Revolving lines of credit up to $150,000 with this startup-friendly provider.
|Product Name||Guidant Financial|
|Min. Credit Score||690|
|APR||12% to 18%|
|Requirements||690+ credit score, less than 50% credit utilization ratio, few credit inquires, no recent negative lines on credit report|
- Have a credit score of at least 690.
- Have a credit utilization ratio under 50%.
- Have few to no credit inquiries.
- Have no derogatory marks on your credit report.
First, do I qualify?
To be eligible for an unsecured business loan from Guidant Financial, your business must have:
- A credit score of at least 690
- A credit utilization ratio under 50%
- Few credit inquiries
- No derogatory marks on your credit report
What is Guidant Financial?
Guidant Financial connects entrepreneurs and small businesses with one of the 3,600 lenders and banks in its network. Its unsecured business loans are revolving lines of credit that work a lot like a credit card. This means that they don’t require collateral, you have access to your funds as long as you need it and you repay your balance in monthly repayments.
Credit limits start at $10,000 and go as high as $150,000. If your business qualifies for a 0% introductory rate, you won’t have to pay interest on the balance during the first 12 to 18 months of the loan. After that, interest rates range from 12% to 18%.
While you can start to fill out the form to get connected with a lender on its website, the majority of it takes place over email and the phone, which can be less secure. After you complete its online form, your business can get an offer within 48 hours. After that, it can take between three and four weeks to get your funds.
What makes Guidant Financial’s unsecured business loans unique?
These unsecured business loans are much closer to a credit card than your typical line of credit. Instead of having your funds turn into a term loan each time you make a withdrawal, the amount is added to your business’s balance. Like with a credit card, your business won’t have fixed installment repayments but minimum monthly repayments — making it more flexible in emergencies.
Aside from the fact that you won’t have plastic on hand, the main difference between this loan and a credit card are the interest rates. Even Guidant’s highest rate is lower than what a lot of business credit card companies offer. It’s also a fixed rate, so it stays the same during the life of your loan.
What are the benefits of a Guidant Financial business loan?
- Startup-friendly. Your business can still be in the planning stages to qualify for funding from Guidant Financial.
- Competitive rates. Even after the promotional period is over, Guidant Financial’s rates are competitive compared to other business lines of credit and credit cards.
- Interest-free promotional period. You could qualify for a 0% intro APR for the first 12 to 18 months of your loan.
- Revolving credit. There’s no set end date to your account so your business can have access to funds as long as it needs.
What to watch out for
- Long turnaround time. It can take as long as three or four weeks to get your funds.
- High setup fee. Guidant charges a 9% fee when you set up your line of credit — higher than the standard 1% to 5% origination fee.
- Send information via email. With phishing scams and other security breaches, your email sometimes isn’t the safest way to send your information to a lender.
- Good credit required. Guidant’s cut-off FICO rating of 690 is generally considered good credit — and you’ll likely need a higher score to get the most competitive rates and highest limits. If you want to compare bad credit business loans, you’ll have to look elsewhere.