- Relaxed borrower qualifications
- Competitive terms and fees
- Easy application process
- Typical time to funding: 2 – 7 days
- No prepayment penalties
- Excellent customer service
- Unsuited for large businesses
StreetShares is a peer-to-peer (P2P) lender that offers business installment loans, lines of credit and, most recently, contract financing (a service similar to invoice factoring). This lender was 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 their service. In addition to offering an array of useful business financing products, this lender offers low rates and fees. For example, the APRs for their installment loans and lines of credit range from 7% – 39.99%, which is overall lower than similar lenders (which may have APRs that reach up to 100% or above).
Additionally, StreetShares has very low borrower qualifications—you have to be in business at least a year, make at least $25K annually, and have a credit score of 620 to qualify for an installment loan or line of credit. Qualifications for contract financing are even lower—you simply need to be a B2B business with eligible invoices.
With a maximum of $100K for installment loans and lines of credit, and a maximum contract value of $500K per contract for contract financing, 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. Their loans are versatile, their rates and fees are hard to beat, and customer service is transparent and friendly.
Sound like something you’re interested in? Read on for the details!
Table of Contents
- Services Offered
- Borrower Qualifications
- Terms & Fees
- Application Process
- Sales & Advertising Transparency
- Customer Service & Technical Support
- Negative Reviews & Complaints
- Positive Reviews & Testimonials
- Final Verdict
StreetShares offers these products:
StreetShare’s borrower qualifications are the same for their installment loans and lines of credit, but a little different for contract financing.
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)|
|Credit score:||Minimum of 620|
|Revenue:||Minimum of $25K|
To qualify for a StreetShares loan, you need to be in business at least one year. However, if your business has already made $100K, you can qualify even if you’ve only been in business for six months.
The qualifications for this funder’s contract financing is much more simple. Because invoices are contingent on your customer paying, not your business, StreetShares does not require that you have been in business a certain amount of time or have a certain credit score to qualify for financing.
Instead, you must be a B2B or B2G business that invoices their customers.
Terms & Fees
StreetShares offers installment loans, lines of credit, and contract financing.
These are the terms and fees for StreetShare’s installment loans:
|Borrowing amount:||$2K – $100K|
|Term length:||3 – 36 months|
|Interest rate:||About 6% – 14%|
|Closing fee:||3.95% or 4.95%|
|APR range:||7% – 39.99%|
The maximum amount you’ll be able to borrow is 20% of your annual revenue and the total amount you can borrow caps off at $100K. For example, if your business makes $40K per year, you’ll be able to borrow a maximum of $8K.
Term loans are dispersed in one lump sum, and you have to pay interest on the full amount. The closing fee will come out of the principal; if you need a certain amount of money, ask for a little more to cover the fee.
Repayments are made weekly via automatic ACH withdrawals. Merchants that miss a payment due to insufficient funds will incur a $10 NSF fee, and another $10 late fee if the payment is over 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:
|Borrowing amount:||$5K – $100K|
|Draw term length:||3 – 36 months|
|Interest rate:||About 6% – 14%|
|APR range:||7% – 39.99%|
StreetShare’s lines of credit also max out at $100K, but the amount you’ll personally be offered will depend on your revenue. You can draw from your line at any time, and only have to pay interest on the amount borrowed. Repayments are made on a weekly basis.
The company charges 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.
These are the rates and fees for contract financing:
|Credit facility size:||Max $500K per invoice|
|Advance rate:||Up to 90%|
|Max overdue account:||180 days|
|Factor all invoices:||No|
|Recourse or non-recourse:||Non-recourse|
|Notification or non-notification:||Notification|
StreetShares’s contract financing is similar to invoice factoring. Instead of a loan, StreetShares technically purchases your unpaid invoice at a discount. Typically, StreetShares works with B2B or B2G businesses that are prime or subcontractors on federal, state, or commercial contracts.
The company will advance you up to 90% of the invoice value when you sell an invoice and keep the remaining amount in reserve. After your customer pays the invoice, StreetShares will deduct a fee from the reserve, and then send anything that is left over to you. The fees for this service (called discount rates) vary depending on your business, your customer’s business, the volume of invoices you’re selling, and other variables.
Currently, this service is notification, which means that your customers will know about the arrangement. Additionally, the product is non-recourse, which means that, in some circumstances, you will not have to re-purchase the invoice if your customer does not pay.
Aside from the discount rate, StreetShares does not require any additional fees, such as application fees, startup fees, servicing or maintenance fees, or termination fees. Additionally, you will not be required to sign a long-term contract, and you have complete control over which invoices you choose to sell.
Contract financing can be used in addition to, or instead of, StreetShares’s installment loans and lines of credit.
The first step to getting a StreetShares loan is to fill out their 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 your finances. The documents you’ll be required to provide will vary depending on your business and the products you’re applying for.
The 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 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 which provides a lot of important information about their installment loans and lines of credit. However, it is lacking information about contract financing and some information about loan products (such as the range of interest rates), which may make it difficult for potential borrowers to compare their options.
Customer Service & Technical Support
Reviews about StreetShare’s customer support are largely positive. In fact, I could find very few complaints about this aspect of StreetShare’s service. While a couple reviewers on TrustPilot claimed that representatives were pushy and unhelpful (this review, for example), the majority are very happy with the level of customer support.
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
On the BBB, StreetShares is accredited with an A+ rating and does not currently have any complaints. Although this company doesn’t have any customer activity on the BBB, the accreditation shows StreetShare’s commitment to listening to and settling complaints.
StreetShares also has a presence on TrustPilot, among other places on the web. While customers predominantly have good things to say about this lender, here are the few complaints I could find:
- 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 longer term lengths.
- Closing fee: Should you borrow a loan, StreetShares will take 3.95% – 4.95% of your loan before wiring you the rest. Minorly annoying as it may be, you will not be able to find a P2P lender that doesn’t charge a fee like this, given this is how many P2P lenders make their money. StreetShares does not try to hide this fee. The costs do come out of your principal, so make sure to account for that when deciding how much money to request.
Positive Reviews & Testimonials
- Fast, easy application process
- Friendly, helpful customer service representatives
- Diverse financing products
We’d like 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 business in need of capital, StreetShares is definitely worth considering. Their 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, larger businesses might find that they need to look elsewhere for financing. Thankfully, if you’ve been in business for at least a year (two would be better), you’ve got plenty of other options.
For everybody else, it would be worthwhile to include StreetShares in your comparisons. You’ll be hard-pressed to find a lender that can offer you better rates and fees.