Loans For Lawyers, Law Firms, &amp; Attorneys: The 6 Best Financing Options For Your Business

Pros

Multiple types of financing are available
Apply to multiple loans with one application
No matchmaking fee

Cons

Slower than some online lenders

Lendio Features

Here are some of Lendio’s key features:

Online business loan matchmaking service
Compare 75+ lenders
10+ types of funding options
15-minute application
No hard credit pull until you accept a loan offer
Funding as soon as 24 hours (though it can take up to several weeks)

Lendio Terms & Fees

Terms and fees vary widely due to the large number of financing types and different lenders that belong to the Lendio network.

Loan Types/Amounts

Startup Business Loans: $500 to $750,000
SBA Loans: Up to $5 million
Business Lines Of Credit: $1,000 to $500,000
Equipment Financing: $5,000 to $5 million
Business Term Loans: $5,000 to $2 million
Merchant Cash Advances: $5,000 to $200,000
Commercial Mortgages: $250,000 to $5 million
Short-Term Loans: $2,500 to $500,000
Accounts Receivable Financing: Up to 90% of receivables
Business Acquisition Loans: $5,000 to $5 million

Application Process

Lendio’s application process starts with a simple online application in which you answer some basic questions about your business. It takes about 15 minutes to fill out. Lendio will then perform a soft pull on your credit, and within about 72 hours, you may be presented with a lender match and loan offer. If you accept the offer, Lendio will proceed with the underwriting process, during which you may have to provide more information.

Lending Requirements

There are no hard and fast lending requirements to apply to Lendio. Generally, the higher your credit score is, and the longer you’ve been in business, the more loan options will be available to you.

Where Lendio Really Shines

If you are new to business financing and/or don’t have the time to research and apply for multiple loans, Lendio can help. With this online loan marketplace, you can apply for dozens of loans with a single application. Lendio will take your loan requirements and your business’s credentials (credit score, time in business, revenues, etc.) and use that information to match you with pre-offers for loans your firm qualifies for.

Lendio’s vast lending network includes numerous types of financing, such as short-term loans, SBA loans, lines of credit, and others. The range of interest rates and maximum loan amount depends on which lender Lendio hooks you up with, but Lendio itself does not charge a fee.

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2. SmartBiz: Best For Small Business Administration (SBA) Loans

SmartBiz

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Pros

Simplifies the SBA loan application process
Lower fees than other online SBA loans
Faster than other SBA loan providers

Cons

Only established businesses will qualify

SmartBiz Features

Here are some of SmartBiz’s key features:

Online SBA loans, bank loans, and custom financing
Facilitates loans via a network of partnered SBA and non-SBA bank lenders
Large business loans up to $5 million
Funding as fast as three to seven days
Low-interest rates
Long repayment terms
Excellent customer service

SmartBiz Terms & Fees

SmartBiz SBA loans have repayment terms of 10-25 years and interest rates ranging from 4.75-7.00%
SmartBiz non-SBA bank loans have repayment terms of two to five years and interest rates as low as 6.99%
SmartBiz custom financing loans have repayment terms of 24-60 months and interest rates as low as 6.99%

Loan Types/Amounts

SBA Loans: $30,000 to $5 million
Bank Term Loans: $30,000 to $500,000
Custom Financing: $30,000 to $500,000

Application Process

The initial application for a SmartBiz loan takes just five minutes and doesn’t impact your credit score. If you prequalify, a representative will reach out to you about what types of financing will work best for your business and help you proceed with the full application.

SBA loans require more documentation than other loan types, but SmartBiz simplifies the SBA loan application process, walking you through every step.

Lending Requirements

To qualify for a loan through SmartBiz, you’ll need to have been in business for at least two years and have a credit score of at least 650 (or 660 for bank loans). Requirements for custom financing are not disclosed.

Where SmartBiz Really Shines

SBA loans are highly coveted loans for any small business, including lawyers, since they have low-interest rates and long repayment terms. However, they can be somewhat difficult to qualify for and apply for. SmartBiz is a service that connects qualified businesses with SBA loans online, simplifying and speeding up the SBA loan application process. These loans are for established law firms that need working capital or money to expand, refinance debt, or buy commercial property.

If you don’t meet the qualifications for an SBA loan or need the funds sooner, SmartBiz also makes it easy to apply for a bank loan or custom financing options, such as lines of credit or invoice financing. Non-SBA SmartBiz loans are typically deposited within three to seven days, compared to two to six weeks with SBA loans (though some SBA loans are funded as quickly as seven days).

3. Fundera: Best For High-Quality Financing

Fundera by NerdWallet

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Pros

Multiple types of financing are available
Very selective about which business funders it partners with
Excellent customer service

Cons

May charge some additional fees

Fundera Features

Here are some of Fundera’s key features:

Online business loan matchmaking service
Compare offers from multiple lenders
Seven+ types of funding options
Application takes minutes to complete
No hard credit pull until you accept a loan offer
Loans are typically funded within one to seven business days

Fundera Terms & Fees

Since Fundera works with multiple lenders that offer various loan types, terms and fees will vary.

Loan Types/Amounts

SBA Loans: Up to $5 million
Business Term Loans: Up to $600,000
Business Lines Of Credit $10,000 to $1 million
Invoice Financing: Up to 100% of the invoice value
Equipment Financing: Up to 100% of equipment value
Short-Term Business Loans: Up to $250,000
Merchant Cash Advances: Up to $500,000

Application Process

You will start by answering a few basic questions about your business in an online application to determine which types of financing you qualify for. After that, Fundera will set you with a Funding Advisor who will walk you through your options. Once you accept a firm offer, you will be asked to submit more documentation for the loan underwriting process.

Lending Requirements

There are no minimum universal borrower requirements to apply for a Fundera loan because different lenders in Fundera’s network each have their own borrower requirements. Fundera states that to have the most loan options at your disposal, you will ideally want to have at least two years in business and a credit score of at least 600.

Where Fundera Really Shines

Like Lendio, Fundera is another reputable online loan marketplace that lawyers can use to find business financing. Fundera works with fewer partnered lenders, but the lenders it works with are carefully selected and thoroughly vetted. Some recommended lenders in Fundera’s partnership network include BlueVine, Kabbage, Live Oak Bank, and over a dozen others.

Fundera itself does not charge a finder’s fee to borrowers, but there is a possibility that some of Fundera’s lending partners may pass the 2-5% fee that Fundera charges these lenders on to you.

4. OnDeck: Best For Smaller Loans

OnDeck

Pros

Funds are disbursed quickly
Accepts sub-prime credit scores
Builds business credit
Lower costs for repeat borrowers

Cons

Rates can be expensive
Not available in all states

OnDeck Features

Here are some of OnDeck’s key features:

Short-term loans and revolving lines of credit
10-minute application
Funding as quickly as 24 hours
Transparent pricing
Reports payments to credit bureaus
A lower or 0% origination fee for repeat customers
Interest on a current loan is waived if you apply for a second loan

OnDeck Terms & Fees

OnDeck term loans have a term length of up to 24 months. These loans have an origination fee of 0-5%, and APRs start at 35%.

OnDeck lines of credit have a 12-month repayment term which resets after each withdrawal. There is no draw fee, but you will typically have a $20/month maintenance fee. APRs start at 35.9%.

Loan Types/Amounts

Term Loan: $5,000 to $250,000
Line Of Credit: $6,000 to $100,000

Application Process

Applying for OnDeck starts with a simple 10-minute online application. If you are preapproved for a loan offer, OnDeck will reach out for more information before funding your loan. All of this typically takes less than 24 hours.

Lending Requirements

To qualify for an OnDeck loan, you’ll need 12 months in business, a credit score of 600, and $100,000 in annual revenues.

Where OnDeck Really Shines

OnDeck is one of the top online small business lenders, period. Though you can’t get a very large loan from OnDeck, it works great if you need a quick, small loan or line of credit.

This prolific lender is known for its transparency, simple application process, easy-to-meet borrower requirements, and fast funding that can deliver funds into your account as quickly as the same business day.

OnDeck loans can have high APRs. The average APR is about 50%, but there are discounts for repeat borrowers, and the amounts aren’t as large as those offered by some online lenders. Nevertheless, an OnDeck loan might be the perfect option if your law firm needs a fast, easy cash infusion for payroll or working capital purposes.

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5. Credibly: Best For Attorneys With Bad Credit

Credibly

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Pros

Bad credit-friendly
Multiple types of financing are available
Discounts for repaying early

Cons

Rates can be expensive

Credibly Features

Here are some of Credibly’s key features:

Short-term and medium-term financing options
Financing for lawyers with unpaid invoices
Easy-to-meet borrower qualifications
Easy application process
Funding as soon as 48 hours
Early repayment discounts
Good customer service

Credibly Terms & Fees

Credibly has numerous different financing products available, so terms and fees vary by loan type. Generally speaking, maximum term lengths are 18 or 24 months, and factor/interest rates start at 1.09 and 9.99%, respectively.

Loan Types/Amounts

Working Capital Loans: $5,000 to $400,000
Merchant Cash Advances: Up to $400,000
Business Expansion Loans: Up to $250,000
Lines Of Credit: Up to $250,000
Invoice Factoring: Up to $400,000
SBA Loans: Up to $150,000 for working capital loans; up to $20 million for commercial real estate loans
Equipment Financing: Unknown

Application Process

You can fill out Credibly’s online application in about 10 minutes. Credibly will then conduct a soft pull on your credit. After you prequalify, Credibly will reach out for additional information and documentation regarding your business before approving the loan and conducting a hard pull before funding your loan.

The entire time-to-funding can be as quick as 48 hours from your initial application but can take as long as a few days.

Lending Requirements

Depending on the loan type, Credibly will accept credit scores as low as 500 (560 for lines of credit). Most Credibly lending products require six months in business and business revenues of at least $50,000 annually. Business expansion loans and SBA loans require scores in the 600s and a lengthier time in business.

Where Credibly Really Shines

Credibly is another notable online lender that offers funding to attorneys, including attorneys with very poor credit. Credibly has multiple types of short-term and medium-term business financing available, all with transparent pricing and fast service.

Credibly’s fees can be on the high side, but there are discounts for repaying early, as well as low credit score requirements and longer repayment terms compared to a lot of other short-term online lenders.

Credibly also offers invoice factoring, which can be a good financing solution for attorneys with unpaid invoices.

6. Fundbox: Best Line Of Credit For Lawyers

Fundbox

Pros

Fast, easy lines of credit
Short-term loans and vendor financing options are also available
Few additional fees
Easy to qualify for

Cons

Borrowing fees can be expensive
Small credit limit

Fundbox Features

Here are some of Fundbox’s key features:

Cash flow financing for attorneys
Relaxed borrower qualifications
Quick, automated application
Next-day funding
No origination fee on term loans
No draw fee on lines of credit
A line of credit comes with Flex Account to pay vendors
Free business cash flow predictions (with connected bank account)

Fundbox Terms & Fees

Fundbox revolving lines of credit have a term of 12 or 24 weeks and a borrowing fee starting at 4.66%. Fundbox short-term loans have a term of 24 or 52 weeks, with a borrowing fee starting at 8.33%.

Loan Types/Amounts

Lines Of Credit: Up to $150,000
Term Loan: Up to $150,000

Application Process

Fundbox has a quick, simple application on its website. The Fundbox application is fully automated, as the algorithm uses AI to determine your eligibility. If approved, you can start withdrawing funds within minutes, and they should hit your bank account the following business day.

Lending Requirements

Fundbox requires a credit score of 600, $100,000 in annual revenues, and ideally six months in business.

Where Fundbox Really Shines

Fundbox is super easy to qualify for and is even open to startup law firms. Fundbox offers the most accessible lines of credit for attorneys, even those without good credit. If fast, easy, and ongoing access to cash is what you’re looking for, Fundbox is your answer. Fundbox also has short-term loans and tools that make it easier to pay your vendors and predict your firm’s cash flow.

Note that Fundbox does not lend to lawyers collecting funds for any purpose other than to pay fees owed for services provided by the firm. For example, Fundbox won’t lend to lawyers involved in debt collection.

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