Everest Business Funding Review
- Relaxed credit score requirements
- 2-7 days time to funding
- High factor rates
- Some additional fees
Everest Business Funding Overview
Everest Business Funding is a Florida-based merchant cash advance (MCA) alternative funder serving small businesses. Like similar companies, it provides short-term capital for businesses that may have difficulty qualifying for traditional lending.
Overall, Everest strikes me as a fairly typical MCA company, with fairly typical rates. Be aware that MCAs are one of the most expensive ways to borrow money, so they probably shouldn’t be the first thing you look to if you need working capital. To its credit, Everest is willing to answer questions you might have in detail, though the company doesn’t disclose much information on its website. The company does, however, require you to file a confession of judgment, which should be entered into with extreme care.
Note: You should approach the world of alternative funding with caution; the rates are often usurious and the terms can be punishing for the unprepared or unlucky. You should always make sure you’ve exhausted other potential sources of funding first (take a look at our handy short-term funding comparison chart to make sure).
Table of Contents
Everest Business Funding serves the following industries:
- Seasonal businesses (accounting, bridal, moving)
Everest offers the following types of business funding:
- Merchant cash advances
If you’re looking for the major selling point of MCAs, look no further than their very forgiving qualifications. Overall, Everest is more concerned with the profitability of your company than its credit.
To qualify for funding from Everest, you must meet these prerequisites:
|Time in business:||3 months|
|Revenue:||$4,000 per month|
Terms & Fees
You’re not going to find too many details on Everest’s bare-bones website, but if you’re willing to give them a call, they’re very accommodating with information — and with little sales pressure. Here’s an overview of what Everest offers:
|Borrowing amount:||$5,000 – $1 million|
|Term length:||2 – 12 months|
|Flat fee:||x1.2 – x1.5|
|Origination fee:||$199 – $2900|
|Effective APR:||Learn more|
|Collateral:||Confession of judgment|
What’s missing from this picture? MCAs, unlike, traditional loans, do not have interest rates. Instead, you’ll be charged a flat fee based on what the industry often refers to as a “factor rate.” The factor rate is simply a multiplier applied to the amount you borrow. If you borrow $10,000, you’ll be paying between $12,000 and $15,000 plus origination fees for the pleasure. Everest will assess the factor rate based on a number of considerations, including your credit rating.
Be aware that MCAs don’t have true APRs. The more quickly you pay off the advance, the higher the APR effectively is. While that might encourage you to pay off the advance as slowly as possible, note that many MCAs will discount the flat fee if you pay it off early.
How do you repay MCAs? Most require daily payments of a fixed amount made through an automated clearing house (ACH) debit from your bank account. If your revenue is more variable, many MCAs also offer the option to “hold-back” a percentage of your daily credit card sales. In this case, you won’t have a term limit—the advance is paid off when it’s paid off.
Everest requires a confession of judgment, which is a contract in which you agree to let the MCA enter a judgment against you. This allows the company to obtain a judgment for the amount owed without notifying you of the lawsuit. It’s a fairly controversial tool used by creditors, so educate yourself about what you’re getting into.
Aside from their relatively lax funding standards, MCAs also offer another distinct advantage over traditional lending: they make decisions over the course of days rather than weeks or months.
You can begin the process online, but you’ll be speaking to a representative to complete your application. I recommend getting together some documentation to prove that you meet the revenue prerequisites. Bank statements are a good place to start.
If all goes well, you can have your funds within 24 hours.
Sales & Advertising Transparency
MCAs aren’t exactly known for their transparency, but Everest is an interesting case study. The company’s website is extremely lean on details, offering little hard data.
On the other hand, I found their representatives to be extremely forthcoming. More importantly, they were able to answer all of my questions, suggesting a knowledgeable staff.
Customer Service & Technical Support
I was pleasantly surprised by my conversation with Everest staff, as I mentioned above. I should also add that representatives were easy to reach, which isn’t always the case with MCAs.
Everest’s customer service gets mixed reviews from users, with particularly negative reviews congregating on Google reviews and more positive ones on Trustpilot.
Everest can be reached by phone, through the company website, by email, or on social media (Facebook, Twitter, LinkedIn).
Negative Reviews & Complaints
Though not accredited by the BBB, the organization does have a file open on this funder. Everest’s online reputation has been on a rollercoaster ride for the last few years. At one time, the company’s rating had fallen to an F. Everest apparently has done some work since, as the company has now recovered to an A rating. Trustpilot, which tends to skew positive, rates Everest at 8.7.
- Unresponsive To Complaints: The primary reason for the dip in the BBB rating is due to Everest failing to respond to customer complaints. There were 10 complaints on file from the last three years.
- High Borrowing Rates: While hardly unique for the MCA industry, some customers were taken aback by how high the borrowing rates are.
- Poor Communication: A theme that emerges the collective negative reviews is inadequate communication between customers and Everest.
Positive Reviews & Testimonials
Looking for reasons to go with Everest? The company’s selling points look something like this:
- Poor Credit Is Okay: The credit prerequisites for MCAs are low, making it easy to qualify if you run a profitable business.
- Easy Application Process: You can get the process started by filling out a small web form. If all goes well, the process will be complete within a week.
- Customer Service: Not everyone was dissatisfied with Everest’s customer service. A number of customers found Everest easy to work with.
When last we checked in with Everest, its reputation had taken a serious dive due to a large number of unaddressed customer complaints. It seems to have since addressed most of those issues, though its reputation has yet to be completely healed. Though the MCAs are easy to qualify for, Everest is still on the expensive side, even for an alternative lender. On the positive side, their representatives are usually easy to reach and helpful. I’d recommend comparing offers before signing anything.
Not sure where else to look? Our alternative suggestions page can put you on the right track.