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Read More Mar 8, 2023 Filed under: Accounting, Bookkeeping, Invoicing, Small Business
Everest Business Funding Review
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Expert Analyst & Reviewer
UPDATED
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Everest Business Funding
| Total Rating | 2.5 |
|---|---|
| Terms & Fees | Poor |
| Application Process | Fair |
| Sales & Advertising Transparency | Fair |
| Customer Service | Good |
| User Reviews | Fair |
Pros
- Relaxed credit score requirements
- 2-7 days time to funding
Cons
- 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
Industries Served
Everest Business Funding serves the following industries:
- Healthcare
- Restaurants
- Service
- Trade
- Seasonal businesses (accounting, bridal, moving)
- Retail
Services Offered
Everest offers the following types of business funding:
- Merchant cash advances
Borrower Qualifications
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 |
| Credit score: | 500 |
| 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.
Compare to other merchant cash advance options:
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.
Application Process
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).
User Reviews
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.
Final Verdict
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.
Chris Motola
Expert Analyst & Reviewer at Merchant Maverick
An expert in personal and business loans and financial health, Chris Motola has been writing about small business finance and payments for over 5 years. He has been cited in various industry publications, including Forbes Advisor, GoBankingRates, and Medium. Chris is a graduate of the University of Central Florida.
View Chris Motola's professional experience on LinkedIn.
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Find Funding for Any Credit Level
BusinessLoans.com  |
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Explore a wide range of business loan options at BusinessLoans.com. With no minimum credit score requirement, find the perfect funding solution for your needs. Get Started.
Find Funding for Any Credit Level
BusinessLoans.com |
|---|
Explore a wide range of business loan options at BusinessLoans.com. With no minimum credit score requirement, find the perfect funding solution for your needs. Get Started.
Organization Name: Mississippi son Guard LLC
Ladies and gentlemen. Take it from an ole boy that made a mistake with several of these high interest loans. Yes they will tell you it’s not a loan that they are purchasing future sales but you can not purchase what you cannot see . You cannot purchase the unknown. This would be gambling . Just because I had 10 customers pay 10 bucks last week via credit cards doesn’t mean the same thing will happen each and every week. My bank accounts are all negative and the business is gone yet these folks told me they knew it was operating,. Hell go shut it down if it is. Be my guest. Someone else took the building and started the same business with a slightly different name but it has nothing to do with man even though I am going to have a lawsuit against the business property owner but that’s a whole new story. All these guys do is push you into taking cash that is hell to pay back let alone throw in Covid then when things cease and shut down, they still want there money plus add on all these other made up penalties. They took a risk knowing good and well that at anytime anything could happen to a business and it go belly up so they took a gamble and that being said how many times have you , a neighbor or a family member went to a casino and lost money and then been a sore loser and ask for your money back and get it Back? I’ll sit here and wait on that amount the casinos refunded to be posted.
Organization Name: cv experts
These a holes showed their real colors during covid restrictions, all they care about is ripping you off for huge profits. We had NO MONEY coming in for several months and they still took theirs. Modified a little but not enough. We made a very generous offer at the payoff and they said NO. Entire balance had to be paid. WE have since paid them off with help from family and friends, but be assured we will never use these LOAN SHARKS ever again. I am advising all of you reading this to never use these crooks!!!!!!!
Organization Name: Propertyworx
While easy to obtain the loan we have already paid roughly 90% of the account off and it just been 7 months. They gave a high rate our company has slowed and I had to read the contract to find that if business slows you can modify to a lower daily payment. This seems to irritate them each time we have had to modify. We are committed to paying this account off. When asked if we could pay a bulk payment to pay off they stated we were supposed to have already been paid off so no break in the amount even though 90% has been paid in 7 months would take anything off their balance. I read the contract again in the purchaser acknowledgment section it clearly states there is no interest rate or payment schedule and no time during which the purchased amount must be collected by purchaser yet they told me it was supposed to already been paid off and I’m guessing due to modifications based on our actual revenue that had been slow the time to which we could pay it off didn’t happen as quickly as they wanted. Per their contract though there is no initial or schedule of time that the amount must be collected by purchaser so for them to tell me that it was supposed to already been paid off and that me sending in a bulk or balloon payment would not pay the account off after I all of these funds have been paid up to 90% is just ridiculous. I should not have to read my contract I should be able to send a simple email say our revenue has changed and they should respect and uphold their contract of modification instead of me having to point it out to them. This has really not helped our business it has made it so much harder with the daily payments to pay out vendors and operation cost. I would think paying roughly 30,000 in 7 months and offering a balloon payment to pay in full would be rewarded and instead we are told no we are late paying off even though each day they obtain their money and not qualifying as they say for a payoff discount to pay it off is bad business.
Organization Name: Salon Vivid
With the Covid 19 shut down and zero income Everest refused to halt my ACH payments for several weeks. I cannot believe that during a crisis like this they cannot stop payments. I have even emailed them my bank statement showing them their daily ACH is causing me to have daily NSF fees. I am now paying over $150 in NSF per week on top of their $168 daily payments. I do not know what to do besides possibly shutting down. If anyone can comment with advice please do.
Hi Phiet,
We aren’t big fans of Everest either, as you can see by their star rating. Take a look at our Coronavirus Salon Survival Guide– it’s full of relevant resources that can hopefully help you stay afloat during this particularly difficult time for your industry as well as many others. All our best.