Balboa Capital Review

By Simone Johnson,
business.com writer
| Updated
Jun 09, 2020
Image Credit: Dutko / Getty Images
 

Balboa Capital is a good short-term loan option for small businesses because it offers $5,000 to $250,000 for terms of 3-18 months. Thanks to Balboa's commitment to working with small businesses, simple payback terms, lack of upfront costs and quality customer support, it has earned our pick for the best short-term loan option.

Balboa Capital

Balboa Capital

The Best Business Loan and Financing Options of 2020

The Verdict

Balboa Capital is an ideal short-term loan option because it offers up to $250,000 for terms of 3-18 months. No collateral is necessary for the loan, the rates are competitive, and Balboa has simple payback terms.

 

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

Pricing: Rates and Terms

Balboa Capital 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, unless you want a long-term loan. While 24 months is longer than most short-term lenders offer, it's still a short term for payback; you'll have to look elsewhere if you want to pay back your loan over three years or more.

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.

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, you'll have access to something between $5,000 and $250,000. Terms range from three to 18 months, making this an even shorter-term option than 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.

Balboa Capital Features

With Balboa, you can enjoy a quick lending process and relaxed qualification criteria from a company with a solid lending reputation. Here's what it offers or requires in these key areas.

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, how long you've been in business, your email address, and your business phone number. You'll also have to provide basic financial information, like your business's annual revenue.

From here, you'll have to provide your personal information, like name, address, Social Security number and ownership percentage. The company will then check your credit score. Balboa has a quick preapproval process, and 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 within a few days, depending on your individual loan process.

Terms

Balboa's 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, but it says it considers all credit scores, and it even has a separate offering for bad-credit loans.

Qualifications for its 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 the business cash advance are unsecured business loans. While Balboa doesn't require specific collateral, it may require a personal guarantee. This is a legally binding statement that you personally will pay back the loan if your business defaults on it. 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.  

Editor's note: Need a loan for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.

 

Balboa Capital Pros

Balboa's wide range of loan products make it a good option for small businesses. 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 or machinery. The cash advances are good for businesses looking to better manage cash flow and increase liquidity within the organization.

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. There aren't any upfront costs or hidden fees, the online application is simple, and no collateral is necessary.

While Balboa doesn't list specific rates for its loans, 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 an easy, direct way to get quick business funding. Balboa has no restrictions on what your business can use these loans for, and it has few restrictions on which organization types qualify for a loan.

Balboa Capital Cons

Balboa has a lot to offer applicants, but small business owners should know that this lender charges an origination fee. Also, to qualify for a small business loan, you need to be in business for at least one year, which can push out young startups seeking funding.

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 40 complaints. The business worked through each complaint and helped the customer reach a resolution. Also, a BBB score may not reflect a company's actual quality of service – Balboa scored highly on other review websites, for instance.

Posing as small business owners, we filled out a contact form and called Balboa to learn more about its service. Although that procedure didn't work well and we ended up not getting in contact with the company that way, we then called its phone line directly and spoke with a representative. They were very patient and asked us many questions so they could fully understand our business and its needs. The representative was also direct and upfront about what would be our best options and seemed committed to helping us understand what Balboa Capital offers.

 

Balboa Capital

Balboa Capital

The Best Business Loan and Financing Options of 2020

The Verdict

Balboa Capital is an ideal short-term loan option because it offers up to $250,000 for terms of 3-18 months. No collateral is necessary for the loan, the rates are competitive, and Balboa has simple payback terms.

Simone R. Johnson was born and raised in New York City. She graduated from the University of Rochester in 2017 with a dual degree in English language media and communications and film media production. She has been a reporter for several New York publications prior to joining Business News Daily and business.com as a full-time staff writer. When she isn't writing, she enjoys community enrichment projects that serve disadvantaged groups and rereading her favorite novels.