Balboa Capital Review

Pros

• Borrower qualifications are lower than what banks offer
• Multiple types of financing are available
• Funds are disbursed quickly

Cons

• Opaque terms and fees
• Customer service is inconsistent

Balboa Capital Overview

Balboa Capital is an alternative business funder and a division of Ameris Bancorp. Balboa is a direct lender (not a brokerage) and does not require borrowers to have good credit. This review focuses on Balboa Capital’s working capital products, including short-term loans and credit lines.

Though Balboa is both well-established and flush with cash, the company seems plagued by an unusual number of customer complaints. While the picture painted doesn’t imply a scam, I’d recommend caution when dealing with Balboa. This is in addition to our more general warnings about the world of alternative lending, which often feature sky-high interest rates and punishing payment schedules.

Keep reading our full Balboa review to get all the details!

Services Offered

Balboa Capital offers quick online business financing and a fairly large variety of lending products to established businesses with strong revenue and decent credit.

• Lines Of Credit: Lines of credit allow you to apply for a credit limit rather than a lump sum. You can then draw on that credit at will for a specified time period. You only pay interest on the amount you use.
• Short-Term Loans: Short-term loans typically last months rather than years and are paid back daily or weekly rather than monthly. They generally have flat fees rather than interest rates.
• Equipment Financing: Equipment financing includes loans and leases designed to provide temporary or permanent access to equipment. The equipment serves as collateral.

Balboa Capital also specializes in providing industry financing:

• Franchise financing
• Vendor financing
• Commercial financing

Borrower Qualifications

You must meet these prerequisites to qualify for short-term working capital funding from Balboa:

Balboa does not give a specific required credit score minimum but states that applicants must have “decent” credit. This likely means somewhere in the 600s.

Additional qualifications include:

• The borrower must own at least 1/5 of the business
• Clean banking history (few overdrafts)
• Balboa Capital won’t lend to a borrower with senior debt (in other words, Balboa Capital will not take a second position amongst your debts)

Finally, Balboa Capital does not lend to the following industries:

Terms & Fees

Balboa Capital doesn’t divulge its interest rates directly, so you’ll ideally want to ask for a quote as early in the process as you can. You can use the calculators provided on Balboa Capital’s website to get a general sense of the rates it offers. Just remember that your actual offer will depend on your specific circumstance and borrower profile.

Here’s what we know about Balboa Capital’s products.

Short-Term Loans

Balboa Capital short-term loans are repaid with daily or weekly automated repayments, whereas its line of credit and equipment financing may qualify for monthly repayments.

Balboa’s working capital funding is unsecured, meaning you don’t have to put up any collateral. That said, Balboa Capital will generally file a UCC-lien on borrowers, which can expose your assets to collection if you default.

You should expect a flat rate rather than an interest rate for short-term loans. That means you’ll pay back the loan’s principal plus a percentage of the loan. This will be expressed as either a percentage or a multiplier. The calculator’s base rates spread between x1.12 and x1.18, but actual offers may fall outside this range.

Lines Of Credit

Balboa Capital’s lines of credit can be used for most business expenses. Repayment periods can be daily, weekly, or monthly. As is the case with Balboa Capital’s short-term loans, its lines of credit are unsecured.

Equipment Financing

Balboa Capital doesn’t provide much information about the terms of its equipment financing. As is typical with equipment financing, however, you’re looking at longer borrowing/leasing terms than with unsecured working capital.

Balboa Capital will finance a wide variety of equipment, including (but not limited to):

• Construction equipment
• Fitness equipment
• Office products
• Cloud software
• Forklifts
• Restaurant equipment
• Commercial trucks
• Manufacturing equipment
• Tech hardware

Application Process

You can begin the application process online. Depending on the amount of money you’re seeking, the funding will be available within days. If you want to borrow more than $250,000, you should call first, as you’ll have to submit more documents and undergo a lengthier process. After you’ve submitted all your necessary documents, you should quickly receive an offer, frequently the same business day.

Balboa Capital will perform a soft pull on your credit when you apply. Once you accept, Balboa Capital will do a hard pull on your credit. If all goes well, you can potentially get your funds the same day.

Sales & Advertising Transparency

Balboa Capital’s transparency is typical for the alternative funding industry. The website offers basic information about the products offered and the qualifications necessary to receive funding. The most useful tool the lender offers are its loan calculators.

Customer Service & Technical Support

You can reach Balboa Capital’s customer service by phone, but it’s a bit of a crapshoot whether you’ll be able to get someone who can address your needs and questions. Also, some customers have complained about Balboa Capital customer service phone reps being rude, unhelpful, or even downright deceptive — though other customers have praised the lender’s customer service.

If you’re not into phone calls, you can submit a form through Balboa’s website or contact the company through social media. The lender also maintains a presence on LinkedIn, Twitter, Facebook, YouTube, Pinterest, and Instagram.

Balboa Capital User Reviews

Negative Reviews & Complaints

Balboa Capital has an A+ rating with the Better Business Bureau, with 47 customer complaints filed in the last three years. The company previously had an “A” rating due to government action against the company for failing to file an annual report and operating without a license. This is from before Ameris Bank acquired Balboa Capital. Customer complaints include:

• Billing Issues: Many customers appeared to encounter billing issues ranging from unforeseen interest to leases that were automatically renewed. While the company resolved many of these complaints, the sheer quantity of them raises red flags.
• Unclear Or Deceptive Terms: A number of customers reported that they either didn’t understand the terms of the agreement or that the terms had changed over the course of the loan/lease. For example, some customers said they were told there were no early payoff penalties but were later charged a fee for repaying their loan early. Other customers complained about different types of hidden charges they were not informed of prior to accepting the loan.
• Aggressive Marketing: Several people mentioned receiving aggressive cold calls from Balboa Capital.
• Bad Customer Service: Many unhappy customers complain about the quality of Balboa’s customer service, criticizing the phone reps as being rude or less than knowledgeable.
• No Flexibility During COVID-19: Multiple customers complained that unlike many other creditors and financial institutions, Balboa Capital was unwilling to defer loan payments or offer any other concessions during COVID-19.

Positive Reviews & Testimonials

Balboa Capital rates a 4.8 out of 5 on Trustpilot. The company’s happier customers liked the following:

• Streamlined Process: Users appreciated how quickly and smoothly the application process went.
• Quick Turnaround: Balboa Capital has a very fast time-to-funding, often providing funding within a couple of days.
• Customer Service: Many customers found Balboa Capital’s staff to be professional and helpful.
• Rates: As online lenders go, many customers found Balboa Capital’s rates to be quite reasonable.

Final Verdict

Now under new ownership, Balboa Capital seems to have weathered the COVID storm in one piece. As a direct lender, Balboa Capital offers a pretty broad variety of options to businesses that need money quickly and may not have excellent credit. Customers generally seem to be satisfied with the offered rates, which is always a strong selling point for alternative lenders.

Still, Balboa Capital’s lack of full transparency and lingering customer service issues makes it difficult to recommend without any reservations. Check them out, but have a backup plan.

If you’re looking for alternatives, take a look at our comparison charts for small business loans and lines of credit.

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