Excel Capital Review
- Lower borrower qualifications than with banks
- Multiple types of financing available
- High borrowing amounts
- The application process is fast and easy
- Funds are disbursed quickly
- Rates can be expensive
- Repayments are required frequently (in some cases)
- Website advertising is misleading
Excel Capital Overview
Excel Capital, formerly Excel Capital Management, is an online lender based in New York City offering unsecured business loans, business lines of credit, and other similar financial products.
A prospective borrower will find a vast amount of options with Excel, making it (at least potentially) a versatile lender for new businesses. Unfortunately, that potential is harmed by the way the company presents products on its site, which can make it difficult to ascertain whether Excel is talking about its products specifically or the product type in general.
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
Excel offers the following types of financial products:
- Business Term Loans: Term loans grant the borrower a lump sum of money. In exchange, the borrower pays back that amount, plus interest, over a designated amount of time called a term.
- Business Lines Of Credit: Business lines of credit extend borrowers a potential amount of credit called a limit. Borrowers can draw on that credit repeatedly so long as the total amount borrowed is less than the limit. Interest is typically only paid on the amount used.
- Equipment Financing: Equipment financing encompasses specialized loans and leases that are used to purchase or rent equipment, with the equipment purchased acting as collateral.
- SBA Loans: SBA loans are the Small Business Administration’s program for guaranteeing business loans made by partnered lenders. This program allows the lender to offer better rates and terms than the borrower would typically qualify for.
- Invoice Factoring: Invoice factoring is the process of selling unpaid invoices to the factoring company for slightly less than they’re worth. It’s essentially an advance on an invoice.
- Merchant Cash Advances: Merchant cash advances involve the purchasing of a business’s future credit and debit card sales. The purchase comes in the form of a lump sum. The advancing company collects a percentage of the business’s daily card sales until the total amount withheld equals the purchase amount, plus a flat fee.
Here are the minimum borrower qualifications to receive funding from Excel:
|Time In Business:||2 months|
|Business Revenue:||$10,000 per month|
|Personal Credit Score:||Varies by product|
Note that specific products may have additional qualifications, such as more time in business, more revenue, or a specific credit score.
Terms & Fees
Most of Excel Capital’s products fall under one of the following umbrellas:
Unsecured Business Loans
Here are the terms for Excel Capital’s unsecured business loans:
|Borrowing Amount:||$10,000-$5 million|
|Term Length:||4-18 months|
|Borrowing Fee:||Approximately 15%-39% of the borrowing amount|
Excel Capital’s unsecured business loans use a fixed-rate price scheme similar to those of short-term loans. That is, the amount you have to repay will be the amount you borrowed multiplied by a percentage or factor rate. So if you borrow $10,000 and you have a fee of 15% (sometimes written as x1.15), you’ll owe $11,500 ($10,000 x 1.15). Generally, the longer your term, the higher your rate will be.
Excel states on its website that its loan repayment frequency may be daily, weekly, bi-weekly, or monthly. Most online lenders will require these payments to be deducted automatically from a business account.
Business Line Of Credit
Here are the terms for Excel Capital’s business lines of credit:
|Term Length:||6 or 12 months|
|Interest Rate:||1.5%-10% of the borrowing amount per month|
Business lines of credit are more flexible than term loans. If you’ve used a credit card, you’ll have a basic idea of how they work. If you successfully apply for one, you’ll be extended a credit limit between $2,000 and $250,000 for six months to a year. During that time, you can draw on your line of credit as often (or as little) as you want so long as the total amount you’ve borrowed doesn’t exceed your credit limit. Excel’s lines of credit are revolving, meaning that as you pay off your principal, credit becomes available for you to use again.
Excel charges a fee on your principal by the month rather than interest, meaning the sooner you pay it off, the less you’ll end up paying on it. If you don’t carry a balance, the fee will not be charged. The minimum payment will be deducted from your business account monthly by ACH.
Here are the terms for SBA loans made through Excel Capital:
|Borrowing Amount:||$50,000-$5 million|
|Term Length:||10-25 years|
|Interest Rate:||Check current rates|
|Other Fees:||SBA fees and some third-party fees|
|Collateral:||Varies by SBA loan type|
The Small Business Administration (SBA) doesn’t directly lend to businesses, but it does help qualifying businesses access better rates by guaranteeing a percentage of the loan. That means you’ll not only be working with Excel but the SBA as well. SBA loans come in several different forms.
Be aware that most SBA loans take a long time to close, so they may not be the best option if you need money in a hurry.
Like most online lenders, Excel has a simplified application process. In fact, it’s only a page long. In addition to the application, you’ll be asked for recent bank statements and other corroborating documentation to show your monthly income and expenditures. By the next business day, Excel will have either rejected your application or gotten back to you with product options.
At that point, you can select the product you want and then Excel representatives will guide you through the product-specific terms. If all goes well, you should have your funds within 48 hours.
Sales & Advertising Transparency
Excel takes an unusual approach with its website. Rather than focus on its own products, the company gives exhaustive details about the product type more broadly. In some cases, Excel will sprinkle a few tidbits of information about its specific products, but discerning whether the company is talking about its product or someone else’s takes some careful reading. For Excel’s products, be sure to check out the loan calculators, as they’ll give you the best sense of how Excel charges its fees.
Customer Service & Technical Support
Excel’s customer service can be reached through its website by form or through the built-in chat feature. You can, of course, also initiate contact by beginning an application or calling the company by phone. You can also contact Excel through social media (Facebook, Twitter, LinkedIn).
Negative Reviews & Complaints
Excel Capital is accredited by the Better Business Bureau and currently maintains an A+ rating with just one complaint on record. Some potential issues applicants might have with Excel:
- Opaque: While there’s some good general information about financial products on the site, it’s easy to get the impression that Excel is hiding its rates behind those broad strokes.
- Confusing Fee Structure: This particularly applies to the line of credit products.
- Aggressive Advertising: Some customers complained about receiving high-pressure sales materials from Excel Capital.
Positive Reviews & Testimonials
Some of the reasons to consider Excel Capital include:
- Multiple Financing Options: Excel offers a broad selection of financial products, making it easier to find something that fits your needs.
- Good Customer Service: Customer reviews are scarce but mostly positive.
- The Quick Turnaround: While not the quickest in the business, Excel can get you your money quickly.
Excel Capital offers a large number of products that can fit a variety of small business needs. The company’s rates on unsecured business loans are reasonable as alternative lenders go, but the line of credit fee structure, if not paid off quickly, can pile up the costs. Excel is not the most transparent lender, but you could certainly do a lot worse.