Guidant Financial Review
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- Date Established
- 2003
- Location
- Bellevue, WA
Pros
- Appropriate for new businesses
- Good rates
Cons
- High credit requirements
- Slower than most other alternative lenders
Overview
Guidant Financial is an alternative lender based in Bellevue, Washington. Guidant specializes in a financial product called Rollovers as Business Startups (ROBS) which allows funds from 401Ks and similar accounts to be used for startup costs without incurring tax penalties. The company also offers SBA loans and lines of credit.
Guidant’s transparency and solid rates make it quite competitive, but high credit requirements may put this lender’s products out of reach of many small businesses. Those who don’t make the cut may want to check out some alternatives.
Table of Contents
Services Offered
Guidant Financial offers the following products:
Borrower Qualifications
These are the qualifications for getting an unsecured loan (line of credit) from Guidant Financial:
| Time In Business: | Unknown |
| Credit Score: | 690 |
| Credit Utilization: | Less than 50% |
These are the qualifications for getting an SBA 7(a) loan from Guidant:
| Time In Business: | Unknown |
| Credit Score: | 640 |
| Credit Utilization: | N/A |
Guidant also offers an SBA Working Capital Loan program for new businesses seeking $150,000 or less. This product has no personal collateral requirements. Its qualifications are slightly different, however:
| Time In Business: | N/A |
| Credit Score: | 700 |
| SBA Score: | 160 |
| Credit Utilization: | 40% debt-to-income ratio |
| Additional Requirements: | Minimum 10% equity injection & an additional $25,000 in liquidity (can be from ROBS) |
For SBA Working Capital Loans, you must have begun operations prior to funding.
These are the qualifications for getting a portfolio loan from Guidant:
| Time In Business: | Unknown |
| Credit Score: | N/A |
| Asset Requirements: | Over $85,000 in securities & stocks trading at more than $5 per share |
These are the qualifications for getting a ROBS from Guidant:
| Time In Business: | N/A |
| Credit Score: | N/A |
| Asset Requirements: | $50,000 or more in eligible, rollable retirement assets |
Terms & Fees
Lines Of Credit
Unsecured Loans
These are the rates and fees for Guidant Financial’s unsecured loans, which function similarly to a line of credit:
| Borrowing Amount: | $10,000 – $150,000 |
| Term Length: | Revolving |
| Interest Rate: | 12% – 18% (0% introductory rate for some clients for the first year) |
| Origination Fee: | 9% |
| APR: | Learn more |
| Collateral: | None |
Guidant is known for its ROBS, but the lender also provides unsecured loans for business. Despite their name, these loans have revolving terms similar to those of a line of credit. That means you can draw on your credit as frequently as you want so long as the total amount you’ve borrowed does not exceed your credit limit. As you pay off your balance, you’ll free up additional credit you can use again.
Payments on Guidant’s unsecured loans are made monthly. If you qualify for the introductory offer, you won’t have to pay interest for the first 12 months.
Portfolio Loans
These are the rates and fees for Guidant Financial’s portfolio loans:
| Borrowing Amount: | Up to 80% of your account balance Minimum $85,000 |
| Term Length: | Revolving |
| Fixed Rate: | 3% – 4% of the borrowing amount |
| Origination Fee: | 4% |
| APR: | Learn more |
| Collateral: | Your portfolio |
Portfolio loans allow you to leverage the value of your stocks and securities to obtain funding without actually selling them. Think of it like using your portfolio as collateral for a secured loan. Otherwise, Guidant’s portfolio loans work similarly to their unsecured loans, except you’ll be charged interest-only payments monthly. The interest rate, as well as the setup fee, are also lower than they are with the unsecured loans, but there’s no introductory rate.
SBA Loans
Guidant offers two types of SBA loans. SBA loans are partially guaranteed by the Small Business Administration (SBA), which allows businesses to access better rates and terms than they would otherwise qualify for. The tradeoff is a more complex and longer application process.
| Borrowing Amount: | $75,000 – $5 million |
| Term Length: | Up to 10 years |
| Fixed Rate: | See current SBA loan rates |
| Origination Fee: | $2,500 + 3% – 5% of loan amount + SBA Guaranty Fee |
| APR: | Learn more |
| Collateral: | Personal guarantee |
The SBA 7(a) program is the most popular and versatile of the SBA’s loan programs. SBA 7(a) loans can be used for everything from refinancing debt to purchasing land, to purchasing equipment, to expanding an existing business.
This SBA loan is otherwise similar to other installment loans. You’ll make monthly payments (principal + interest) until the loan is paid off completely.
Guidant offers a variation on the 7(a) loan for customers seeking $150,000 or less. The credit requirements are a little higher (see above), and you’ll also need to have at least $25,000 in reserve cash. In exchange, this version lets you avoid collateral requirements, replacing them instead with a first lien on business assets. It also features a simplified, and faster, application.
SBA Working Capital Loans
| Borrowing Amount: | $50,000 – $150,000 |
| Term Length: | 7 – 10 years |
| Fixed Rate: | See current SBA loan rates |
| Origination Fee: | $2,500 + 1% – 3% of the loan + SBA Guaranty Fee |
| APR: | Learn more |
| Collateral: | Business assets |
SBA Working Capital Loans are smaller, expedited versions of more traditional SBA loans like the 7(a). Keep in mind that we’re talking fast for an SBA loan — figure somewhere around 45 days.
Interestingly, Guidant allows these loans to work in conjunction with its ROBS product to cover the down payment of an SBA Working Capital Loan. The down payment is typically around 10 percent of the loan. Note that if you’re funding a franchise, you have to have paid the franchise fee in advance of applying.
Rollovers As Business Startups
| Borrowing Amount: | Up to 100% of account balance Minimum $50,000 |
| Term Length: | N/A |
| Setup Fee: | $4,995 |
| Administration Fee: | $139 per month |
Have you heard of a ROBS before?
When you’re first starting out as an entrepreneur, getting that initial funding with no business history can be an enormous hurdle. One alternative to a loan is to roll over funds from a retirement account (like a 401(k)). Technically, you’re not borrowing money at all.
So why wouldn’t you just liquidate the account instead? A ROBS doesn’t qualify as cashing out your retirement account, so you won’t be hit with the penalties that come with liquidating a retirement account early. As a “rollover,” the funds aren’t taxable.
Guidant allows you to rollover funds from the following types of accounts:
- 401(k)
- 403(b)
- Traditional IRA
- Thrift Savings Plan
- Simplified Employee Pension
- Keogh
Application Process
You can see if you pre-qualify on Guidant’s website with a simplified form that promises results within a few minutes.
The actual funding process, however, takes significantly longer. You’ll need to submit a copy of your credit report when you apply for any of Guidant’s products.
If you’re applying for an SBA loan, you’ll also need a number of additional documents, including:
- Necessary SBA forms
- Three years of federal personal tax returns
- Resume
- Personal identification
- Business plan
- Financial projections
- Info on any affiliated businesses you may have
Otherwise, your contact at Guidant will walk you through any product-specific documents you may also need to provide.
Here’s about how long it’ll take to get funding if you’re approved by Guidant:
- Unsecured loans: 3 – 4 weeks
- Portfolio loans: 2 -3 weeks
- SBA Loan: 2 – 4 months
- SBA Working Capital: 30 – 60 days
- ROBS: 3 weeks
Sales & Advertising Transparency
Guidant provides most of the information you’ll need on its website. You’ll find information about rates, products, term lengths, and qualifications.
You can also dig around in Guidant’s resource center for general information about lending.
Customer Service & Technical Support
You can reach Guidant by phone or through the lender’s website.
Reviews of Guidant’s customer service are scarce and mixed, with the primary complaint seeming to be difficulty reaching staff.
User Reviews
Negative Reviews & Complaints
Guidant Financial currently has an A+ rating with the BBB. While you can find customer reviews of Guidant, there aren’t a ton of them. Customer complaints include:
- Uneven Customer Service: A number of customers complained about not being able to reach their customer rep.
- Speed Issues: Compared to most other online options, it will take Guidant longer to get funds to you. Additionally, some customers complained about the funding process taking even longer than advertised.
- Other Communication Issues: A few customers complained about confusion with the funding process or being surprised by unexpected fees.
Positive Reviews & Testimonials
Guidant also garners its fair share of praise from reviewers:
- Good Rates: Guidant has competitive rates if you qualify.
- Wide Range Of Products: From portfolio loans, to ROBS, to revolving lines of credit, to SBA loans, you should be able to find something that fits your needs.
- Transparent: Guidant provides a lot of information on its products up front.
Final Verdict
Guidant Financial is best known for its ROBS plans which, while niche, can be a good option for entrepreneurs who need funding to get a new business off the ground. More mature businesses with excellent credit may be interested in the convenience offered by Guidant, although if you qualify for this lender’s products, you probably also qualify for a traditional bank loan.
Didn’t find what you were looking for here? Can’t meet Guidant’s credit requirements? Not all lenders require a credit check. Entrepreneurs looking for funds may also want to consider these alternatives.
Chris Motola
Finance Writer at Merchant Maverick
Chris Motola is a writer, programmer, game designer, and product of NY. These days he's mostly writing about financial products, but in a past life he wrote about health care and business. He's a graduate of the University of Central Florida.
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