Business Loan Marketplace Ratings Criteria
Most businesses require funding at some point, whether in the start-up phase, as operations grow and expand, or in times of crisis. Marketplace lenders can make the search for funding easier by matching small businesses with the most affordable lending products. Because the quality of lending services can make or break a business, we take our reviews and ratings very seriously, following a precise methodology. Here are just some of the reasons readers can trust the Merchant Maverick rating system:
- Merchant Maverick has been reviewing marketplace lenders since 2015.
- Over the years, we’ve evaluated 150+ funding services, including loan marketplaces, traditional term loans, online loans, short-term loans, start-up loans, lines of credit, merchant cash advances, and equipment financing options.
- Each review involves 10-15 hours of initial research, followed by 5-10 hours of research for each review update.
- We update our marketplace lending reviews at least every 12 months, though most reviews are updated twice a year, and a few of the platforms most popular with our readers receive quarterly updates.
While we research and compare many options, the reviews displayed on the site have been handpicked based on metrics like overall popularity, availability, and quality. The goal is to provide the most actionable and accurate information to our readers, so while we love to recommend great products, we don’t shy away from pointing out the areas where popular providers fall short.
Our expert writers engage in independent research and testing for each loan marketplace review, evaluating interest rates, upfront (and hidden) costs, additional services, business eligibility, availability, credit score requirements, and more. When determining the star rating for a vendor, we score the following areas:
- Rates & Fees
- Services
- Eligibility Requirements
- Application
- Sales & Advertising Transparency
- Customer Support
- User Reviews
Each section’s score is weighted differently, with the highest weights going to Rates & Fees, Services, Eligibility Requirements, and Application. The scores for each section are displayed openly in the review and then combined to create a holistic rating for the product out of 5 stars.
Read on for a more minute explanation of how we determine the individual section ratings.
Rates & Fees
15% of the total star rating
The Rates & Fees section is broken into two parts:
- Pricing (50% of the total section rating)
- Affordability (50% of the total section rating)
When evaluating this section, our expert reviewer looks at pricing transparency for the various lending products available from the loan marketplace and compares average terms lengths and repayment options. We also look for the presence of a service fee and evaluate the fairness and price of any other fees. Finally, we check to see whether there is a prepayment penalty.
Services
30% of the total star rating
This Services section is broken into three subsections:
- Lending Services (50% of the total section rating)
- Lending Limits (40% of the total section rating)
- Payment Portal & Mobile App (10% of the total section rating)
When rating this section, we research whether the loan marketplace’s partner lenders offer a wide range of services at various price points. Marketplaces that offer SBA loan options score higher than others, as do lenders that make their borrowing ranges transparent. We also check to see whether there is an online payment portal and how well it works.
Eligibility Requirements
15% of the total star rating
The Eligibility Requirements section has three components:
- Transparency (20% of the total section rating)
- Eligibility Qualifications (40% of the total section rating)
- Availability (40% of the total section rating)
We begin scoring this section by determining whether the loan marketplace is transparent about borrower qualifications, making sure the applicant does not have to jump through unnecessary hoops and extra forms to determine eligibility. We also check to see if lending options are available to business owners with a wide range of credit scores, and how heavily credit is factored into eligibility. Our reviewer looks at time in business and revenue requirements, and other limitations that might affect borrowers. For example, some loan products are only available to certain industries or in certain states or regions.
Application
15% of the total star rating
The Application section is divided into two parts:
- Application Process (50% of the total section rating)
- Application Timeline (50% of the total section rating)
When scoring this section, we’re laser-focused on how easy it is to apply for multiple loan products. We penalize loan marketplaces that don’t disclose the application process upfront, or require extra form submissions to initiate the application process. We also evaluate average application processing time, and how quickly funds are dispersed once the application has been approved.
Sales & Advertising Transparency
10% of the total star rating
This section is broken into two sections:
- Sales Practices (60% of the total section rating)
- Web Presence (40% of the total section rating)
Since some loan rates and terms can be predatory to unsuspecting business owners, we take this section very seriously. Our expert reviewer looks into the sales practices the loan marketplace uses to advertise partners and products, ensuring there are no underhanded or shady tactics at play. We also check to ensure that the website of the lending marketplace is up to date, clear, and transparent about fees, rates, extra costs, and repayment terms.
Customer Support
10% of the total star rating
The Customer Service score is broken down into two sections.
- Personal Support (50% of the total section rating)
- Self-Service (50% of the total section rating)
When scoring customer service, we pay the most attention to the number of support options available (phone, email, in-person, etc.) and the quality of personal support received.
User Reviews
5% of the total star rating
The Customer Reviews score is comprised of two sections.
- User Feedback (30% of the total section rating)
- Review Site Aggregate (70% of the total section rating)
We scour the internet for user feedback on all the products we review, looking for positive and negative feedback. Merchant Maverick is not a user review platform, so for part of this total rating we rely on aggregate user scores from review sites such as The Better Business Bureau, TrustPilot, and more.
