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Balboa Capital Review

By
Matt D'Angelo
,
business.com writer
|
Apr 17, 2019
Home
> Finance
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Balboa Capital provides small businesses with good alternative lending options. As an SMB loan provider, this company offers standard loans, equipment leasing, commercial financing, vendor financing, franchise funding and business cash advances. Balboa caps most of its loans at $250,000. Terms vary by type of loan, but Balboa does provide both long- and short-term financing options. Balboa Capital earned our pick as best alternative lender for small business in 2019 thanks to its loan variety, commitment to working with small businesses and overall customer support.

Balboa Capital

Balboa Capital

The Best Business Loan and Financing Options of 2019

The Verdict

Based on its loan variety, commitment to working with small businesses and overall customer support, Balboa Capital earned our pick as best alternative lender for small businesses.

To view all our recommendations for small business financing, visit our best picks page.

Balboa's wide range of loan products make it a good option for small businesses. The company has a good reputation, and its loans have favorable rates and terms. It's committed to working with small businesses to find the loans they need. It has lenient qualifications and can ensure you get the funding you need.

While Balboa doesn't list specific rates for its loan offerings, it's easy to gauge the loan structure, terms and amounts. It provides an online loan calculator to give you an understanding of what your monthly payments will be like for your loan. The overall loan process provides business owners with an easy, direct way to get quick funding.

Pricing and Terms

To get individual rates for a Balboa Capital loan, you'll have to contact the company and go over your business's financial information. The payment structure also depends on the type of loan you apply for. We called Balboa to get an overview of the basic small business loan, but we had trouble getting in touch with the company. Balboa does provide FAQs pages for its loans, which have a lot of relevant information for small business owners.

This lender provides funding up to $250,000 for small businesses. Individual rates vary widely based on your financial situation. For small business term loans, expect terms of 3-24 months. This provides decent flexibility for small business owners. However, while 24 months is longer than most short-term lenders offer, it's still not as long as a lot of the long-term offerings from other companies we looked at.

These loans are unsecured, meaning you don't have to put up specific personal or business assets. You likely will have to sign a personal guarantee to get a loan, but Balboa doesn't have a lot of details about this process on its website. If you're concerned about collateral and signing a personal guarantee, it's a good idea to ask your loan specialist about it upfront when you call for a quote.

For cash advances, businesses will have access to something between $5,000 and $250,000. Terms range from three to 18 months, making this a short-term option compared to the small business term loans. These loans are also unsecured, but they may require a personal guarantee. Overall, Balboa's pricing and terms are on par with other lenders in the industry.

Company Features

With Balboa, borrowers can enjoy a quick lending process and relaxed qualification criteria from a company with a solid lending reputation. Here are a few of the company's key features.

Loan Process

Balboa's loan process is consistent with industry standards. You begin by filling out a basic application that asks for the name and location of your business, as well as how long you've been in business, your email address and business phone number. You'll also have to provide basic financial information, like annual revenue.

From here, you'll have to provide your personal information, like name, address, Social Security number and ownership percentage. Balboa has a quick preapproval process and the company will check your credit score. Once you've been preapproved, you can work with a loan specialist to nail down a concrete agreement. You may be able to get approved and funded in a few days, depending on your individual loan process.

Terms

Terms for individual loans are listed on Balboa's website. Its minimum loan term is three months. For the basic small business loan, expect terms between three and 24 months. For business cash advances, loans range from three to 18 months.   

Qualifications

The basic criteria for a small business loan with Balboa is that your company must have been in business for at least a year and have annual revenue of over $300,000. The company will also look at your credit score. It says it considers all credit scores, and it even has a separate offering for bad-credit loans. Qualifications for other loan products vary. For the business cash advance, for example, your business must be established for at least a year and have $10,000 in monthly credit and debit card deposits.

Collateral

Both the small business term loan and business cash advance are unsecured business loans with Balboa. While the company doesn't require specific collateral, it may require a personal guarantee. This is a legally binding statement that says if your business defaults on the loan, you personally will pay back the loan. If you're concerned about the concrete collateral requirements with Balboa, it's good to ask your loan representative upfront.

Special Documentation

Balboa doesn't outline any specific documentation requirements on its website, but it will likely require financial statements and other financial documentation. This allows it to determine your income, how long your business has been established and what type of loan your business can handle. Much like collateral, financial documentation is a good thing to ask your loan representative about upfront. Financial statements, tax returns and a business plan are all standard requests from alternative lenders.  

When to Use This Loan

Balboa provides a wide range of loans, which can cover just about any business expense. The standard small business loan is great for expanding your business, increasing cash flow, covering payroll, paying suppliers or business taxes, or investing in marketing. Balboa provides equipment financing as well, such as for software, machinery and other business equipment. The cash advances are good for businesses looking to better manage cash flow and increase liquidity within the organization. These loans have shorter terms than some of the others but still have a three-month term minimum. The only loan product we didn't see on Balboa's site was invoice financing, which can be used to get an advance on accounts receivable.

Balboa has no restrictions on what your business can use these loans for, and it has few restrictions on which organizations can qualify for a loan.

Reputation and Customer Service

Balboa has a strong online reputation, with an A- accreditation from the Better Business Bureau. It has 1 out of 5 stars in BBB customer reviews, though, with more than 65 complaints. The business worked through each complaint and helped the customer reach a resolution. While there are some negative reviews and complaints, a BBB score may not directly reflect a company's actual quality of service. Balboa scored highly on other review websites, for example.

We posed as small business owners, filled out a contact form and called Balboa to learn more about its service. After we filled out the initial contact form, Balboa contacted us, but we missed the call. We called back multiple times and left several voice messages with a loan specialist. Despite these efforts to contact Balboa, we didn't hear back.

Limitations

The only limitation we saw in Balboa's loan offering is that it won't lend to businesses without a physical location. This means online-only businesses can't get a loan from Balboa Capital. While this is a limitation, it's consistent with other alternative lenders.

Editor's note: Looking for a small business loan? Click the Compare Quotes button below to have our sister site BuyerZone connect you with vendors that can help.

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Balboa Capital

Balboa Capital

The Best Business Loan and Financing Options of 2019

The Verdict

Based on its loan variety, commitment to working with small businesses and overall customer support, Balboa Capital earned our pick as best alternative lender for small businesses.

Matt D'Angelo
Matt D'Angelo
Matt D'Angelo is a staff writer covering small business for Business.com and Business News Daily. After graduating from James Madison University with a degree in journalism, Matt gained experience as a copy editor and writer for newspapers and various online publications. In addition to his writing and reporting, Matt edits articles. He reviews small business services, including PEOs, small business loans and GPS fleet tracking services. He's been with Business.com and Business News Daily since 2017.