Published By Janet Gershen-Siegel at April 20, 2018
Able and Able Lending are one of several online lending companies. We take a look at the specifics and drill down into the details.
Able and Able Lending are located online here: https://www.ablelending.com/. Their physical address is here:
They have been in business since 2009 as a hybrid lender (they offered crowdfunding, P2P lending and traditional installment loans). Initially, customers were able to choose between getting their funding from online lender Able Lending, their friends and family, or a mixture of both. However, they apparently switched over to being a more traditional lender in 2015. They have an A+ rating with the Better Business Bureau, and evidently no complaints have been filed.
Able offers what they refer to as “a new kind of loan”. They offer SBA Loans and also Debt Refinancing.
Able offers SBA 7 (a) Loans. See: https://www.sba.gov/blogs/sbas-7a-loan-program-explained for more information.
Depending upon company size (such as number of employees, amount of annual revenue, etc.), the SBA offers loans through lenders, including Able. These loans cover fixed asset needs such as the capital needed for purchasing equipment, furniture, or machinery. Loans can also cover buying fixtures, supplies, material, etc. Terms (these are defined by the SBA) go up to 25 years. Loans are up to $5,000,000.
Rates can be fixed or variable. There are no fees for loans up to $150,000. Rates are 3% of the guaranteed portion for loans from $150,001 to $750,000. Plus rates are 3.5% of the guaranteed portion up to $1 million for loans from $750,001 to $1 million and 3.75% above $1 million.
Able also offers business loan refinancing which decreases payments. However, it increases the term of the loan.
Their rates start at 8%.
Advantages are that there are no fees for loans of up to $150,000. In addition, their fees cap at 3.75% for loans over $1,000,000. According to Able: “On average Able’s borrowers save $31,000 on loans between $25,000 and $1,000,000.”
Disadvantages are that these are SBA loans. So SBA loans are fine of course. But they are hard to qualify for. Hence if your company is unable to qualify for an SBA loan, then you should not be looking to Able for your financing.
Able and Able Lending arereally best for companies which qualify for SBA loans. If your company does, though, you can look elsewhere for SBA lending.
Hence their true advantage is SBA loans available through an online application. But if your lending institution of choice offers an online application, then Able’s advantage seems to disappear.
And finally, as with every other lending program, read the fine print and do the math. Go over the details carefully, and decide if this option will be good for you and your company.
Also consider alternative financing options that go beyond lending, including building business credit, in order to best decide how to get the money you need to help your business grow. Building business credit can help every single company out there, even startups. This is because it is a true asset. It increases the value of a company. You can get vendor credit and revolving store credit. Then you can move onto fleet credit and finally cash credit.
Furthermore, businesses which are unable to get SBA loans can qualify for business credit. So it may be that a business needs to build its own credit before talking to Able Lending in the first place.