SMALL BUSINESS LOANS REVIEWS
Read our review of
Written by Sarah George
Edited by Robert Thorpe
Updated Aug 27, 2024
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At a glance
3.8
Rating: 3.8 stars out of 5
Bankrate Score
Bankrate Rating = 3.8/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Accessibility
Rating: 4.1 stars out of 5
Affordability
Rating: 4.5 stars out of 5
Customer experience
Rating: 3.5 stars out of 5
Transparency
Rating: 3 stars out of 5
Flexibility
Rating: 3.8 stars out of 5
How Bankrate Scores workArrow Down Icon
Overview
Founded in 2006, eCapital is an online lender that focuses on alternative business financing for small and medium-sized businesses. Its main products include asset-based financing and several types of accounts receivable financing.It’s especially known for its freight factoring with tools used to help truckers access funds and even find loads.
Lender Details
Loan amount
$250,000-$50 million
Interest rate
Not stated
Term lengths
Not stated
Min. annual revenue
Not stated
Min. time in business
6 months
Who eCapital is best for
Since eCapital focuses on high-dollar secured and alternative financing, it’s best for businesses with significant assets that can guarantee loans. You can even secure an asset-based loan with intellectual property like patented designs.
When evaluating businesses, the lender looks for asteady flow of revenue, which can take at least six months to a year to establish, according to a spokesperson.
Who eCapital may not be best for
If you’re looking to quickly learn about a lender and what they offer, you’ll have better luck with other lenders. eCapital’s website doesn’t offer many details that could help small business owners make important financial decisions.
Other lenders disclose important information about their loans, such as loan amounts, interest rates and repayment lengths. This includes SMB Compass, which shows terms for all nine of its loans in one location.
Plus, eCapital doesn’t offer conventional business loans like term loans or equipment financing, instead focusing on alternatives that lenders considerriskier types of loans. You’ll need to look atother lenders if you need conventional types of loans. It also doesn’t work for businesses needing small loans under $250,000.
eCapital: in the details
Loan amount
$250,000-$50 million
Interest rate
Not stated
Term lengths
Not stated
Min. annual revenue
Not stated
Min. time in business
6 months
Personal credit score
600
eCapital pros and cons
Pros
High loan amounts
Accepts newer businesses
Cons
Doesn’t offer conventional loans
Limited information on website
No online application
Business loan types offered
Asset-based financing
Equipment refinancing
Accounts receivable financing
Additional loan options
Loan quick facts
- Amounts:$1 million to $10 million
- Terms:Not stated
- Interest rates:Not stated
eCapital asset-based financing overview
One of this lender’s specialties is providingloans secured by assets, allowing businesses to borrow a percentage of the asset’s value. The website states that you need two years or more in business and at least $20 million in revenue to qualify.
The loan amount is determined by a formula for different types of assets, such as:
- 90% of accounts receivable
- 75% of M&E appraised value
- 75% of inventory (if liquidated)
- 50% of real estate fair market value
- 40% of intellectual property
On eCapital’s website, there is some discrepancy in the maximum loan amount offered. It states that its product is a good fit for businesses needing up to $50 million, while elsewhere it specifically mentions $1 million to $10 million.
Loan quick facts
- Amounts: Up to 85% of equipment value
- Terms:Not stated
- Interest rate:Not stated
eCapital equipment refinancing overview
Yourbusiness can refinance long-term commercial equipment to lower monthly payments and tap the equity you’ve built up. eCapital will appraise your equipment based on its net orderly liquidation value (NOLV). If approved, you’ll be offered a term loan for up to 85 percent of the NOLV, though the website states either 75 percent or 85 percent in different places. Your equipment will need to be appraised again every two years.
Loan quick facts
- Amounts: $250,000 to $30 million
- Terms:Up to 90-day payment terms
- Discount rates:1% to 4% of total invoices
eCapital accounts receivable financing overview
The lender also specializes in different types of accounts receivable financing, giving you an advance on unpaid invoices. The website states that it will advance up to $30 million, though a spokesperson stated the limit is $25 million. Its accounts receivable financing includes:
- Invoice factoring.Invoice factoringlets you sell outstanding invoices with payment terms of up to 90 days. eCapital will advance a portion of the invoice amount, collect payment and take out fees of 1 percent to 4 percent. A spokesperson stated that this option requires a minimum credit score of 600.
- Payroll funding.Designed for staffing companies, this option lets you either sell unpaid invoices to eCapital or use the accounts receivable for an asset-based loan. You use the funds to keep employee payroll flowing.
- Freight factoring.Trucking companies canget financingthrough unpaid invoices in exchange for an advanced amount, similar to invoice factoring. The lender also offers a platform to find new truck loads while on the road, get fuel discounts and get paid instantly to your bank account.
This lender also offers lines of credit as an add-on option for businesses already receiving financing through eCapital. The line of credit can cover operational expenses and keep cash flowing in the midst of revenue gaps.
Do you qualify?
eCapital isn’t specific about what it takes toqualify for its loans. For asset-based lending, the website states that you need two years in business and at least $20 million in annual revenue.
But a spokesperson told Bankrate that they weigh underwriting criteria other than revenue andcredit score. The lender is looking for established revenue, and time in business requirements vary by the business’s industry.A spokesperson stated that it can take six months to a year to get the established revenue eCapital is looking for.
What we like and what we don’t like
The alternative lender considers a variety of underwriting factors not tied to a business’s revenue or credit score. But it’s not without its downsides. What to keep in mind about eCapital:
What we like
- High loan amounts.Itsloan amountsreach into the millions of dollars, high maximums for an alternative lender.
- Accepts newer businesses.eCapital doesn’t focus on time in business requirements, as the lender is more concerned with seeing an established revenue.
What we don’t like
- Doesn’t offer conventional business loans.You can’t findconventional types of loanslike business term loans, and its line of credit is an add-on product.
- Not transparent about rates and terms.Unlike other fintech lenders, eCapital doesn’t post its eligibility guidelines online.
- No online application.Most online lenders offer quick, online applications, but you have to call to start the process with eCapital.
How eCapital compares to other lenders
Unlike most lenders, eCapital focuses on alternative business financing and doesn’t have set requirements for credit score and time in business. How it compares to similar lenders in the market:
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Loan amount
$250,000-$50 million
Interest rate
Not stated
Term lengths
Not stated
Min. time in business
6 months
Min. business annual revenue
Not stated
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Loan amount
$10,000-$10 million
Interest rate
7.99% APR
Term lengths
6 months-25 years
Min. time in business
6 months
Min. business annual revenue
$100,000
Read our reviewArrow Right Icon
on Bankrate
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Loan amount
$3,000-$5 million
Interest rate
0.90% Simple interest | 1.19 Factor rate
Term lengths
3 months-5 years
Min. time in business
2 months
Min. business annual revenue
$100,000
Read our review
on Bankrate
eCapital vs. SMB Compass
Both eCapital andSMB Compassoffer alternative business loans, such as asset-based loans. But SMB Compass expands its products to conventional options like term loans, business lines of credit andequipment financing. It also offers lower starting loan amounts as little as $10,000, helping out the littlest businesses.
eCapital starts its loans much higher at $250,000. SMB Compass is transparent about its terms and interest rates online, while businesses need to get a quote from eCapital to understand borrowing costs.
eCapital vs. Funderial
eCapital sticks with alternative financing, while Funderial offers a variety of conventional and alternative loans. Funderial's lineup includes startup financing, term loans, merchant cash advances and accounts receivable financing.
Funderial requires six months in business and $100,000 in annual revenue. eCapital will accept newer businesses depending on the industry, but it doesn’t base approvals on a set amount of revenue or time in business. Funderial offers loans up to $2 million, while you can get loans from eCapital up to $50 million, one of the highest limits available, especially for an online lender. Neither lender is upfront about its interest rates and fees.
How to apply for a loan with eCapital
You’ll need to talk with a loan specialist directly to get a loan with eCapital. You can either fill out its contact form for a callback, or talk with a representative by calling 888-690-0432.
The lender doesn’t provide alist of documentsyou’ll need to apply. But generally, lenders want to see:
- Business formation documents
- Past business tax returns
- Bank statements
- Profit and loss statements
- Proof of ownership for assets
- Valuation of assets
eCapital frequently asked questions
How Bankrate rates eCapital
Overall Score | 3.8 | |
---|---|---|
Accessibility | 4.1 | eCapital accepts newer businesses and looks beyond credit score for eligibility. But it doesn’t offer small loan sizes. |
Affordability | 4.5 | Of the fees disclosed, eCapital keeps fees for invoice factoring within the industry standard. |
Transparency | 3.0 | It’s difficult to get loan information without calling a representative. |
Customer experience | 3.5 | eCapital doesn’t offer an online application like most online lenders. |
Flexibility | 3.8 | The lender offers several loans, some like invoice factoring that you can’t find everywhere. But it lacks conventional loans as well as details about repayment terms. |
Methodology
47
years in business
30+
lenders reviewed
22
loan features weighed
770+
data points collected
To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 30 lenders and gave each a rating, which consists offive categories:
- Accessibility:Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
- Affordability:This section measures interest or factor rates and fees.
- Transparency:How easy it is to find important rates, fees and eligibility requirements are considered in this category.
- Customer experience:Customer service hours, online applications and app availability are considered in this category.
- Flexibility:This category considers factors like the number of loan products and ability to change payment due date.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
On This Page
On This Page
- At a glance
- Who this lender is best for
- In the details
- Pros and cons
- Business loan types offered
- Do you qualify?
- What we like and what we don't like
- Lender comparison
- How to apply
- Frequently asked questions
- Our rating
- Methodology
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