submit documents the same day it applies for a loan, it can get funds in as little as 24 hours.
- Not required to be profitable. Businesses that haven’t started to make more money than they spend each month can still qualify for financing from Breakout Capital.
- Strong customer service. You can call or email Breakout Capital to get quick, straightforward answers to your questions.
- Option to renew. As long as your business is eligible, it can apply to reborrow the amount it’s paid back before fully paying off the loan — similar to a credit card.
What to watch out for
- Daily, weekly or monthly repayments. Daily and weekly repayments might not be the right option for businesses that don’t have a strong, consistent cash flow.
- Not available in all states. Your business can’t qualify for a Breakout Capital loan if it’s located in California, Nevada, Montana, North Dakota or Vermont.
- Rates aren’t always clear. Breakout Capital advertises monthly interest rates instead of APRs, which can be deceptively low.