Bond Street Review: Your Alternative Lender for Short Term Loans

Bond Street Review: Your Alternative Lender for Short Term Loans
Taylor Gordon
on March 19, 2020
Read in 4 min

If you’re on the hunt for an in-depth Bond Street review, look no further. This review takes a look at their short term loan options and their application processes to help you decide whether or not they’re the right lender for you.

What is Bond Street?

Bond Street is an online alternative lender that was established in 2013 to help small business owners get access to faster cash through a streamlined underwriting process.

You can complete a request within minutes.

Review of your request can take as little as 48 hours, and, if approved, you can get funding within a week.

Besides offering quick access to loans online, alternative lenders have reasonable fees and competitive interest rates ranging from 8% to 25% APR.

There’s no fee to request a loan. However, if you choose to accept funding, there is an origination fee of 3% to 5%.

Bond Street Review – Loan Amounts & Terms

You can borrow from $10,000 to $1 million from Bond Street, but in some states, you’re unable to borrow less than $50,000.

So depending on where you operate your business and how much you need, you may want to look elsewhere for small business loans.

If approved, you’ll make automatic semi-monthly payments on the 1st and the 16th of the month until your loan is repaid.

You can also repay your loan early without a penalty fee.

One of the downsides of the Bond Street loan is the short loan term lengths – Loan terms are only 1 to 3 years long.

In comparison, an SBA-guaranteed small business loan terms can last for ten years or more.

An SBA loan may be harder to obtain, but if you need to borrow for a longer period, SmartBiz loans are guaranteed by the SBA and maybe a lender to consider.

What are Bond Street loans for?

Bond Street will work with businesses that exist in a variety of industries.

Businesses can use alternative financing to handle operational costs, hire employees, purchase equipment, or open new locations.

You may even be able to refinance the business debt or an existing loan with this lender.

Minimum Qualifications for Bond Street Loans

Bond Street is very transparent in explaining what’s required of you to get approved.

Here are the minimum requirements for a short term loan:

  • Credit score of 640 or above (business owners may qualify with a score less than 640 but the likelihood of getting approved is greater with a higher score)
  • You must be based in the United States (Bond Street can’t lend in ND, NV, SD, TN, and VT)
  • Your business must have more than two years of operating history
  • Your business must be generating more than $200,000 in yearly revenue

Make sure you have this information handy when submitting your request:

  • Your name, address, and other basics
  • Income and revenue amounts
  • Social Security and Tax EIN
  • The approximate loan amount that you’re requesting
  • Years you need to pay it off

Collateral & Personal Guarantee

Here’s the thing about these loans: They require a lien against business assets.

On top of that, a personal guarantee is also required by business owners.

This means that if you default on the loan, the lender has the right to use your personal assets to repay the debt.

This can be a risky move, so be sure you understand the consequences before moving forward.

How to Request Online

The good news is, with an online lender like Bond Street pretty much the entire process happens online.

The following steps are what you should expect:

  1. Prequalify by completing a questionnaire. This questionnaire asks very basic information about the business as well as your personal background. Your credit will be checked, but this lender will only do a “soft pull” on your credit history which won’t impact your credit score.
  2. Complete full request form. After completing the questionnaire and prequalifying, you’ll be asked to complete the full request form which will verify the information provided.
  3. Upload supporting documents. At this stage, you need to provide evidence of your business and personal standing. You will need income statements for the last two calendar years, cash flow statements for the last two calendar years, and your latest balance sheet.
  4. Expect a follow up within 2 business days. You should have a final decision within 7 business days.

Customer Service Review

Most of the loan process is handled online, so quality customer service is paramount – especially since Bond Street will be handling your sensitive personal and business information.

Thankfully, it’s possible for users to get in touch with the customer support team via email or phone.

Bond Street Review – All Things Considered

Let’s tie all of this up with a summary of what you need to remember, including the good and the bad.

There are three major drawbacks of Bond Street loans:

  • The loan term is only up to three years, which may be a problem if you’re seeking a long term loan.
  • You need to have a decent 640 credit score just to qualify, which likely means you need an excellent score (usually considered mid-700’s or above) to get the very best interest rates with them.
  • This online lender requires a personal guarantee from you and your personal assets may be at stake if you can’t repay the loan.

For the positives, Bond Street is a quick way for more established business owners to get access to working capital.

(This isn’t a good source for startup funding because of the minimum revenue rules. Plus you’ll need at least two years of operating history.)

The entire process can be completed within a week or so depending on how soon you get paperwork in to verify your information.

And lastly, we love that you can pay off your small business loan at any time with no extra fee.

Not to mention their free request only requires a soft credit check.

So if you’re in need of a short term loan, go ahead and see for yourself how Bond Street loans measure up to the traditional banks and other alternative lenders.

Other Online Lender Reviews

Do your homework comparing terms, lenders, interest rates, and various options financing options for your peace of mind.

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Taylor Gordon Finance Journalist

Taylor K. Gordon is a personal finance writer and founder of Tay Talks Money, a frugal lifestyle blog on entrepreneurship and hacking your way to an abundant savings account.

Taylor has contributed to The Huffington Post, GoGirl Finance, Madame Noire, The Write Life, and more.