It’s Time to Look at Online Lender Balboa Capital
Balboa Capital is one of several lending companies in the online space. We look at their specifics and drill down into the details of their business funding options.
As always, we gave this lender every opportunity to give us up to date information. But note, if we receive updated information in the future, we will be sure to update this blog post.
Background
Balboa Capital is located online here: balboacapital.com/. The company is headquartered in Costa Mesa, California. They have satellite offices in San Ramon, California; Scottsdale, Arizona; Spokane, Washington; and Ontario, California.
Balboa Capital’s contact page is here: Contact. It appears this online lender has been in business since 2010.
Offerings
Balboa Capital serves as a direct lender, where you can get a business online loan. They offer small business loans, equipment leasing, and commercial financing. And they also offer vendor financing, franchise financing, and business cash advances.
Small Business Loans
This lender will loan up to $250,000. The cash is provided in days. There is a time in business requirement of at least one year. Another requirement is $300,000 or more in annual revenue. Furthermore, they will ask for your personal credit score. You need a ‘decent’ FICO to get loans for small businesses from Balboa.
Equipment Financing
Balboa Capital will loan up to $500,000. Your company can get flexible terms. You need hard collateral for Balboa equipment financing up to $500,000. But you can use soft collateral for equipment financing of up to $350,000. There is a time in business requirement of at least one year. Another requirement is $100,000 or more in annual revenue to get financing for equipment. You will need a ‘decent’ FICO score.
Commercial Financing
Balboa handles transactions of up to $100 million. You must have at least one year in business. One requirement is $100,000 or more in annual revenue for finance for small businesses.
Vendor Financing
Balboa also provides financing to customers for your equipment. This is for equipment vendors. There is a time in business requirement of at least three years. Another requirement is $1 million or more in annual revenue for business loans new business. You need hard collateral for Balboa vendor financing up to $500,000. But you can use soft collateral for vendor financing of up to $350,000.
Franchise Financing
Balboa Capital will loan up to $500,000. There is a time in business requirement of at least one year. Another requirement is $100,000 or more in annual revenue. You need hard collateral for Balboa franchise financing up to $500,000. But you can use soft collateral for franchise financing of up to $350,000.
Business Lines of Credit
Get a business line of credit for up to $250,000. Repay daily, weekly or monthly. You must be in business for at least one year. Another requirement is $300,000 or more in annual revenue for Balboa financing. Also, you must have a ‘decent’ FICO score.
Fees
Their fees do not seem to be listed on the Balboa Capital website. Balboa Capital reviews online (on Yelp) report that there are termination fees and substantial late fees.
Advantages
One advantage is the size of Balboa Capital’s business cash advances. Another advantage is how you will not need collateral in order to get such an advance.
Disadvantages
A very big disadvantage is that their fees have no listing on their website. Only you can decide whether this apparent lack of transparency is an issue for you.
Takeaways
So an apparent lack of transparency should be of concern. However, if your company needs to get a cash advance, then Balboa Capital funding could be your solution. The variety of offerings is encouraging. No matter what, always be sure to read any complaints on the BBB website. Although, if they do not apply to your unique situation, then they should not carry as much weight as complaints which do.
And pay attention to any complaints regarding Balboa Capital customer service.
But note that there was a 2019 class action lawsuit against Balboa Capital. In 2020, Balboa Capital complaints led to the settlement of at least one other lawsuit.
And finally, as with every other lending program, whether online or offline, remember to read the fine print. And do the math. Go over the details with care. And decide if working with Balboa Capital will be good for you and your company. In addition, consider alternative financing options that go beyond lending. So these include building business credit, in order to best decide how to get the money you need to help your business grow.
