Reliant Funding Review
Need help finding a lender?
- Date Established
- San Diego, CA
- No credit rating requirements
- Good public reputation
- Opaque terms and fees
- Some additional fees
Reliant Funding is a San Diego-based alternative business funder whose recent acquisitions include Merchants Capital Access. It’s part of a growing industry that provides short-term loans and merchant cash advances (MCAs) rather than traditional lending products like bank loans. MCAs superficially resemble loans but differ in some important ways, which we’ll discuss below.
While Reliant has an attractive spread of products, it isn’t the most forthcoming company. Be prepared to have to do some additional due diligence if you decide to do business with this company.
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
- Auto repair
- Restaurants & bars
Reliant Funding offers the following types of business funding:
This review will look at the first three.
Reliant estimates that it approves over 70% of its applicants. In addition to the qualifications below, your business cannot be in open bankruptcy, have a negative landlord reference, or any other significant judgments:
|Time in business:||1 year|
|Credit score:||N/A (you’ll qualify for better rates if your credit is better)|
|Revenue:||$10,000 per month|
To qualify for a short-term loan or MCA from Reliant, you must have a time in business of at least one year. However, some exceptions may be made for businesses that have been in operations for at least 7 months.
If you’re looking for an equipment lease through Reliant, the company can finance new or used equipment including:
- Work vehicles
- Office furniture
- POS systems
Terms & Fees
Here’s what you can expect from Reliant:
|Borrowing amount:||$5,000 – $500,000|
|Term length:||6 – 18 months|
|Origination fee:||Charged, but amount unknown|
|Effective APR:||Learn more|
|Collateral:||Most clients don’t need any, although there are exceptions|
Reliant offers a breadth of short-term funding products that make the company a bit more flexible than the average alternative lender. In practice, these products are fairly similar from the customer’s point of view.
Unfortunately, Reliant prefers not to disclose its rates in advance, which means you’ll have to submit your information before you receive an initial quote. Like most short-term funders, Reliant doesn’t use traditional interest rates. Instead, it charges a fixed fee based on the amount of money you receive. This fee is typically calculated using a multiplier (for example, 1.12), but might be calculated using a percentage of the borrowing amount (for example, 12% of the borrowing amount). In either case, you’ll have to pay back the amount you borrowed plus the fixed fee. So if you borrow $10,000 at 12% of the borrowing amount, you’ll owe $11,200.
There are some differences between the products. A short-term loan (STL) is technically a loan in the traditional sense, but is paid back daily through automated withdrawals from your business bank account. A merchant cash advance (MCA) resembles a loan but is actually an exchange of future sales. Reliant will either claim a percentage of your daily credit card sales or withdraw a set amount from your business account.
Reliant doesn’t offer much information about its leasing structure, but expect a slower and more traditional approach to its underwriting process compared to the company’s other products.
Reliant also offers a line of credit-like product called Premier Line. This pre-approves you for a set amount of credit. Rather than receive it in a single lump sum, you can draw on it in any increment so long as the aggregate amount you’ve drawn doesn’t exceed your credit limit.
Reliant’s application process begins with requesting a quote on its site. This involves submitting your name, phone number, email address, business name, years in business, and gross annual sales.
Once you’ve received your quote, you can follow up with the representative who gave it to you. If you decide to accept Reliant’s initial offer, expect to have to provide corroborating information about your business and income in the form of bank statements. You should also expect to have your credit checked.
Time to funding varies by product. Short-term loans and merchant cash advances can be approved within hours, with funds dispersed as soon as the next business day. Equipment financing, however, can take up to a month to approve, with funds dispersed three to five days after approval.
Sales & Advertising Transparency
Reliant provides a few useful details under the FAQ heading of its website, but you’ll probably need to speak to a representative to get all the info you need to make a decision. More confusing for customers, however, is the company’s mail strategy, which involves sending an unsolicited credit card-like item to prospective clients. This is meant to advertise Reliant’s line of credit product.
Customer Service & Technical Support
Customers have mixed opinions about their interactions with Reliant. Most of the negative comments seem to revolve around soliciting tactics.
Reliant can be reached by phone or by contact form. The company also has a presence on Twitter, Facebook, and LinkedIn.
Negative Reviews & Complaints
Reliant Funding currently has a B rating with the BBB and has a large number of negative reviews (26) and complaints (86). The low rating is due to the number of complaints against the company. Customers took issue with:
- Advertising Tactics: A number of complaints cited misleading offers received in the mail. These often took the form of a card meant to represent Reliant’s line of credit product. Others said they received large amounts of junk mail from Reliant.
- High Cost: As is the case with most alternative lenders, the rates cause a fair amount of sticker shock.
- Lack Of Transparency: Between the limited information on the site and the company’s confusing mailing strategy, Reliant doesn’t come across as especially open.
Positive Reviews & Testimonials
As most companies do, Reliant fares better on Trustpilot, where it rates 9 out of 10 based on 410 reviews:
- Fast: If there’s one area in which online funders like Reliant live up to their advertising, it’s speed.
- Well-Established: While many of its competitors are only a few years old, Reliant has been in business since 2009.
- Customer Service: Customers generally seem satisfied with the care they received from Reliant staff.
Reliant’s lack of transparency is an issue. Your time is precious and you’ll be spending more of it trying to extract the information you need to make an informed decision. If you don’t mind submitting your information without knowing exactly what you’re applying for, the breadth of Reliant’s product options is attractive. Nevertheless, there are probably better options.
If you’re not sure where else to look, our alternative suggestions page might help point you in the right direction.
To learn more about how we score our reviews, see our Business Loan Rating Criteria.