SmartBiz Review: The Faster, Better Way To SBA Loans.

October 26, 2016 / Reading: 6 minutes

It is extremely important for small businesses to maintain a steady cash flow while expanding their business, and there will come a time when you feel like you can’t do either one of those things, but securing a small business loan would certainly make achieving these goals easier.

The problem is that many businesses find it impossible to obtain a loan from the banks these days, or something that is just not practical because it can take months for an application to be approved.

SmartBiz is a company that is trying to fill in the grown need for SBA loans by reducing the strict requirements that are set by banks and expediting the application process to make obtaining a loan much more realistic and useful.

Getting Needed Relief

SmartBiz makes things easy for business owners by handling the loan approval process and reducing the time it takes to be approved. All of this is done via a simple online application. This convenience does come at a slight premium, of course. SmartBiz charges 4% of the total loan amount for their services, plus your standard banking fees that normally are associated with SBA loans.

The reason why SmartBiz is so attractive to businesses, besides expediting the process, is that they can reliably secure loans that would otherwise not exist to the customer because lending practices have tightened up and do not see small business loans as cost-efficient nor time-efficient, especially for customers who don’t have a long history of business.

Smartbiz helps you expedite the application process so you can secure an SBA loan with a 10-year term at a very low interest rate.

SmartBiz breaks this mold by streamlining the loan application process and presenting an offer that both lender and borrower finds to be beneficial for their needs. This service opens the doors to more businesses and banks and encourages more economically positive activity, which is what everyone is hoping to return to after all these years.

How SmartBiz compares to other lenders

Loan amountUp to $350,000Up to $500,000Up to $500,000
Estimated APR6 – 8%6 – 23%10 – 96%
Time to Approval30 mn3 days1 day
Time to Funding1 Week10 days1 day
Repayment term10 years60 months12 months
Prepayment penaltyNONENONE YES
Minimum Requirements
Credit score600 or higher620 or higher500 or higher
Time in business2 years2 years9 months
Annual revenueNoneNone$75,000

The Documents You’ll Need to Apply at SmartBiz

Below is a list of some of the most important documents SmartBiz requires before getting your SBA application started. Having these handy will save you time and help streamline the overall application process.

  1. Bank Statements: Last 6 months.
  2. Business Tax Returns: Last 3 years.
  3. Personal Tax Returns: Last 3 years.
  4. Balance Sheet: Showing business assets and liabilities. (Download template)
  5. Income Statement: Interim P&L statement. (Download template)
  6. Business Debt Schedule: Listing all current business debt. (Download template)

Keep in mind however that – depending on your particular situation – SmartBiz may require additional supporting documents.

Notable Caveats to SmartBiz

SmartBiz isn’t for everyone and any business considering a SBA loan should have done their homework on what this cash injection is for; i.e. not a bandaid to a bigger problem. Ideally, your business should have a solid foundation that does not need money to stay afloat, but rather a loan to nearly guarantee a boost in profits. Your credit rating doesn’t need to be high to use SmartBiz, of course, but it doesn’t hurt when securing a loan.

Overview of SmartBiz application process

While SmartBiz isn’t exclusive to well-established businesses, SmartBiz does prefer businesses that have a few years under their belt with no bankruptcies filed and no problems with taxes. So, although their loan application requirements aren’t strict, their standards are a bit higher than some other online financing institutions who charge higher rates, use liens, and more fees in exchange for higher acceptance rates.

This service is perfect for tried and true business expansions, like hiring more employees, increasing production, or renovating stores, where the underlying business model isn’t undergoing drastic changes (and therefor risk) and you are confident that you will be able to pay back the loan if you are just given the opportunity.