Note: StreetShares is no longer originating business loans. Take a look at our filterable business loan reviews to learn about other funding options that might work for your small business.
- Borrower qualifications are lower than banks
- Rates tend to be inexpensive
- No prepayment penalties
- The application process is fast and easy
- Low borrowing amounts
- Customer service is inconsistent
StreetShares is an online lender that offers business installment loans and lines of credit. This loan service was originally founded by veterans for veterans. You do not have to be a veteran to use this service, but it is an excellent resource for those who are.
Regardless of whether or not you’re a veteran, StreetShares offers some mighty compelling reasons to use its service. Besides offering an array of useful business financing products, this lender offers low rates and fees. For example, the APRs for its installment loans and lines of credit range from 7%-39.99%. This is competitive to similar lenders and overall lower than other types of loans (such as short-term business loans, which can have APRs that reach up to 100% or above).
Additionally, StreetShares has very low borrower requirements. To have a good chance of qualifying for a loan or line of credit, you have to be in business at least a year, make at least $25,000 annually, and have a credit score of 620 or above.
With a maximum of $250,000 for installment loans and lines of credit, some businesses will find that StreetShares doesn’t offer large enough amounts of money to fit their needs.
However, if this lender is a good fit for your business, it’s a great deal. The loans are versatile, the rates and fees are hard to beat, and customer service is transparent and friendly.
Final Verdict: StreetShares offers a number of loan and financing products to help small business owners improve cash flow or grow their business. However, with a maximum borrowing amount of $250,000 for loans and lines of credit, StreetShares might not offer enough money for larger businesses. The company has reportedly had a rough 2020, posting significant losses and ending its invoice factoring product for new customers. As the losses were mostly attributed to payroll expenses, it’s not clear how or if this will affect applicants for installment loans or lines of credit.
Read on for the details!
Table of Contents
An installment loan grants the applicant a lump sum of cash. In exchange, the borrower is expected to pay back the loan, plus interest, in regular installments.
A line of credit, rather than granting a lump sum, establishes a credit limit. The borrower can draw upon their line of credit at will for the duration of the term so long as the total amount drawn doesn’t exceed their credit limit. The borrower only pays interest on the amount of credit they’ve used. As the borrower pays off their balance, that credit becomes available to use again.
StreetShares’ borrower qualifications are the same for its installment loans and lines of credit.
Installment Loans & Lines Of Credit
These are the borrower qualifications for a StreetShares installment loan or line of credit:
|Time In Business||1 year (sometimes 6 months)|
|Personal Credit Score||620|
|Business Revenue||$100,000 per year|
To qualify for a StreetShares loan, you need to be in business for at least one year. However, if your business has already made $100,000, you might be able to qualify even if you’ve only been in business for six months. You cannot have any liens or stacking loans. StreetShares cannot lend to businesses based in North Dakota, South Dakota, Nevada, or Montana. StreetShares cannot finance businesses in the following industries:
- Law firms
- Vice (gambling, substances, etc.)
StreetShares does make some special accommodations for veterans. If you’ve served, the minimum credit rating requirement falls to 600, for example.
Terms & Fees
StreetShares offers installment loans, lines of credit, and contract financing.
These are the terms and fees for StreetShares’ installment loans:
The maximum amount you’ll be able to borrow is 20% of your annual revenue; the total amount you can borrow caps off at $250,000. For example, if your business makes $40,000 per year, you’ll be able to borrow a maximum of $8,000. First-time borrowers will be eligible to receive a maximum of $200,000. Repeat customers who also use contract financing may qualify for the full $250,000.
Term loans are disbursed in one lump sum, and you have to pay interest on the full amount. The closing fee will not be deducted from the principal and can be paid upfront or rolled into your weekly payment.
Repayments are made weekly via automatic ACH withdrawals. Merchants who miss a payment due to insufficient funds will incur a $10 NSF fee and another $10 late fee if the payment is more than seven days late. The lender does not charge a fee for repaying your loan early, though.
StreetShares also requires a business guarantor, but no other collateral.
Lines Of Credit
These are the rates and fees for the lines of credit:
Draw Term Length
StreetShares’ lines of credit also max out at $250,000, but the amount you’ll personally be offered will depend on your revenue. First-time borrowers may be eligible to borrow up to $200,000. Repeat customers who take advantage of contract financing could qualify for up to $250,000. You can draw from your line at any time and only have to pay interest on the amount borrowed. Repayments are made weekly.
The company adds on a fee of 2.95% every time you draw from your credit line. Aside from potential late fees, however, a draw fee is the only fee you will be charged. StreetShares does not charge maintenance fees or a prepayment penalty for this product.
The first step to getting a StreetShares loan is to fill out the online application. You’ll be asked for information about yourself, your business, and the financial products you’re interested in.
If you’re approved to continue the process, you’ll have to provide documentation about your business and finances. The documents you’ll need to provide will vary depending on your business and the products you’re applying for.
StreetShares will do a soft pull on your credit. Then, underwriters will look at your information and decide what rates and fees they can offer your business. You may have multiple loan offers, which will vary based on the interest rate, term length, or other factors. If so, you can choose which is best for your business.
The time from initial application to funding generally takes less than a week.
Sales & Advertising Transparency
StreetShares has signed the Small Business Borrower’s Bill of Rights, a list of rights created by the Small Business Lending Coalition that lays out the fundamental rights of merchants seeking financing. Among other things, this means StreetShares is committed to providing a transparent and easy-to-understand service.
The company largely lives up to that promise. The website has a fairly detailed FAQ that provides a lot of important information about StreetShares’ installment loans and lines of credit. However, it lacks some information about loan products (such as the range of interest rates), making it difficult for potential borrowers to compare their options.
Customer Service & Technical Support
Customer service is available via phone, email, or live chat. Or, if you’re into the whole social media thing, you can find them on Facebook and Twitter. The company also offers B2B service through its Street Shares platform, which it launched in June 2019.
Reviews about StreetShares’ customer support are, for the most part, positive, but a growing number of borrowers appear to be reporting issues with reps over-promising and under-delivering. In my experience, the customer service is helpful, transparent, and willing to answer questions.
This lender also has a fairly detailed FAQ that can answer most of the basic questions you might have.
Negative Reviews & Complaints
StreetShares is accredited with an A rating by the Better Business Bureau. There are two complaints on file, with seven reviews averaging 3 out of 5 stars. The lender also has a presence on Trustpilot, where it currently rates 3.5 stars out of 5, with over 160 reviews logged. It seems as though StreetShares’ customer reviews have become decidedly more mixed recently.
- Lack Of Information: Some customers wanted the website to provide more information about the terms, fees, and the process of getting a loan.
- Short Repayment Terms: StreetShares’ loans currently cap off at three years. Some would prefer more extended term lengths.
- Closing Fee: Should you take out a loan, StreetShares will charge a closing fee. That said, this fee is common in the lending industry, and StreetShares’ fee is competitive with similar lenders.
- Expensive: Several customers complained about StreetShares’ rates.
Positive Reviews & Testimonials
This lender has a number of testimonials on its blog and positive reviews on Trustpilot. Here’s what customers like about the service:
- The fast, easy application process
- Friendly, helpful customer service representatives
- Diverse financing products
We want to hear from you, though! Have you applied for a StreetShares loan? What was your experience like? Leave a message in the comments!
If you have an existing, mature business in need of capital, StreetShares is definitely worth considering. The financial products are affordable, funding is fast, and you won’t be charged a lot of unnecessary fees.
Given that you can only borrow 20% of your annual revenue, some businesses might find that they need to look elsewhere for financing. Fortunately, if you’ve been in business for at least a year (two would be better), you’ve got plenty of other options.
It needs to be said that the company appears to be experiencing some turmoil at the moment that may be affecting its customer service. It’s also never a great sign when a company drops one of its major products — contract financing — while reporting losses. Whether this is a temporary slump or a more serious decline remains to be seen.