QuarterSpot is a lender that launched in 2013 to offer working capital to businesses who find it difficult to grow because of limited funding opportunities.
QuarterSpot specializes in providing quick business loans through a streamlined online pre-qualification, application, and funding process.
Are you a business owner who hasn’t yet built business credit or someone who has poor personal credit?
QuarterSpot is one option available to you.
In this QuarterSpot review, we’ll cover the details of this loan including its advantages and drawbacks to help you decide if it’s the right one for you.
QuarterSpot Review: What is QuarterSpot?
QuarterSpot is based in California and handles all loan processing remotely.
The highlight of QuarterSpot is that the application doesn’t require a hard pull on your credit report.
Despite the good news about the lack of credit check, this loan is only for businesses that have have been open for more than one year.
We’ll cover the eligibility requirements in detail later in this post, but know that this funding option is for fairly seasoned businesses.
We have options for newer businesses in our start-up financing guide.
QuarterSpot Loan Terms
You can borrow up to $200,000 from QuarterSpot.
Loan terms are available of 9, 12, or 18 months. There are no prepayment penalties for this loan which means you can repay your loan early without incurring any additional charges.
Instead of interest, QuarterSpot charges a flat fee for each dollar you borrow.
According to QuarterSpot customer support, this flat fee can currently range from about $1.11 to $1.24 per dollar borrowed. In APR terms, the interest rate can be 20% to 40% or even more.
Amortization happens daily, and you can save money in fees by paying off your loan early whenever possible.
QuarterSpot loans do not have an application fee, but there is a funding fee that’s deducted from your loan proceeds before it’s deposited into your account. The fee is a percentage of your loan.
What type of businesses can borrow from QuarterSpot?
QuarterSpot is very clear with qualifying criteria which is helpful for business owners who want to understand their chances of getting approved for a loan.
Remember, QuarterSpot is a lender that’s willing to work with business owners that have poor personal credit.
If poor credit is holding you back from financing, you may still be able to qualify if you have a business that’s making decent revenue.
To get approved for a QuarterSpot loan, here are the minimum qualifications:
- You must have an owner FICO score of at least 550.
- You must be in business for at least one year or more.
- You must have an average revenue of at least $16,000 per month for the last three months.
- You must have at least ten sales per month for the last three months.
- You must have an average daily balance of $2,000 for the last three months.
- You must live in an eligible state. All states are eligible except North Dakota, Rhode Island, South Dakota, and Vermont.
The QuarterSpot Application Process
The first step to applying for QuarterSpot is completing a short pre-qualification approval form.
Here are the steps to the full application process:
- The pre-qualification takes 30 seconds.
- Get assigned a specialist. A loan specialist will help you finish the application.
- You’ll be asked to submit your last three business bank statements for verification by the loan specialist. You’ll get an offer after verification within 24 hours.
- The official loan offer will tell you the loan terms including the fees. You sign online securely, and then you get the money deposited into your account within one business day.
QuarterSpot Highlights & Drawbacks
Where QuarterSpot shines is the willingness to lend to borrowers who have poor credit.
After all, people with poor credit (who are working to build good credit) need business funding options as well.
Turn to QuarterSpot for your funding needs if you’ve been struggling to get a loan.
Speed is another benefit of working with QuarterSpot.
You can get an offer in as little as 24 hours.
The loan terms are also flexible with short-term and long-term options available from 9 to 18 months.
What are the drawbacks?
QuarterSpot does charge a pretty high fee for loan products.
Ultimately, having poor credit is going to limit your options and make financing more expensive.
Be mindful of this while shopping around.
The good thing about QuarterSpot is that you can repay the loan early to save on the per-dollar fee without paying prepayment penalties.
Beyond interest rates, QuarterSpot charges a funding fee before depositing the money into your bank account.
This is a cost you should ask about before accepting the loan.
QuarterSpot loans are for businesses that have at least one year in business.
Newbie business owners — look elsewhere.
There are products that are more suited to new small business owners like personal loans and credit cards.
Consider these options to fund your new venture instead.
If you have poor credit and trouble getting approved for a loan, QuarterSpot is worth some consideration.
You should still shop around to ensure you get the best rates, but this can be time-consuming.
That’s why LendGenius built a loan-matching tool, to make it easier to compare financing options at a glance.