InterNex Capital Review
- No credit score requirements
- High borrowing amounts
- Rates tend to be inexpensive
- Application process is fast & easy
- Customer service is helpful
- Borrower qualifications might be hard to meet
- Financing isn’t available in some states
- Some additional fees charged
- Collateral is required
- Website advertising is not informative
InterNex Capital Overview
InterNex Capital is a business lender that offers asset-backed lines of credit to small- and medium-sized B2B businesses. Described as a “digital lender,” InterNex Capital uses technology to streamline and de-complicate the world of asset-backed business financing.
Asset-backed lines of credit are an alternative to invoice factoring. Instead of selling your unpaid invoices at a discount, InterNex Capital simply uses your unpaid invoices as collateral. A borrower’s available credit line roughly corresponds to the value of the invoices outstanding. Because the product is a credit line, the amount you can borrow is based on the total amount of eligible invoices outstanding, not on the age or size of specific invoices.
However, InterNex Capital’s product isn’t as accessible as that of many invoice factors: your business must be at least two years old and make between $1M and $50M in revenue to qualify.
If you haven’t hit those benchmarks, you may want to check out some other invoice financing solutions. However, if you are eligible, InterNex Capital certainly offers a compelling service. Read on for the details!
Table of Contents
InterNex Capital offers asset-backed lines of credit. A line of credit establishes a credit limit, which represents a maximum amount of money a lender is willing to extend to you. You can then, at your discretion, draw on that line of credit whenever you want so long as the total amount you’ve borrowed doesn’t exceed your credit limit. In the case of a revolving line of credit, your credit is reusable; as you pay off your balance, it becomes available to use again. An asset-backed line of credit uses the collateral you put up when you apply to establish your credit limit.
These are the necessary qualifications required for InterNex Capital’s service:
|Time In Business:||two years|
|Business Revenue:||$1 million – $50 million|
Because repayment is largely contingent on your customers’ payments, InterNex Capital does not require your business to have good credit. However, you will need to have been in business at least two years and make between $1M and $50M in revenue annually.
InterNex Capital works with most B2B businesses but does not work with those that provide federal government or public healthcare services. Additionally, InterNex Capital does not currently work with businesses in California, North Dakota, South Dakota, Vermont, Nevada, or Tennessee.
Terms & Fees
These are the terms and fees for InterNex Capital’s line of credit:
|Credit Facility:||$250,000 – $10 million|
|Term Length:||12 months|
|Loan Rates:||7.99% – 18.99%|
|Additional Fees:||2.25% – 4% origination fee
Unused line fee
Lien on receivables
Possible blanket lien
The size of your credit facility will depend on the assets you have available. InterNex Capital will normally extend a credit facility equal to about 70% – 85% of your business’s outstanding invoices. The amount you are able to draw at any given time is equal to the current number of outstanding invoices. So, if you have $300,000 of invoices outstanding, you will be able to borrow a maximum of $300,000, even if your credit facility is higher.
InterNex Capital is a non-notification service, meaning your customers will not know that you have a funding arrangement with the company.
Aside from interest, InterNex Capital charges a one-time origination fee, a fee when you draw from your line, a fee if you don’t use at least 50% of your credit line, and a renewal fee if you want to continue using your credit line after the 12-month term is up.
To begin the process, you simply need to fill out an application online with information about yourself and your business. You will also need to provide these documents:
- Last 12 months of bank statements
- Last two years of business tax returns
- Current and past A/R and A/P aging reports
- Invoice list report
- Last two years of profit and loss statements
- Last two years of balance sheets
- Voided business check
InterNex Capital will go over your information and let you know if you’ve been approved within three days. If you like the terms offered, you will have to sign a contract before you are allowed to begin drawing from your line.
According to the FAQ, the application process typically takes between four and seven days.
Sales & Advertising Transparency
InterNex Capital provides plenty of information to help potential customers understand the service offered. The site does not make any misleading or false claims. However, it is lacking in specific information that may help customers easily compare this service with others (such as interest rates and fees).
Although the website is missing a few details, the customer service is transparent and willing to answer questions about the service.
Customer Service & Technical Support
Customer service is available via phone or email.
When you have a credit line, InterNex Capital will assign you a dedicated account manager who you can contact with any questions that arise. Customer reviews online report that InterNex Capital staff members are professional, friendly, and responsive.
Negative Reviews & Complaints
InterNex Capital has a few reviews on Trustpilot (all of which are positive). The company has an A+ rating on the Better Business Bureau website but is not accredited by the BBB and does not have any reviews or complaints.
Regardless, here are a few reasons InterNex Capital may not work for your business:
- Not For B2C Businesses: InterNex Capital does not work with consumer-oriented businesses.
- Not For Startups: InterNex Capital requires businesses to have been in operation at least two years and make at least $1M per year.
- Unused Line Fee: This service isn’t for merchants who don’t intend to use at least 50% of their credit line.
Positive Reviews & Testimonials
InterNex Capital has a few customer reviews on Trustpilot. This is what customers like about the service:
- Helpful customer service: Mentions of customer service by customers seem to be mostly positive.
- Fast application process: Internex Capital has both a streamlined application and a fast turnaround time.
- Solves cash flow problems: Many customers found the ability to effectively turn an invoice into a line of credit helpful.
We’d like to hear from you, though! Have you worked with InterNex Capital? What was your experience like? Leave a message in the comments!
InterNex Capital is best for small- and medium-sized growing B2B businesses that have inconsistent cash flow. If you are not yet bankable and prefer an asset-backed financing solution that is a little different than traditional invoice factoring, InterNex Capital may be a good choice.
Although invoice factoring services have a lot to offer, some merchants may benefit from being able to borrow capital that is not specifically tied to the value of individual invoices. On top of that, InterNex Capital’s interest rates may be lower than those you could get from an invoice factor (invoice factoring APRs can range anywhere from about 6% to 72%).
That said, InterNex Capital charges fees that other services may not, and businesses eligible for InterNex Capital may be eligible for lower factoring rates from a traditional invoice factor. While InterNex Capital may very well offer the best terms and fees, it’s best to make some comparisons before settling to ensure you’re getting the best solution for your business.
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We've done in-depth research on each and confidently recommend them.