Balboa Capital Review
Need help finding a lender?
- Date Established
- Costa Mesa, CA
- Relaxed loan qualifications
- Suited for large businesses
- Opaque terms and fees
- Mixed public reputation
Balboa is a California-based alternative business funder offering short-term working capital and equipment financing. This review focuses on Balboa’s working capital products.
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 in dealing Balboa
This is in addition to our more general warnings about the world of alternative lending, which often features sky-high interest rates and punishing payment schedules. Be sure to check out our short-term funding comparison chart, or comparison shop on your own before you commit to anything.
Table of Contents
Balboa Financial offers the following:
You must meet these prerequisites to qualify for funding from Balboa:
|Time in business:||12 months|
|Revenue:||$300,000 per year (STL)|
$10,000 per month in credit and debit deposits (MCA)
Terms & Fees
The terms for Balboa Capital’s short-term funding look something like this:
|Borrowing amount:||$5,000 – $250,000|
|Term length:||3 – 18 months|
|Factor rate/interest rate:||Unknown (See below)|
|Effective APR:||Learn more|
Balboa doesn’t divulge its working capital interest rates directly. If you use the lender’s loan calculator and assume roughly 22 payments a month, factor rates appear to fall somewhere between 12% and 14% for typical customers, but expect higher interest rates if you have poor credit or want a longer term to repay your loan. Longer terms, in many cases, also increase the interest rate. Note that this percentage isn’t an APR, but a flat rate. So if you get a $10,000 loan or advance at 12%, you’ll owe $11,200 ($10,000 x 12% = $11,200).
Balboa offers both short-term loans and merchant cash advances, which it calls “business cash advances.” Both STLs and MCAs feature daily, automated repayments. Cash advances aren’t governed by the same laws as loans–they’re technically a payment in exchange for an agreed-upon percentage of future sales. They tend to be more expensive and more available to businesses with poor credit. Since MCAs are based on the amount of money you’re bringing in each day, term lengths are rough estimates and are not set in stone; they’re paid off when they’re paid off.
Balboa’s working capital funding is unsecured.
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.
Sales & Advertising Transparency
Balboa Capital’s transparency is typical for the alternative funding industry. The website offers some basic information about the products offered and the qualifications necessary to receive funding. The most useful tool the lender offers is a loan calculator, but it can be a challenge to find if you’re not looking for it.
Customer Service & Technical Support
Balboa’s customer service can be reached by phone, but it’s a bit of a crapshoot whether you’ll be able to reach someone who can address your needs and questions. 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.
Negative Reviews & Complaints
Balboa Capital has an A rating with the BBB, with 61 customer complaints filed in the last 3 years. The A rating is due to government action against the company for failing to file an annual report and operating without a license. It’s since been resolved. Customer complaints include:
- Billing Issues: Many customers appeared to encounter billing issues ranging from unforeseen interest to leases that automatically renewed. While the company resolved many of these complaints, the sheer quantity of them raises red flags.
- Unclear 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.
- Aggressive Marketing: Several people mentioned receiving aggressive cold calls from Balboa.
Positive Reviews & Testimonials
Balboa Capital rates a 9.6 out of 10 on Trustpilot. The company’s happier customers liked:
- The Streamlined Process: Users appreciated how quickly and smoothly the application process went.
- The Customer Service: Many customers found Balboa’s staff to be professional and helpful.
- The Company’s Deep Pockets: Balboa has been around for a while and has the capacity to finance larger loans and advances than many alternative lenders.
On the surface, Balboa looks better than many of its competitors. It’s well-established, offers a flexible product line-up, and appears to have fairly reasonable rates. On the other hand, things don’t seem quite so organized on the inside. From difficulties reaching knowledgeable staff to an alarming number of billing issues and its recent regulatory troubles, there are quite a few red flags that make it impossible to enthusiastically recommend Balboa.
|Lender||Borrowing Amount||Term||Req. Time in Business||Min. Credit Score||Next Steps|
|$5K - $500K||3 - 36 months||x1.003 - x1.04/mo||12 months||600||Apply Now|
|$5K - $500K||13 - 52 weeks||x1.029 - x1.1872||9 months||550||Apply Now|
|$2K - $5M||Varies||As low as 2%||6 months||550||Apply Now|
|$20K - $500K||1 - 4 years||7.99% - 29.99% APR||2 years||660||Apply Now|
To learn more about how we score our reviews, see our Business Loan Rating Criteria.