Breakout Finance Review (Formerly Breakout Capital)

Pros

• Suited for small businesses
• Relaxed borrower qualifications
• No credit score requirements (for some products)
• Excellent customer support

Cons

• Potentially high rates
• Rates, terms, & fees aren’t fully disclosed
• No long-term funding options

What Is Breakout Finance?

Breakout Finance (formerly Breakout Capital) is a business funder that offers short-term business financing solutions to eligible merchants.

Along with supplying its own financial products, Breakout Finance will evaluate your business to determine if you are better suited for products the company doesn’t provide; if so, they will hook you up with a lender that offers the right product.

If you need business funding but don’t know exactly what you’re looking for, Breakout Finance may be a good fit for your business. Because the company emphasizes educating merchants, offers flexible financing products, and is willing to refer businesses to other lenders when necessary, Breakout Finance is certainly worth including in your comparisons.

Services Offered

Breakout Finance offers several short-term funding products, including:

• Short-term loans
• Invoice factoring
• Asset-based loans
• Interest-only loans

As your business grows, Breakout Finance will work with you to find the right product and terms for your current business needs.

While Breakout Finance offers plenty of short-term options, it doesn’t have long-term funding. It also lacks a mobile app that allows you to apply for funding, make payments, or perform other functions on the go.

Borrower Qualifications

The requirements for Breakout Finance’s term loans are as follows:

Rates & Fees

For its term loans, Breakout Finance discloses the following rates and fees:

Application Process

To get started with Breakout Finance, you can fill out a loan or factoring application on the website. You will be required to submit basic information and documents about yourself, your business, and what you’re looking for in a loan.

If you fill out the online form, Breakout’s proprietary software can provide you with a fast funding decision. If approved, you’ll speak to a representative to explore the best funding options for your business.

Once you’ve discussed your options with a representative and have provided the necessary information and documentation, you may receive funding as quickly as the same day.

Sales & Advertising Transparency

Breakout Finances’s website provides a fair amount of information about its products. Customer service reps are also willing to disclose information and educate potential customers on the products. However, there are some gaps when it comes to disclosing rates, fees, and terms.

It is worth noting that Breakout Finance is a member of the Innovative Lending Platform Association, a group that claims to be “dedicated to advancing best practices and standards that support responsible innovation and access to capital for small businesses.”

Breakout also has social media profiles that provide useful information, although these profiles aren’t updated frequently.

Customer Service & Technical Support

Customer service is available via phone, email, or a contact form on Breakout’s website. Unfortunately, phone numbers and support email addresses are not listed prominently on the website, as it appears Breakout would rather prospective borrowers reach out through the online form or by filling out an application.

A live chat feature was available in the past, but is no longer an option.

Online customer reviews cite customer service as a positive aspect of Breakout Finance, claiming that representatives are responsive, transparent, and not pushy. My experiences with Breakout Finance’s staff have been similarly positive.

The website also has several other resources, including informative blog articles aimed at helping merchants understand business financing and loan concepts, an APR calculator, and an explanation of double dipping.

User Reviews

Breakout Finance is accredited by the Better Business Bureau with an A+ rating. The company also has a presence on TrustPilot, boasting a 4.4 out of 5-star rating across 180+ reviews.

Negative Reviews & Complaints

Although Breakout Finance’s reviews are generally positive, here are a few complaints worth noting:

• No Long-Term Funding: Breakout Finances’s business loans currently cap at a maximum term length of 24 months (though the term lengths can be extended if you borrow additional capital). If you’re looking for something with a longer term, a loan from Breakout Finance may not be the right fit.
• Expensive Fees: Compared to other forms of business financing, such as bank/SBA loans, Breakout Finance’s products can be expensive.

Keep in mind that Breakout is interested in helping merchants improve their creditworthiness and graduate to less-expensive or longer-term products. Even if you are not eligible for these products yet, you may be in the future.

Positive Reviews & Testimonials

Here are some common praises of Breakout Finance’s products:

• Transparent, helpful customer service
• Fast time from application to funding
• Little documentation required
• Flexible financing options

Customers also like Breakout Finance’s renewal process, which is expedited (because they have most of your information) and cheaper than usual (because the lender doesn’t double dip, a practice that is essentially paying interest on interest).

Final Verdict

Breakout Finance’s funding products may be helpful for merchants in need of short-term financing. Between the flexible loan terms, the prepayment discounts (and no double dipping policy), and the easy renewal process, it’s apparent that the company is interested in offering fair, helpful products to its customers.

In addition, because Breakout Finance’s borrower qualifications are relatively low, this funder will be able to work with businesses that might not qualify for loans from other places.

For these reasons, Breakout Finance has earned our recommendation for businesses that need short-term funding.

However, if you want long-term funding or more transparency surrounding fees and terms, you may want to look elsewhere, starting with our picks for the best small business loans.