ApplePie Capital Review

Pros

• Financing is suited for franchise businesses
• Multiple types of available funding
• High borrowing amounts
• Long-term financing options available
• Customer service is helpful and informative

Cons

• Only available to franchise businesses
• The application process can be slow

ApplePie Capital Overview

Taking its name from CEO and co-founder Denise Thomas’s famous dessert, ApplePie Capital is an online lender and lending network that specializes in franchise financing. I’m usually more of a donut person myself, but I have to admit: A slice of ApplePie Capital looks pretty tempting.

Founded in 2014, ApplePie Capital is one of the first lending services to offer franchise financing online. Statistically, entrepreneurs seeking funding to start or improve a franchise have an easier time getting a bank or SBA loan than other business owners. However, ApplePie Capital one-ups those institutions by speeding up the application process and offering specialized financial help to franchisees as well as franchisors who own their own franchised brand.

Before early 2017, this lender only offered fixed-term installment loans. However, AppliePie Capital recently acquired Funding Solutions, LLC, another franchise funder. As a result of the acquisition, ApplePie Capital offers SBA loans, equipment loans, and conventional loans in addition to its original “Core” loan.

Along with its funding partners, ApplePie Capital currently has partnerships with over 40 franchises, including big names, such as 7-Eleven, Dunkin’ Donuts, Jimmy John’s Pizza, OrangeTheory Fitness, and Wetzel’s Pretzels. Financing is available for non-partnered brands as well, though the process might take longer. The funds can be used for any franchise purpose, from starting your first franchise to multi-unit rollouts and remodeling.

Thanks to low-interest rates, ease of application, and a generally positive online presence, ApplePie Capital is worth investigating for any entrepreneur who works with a qualified franchise.

Are you interested in learning more? Read on for the details!

Services Offered

ApplePie Capital offers the following financial products:

• Core loans (ApplePie’s branded conventional term loans)
• SBA loans
• Conventional loans (term loans offered through ApplePie’s lending partners)
• Equipment loans
• Accounts receivable financing

Whether you are a new franchisee purchasing your first unit or an experienced franchisor, you can use an ApplePie loan. Some potential purposes of ApplePie financing include new units, recapitalizations, refinancings, acquisitions, equipment, remodels, and accounts receivable.

This lender only works with franchisees. If you are not a franchisee or are not interested in becoming a franchisee, you’ll want to check out other funding options.

Borrower Qualifications

Again, ApplePie works exclusively with franchises. Although underwriting considers qualities about yourself and your specific business (such as personal credit and, if you already run a franchise, time in business and revenue), approval is largely based on the franchise brand. ApplePie does not list any specific borrower requirements on its website.

This lender currently has partnerships with over 40 different franchisors, but it will fund other brands as well.

Rates & Fees

ApplePie doesn’t offer too many specifics about its loan products online, but ApplePie loans are generally considered competitive, and it offers multiple financing options for different types of franchise needs.

ApplePie Capital has its own branded loan product, ApplePie Core, which is made by Cross River Bank. ApplePie Capital Core loans are traditional fixed-term installment loans with a minimum borrowing amount of $100,000. ApplePie Capital’s branded Core loans can be used either to finance a new franchise or to fulfill multi-unit agreements and do not require personal collateral as do its SBA and conventional franchise loans. ApplePie does not list the Core’s specific loan terms online but says the terms depend on credit, income, loan maturity, and other factors.

In addition to its traditional Core loans, ApplePie Capital also offers other conventional loans and SBA loans through its online lending network. ApplePie Capital does not mention specific rates or terms on its website, only stating that interest rates and loan origination fees vary depending on which lender in its network you receive an offer from.

Here is what ApplePie says about its loans in general:

• Growth-oriented capital
• SBA and conventional loans
• Competitive fixed and variable rates
• Five to ten-year payment terms
• All 50 states
• New and existing businesses
• An interest-only grace period on new units
• Flexible collateral options
• No prepayment penalty options

ApplePie Capital also offers equipment financing loans starting at $15,000 through its financing network and also recently teamed up with LSQ to provide accounts receivable financing for qualified franchise businesses.

Application Process

You can apply to ApplePie online via its website.

To begin, you must fill out a form on the website that includes basic information about yourself, your business, your franchise partner, and the type of financing you’re interested in. ApplePie should get back to you within two days to let you know if you have been approved to continue the process, tell you about available services, and answer questions that you might have.

If approved, a representative from ApplePie Capital will help you with the next steps. In general, you will have to provide business and financial documentation for underwriting. The specific information you must provide will vary depending on the loan product you’re applying for.

Likewise, the time from application to funding will vary by product. For the Core loan, funding typically takes about 30 days from application approval; however, the other products may take longer or shorter to fund. Generally, Core loans and conventional loans are faster than SBA loans.

Sales & Advertising Transparency

You should have a pretty good idea of the services that ApplePie Capital offers and the types of businesses it works with before applying for a loan. However, the website is sparse regarding specific details, such as the terms, rates, and fees for its loan products.

Customer Service & Technical Support

Customer service is available by phone and email.

Reviewers on ApplePie Capital’s testimonial page claim that customer service is easy to get a hold of, responsive, and willing to answer questions. While my experiences were similar, there are currently no outside reviews that address customer service.

User Reviews

Negative Reviews & Complaints

This lender is accredited by the Better Business Bureau, with no current complaints or negative experiences logged. ApplePie has a few reviews elsewhere on the web, though few are negative. I found a couple of bad reviews on Facebook — one guy said it was a “scam” without giving any specific information and another said the lender was hard to work with, but that reviewer also didn’t give any specific details (the rest of the Facebook reviews were overwhelmingly positive).

Positive Reviews & Testimonials

Since its launch, ApplePie has received coverage from many mainstream media outlets, including Forbes, American Banker, Nation’s Restaurant News, the Wall Street Journal, Business Insider, and Franchise Times. Additionally, the lender has a number of customer testimonials on its website.

ApplePie has attracted a lot of attention for improving and streamlining the process of getting franchise financing. In particular, here’s what people like about the service:

• Excellent rates
• Fast application and funding process
• Improved chances of being approved
• Transparent and informative service
• Specialize in franchise financing

However, aside from testimonials on its website, there are very few customer reviews of ApplePie Capital online. Interested in contributing to the conversation? Tell us about your ApplePie Capital experience in the comments!

Final Verdict

ApplePie Capital is worth investigating if you’re a franchisee. Although you may be able to get financing from other lenders, franchisees may benefit from working with a funder that understands the unique circumstances and needs of the franchise industry.

ApplePie Capital is not the only funder that works with franchisees, but there’s a lot to like about the service. It offers loan products that are helpful for many situations, you have a solid chance of getting funding at any stage of your operation, and the application process is faster than applying for loans the traditional way.

Merchants with the time and inclination may want to get some additional quotes before settling on ApplePie Capital or another lender, but it’s certainly a funder to consider when searching for franchise financing.

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