Smart Business Funding

Smart Business Funding: Direct Financing for U.S. Business Owners

Smart Business Funding is a direct provider of business funding and financing in the United States, serving business owners nationwide. The company was founded by financial professionals with experience in building and developing successful businesses, and it states that it has been serving business owners since 2014, has funded $500 million to businesses, and operates across all 50 states.

Funding Products and Terms

Smart Business Funding offers funding amounts from $10,000 to $5,000,000. The product range includes merchant cash advances, lines of credit, invoice financing, equipment financing, working capital financing, asset-based financing, home equity lines of credit, and credit card processing. A merchant cash advance is described as not a loan and is repaid through fixed daily or weekly payments set by a factor rate. The Direct merchant cash advance does not require collateral, although a personal guarantee or UCC-1 filing may still apply.

The application process uses a soft credit pull only, which the company states does not affect the applicant's credit score. There is no cost to apply and no obligation. Offers usually come back in 1 to 5 hours on a complete file, and the typical time from application to funding is 24 to 48 hours, subject to review and approval. Applicants need at least one year in business and a minimum credit score of 500. The in-house Direct Fund program looks for about $50,000 a month in revenue, while the marketplace program looks for about $5,000 a month. Required documents are a short application and the last three months of business bank statements, which can be uploaded during the application.

Early payoff discounts are available: paying off in the first month gives 10% off the balance, and paying off in the second month gives 5% off the balance, as stated in the written agreement.

Industries Served

Smart Business Funding highlights several industries it serves, with working capital applications tailored to each:

• Electronics stores and repair shops: funding to stock new models, buy parts in bulk, add diagnostic or micro-soldering equipment, or open a second location.
• Hotels and motels: funding to cover slow stretches, renovate rooms, replace linens and furniture, upgrade booking and property systems, or open another property.
• Plumbing: funding to add a van, stock fittings and water heaters, hire licensed techs, buy drain-cleaning or camera equipment, or cover gaps when large commercial invoices are slow to pay.
• Construction: funding to buy materials, meet payroll, add or repair equipment, cover bonding and permit costs, or start the next project while a prior invoice is pending.

Payments for these industries are described as a fixed amount, daily or weekly.

Funding Process

The process has three steps. First, the business owner submits an application. Second, the company reviews eligibility, with initial requirements of at least one year in business, $5,000 in monthly sales, and no open bankruptcies; all funding is subject to review and approval. Third, funding usually takes 24 to 48 hours from application to funds in the account.

Reputation and Reviews

The company displays a Trustpilot TrustScore of 4.5, with 100% five-star reviews, and also shows selected Google reviews. The reviews shown are attributed to Trustpilot and Google and are presented as posted, some shortened. The site also states that Smart Business Funding is a registered trademark (U.S. Reg. No. 7,637,151).