Reliant Funding Review
Need help finding a lender?
- Date Established
- San Diego, CA
- No credit score requirements
- Multiple types of financing available
- High borrowing amounts
- Repayments are required frequently
- Not available to businesses in some industries
- Website advertising is not informative
- The application process can be slow (equipment financing)
- Customer service is inconsistent
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 such as 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
Reliant Funding offers the following types of business funding:
- Merchant Cash Advances: Merchant cash advances purchase a percentage of your daily credit card sales for a lump sum. The provider will then collect those sales until it has recouped the amount agreed upon, typically the amount it advanced you plus a flat fee.
- Short-Term Loans: Short-term loans extend borrowers a lump sum. It, along with a flat fee, is paid back over the length of the term with weekly or daily payments. Term lengths are typically less than a year, although some may go a little longer.
- Equipment Financing: Equipment financing includes loans and leases specifically for equipment acquisition. In most cases, the equipment purchased also serves as collateral.
Reliant estimates that it approves over 70% of its applicants. In addition to the qualifications below, your business cannot be in an 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 been in business for at least one year. However, some exceptions may be made for businesses that have been in operation for at least seven 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:
|Term Length:||6-18 months|
|Origination Fee:||Charged, but the amount is 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 it 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 equipment leasing structure but expect a slower and more traditional approach to its underwriting process compared to the company’s other products.
Reliant’s application process begins by 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 disbursed as soon as the next business day. Equipment financing, however, can take up to a month to approve, with funds disbursed 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. It’s 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 pulled its rating with the BBB up to an A+, suggesting the company has made progress when it comes to responding to and resolving complaints. There are still 90 customer complaints on record over the last three years. Customers took issue with:
- Advertising Tactics: Numerous 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 has a TrustScore of 4.7/5. Here’s some of what customers liked about it:
- Fast: If there’s one area in which online funders such as 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 Funding seems to have taken some steps to improve its complaint resolutions, but many of the problems are still there. It also appears to have stopped offering its Premier Line line of credit, which was the source of some of its advertising issues. Still, Reliant Funding’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 than you should have to. If you don’t mind submitting your data 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.