Who Balboa Capital Is Best For
Balboa Capital is best for:
- New businesses. Balboa’s minimum time in business requirement is just one year, making the lender a good fit for less established businesses.
- Businesses that need funds fast. Applicants may receive a lending decision within one hour, and same-day funding is available. This is faster than some lenders and makes Balboa a good option for borrowers who need cash quickly.
- Businesses that want short-term lending. Balboa Capital only offers repayment terms between three and 24 months. This results in high monthly payments but reduces the time interest can accrue.
- Business owners who don’t qualify elsewhere. In addition to its one-year time-in-business requirement, Balboa only requires a FICO Score of 620.
- Businesses that need access to flexible options. Balboa Capital offers extensive business lending options, including short-term business loans, equipment financing and franchise financing.
Who Balboa Capital Is Not Right For
Balboa Capital may not be the best lender for:
- Established businesses. Since Balboa Capital only requires one year in business, businesses open for more than one year may qualify for more competitive financing from a different lender.
- Businesses that will qualify elsewhere. Balboa Capital’s other qualification requirements are also less stringent than those other financial institutions impose. Companies that can qualify elsewhere based on higher credit scores, more robust revenue or other factors may be better served by another lender.
- Businesses with low revenue. Balboa Capital requires a minimum annual revenue of $300,000, which can make it difficult to qualify for newly established businesses.
- Businesses that need long-term financing. Since Balboa’s small business loan terms max out at 24 months, the lender is not a good source of long-term business loans. That said, equipment financing terms are available for up to 60 months.
Featured Partner Offers
1
OnDeck
$5,000 to $250,000
Not disclosed
625
2
National Funding
$10,000 to $500,000
Buy rates start at 1.11%
600
3
BlueVine
$6,000 to $250,000
Not disclosed
625
What Balboa Capital Offers
Balboa Capital offers various types of business financing, including small business loans, SBA loans, equipment financing, commercial financing, equipment vendor financing and franchise financing. Keep in mind, requirements may vary by financing type.
Borrowers can use funds to address various business needs, including paying suppliers, expanding their business or covering employee payroll. Qualified borrowers can also use loan funds to cover marketing expenses, inventory costs and business taxes.
- Small business loans. Balboa Capital’s small business loans are available from $5,000 to $250,000 —though larger amounts may be available with a more extensive application process.
- Equipment financing. Balboa Capital equipment financing is offered up to $500,000 for application-only hard collateral loans or up to $350,000 for soft collateral.
- SBA loans. Balboa Capital offers SBA 7(a) and 504 loans nationwide from $400,000 to $5 million.
- Commercial financing. Like the lender’s equipment financing option, Balboa Capital’s commercial funding is available up to $500,000 for application-only hard collateral loans or up to $350,000 for application-only soft collateral.
- Vendor financing. Businesses that want to help their customers finance equipment purchases can use Balboa Capital’s vendor financing options up to $500,000 for application-only hard collateral loans or up to $350,000 for application-only soft collateral loans.
- Franchise financing. Balboa Capital provides franchise financing nationwide up to $350,000 to help cover the cost of fixtures, equipment, new furniture, property improvements, brand mandates and remodeling.
Balboa Capital Loan Details
These are two of Balboa Capital’s small business loan offerings:
Balboa Capital Small Business Loans
Balboa Capital’s small business loans range from $5,000 to $250,000 , making them an excellent choice for businesses that need quick funding for growth, covering unexpected expenses or cash flow management.
The lender doesn’t disclose interest rates, and prospective borrowers can apply online and receive a decision within one hour, enabling fast access to funds.
The lender also offers a short-term repayment structure of three to 24 months, allowing businesses to pay back their loans more quickly, albeit with higher payments.
Balboa Capital Equipment Financing
Balboa Capital’s equipment financing is a flexible option designed to help businesses buy the machinery or technology they need. The lender offers equipment financing up to $500,000 for application-only hard collateral loans or up to $350,000 for soft collateral.
This means businesses can finance anything from heavy machinery to the latest software technology. Financing is available for 24, 36, 48 or 60 months, and Balboa Capital doesn’t require a down payment for its equipment loans, allowing businesses to maintain their cash flow while making investments for their growth.
Customer Service
Current and prospective borrowers can contact Balboa Capital’s customer support team by telephone Monday through Friday between 7 a.m. and 4 p.m. PST. Customer service is also available via online form and online chat. The lender reportedly responds to calls and requests made after regular business hours the next workday.
How To Qualify for a Balboa Capital Loan
Here’s how to qualify for a Balboa Capital loan:
Credit Score
Balboa Capital requires borrowers to have a FICO Score of 620 or higher to qualify for its business loans. Although there are other lenders that have lower requirements, this minimum credit requirement makes Balboa more accessible to borrowers who don’t qualify elsewhere.
Time in Business
Most business lenders require applicants to have been operating for a minimum amount of time before they can qualify for a loan. Balboa has a requirement of one year in business, less than some lenders require. This reduces risk to the lender as companies with at least one year in business are more likely to succeed than newer companies.
Annual Revenue
To qualify for a small business loan from Balboa Capital, a business must have $300,000 or more in annual revenue. As with time-in-business requirements, annual revenue requirements reduce the lender’s risk. If your business doesn’t meet this requirement, there are other lenders that work with businesses with less revenue.
Additional lending criteria also apply, so contact the lender for more information or submit an application online.
How To Apply for a Balboa Capital Loan
You can apply for a Balboa Capital loan online by providing basic information about you and your company. According to the lender, it only takes a few minutes to apply.
The application process is more involved if you want to borrow more than $250,000 in a small business loan. In this case, you’ll need to provide two years of fiscal year tax returns, audited/reviewed financial statements and current interims.
Balboa reports that one-hour approval decisions are available during regular business hours. Once all the necessary documents are signed and finalized, you may receive loan funds as soon as the same day if you opt for an automatic clearing house (ACH) transfer. You can make Balboa Capital small business loan payments daily or weekly through ACH transfer.
Customer Reviews
Balboa Capital has an A+ rating from the Better Business Bureau (BBB) and has been BBB-accredited since 1999. Reviews are positive on Trustpilot, with Balboa earning 3.8 out of 5 stars based on nearly 300 reviews.
Negative reviews are mainly focused on the lender’s customer service team, with some describing long wait times and difficulty getting a response. Some borrowers also report high interest rates, trouble understanding their monthly statements and issues with insurance requirements—especially for equipment financing.
Methodology
We reviewed Balboa Capital based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated Balboa Capital based on the weighting assigned to each category:
- Loan cost. 35%
- Loan details. 20%
- Eligibility and accessibility. 20%
- Customer experience. 15%
- Application process. 10%
Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at credit score requirements, whether the lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated Balboa Capital’s support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
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