Become

About Company

Become loans are a vital resource for small and medium-sized businesses (SMBs) seeking financial support to fuel their growth and expansion. Its loan marketplace uses advanced algorithms to provide SMBs with customized funding offers to help them grow and successfully scale their business. By connecting SMBs with a network of over 50 trusted lenders, Become helps businesses to access loans, ensuring that they receive the capital they need to thrive.

With Become loans, businesses can streamline the funding process, eliminating the hassle of navigating multiple lenders and complex paperwork. Through a simple online application, businesses can access a one-stop shop for business loans, business credit, merchant cash advances, and more. Become's advanced algorithms analyze key business metrics, such as monthly turnover and cash flow, to provide tailored funding options that align with each business's goals and financial capabilities.

Key Features

1. LendingScore™ Dashboard. The innovative LendingScore™ dashboard offers businesses key insights into their financial profile. Algorithms seek to predict the likelihood of a potential business to be funded, match the most relevant SMEs with the right lender, and help businesses improve their funding odds, thus increasing conversion rates from application to loan.

2. Diverse Funding Options. Become caters to various funding needs, including business loans, business credit, merchant cash advances, and more. This diversity allows businesses to explore different financial instruments and choose the option that best suits their requirements.

3. Free Technology and Guidance. Businesses can leverage Become's proprietary technology and guidance without incurring any costs. The platform's commitment to being a free service underscores its dedication to supporting small and medium-sized businesses.

Pros and Cons

Pros

Cons

Reliability

Become stands out as a reliable financial partner for small and medium-sized businesses (SMBs) seeking funding solutions, thanks to its track record of facilitating over $316 million in total funding for more than 236,000 customers. With a network of 50+ trusted lenders, Become's commitment to responsible lending practices is underscored by positive reviews and a 4.7/5 rating.

How to Apply for a Become Loan?

1. Visit the Website. Start by visiting the Become website.

2. Select Loan Amount. Choose the desired loan amount that aligns with your business's funding requirements and click on "Get Loan Offers."

3. Provide Business Information. Fill out the necessary information about your business, including details such as time in business, industry, and monthly revenue. This information helps Become match you with suitable lenders.

4. Choose Lenders. Once you've provided your business information, you'll receive preliminary loan offers from multiple lenders directly through the platform. Review these offers and select up to three lenders that best suit your needs.

5. Connect Business Checking Account. To further streamline the process, connect your business's checking account for analysis. This step allows Become to assess your business's financial health accurately.

6. Review Offers and Select Lender. After receiving loan offers from selected lenders, carefully review the terms and conditions, including interest rates and repayment terms. Once you've made your decision, choose the lender that offers the most favorable terms for your business.

7. Receive Funds. Upon selecting a lender, the finalization process begins. The lender will contact you to finalize the loan application and disbursal of funds. Once approved, funds will typically be deposited into your business checking account.

Conditions and Requirements

Conditions

1. Loan Amounts. Become offers a range of loan amounts to suit different business needs. While the minimum loan available typically starts at $5,000, businesses can apply for loans up to $500,000, with some lenders offering funding of up to $5 million for select cases.

2. Loan Terms. The terms of the loan, including the repayment period, vary depending on the lender and the specific funding program. Loan terms typically range from 3 to 36 months, providing flexibility for businesses to choose a repayment schedule that aligns with their cash flow.

3. Interest Rates and Fees. Interest rates and fees associated with Become loans are determined by the selected lender and are based on factors such as the health of the business and the specific loan product. While interest rates may vary, Become strives to provide transparent and competitive pricing for its funding solutions.

4. Repayment Options. Become offers flexible repayment options to borrowers, including autopay and consolidated repayment plans. Autopay allows borrowers to automate their loan payments, reducing the administrative burden, while consolidated repayment plans simplify the repayment process by combining multiple loans into a single monthly payment.

5. Total Payback Amount. Instead of traditional interest rates, Become loans operate on a total payback amount, which is agreed upon upfront. This structure provides transparency and clarity for borrowers, allowing them to understand their total costs upfront and manage their cash flow more effectively.

Requirements

1. Time in Business. Businesses must have a minimum time in operation to qualify for a Become loan. For American businesses, the requirement is typically 3 months, while Australian businesses typically need 6 months in operation.

2. Monthly Revenue. Borrowers should ideally demonstrate a consistent monthly revenue to qualify for funding. Become typically looks for an average monthly revenue of around $5,000 per month, although specific requirements may vary depending on the lender.

3. Business Bank Statements. Borrowers are required to provide business bank statements, usually covering the last 3 to 6 months. These statements are used to assess the financial health of the business and determine its eligibility for funding.

4. Additional Documentation. Depending on the lender and the specific funding program, borrowers may need to provide additional documentation such as merchant statements, tax returns (usually the most recent), and financial projections, especially for younger businesses.

Ways to Receive the Money

1. Direct Deposit to Business Checking Account. The most common method is to have the funds deposited directly into the business's checking account. Once the loan application is approved and finalized, the lender transfers the approved loan amount directly to the designated business bank account. This method offers quick access to funds and allows businesses to use the money immediately for their intended purposes.

2. Wire Transfer. In some cases, businesses may opt to receive the funds via a wire transfer to their business bank account. Wire transfers typically offer expedited processing, allowing businesses to access the funds within a shorter timeframe compared to traditional bank transfers. However, wire transfers may incur additional fees, so businesses should consider this option carefully.

3. ACH Transfer. Automated Clearing House (ACH) transfers are another common method for receiving loan funds. With ACH transfers, the lender electronically deposits the funds into the business's bank account, typically within a few business days. This method offers a secure and convenient way for businesses to receive funds, with minimal processing fees.

Products

1. Business Loans. Become provides access to business loans. These loans are designed to provide businesses with the capital they need to cover various expenses, including equipment purchases, hiring new employees, inventory acquisition, and expansion initiatives.

2. Merchant Cash Advances. Become offers merchant cash advances, providing businesses with a lump sum payment in exchange for a percentage of future credit card sales. This product is particularly suitable for businesses with fluctuating revenue streams or seasonal sales patterns, offering quick access to funds without the need for collateral or a lengthy approval process.

Become offers a comprehensive suite of financial products designed to support the growth and expansion of SMBs. Loan amounts are ranging from $5,000 to $500,000 (and up to $5 million in select cases).

Other Loans

• Best Business Loans

Reasons for Getting Rejected for a Become Loan

1. Insufficient Time in Business. Become typically requires businesses to have a minimum time in operation to qualify for funding. If the business does not meet this requirement, the loan application may be rejected.

2. Low Monthly Revenue. Businesses are expected to demonstrate a certain level of monthly revenue to qualify for funding. If the business's revenue does not meet the minimum threshold required by the lender, the application may be denied.

3. Inadequate Documentation. Incomplete or inaccurate documentation can lead to delays or rejections in the loan application process. Businesses should ensure that they provide all required documents and that the information provided is accurate and up-to-date.

4. Unsatisfactory Business Performance. Lenders may evaluate the overall performance and financial health of the business to assess its creditworthiness. Factors such as declining sales, inconsistent cash flow, or operating losses may raise concerns for lenders and result in a rejection of the loan application.

How to Repay a Become Loan?

1. Understand Repayment Terms. Before accepting a loan offer, carefully review the repayment terms provided by the lender. Take note of the loan amount, interest rate, repayment schedule, and any applicable fees.

2. Set Up Autopay. Many lenders offer autopay options, allowing borrowers to automate their loan payments. Setting up autopay ensures that your loan payments are deducted automatically from your business checking account on the scheduled due date, reducing the risk of missed payments and late fees.

3. Monitor Cash Flow. Keep track of your business's cash flow to ensure that you have sufficient funds available to cover your loan payments. Consider creating a budget or cash flow forecast to anticipate upcoming expenses and plan for loan repayments accordingly.

4. Review Loan Statements. Regularly review your loan statements to verify that payments are being applied correctly and to monitor your loan balance. If you notice any discrepancies or have questions about your loan account, don't hesitate to contact your lender for clarification.

5. Make Additional Payments (if possible). If your business experiences a windfall or has extra cash on hand, consider making additional loan payments to pay down the principal faster and reduce the overall interest costs. Be sure to check with your lender to confirm that there are no prepayment penalties or restrictions.

6. Communicate with Your Lender. If you encounter financial difficulties or anticipate challenges in making your loan payments, communicate proactively with your lender. Many lenders offer assistance programs or flexible repayment options for borrowers facing temporary financial hardship.

Alternatives

BlueVine, a prominent financial technology firm, extends financing solutions to small businesses across the United States, specializing in business lines of credit and checking accounts. Notably, as of December 2021, BlueVine has discontinued its invoice factoring services. Entrepreneurs seeking flexible access to credit can secure funds ranging from $6,000 to $250,000. BlueVine presents two payment structures: Flex 6 and Flex 12. With Flex 6, customers make weekly payments over 26 weeks, while Flex 12 customers opt for monthly payments over 12 months.

National Funding, a loan provider of working capital small business loans, offers financing ranging from $10,000 to $500,000, with repayment terms spanning four months to two years, payable daily or weekly. These funds cater to various working capital needs, encompassing inventory, payroll, marketing, taxes, and more. Additionally, National Funding extends equipment financing of up to $150,000, albeit applicants must meet a minimum personal credit score requirement of 575 to qualify.

Fundbox operates as an AI-powered business lending platform for SBA loans, streamlining the application, decision-making, and funding processes for entrepreneurs. The platform boasts rapid decisions within three minutes and funds are disbursed as soon as the following business day. Revolving business lines of credit of up to $150,000 are available, with repayment terms spanning 12 or 24 weeks. As borrowers repay their line of credit, their available credit replenishes, providing ongoing access to funds.

Biz2Credit stands as a digital funding platform offering three distinct funding options—term loans, revenue-based financing, and commercial real estate (CRE) loans—ranging from $25,000 to $500,000. Applying through Biz2Credit is expedient, taking just a few minutes. The platform connects business owners with revenue-based financing ranging from $25,000 to $2 million and term loans between $25,000 to $500,000. Revenue-based financing obliges repayment through daily, weekly, or bimonthly payments based on business receipts, while term loans entail repayment over 12 to 36 months through weekly, bimonthly, or monthly installments.

Loans like Become

OnDeck

OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.

Funding Circle

Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.

Credibly

Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.

Fundbox

For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.

Editorial Opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 business lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional Resources

• Become Account Review
• How to Apply for Become Loan
• How to PayOff Become Loan
• Become Mobile Apps
• Become Reviews

Sources

• Become