In the dynamic world of business, access to flexible and reliable financing is crucial for companies to pursue growth opportunities.
SMB Compass, a reputable business finance company based in New York, understands these needs and offers comprehensive assistance to small businesses looking for financing solutions.
In this review, we’ll take a closer look at SMB Compass’ services to help you make informed financial decisions.
SMB Compass Overview
SMB Compass is a trusted business finance company dedicated to guiding businesses through the complexities of securing funding. They leverage their extensive network of lenders and financial institutions, allowing SMB Compass to provide tailored financing solutions with quick turnaround times.
| Loan Amount | $10,000 to $10 million |
| Term Lengths | 6 months to 25 years |
| APR | From 5.25% |
| Minimum Credit Score | 600 |
Are You a Good Fit for SMB Compass?
SMB Compass is best suited for…
Businesses that Need Reliable Cash Flow.
SMB Compass is a great choice for businesses that require consistent cash flow to manage their day-to-day expenses effectively.
Established Businesses Seeking Financing.
They cater to established businesses operating for at least a year and are looking for financing options to support their growth and expansion plans.
B2B Companies with Long Payment Cycles.
SMB Compass is a good fit for B2B companies that experience long payment cycles and need access to funds before their customers pay their invoices.
Businesses With a Minimum Monthly Revenue of $20,000.
Businesses with a minimum monthly revenue of $20,000 or higher can qualify for a loan. This requirement demonstrates a certain level of financial stability and ability to repay loans.
Businesses Looking for Personalized Financing Solutions.
SMB Compass understands that every business is unique. They specialize in providing customized financing solutions that align with each business’s specific needs and goals.
Pros and Cons of SMB Compass
When deciding to work with SMB Compass, it’s important to consider the positive aspects and the potential drawbacks. Businesses can make well-informed decisions about their financing needs by weighing the pros and cons.
Pros
A variety of loan products. SMB Compass offers nine loan options that cater to various financing needs. Whether you need funds to lease a space or buy equipment, there’s a loan for you.
Low starting rates. SMB Compass aims to offer competitive interest rates so businesses can secure financing at much more favorable terms. This helps businesses minimize borrowing costs and maximize their return on investment.
Quick and easy funding process. SMB Compass understands how crucial it is for businesses to access funds quickly. They work with a vast network of lenders and streamline their processes so they can work to provide funding within 24 to 48 hours after approval.
Accessibility. SMB Compass works with businesses with diverse financial backgrounds. They understand that not every business has a perfect credit score, so they offer alternative financing options to companies experiencing credit challenges.
Cons
Not available in California and Utah. Due to regulatory constraints, SMB Compass’ services aren’t accessible in California and Utah. Businesses in these regions need to explore alternative financing options.
Not available for startups and sole proprietors. SMB Compass primarily focuses on established businesses, so their services may not be available for companies in the early stages of their business journey.
Strict requirements for some loans. The qualifications for certain loan types, like SBA loans, can be hard to meet. It’s best to double-check the eligibility criteria to save time and ensure you’re applying for the right loans.
Loan Options SMB Compass Offers
Here are some of the loan options SMB Compass offers:
Invoice Financing
| Interest Rates | Loan Amounts | Terms | Funding Speed | Credit Score Needed | Min. Time in Business | Min. Annual Revenue |
| Starting at 12% | $25,000 – $10,000,000+ | 6 – 24 Months | 24 – 48 hours | N/A | 6 Months | $ 300,000 |
Invoice financing provides a flexible line of credit that allows businesses to get paid quickly for their outstanding invoices. It’s ideal for B2B companies that want reliable cash flow for day-to-day expenses without waiting for customers to pay within longer payment terms.
Business Line of Credit
| Interest Rates | Loan Amounts | Terms | Funding Speed | Credit Score Needed | Min. Time in Business | Min. Annual Revenue |
| Starting at 8.99% | $10,000 – $5,000,000 | Revolving | 24 – 48 Hours | 600+ | 2 years | $ 300,000 |
A business line of credit is an essential tool for businesses of all types. It offers access to a predetermined amount of capital that can be used for various purposes, such as managing working capital, bridging cash flow gaps caused by late customer payments, or seizing unexpected opportunities.
Business Term Loan
| Interest Rates | Loan Amounts | Terms | Funding Speed | Credit Score Needed | Min. Time in Business | Min. Annual Revenue |
| Starting at 8.99% | $25,000 – $5,000,000 | 2 – 10 years | 5 to 7 days | 680+ | 1 year | $ 500,000 |
Business term loans have longer repayment periods, usually ranging from 2 to 10 years. They are suitable for B2B and B2C companies and can be used for equipment purchases, refinancing debt, leasehold improvements, or business acquisitions. Term loans provide businesses with capital for long-term growth.
Bridge Loan
| Interest Rates | Loan Amounts | Terms | Funding Speed | Credit Score Needed | Min. Time in Business | Min. Annual Revenue |
| Starting at 12% | $25,000 – $5,000,000 | 6 to 36 Months | 24 – 48 Hours | 550+ | 1 year | $ 300,000 |
Bridge loans are designed to cover temporary gaps in cash flow. They help businesses navigate anticipated delays in revenue or funding, ensuring uninterrupted operations. While any company can use bridge loans, having a line of credit as a safety net for short-term cash flow needs is advisable.
Inventory Financing
| Interest Rates | Loan Amounts | Terms | Funding Speed | Credit Score Needed | Min. Time in Business | Min. Annual Revenue |
| Starting at 8.25% | $25,000 – $10,000,000+ | Revolving | 24 – 48 Hours | N/A | 2 years | $ 300,000 |
Inventory financing can be structured as a line of credit or a term loan. It specifically caters to businesses that need funds to purchase inventory. These loans typically cover up to 100% of the cost of goods and benefit businesses with fast-moving inventory that is presold or has high sales potential.
Equipment Financing
| Interest Rates | Loan Amounts | Terms | Funding Speed | Credit Score Needed | Min. Time in Business | Min. Annual Revenue |
| Starting at 7.99% | $25,000 – $5,000,000 | up to 10 years | 24 – 48 hours | 600+ | 1 year | $ 300,000 |
Equipment financing is a term loan that allows businesses to spread the cost of purchasing equipment over time.
It’s important to match the loan term with the expected life expectancy of the equipment. Companies across various sectors can utilize equipment financing to acquire or upgrade necessary equipment.
SBA Loan Programs
| Interest Rates | Loan Amounts | Terms | Funding Speed | Credit Score Needed | Min. Time in Business | Min. Annual Revenue |
| Starting at 8.5% | $100,000 – $10,000,000 | 10 – 25 years | 30-60 days | 620+ | 3 Years | $ 500,000 |
SBA loan programs, offered by the Small Business Administration, provide low-interest rates and extended repayment terms.
They are suitable for businesses looking to refinance debt, acquire other businesses, purchase real estate, buy equipment, or fulfill general working capital needs. SBA loans are particularly advantageous for small businesses.
Asset-Based Loan
| Interest Rates | Loan Amounts | Terms | Funding Speed | Credit Score Needed | Min. Time in Business | Min. Annual Revenue |
| Starting at 7.99% | $250,000 – $10,000,000+ | Revolving | 30-60 days | N/A | 2 Years | $ 1,000,000 |
Asset-based loan programs leverage a combination of assets, such as inventory, invoices, equipment, and sometimes real estate, to provide working capital to businesses.
These loans are commonly used by B2B companies with capital-intensive operations like manufacturing, wholesale, and distribution.
Purchase Order Funding
| Interest Rates | Loan Amounts | Terms | Funding Speed | Credit Score Needed | Min. Time in Business | Min. Annual Revenue |
| Starting at 15% | $25,000 – $10,000,000+ | Revolving | 24 – 48 Hours | N/A | 0 year | $ 300,000 |
Purchase order funding helps businesses cover expenses related to fulfilling purchase orders.
B2B companies primarily use it to manage payments to suppliers or manufacturers for large orders. Purchase order financing ensures businesses can meet production or delivery obligations without facing cash flow constraints.
SMB Compass’ Qualification Requirements
To qualify for SMB Compass’s financing options, businesses should meet the following criteria:
· Minimum of 1 year in business (excluding startups)
· Minimum monthly revenue of $20,000
· A credit score of 600 or higher
How to Apply for a Loan From SMB Compass
Applying for financing with SMB Compass is a straightforward process:
1. Fill out the online application form. It’s quick and easy to do and won’t affect your credit score. Just provide accurate information about your business, financial history, and the funding you need.
2. Review and discuss options. After you submit your application, the SMB Compass team will carefully review it. They will then contact you to discuss the financing options available to you. They may ask for more documents or questions to better understand your business and financial needs.
3. Receive loan offers and secure funding. Once they receive your application, they will present you with loan offers from their trusted partners. These offers will include interest rates, repayment periods, and fees. Take your time to review the offers and choose the one that fits your business goals best.
4. Finalize the loan agreement. Once you’ve selected a loan offer, SMB Compass will guide you through finalizing the loan agreement. This means completing the necessary paperwork to make everything official. Once the paperwork is done, the funds will be sent to your business, and you can start using them for what you need.
Throughout the process, SMB Compass’s team is there to help you and answer any questions. They want to make sure you have a smooth and successful experience in getting the funding you need for your business.
The Bottom Line
SMB Compass offers a range of tailored financing solutions for established businesses, providing access to the funds necessary for growth and expansion.
While there are limitations to their services, SMB Compass’s low starting rates, diverse loan options, and accessibility make them an attractive choice for businesses seeking reliable financing solutions.
By understanding your business’s needs and meeting the qualification requirements, SMB Compass can be a valuable partner on your growth journey.
My Name is Hazel. I like to write about , finance, Tech, Software’s & more. Other then that i love football & travelling new places.
