An online lender that claims to finance businesses in just 24 hours.
|Product Name||QuarterSpot Business Loans|
|Loan Term||9 to 18 months|
|Min. Credit Score||550|
|Requirements||550+ FICO, 12+ months in business, $16,000+ monthly revenue and $2,000+ in daily balance|
- Personal FICO score must be at least 550.
- Be in business for more than one year.
- An average monthly revenue of $16,000 or more.
- An average of 10 sales or more per month.
- An average daily balance of $2,000 or more per month.
- Not a resident of North Dakota, Rhode Island, South Dakota or Vermont.\
First, do I qualify?
You’ll need to meet the following criteria to qualify for a business loan from QuarterSpot:
- FICO score of at least 550. Your personal credit score needs to be at least 550 to qualify.
- Business is at least 12 months old. Make sure your business has either private or public record of being established at least one year prior to your application.
- Average monthly revenue of at least $16,000. The three months leading up to your application should average to at least this minimum.
- Average 10 or more sales a month. Similar to the above qualification, the three months prior to your application should average to 10 or more sales per month.
- Average daily balance of at least $2,000. Your average daily balance is an average based on the three months leading up to your application.
- Located in a state that QuarterSpot services. Residents of North Dakota, Rhode Island, South Dakota and Vermont currently don’t qualify for a business loan from QuarterSpot.
What is QuarterSpot?
QuarterSpot specializes in business loans of $5,000 up to $200,000 depending on your business’s qualifications. Terms are relatively short at 9 to 18 months.
While QarterSpot doesn’t advertise a range of rates, its starting APR is equivalent to 12.5 cents on the dollar. This includes an origination fee between 0.48% and 6.48% on any loan you take out, which QuarterSpot deducts from your loan proceeds.
QuarterSpot has two benefits that set it apart from its competitors. The first is its fast funding time. Depending on when you submit your information, how complete it is and your business qualifications, you may be able to get funded in as little as 24 hours.
The second is early repayment. Unlike many other short-term lenders, you won’t get stuck with fees or the remaining interest if you pay your QuarterSpot business loan off early.
What are the benefits of QuarterSpot business loans?
- No early repayment fees. You can end up saving a lot of money in interest payments when you pay off the entire amount of your business loan early. Many short-term lenders don’t allow for early repayment without you paying the remaining interest and penalties.
- Applying doesn’t impact personal credit. While you do have to have a minimum FICO score of at least 550, an application with QuarterSpot won’t affect your credit score. Being able to get a sneak peek at your eligibility and potential rates can be a huge leg up when you’re still trying to get a feel for what options exist for your business.
- Tight turnaround. A 24-hour turnaround is impressive for any lender, especially a business lender. Banks can take several weeks or even months to get funds to you.
What to watch out for
While the benefits of a business loan with QuarterSpot may make it seem like a shoo-in lender, there are other factors to consider. As with most short-term loans, a short funding time comes with a high cost.
- No APR range listed. Despite what ranges you might see listed on other sites, QuarterSpot doesn’t actually have a solid minimum or maximum APR range. Your most recent bank statements are run through an algorithm, which determines your interest rate. While it’s a neat process, it doesn’t allow for easy comparison.
- Maximum loan amount may not be enough. Depending on how ambitious of a budget you have, a loan of $200,000 may not cut it. Traditional lenders and even some online specialty lenders have much higher maximum loan amounts.
- Loan origination fee. Depending on your creditworthiness, your fee can be as high as 6.48% and is deducted from the loan amount before your funds are disbursed.
- Daily repayments. Your loan’s payments are deducted daily, which could make repaying your loan difficult if you have a seasonal business or have a bad day or week.