Accion Opportunity Fund Small Business Loans Review

Pros

• Borrower qualifications are lower than going through banks
• Monthly repayments
• No prepayment penalty
• Customer service is helpful

Cons

• Rates can be expensive
• Some additional fees charged
• Not available in every state

What Is The Accion Opportunity Fund?

Accion offers small business loans for a variety of purposes with a focus on women, minority, and foreign-born business owners. Accion’s APR rates are relatively low, topping out around 16,99%. There is no prepayment penalty, but other fees, such as closing costs and processing fees, may apply. While the fees can get a little high in comparison to bank loans, these rates are comparable to those of other lenders in the alternative lending space. Naturally, the specific rates given to you will depend on your creditworthiness, the strength of your application, and other factors.

Accion’s low borrower requirements make it a great option for startups, minority-owned businesses, and businesses with low credit that may not qualify for other lending options. The lender’s commitment to financially empowering and educating people makes it hard to not like Accion.

To learn more about this lender, read on!

Services Offered By Accion

Accion offers installment loans (read our guide about installment loans here), which are also commonly referred to as term loans, for many business purposes. Installment loans provide the borrower with a lump sum of cash. The borrower then pays back the amount borrowed, called the principal, plus interest over a timeframe called the term.

Accion also offers equipment financing, which is also provided in the form of installment loans. These loans, however, use the equipment purchased as loan collateral.

Accion specializes in lending to businesses in the following categories:

• Women-owned business loans
• Veteran-owned business loans
• Startup business loans
• Small business loans
• Salon and spa loans
• Restaurant and food industry loans
• Native American business loans
• Minority-owned business loans
• Loans for childcare businesses
• Green business loans
• Food and beverage business loans
• Business loans for people with disabilities

Accion offers a decent, no-frills variety of short-to-medium-term loans with average borrowing amounts. There aren’t too many of the bells and whistles you might find with for-profit lenders like dedicated apps for repayment. We rate Accion 2.1/5 for its breadth of services.

Accion Borrower Qualifications

Borrower qualifications vary by state. Visit Accion’s site to learn your specific state’s requirements. Here are the general requirements you most likely will need to meet to qualify for an Accion loan:

In addition, you must be over 18 and own at least 20% of the business.

Loans are not available in the following states: MT, ND, SD, TN, and VT. Additionally, the following states have higher minimum borrowing amounts than what’s listed below: AK, CT, KY, MD, MN, NH, NC, OR. And finally, the following states have restrictions on the types of businesses that can apply (in most cases, this means some kind of formal incorporation, LLCs, LLPs, etc.): DE, MN, NV, NJ, NY

Credit score and revenue requirements are quite easy to meet, and the 1-year time in business requirement, while longer than those of many fintech lenders, is significantly shorter than you’ll generally see with traditional lenders. The state restrictions, however, do limit eligibility. We rate Accion 3.6/5 for eligibility requirements.

Accion Rates & Fees

Accion loans vary according to business type and location. Loans will have interest rates between 8.49% and 24.99%, which may include fees such as processing fees or closing costs.

Here are the most common terms and fees for Accion’s small business loans to give you an idea of Accion’s rates:

Accion loans are paid in regular installments. You can pay online, over the phone, or set up direct payments with supported banks. If you know the rates that you qualify for and the amount of money you need, you can estimate your payments with our installment and term loan calculator.  Since Accion offers installment loans, you can save money on interest by paying off your loan early. There is no prepayment penalty.

As subprime loans go, Accion’s rates are excellent and generally better than you’d find with other online lenders. This is hugely advantageous to underserved businesses. For that reason, we give Accion a 5/5 for rates and fees.

Application Process

Accion partners with Lending Club for its application infrastructure. To apply for an Accion loan, you can fill out an initial application online or over the phone. The Accion application takes about 15 minutes. Accion will let you know whether you’re approved to continue with the process in a couple of days.

If you are given the go-ahead, you’ll work one-on-one with an Accion representative to put together your application and the appropriate documents. The time it takes to complete the application will vary depending on the paperwork required and how long it takes to gather the necessary documents. Once your application is accepted, you’ll be given an offer with details regarding your loan’s term length and fees.

If Accion declines you, the lender will tell you what you need to do to improve your business and increase your chance of qualifying for a loan in the future.

While the application process is fast, the underwriting and disbursement process can take some time. This adds up to a 3.5/5 for it application process.

Sales & Advertising Transparency

The Accion Opportunity Fund website is straightforward and easy to navigate, with a lot of information presented upfront. You will have a clear idea of the terms and rates specific to your potential loan before you accept a loan offer. The company is also a signatory of the Borrower’s Bill of Rights, in which companies promise to be fair and transparent about lending practices. We rate Accion 4.8/5 in transparency.

Customer Service & Technical Support

Accion offers phone support and ample support resources. With educational articles, webinars, and videos, it really feels as though Accion wants its borrowers to succeed and understand their loans. The company even offers programs and mentoring. You can contact Accion through its website, by phone, or through its social media accounts on Twitter, Instagram, or YouTube.

While there are a small number of complaints from borrowers who had trouble getting in touch with representatives, the majority of customers seem happy with Accion’s support. With strong self-service options and mixed-to-positive customer service, Accion earns a 3.9/5 in this category.

User Reviews

User reviews of Accion are scarce. The ones that do exist are mixed, trending slightly positive, which garners Accion a 3.2/5 for user reviews.

Negative Reviews & Complaints

Aside from a few reviews on Yelp and elsewhere around the web, there are a very limited number of customer reviews of Accion. Accion is not rated by the Better Business Bureau. Here are the few complaints we came across about this lender:

• Issues Being Approved: A couple of people expressed frustration that their applications were not approved.
• Poor Communication: A few borrowers expressed difficulty getting in touch with Accion support, and one complained that they didn’t receive calls back when they were expecting them.
• Too Invasive: One person complained that Accion asks for an uncomfortable amount of personal information. They found it to be an invasion of privacy.

Positive Reviews & Testimonials

Accion features a collection of client testimonials on its website. You can also find a number of stories about merchants and organizations it has helped in the news.

Here are some of the things borrowers love most about Accion:

• Good Customer Support: Customers generally appreciated the information and service they received from Accion.
• Improved Rates: Accion’s rates have come down since we last reviewed them.
• Doesn’t Require An Excellent Credit Score: Even in the more restrictive states, you can get funding with less than a 600 credit rating.

Final Verdict

The Accion Opportunity Fund may be limited somewhat by geography, but it remains one of the better lending services available for businesses that have had a hard time securing funding. Overall, we rate Accion 3.8/5.

Accion is one of our top recommended vendors for loans for startups with bad credit that may not qualify for other loan options. In particular, veterans, minorities, and women may find themselves well-served by Accion’s programs.

Business Loan & Funding Products Review Methodology

Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business loans and funding products.

When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.

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