Does your business need to borrow money?
If you’ve been operational for at least one year and have $300,000 or more in annual revenue, then you could meet the basic qualifications to get a loan from Balboa Capital Corporation, a privately held, mid-sized lending company headquartered in Costa Mesa, California.
In this Balboa Capital review, we’ll tell you everything you need to know if you’re thinking about applying for a loan with them.
Balboa Capital Review: Company Background
Balboa Capital has been around since 1988, when it was founded by two 23-year-olds who had just graduated from the University of Arizona.
In its early years, the company was exclusively an equipment leasing business and acted as a middleman.
Today, it has satellite offices in Scottsdale, Arizona; San Ramon, California; and Spokane, Washington.
In recent years, it has added more than 100 employees and expanded its headquarters.
|Funding Options||APR||Do you qualify?||Time in Business||Annual Revenue|
Funding OptionGet Started
Do you qualify?
Time in Business
Funding OptionGet Started
Do you qualify?
Time in Business
As a nonbank lender, also called an alternative lender, Balboa Capital uses a different approval process than a bank. This process can make lending faster and cheaper for borrowers.
For loans up to $250,000 with no collateral, you can apply online or via smartphone and get an automated decision right away.
You don’t even have to submit financial paperwork.
Larger loans, up to $2 million, have more rigorous underwriting; call the company to discuss the application process.
Balboa Capital’s simple online application for smaller loans asks you to enter your annual revenue, the number of years you’ve been in business, your name, your company’s name, your phone number, and your credit score.
With these few data points, Balboa Capital’s website will instantly tell you how much you may be qualified to borrow.
To see how the process worked, I entered that I had annual revenues of $400,000, had been in business for 9–10 years, and had a credit score of 735 or higher, and I instantly received this message:
“Congratulations! You have been pre-approved for $44,186.00, and a Balboa Capital small business loan specialist will be contacting you soon.”
The company will consider borrowers with all types of credit history, and you won’t automatically be rejected if your score is too low; the company will look at other, compensating factors.
If your application is approved, you can use the loan proceeds for any purpose, whether you need to pay suppliers, expand your business, make payroll, pay taxes or purchase inventory.
Electronic signing facilitates the process and helps you get your proceeds faster.
How is Balboa Capital able to offer such a simple loan process?
They provide speedy service by doing everything in house, from running credit checks to underwriting loans.
They’re also a direct lender (unlike in their early years), so they don’t charge the markups you’ll find with brokers or other middlemen.
Since it’s opened it’s doors, the company says it’s issued more than $5 billion in funding.
Business Loan Types
Balboa Capital offers six loan types: small business loans, equipment leases, commercial financing, equipment vendor financing, business cash advances, and franchise financing.
Small Business Loans
Small business loans have 3- to 24-month terms, don’t require collateral, and provide the cash you need in as little as a few days.
Equipment Leasing & Financing
Equipment leases are available with 24- to 72-month terms for up to $250,000 for business that need items such as machinery, software, or vehicles.
Equipment financing is available for both new and used, pre-owned, or refurbished equipment.
Unlike many small business loans, you don’t have to use the equipment as collateral. (But you might get a better rate from a lender that does require you to use your equipment as collateral, since collateralized loans generally have lower rates than unsecured ones.)
Balboa Capital says it will “beat any competitor’s lowest payment for the same equipment lease,” or it will make your first payment for you, up to $500.
It may be difficult to meet the deal’s terms, though, which require the competing offer to have identical terms and conditions.
The lease must be for at least $10,000 in approved new or used business equipment.
Commercial financing is available to businesses with annual revenues of more than $10 million that need to finance transactions up to $100 million.
Capital equipment financing, operating leases, and lease lines of credit are available, all with a single point of contact who has industry expertise.
These loans are geared toward middle-market companies in almost any industry.
Balboa Capital’s equipment vendor financing can provide same-day funding for your customers with free online sales tools and digital marketing support.
Get your customers approved for the loan they need — no paperwork or collateral required — while they’re standing in your showroom so you can close more sales.
Are you a franchise owner?
Through Balboa Capital’s franchise financing, you can borrow up to $250,000 and repay it over 24 to 84 months for purposes such as franchise remodeling, new equipment, or property improvement.
Balboa Capital says it has provided franchise financing and franchise working capital loans to companies such as Carl’s Jr./Hardee’s, Domino’s, Dunkin’ Donuts, and Subway, among others.
Merchant Cash Advances
Balboa Capital also offers business cash advances of $5,000 to $250,000 for terms of 3 to 18 months.
With a merchant cash advance, you’ll receive a lump sum up front and repay it with a percentage of your business’s future sales that are made via credit or debit card with fixed daily or weekly deductions from your company’s bank account instead of with larger monthly payments.
Licensing, Customer Reviews, & Transparency
Balboa Capital’s financial services company license #6032159 with the California Department of Business Oversight on January 8, 2018 is effective as of August 31, 2017, and the business was originally licensed July 1, 1995.
There were four enforcement actions against the company, all dated August 31, 2017:
- administrative penalties ordered;
- administrative stipulation/settlement/consent order;
- desist and refrain order issued;
- order dismissing administrative action.
The desist and refrain order was issued for failing to file an annual report on time and continuing to accept loan applications during that period despite Balboa Capital’s license being revoked for not having filed the required report.
Under the consent order, the company was required to pay a $20,000 administrative penalty as a result.
Balboa Capital Corporation has been accredited by the Better Business Bureau since 1999.
Better Business Bureau
The company has an A− rating with a total of 80 customer complaints (keep in mind that unhappy customers are more likely to contact the BBB than happy ones).
Most complaints relate to problems with the service, billing issues, or collection issues. Potential customers should read these complaints and proceed with caution.
As with any business arrangement, it is important to read the entire written agreement you are considering entering into and not rely on any oral statements made by company representatives.
Make sure the written loan agreement is crystal clear. Sample terms are not available online.
TrustPilot & Yelp
The company’s reviews on TrustPilot are overwhelmingly positive, while those on Yelp are overwhelmingly negative.
While the BBB follows up on customer complaints, these sites publish unverified reviews.
As such, take them with a grain of salt, as you can’t know whether they are legitimate reviews from real customers.
Balboa Capital’s website doesn’t tell you what interest rate (or, for merchant cash advances, what factor rate) you can expect to pay.
This may be because interest rates vary based on each applicant’s unique characteristics, including credit score, annual revenue, and years in business.
Balboa Capital may even offer your business more than one set of terms to choose from.
Still, it would be nice if Balboa provided a range of interest rates for each loan type.
The Final Word
Small business lending is changing, and Balboa Capital exemplifies modern processes with its fast online applications, quick algorithm-based loan decisions for simple loans and a customized review for more complex ones.
If your business needs to get a loan in 2019, you may want to include Balboa Capital in your considerations.
For more details, you can go through the process on their website.
Or, you can fill out our simple online form to potentially connect with a lender fast.