Greenbox Capital Review
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- Date Established
- Miami, FL
- Borrower qualifications are lower than banks
- Suitable for businesses with bad credit
- Multiple types of financing available
- The application process is fast and easy
- Funds are disbursed quickly
- Rates can be expensive
- Repayments are required frequently
- No long-term financing options available
Greenbox Capital Overview
Need a small business loan but can’t get approved by a bank? You may still be able to get funding from an alternative lender like Greenbox Capital. This Florida-based business lender offers several different types of small business financing to a suit a variety of short-term business financing needs. With its relaxed borrower requirements, easy application, and quick time-to-funding, Greenbox Capital could be a good bet for small businesses who need quick capital but don’t qualify for traditional business financing. What’s more is that Greenbox Capital reviews from users of the service are quite positive.
With all that said, Greenbox Capital may not be the best choice for your particular business. Keep reading this Greenbox Capital review to learn if you should apply for a loan from this alternative business lender.
Table of Contents
Services Offered By Greenbox Capital
Greenbox Capital offers several different lending products for small businesses:
- Merchant cash advances: A merchant cash advance is a type of short-term business funding where the lender provides you with a lump sum based on your future sales, then deducts a percentage of your daily credit card sales until your balance and financing fees are repaid. Fees for this type of funding can be high, but MCAs are useful for businesses that need capital fast.
- Short-term loans: STLs are traditional term loans that you repay quickly—usually within less than a year. In addition to interest or a fixed borrowing fee called a factor rate, the loan may have an origination fee that’s deducted from the top of the loan. Fees can be high as with MCAs, but these loans can work well for short term-working capital or one-time investments.
- Lines of credit: With an LOC, a lender allots a business a credit limit, and the business can withdraw as much or as little money as they need up to the limit, based on their needs. This type of loan may or may not have a fixed term, and in most cases, the amount you can borrow is replenished as you repay the funds you’ve withdrawn. Lines of credit can be useful if you want to be able to borrow funds on an ongoing, as-needed basis.
- Invoice factoring: For businesses with large unpaid invoices, invoice factoring services can be a useful way to free up cash. With invoice factoring, you sell the lender your outstanding invoices in exchange for a percentage, typically 70-90%, of the invoice’s value in cash. After your client makes payment, the lender sends you the remainder of the invoice’s value (minus a fee).
- Secured loans: In addition to unsecured loans, Greenbox Capital also offers term loans that are secured with capital. With a secured loan, the lender may collect your collateral if you default on your loan. This reduces risk to the lender, allowing the lender to offer you a lower interest rate, or offer you a loan when you would not otherwise qualify.
Greenbox’s lending services are available in all 50 states, as well as the US territories of American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the US Virgin Islands. They also fund businesses in Canada (except for Saskatchewan).
Besides offering loans directly to small businesses, Greenbox also has an ISO program in which they provide brokerages with financing services for their clients.
Greenbox Capital Borrower Requirements
Greenbox does not list all of their borrower requirements on their website, but they do note that applicants with bad credit are eligible. Greenbox looks at your credit profile, but when considering your application, they place greater emphasis on your business credentials, such as your cash flow and length of time in business.
- Time In Business: 6 months
- Business Revenue: $7,500/month (for MCA)
- Credit Score: N/A
Regarding revenue, MCA applicants will need average monthly sales of at least $7,500 for the past 3 months. For invoice factoring, Greenbox says their services are ideal for businesses with invoices larger than $15,000 that are not more than 90 days past due.
While Greenbox financing is open to most industries, there are a few industries Greenbox will not work with, such as money services businesses; check their website to find out if your business type is eligible for funding.
Greenbox Capital Interest Rates & Fees
|Borrowing Amount||$3,000 – $500,000 for unsecured STL, LOC, and MCA. $50,000 – $250,000 for secured loans. Up to $100,000 for invoice factoring.|
|Term Length||3 – 12 months|
|Interest Rate||Starts at 7.99%|
|Collateral||Personal guarantee on all loans. On secured loans, collateral can be developed property that is not the owner’s primary residence|
Unfortunately, Greenbox Capital doesn’t disclose much in the way of terms or fees on its website. The terms and borrowing amounts they do disclose seem to be standard for the industry, with loan amounts ranging from $3,000 to $500,000, depending on the type of financing you’re applying for and your business credentials.
Regarding its term loans specifically, Greenbox notes that while loans can range from $3,000 to $500,000, most loans are between $20,000 and $60,000. For MCAs and invoice factoring, the amount you’re eligible for is directly related to your average sales and the value of the invoice you’re selling. Specifically, Greenbox will grant an MCA of 70-120% of your 3-month sales average with a maximum of $500,000, and between 70-90% of an invoice’s value (max. $100,000 per invoice).
Based on Greenbox Capital reviews from former customers, Greenbox short-term loans may come with an origination fee and potentially high-interest rates. Repayments are likely required daily, and one borrower noted they had a 5-month term on their loan with daily repayments. While these terms may sound punishing, they are all standard for alternative short-term lenders.
Starting your Greenbox Capital loan application is as simple as filling out a simple web form on the company’s website. The form asks basic questions such as your industry, monthly revenue, time in business, required funding amount, and contact information.
Within an hour, a Greenbox Capital Funding Advisor will reach out to you to collect more information about your business and go over funding options.
Depending on the amount and type of financing you’re applying for, Greenbox may request information such as credit card and bank statements from the past 3 months, and an emailed or faxed photocopy of your driver’s license. For faster approval, you can also provide the Funding Advisor with secure access to your business transaction data.
Greenbox says it aims to respond to all applicants within one hour (during regular business hours) and can provide funding after approval in as little as 24 hours.
Down the road, cash advance customers can apply for a second advance, usually for a higher amount, after paying down the first cash advance by 50%.
Sales & Advertising Transparency
Greenbox has a professional-looking website that does a good job of describing its services and what types of businesses each type of financing is suited for. While they don’t disclose too much about specific terms, there isn’t anything spammy or obviously deceptive about the website. There is also an FAQ section to answer common questions about Greenbox financing. If you do apply for and receive a loan offer, make sure you read your agreement closely to understand the terms and fees and ask questions if you are unsure about something.
Customer Service & Technical Support
Greenbox offers phone and email support from its Miami Gardens, Florida-based offices Monday – Friday 9AM to 6PM EST. Greenbox also has a regularly updated blog and resources section on its website, as well as social media presence on Facebook, YouTube, LinkedIn, and Instagram. GreenBox says it responds to all queries within one hour during normal business hours. Generally, customers have positive things to say about the quality of customer services and support resources provided.
Greenbox Capital Reviews, Complaints, & Testimonials
Greenbox Capital has been BBB-accredited since 2014 and has an A+ rating, with 3 complaints closed in the last 3 years. The company also has an “Excellent” reputation on Trustpilot, with a 4.6/5 rating out of 458 reviews, and many positive reviews posted on Facebook as well.
Not all reviews are positive, of course, but for an online lender, Greenbox has a better-than-average public reputation.
Negative Reviews & Complaints
Some Greenbox Capital reviews have the following negative things to say about the company:
- Surprise origination fee: More than one Greenbox Capital review states that the lender charged them an origination fee that the salesperson had originally promised would be waived. Greenbox, for their part, has responded to all of these claims, acknowledging that the fee was a mistake and promising to issue a refund to correct their mistake.
- High-interest rates: Greenbox Capital has high-interest rates, according to some borrowers. One reviewer on Trustpilot said the company charged them $5,500 in interest on a $15,500 loan, in addition to a $620 origination fee. This equates to a 35% interest rate and a 4% origination fee.
- Payments debited after payoff: Several customers state that daily ACH payments continued to be debited from their account after their loan was repaid. In some cases, the issue seems to be that the final loan payment hadn’t cleared yet. Greenbox has responded to some of these complaints, acknowledging their error and promising a refund.
- Too many phone calls: Some borrowers complain that they receive too many sales phone calls from Greenbox soliciting for them to renew their loan or MCA.
Positive Reviews & Testimonials
The vast majority of Greenbox Capital reviews on Trustpilot and Facebook are positive (note that the testimonials on Greenbox’s website are pulled from their Trustpilot profile). Here are some trends I noticed:
- Excellent customer service: Numerous reviewers praise the quality of Greenbox’s customer service and compliment many of the Funding Advisors by name. Words like “friendly,” “caring,” and “professional” stand out.
- Affordable fees: Though some past clients complain about high fees, others assert that Greenbox’s fees are reasonable and competitive, particularly for a company that offers financing to businesses that aren’t able to obtain financing elsewhere.
- Fast & easy: Some more words that stand out in Greenbox Capital reviews are “fast” and “easy.” Happy customers describe a quick and streamlined application process, with the money hitting their account in 24 – 48 hours.
Finding a fair and reputable small business lender in the alternative lending space is no easy task. However, there are a few such lenders that make it a point to provide honesty and fairness in their lending practices. Though we don’t have a ton of experience with this particular lender yet, Greenbox Capital seems to check off most of the boxes in terms of being a unicorn, i.e., a non-predatory online lender.
There are a few improvements we’d like to see with Greenbox Capital, such as disclosing more terms and fees on their website. It’s also important to note that short-term financing can be expensive in general, and is usually not suited to businesses with strong credentials (excellent credit, multiple years in business, etc.) that could qualify for a bank loan or SBA loan. But if you have bad credit or need financing right away–and are prepared to repay your loan within months rather than years–an online lender like Greenbox Capital could be a good bet.
Want to learn more about alternative business loans? Check out Alternative Business Loans: What They Are & Where To Find Them.