Noble Funding Review

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

Noble Funding provides a range of lending options for small businesses and works with various other lenders to pair small businesses with the right funding. It also offers funding through its own programs, which include traditional invoice factoring as well as A/R credit lines for 90-day accounts receivable at $500,000 or more. Based on its customer service and reputation, commitment to finding the right loans for small businesses, and lending experience, Noble Funding earned our pick for best alternative lender for invoice financing in 2020.

Noble Funding

Noble Funding

The Best Business Loan and Financing Options of 2020

The Verdict

Noble Funding is our pick for best alternative lender for invoice financing. This offering is ideal for small businesses, but it also has other loan products to meet your needs.

 

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

Pricing: Rates and Terms

The overall structure of invoice factoring involves a discount rate. Instead of an interest rate, this fee is taken as each invoice is paid off. Depending on what kind of agreement you sign, this rate may fluctuate as invoices remain unpaid, though it will stay in this range.

Business with 90-day receivables over $500,000 can qualify for an A/R credit line. This invoice financing loan product functions like invoice factoring, but it is a line of credit. You borrow a certain amount against your accounts receivable and can draw on that amount as needed. Noble sales representatives described it as a revolving line of credit, meaning that the amount you can draw will fluctuate as your outstanding invoices move up and down. The A/R credit line has a more complex fee and rate structure and is suited for larger businesses.

One reason it may be harder to take out this type of loan is because your business needs to have strong, reliable collection and invoicing processes in place. As banks and lenders like Noble evaluate your company, they will assess these processes and your financial documentation to decide if an A/R credit line is right for your business.

Noble provides and arranges several other types of business loans, including long-term traditional loans, cash advances, unsecured business loans, equipment financing, inventory loans and purchase order financing. Rates and terms vary widely depending on your business's financial situation, but it's good to know that you have other options if you don't qualify for an A/R line of credit or if you find another loan product makes more sense for your business.

The long-term loans have starting rates of 9.99% and terms of three to five years. Fast cash business loans can be granted for up to $2 million and issued in just two or three days. The variety of loan products makes Noble a good alternative lender for small business owners.

Noble Funding Features

Noble Funding has many standout aspects. We looked at its specifics in each of these areas.

Loan Process

Noble's loan process starts when you contact the company for a quote. A Noble sales representative analyzes your business's financial history and establishes an overall offer. Depending on what type of loan you decide on, Noble will match you with a bank and facilitate the loan process. You'll likely have to provide basic business information and financial documentation that proves you own the business and have the income required for a loan. Once you get an initial quote, you'll be able to formally accept the proposal and continue with the loan process.

Term

The terms on invoice financing aren't like those of traditional business loans. Instead of you paying off principal and interest for a set amount of time, the term extends until the factoring or line of credit finishes. In other words, there's generally no defined term. You'll have to pay back your loan as money comes in from the outstanding invoices.

Qualifications

Noble can work with you to get the right loan for your business's size – whether that's invoice financing or another type of loan that Noble can facilitate or offer. There are two baseline qualifications to get invoice financing from Noble: Your unpaid invoices must be at least 90 days old, and they must total at least $500,000. From here, your business's financial history will determine the overall rate on the line of credit.

For invoice factoring, Noble can work with just about any size of business. Noble representatives told us that personal credit scores don't factor heavily into the decision. The one major issue that could prevent a business from obtaining a loan is if a lien has been placed on its assets. However, banks often look at your clients' financial operations and credit history through a third-party credit check, allowing them to assess your customers' financial stability and reliability (which, with invoice factoring, translates to your ability to repay the loan).

Noble said that if you have some customers with rocky credit history, banks may not finance those customers' invoices, but you can still get funding on your other customers.

Collateral

For invoice factoring, your accounts receivable function as collateral. Banks will also place a UCC-1 filing on some of your corporate assets to secure the loan for the creditor. You won't have to put up personal assets to get an invoice financing loan with Noble; the UCC-1 filing serves as collateral in the event you default on the loan. This filing can be placed either on certain assets or as a blanket lien.

Time Until Deposit

Once you've been approved, your payment could be issued in as little as two or three days. The overall process should take under a week, depending on how much you're asking for and your business's financial history.

Special Documentation

For invoice financing loans, you'll have to provide documentation to verify that you're a majority holder in the business and that your business can financially support the loan.

In general, it's a good idea to have all your financial documentation – including copies of your photo ID, business address verification and financial statements – ready before you talk to a bank. If you have questions about the information you'll need to provide, your Noble representative can set you on the right track.

Noble Funding Pros

Noble Funding has a compelling offer. It provides a range of suitable loan options and manageable qualifications for small businesses. 

Invoice financing is ideal for small businesses with large outstanding invoices. Noble can help you get funds upfront so you can better manage your cash flow and invest in your business's growth. It will partner you with a bank to get you up to an 85% advance on your outstanding invoices. Some industries, like trucking, qualify for a 90% advance.

Noble's invoice financing functions as a line of credit, so you can draw on your outstanding invoices and use the cash as you need it, such as for marketing or advertising, hiring a new employee, covering payroll, expanding your business, acquiring another business, buying new equipment or business materials, or managing your cash flow. Noble also provides long-term loans and various other financing options for small businesses. 

Noble Funding Cons

Noble Funding doesn’t have many disadvantages, but for business owners looking to qualify for a short term bridge loan, they need to have at least a 51% of ownership share, which could be a lot for some business owners.

Reputation and Customer Service

Noble Funding is ranked as an A+ business with the Better Business Bureau. There weren't any individual reviews of the company on the site when we checked, but we found good reviews of the company on various other websites.

We were impressed with Noble's customer service. To evaluate its support, we posed as a small business owner and spoke with several company representatives. In all instances, Noble's sales team gave us the answers we needed, even pointing us to other lenders and types of loans that made more sense for our business. The representatives were friendly, and at no point did they try to make us sign an agreement or convince us to take on a loan that wasn't ideal for our business. They explained everything thoroughly and were willing to follow up with us as needed.

Based on our hypothetical business's finances, Noble representatives suggested invoice financing. One element that impressed us is that representatives made it clear that they not only wanted to help us find the appropriate type of financing, but they wanted to match us with a loan that would grow with our business. They provided email contact information so we could follow up when our business was ready. They offered to answer any questions at any time, by either phone or email.

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

 

Noble Funding

Noble Funding

The Best Business Loan and Financing Options of 2020

The Verdict

Noble Funding is our pick for best alternative lender for invoice financing. This offering is ideal for small businesses, but it also has other loan products to meet your needs.

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.