UPDATE: BondStreet is no longer in operations. To view a list of business lenders visit our Business Loan Listing Page
This is an in-depth review Bond Street, an online platform for business loans. If you’re considering applying for a business loan with Bond Street, read this article first. It provides a detailed review of Bond Street’s rates, terms, pros and cons, and a step-by-step guide of its application process.
There often comes a time in the process of growing a business when you need external funds to get to the next level. In fact, the National Small Business Association reported that 73% of the small businesses they surveyed had received financing in the year prior.
However, it can be frustrating to drive around and visit different lenders, endure lengthy application procedures, or have to wait weeks for an answer. The good news is, it no longer has to be a tedious experience.
There are now companies out there, like Bond Street, that are making the process of getting business loans easier and more convenient.
Here is more about Bond Street’s offers, eligibility requirements, and how to apply.
How Bond Street loans work
Bond Street provides business loans funded by the company’s community of accredited investors and institutions. In order to borrow, business owners need to apply, get approved, and agree to pay interest and an origination fee in exchange for the loan offered.
David Haber, CEO of Bond Street, says, “Bond Street’s streamlined application allows a business owner, in just a few minutes, to securely share their financial accounts with direct connections into products like QuickBooks, bank deposits, and the IRS.”
We’re very competitive with banks on the low end, but the difference in speed and customer experience is really what sets us apart from other lenders”
Haber adds, “Customers speak directly with an advisor to understand their options and receive a decision in under a week.” If approved, the company will send you an offer, which specifies the loan amount and terms available to you. If you agree to the terms, you will then sign the agreement and have the money transferred to your account within one week.
What can Bond Street loans be used for?
You can use a loan from Bond Street to cover the costs involved with team expansion, inventory and equipment, opening a new location, and operational costs. Additionally, it can be used to refinance business debt.
Will you qualify? Haber says, “We see companies that are graduating from a business credit card or from a more expensive shorter-term loan, all the way up to incredibly bankable businesses who are doing $25+ million of revenue and borrowing $1 million from us.”
Here are the basic eligibility requirements:
- A minimum credit score of 640 makes you more likely to qualify.
- You need to live in a U.S. state other than ND, NV, SD, TN, and VT, as Bond Street does not operate in those states.
- Your business must be at least two years old.
- You must have annual revenue of at least $200,000.
- 51% of company ownership needs to be able to assign a personal guarantee.
Why choose Bond Street?
If you meet the eligibility requirements, Bond Street can provide you with the funds you need to expand and grow your business. “We’re very competitive with banks on the low end, but the difference in speed and customer experience is really what sets us apart from other lenders,” says Haber.
The application process is easy, doesn’t hurt your credit, and can be done from home. You can also get fast access to the cash, which will be deposited directly into your account. Here’s an example of how this can come in handy.
“One of our first customers is a business called Joe Coffee,” says Haber. “When we first lent to them, they had nine locations and they were doing well over $10 million in revenue. They had an existing line of credit with Chase, and they’d started applying for term loans to open a few more locations. The process had taken them two months— without a clear end in sight— and we were able to finance that 10th location in just a few days.”
He adds, “We’ve since opened store number 11, and we’re about to open store number 12. Even though our product is probably a little bit more expensive than what they were historically getting from their bank, the difference in speed and customer experience really changed the way they’ve thought about financing. It’s been really fun and rewarding for us to continue to grow with them.”
When other lenders drag their feet in approving you and getting the funds to you, Bond Street may be able to speed the process up.
Bond Street also shines when it comes to customer service. The company aspires to be a business owner’s advocate as well as their lender. “We are passionate about fostering a community of amazing businesses through a relentless focus on customer service. For our customers, it’s ultimately about more than just economics. They want a long term partner who truly cares about their success,” says Haber.
Bond Street has plans to offer more to its customers in the near future. Haber shares, “A common thread we’ve identified since launching Bond Street and helping small businesses around the country access fair and affordable financing is that entrepreneurs are incredibly passionate about their product or service. However, they’re not (necessarily) finance people—not that they should they be.”
He adds, “So the bigger opportunity that we see to support entrepreneurs is to take the subject of ‘Finance’—which is opaque and scary for most people—and distil it down into something simple and actionable. This year, we’re extremely excited to launch Beacon, a new software product aimed at helping business owners understand their finances and make more informed decisions.”
A few points to consider before signing on the dotted line are that Bond Street’s loan lengths are shorter than those offered elsewhere, ranging from one to three years. Repayments are bi-monthly on the 1st and 16th, which is more frequent than many lenders who only require one repayment per month.
Bond Street does not require businesses to provide collateral but it will file a blanket UCC lien on the business.
UCC Lien: A UCC lien is a lien that follows the requirements of the Uniform Commercial Code (UCC). The UCC is a set of standardized contract and trade regulations that most states in the USA have adopted as part of state law.
Interest rates are competitive, but may not be the lowest. You’ll have to apply with various lenders to see what rates you qualify for and compare them to ensure you get the best deal.
How to apply for Bond Street
Bond Street’s application process is simple. Here are the steps.
1: Visit the Bond Street website and click “Get pre-qualified.”
2: Provide your email address.
3: Create an account by entering a password.
4: Provide contact information.
5: Provide your business name, DBA, date incorporated, and annual business revenue.
6: Provide your business address.
7: Provide your first name, last name, date of birth, and personal annual income. Then, agree to have Bond Street request a personal credit report (which does not impact your credit score).
8: Provide your home address.
9: Fill out the fields which share the amount of money you want to borrow, how many years you need to pay it off, and the purpose of the loan.
10: Tell how you heard about Bond Street.
11: Find out if you are pre-qualified. If you are, click “Continue.”
12: Provide your business information, financials, and ownership details.
13: Provide financial statements.
14: Provide deposit verification by linking your business bank account.
15: Authorize tax information.
16: Review and submit your application.
By following these steps, you can quickly apply with Bond Street and may be just a few clicks away from getting funds for your business.
Find out your rates and terms
Bond Street has a lot to offer. They help businesses quickly get the loans they need and offer support along the way. This means that you not only get a lender, but you also get an advocate.
If you’re ready to find out what you qualify for, click here to learn more about the company and to start your application process.
To see how Bond Street stacks up to the competition, head over to our Small Business Loans page to review and compare a variety of lenders, apples to apples.
Jessica Walrack is a personal finance writer at SuperMoney, The Simple Dollar, Interest.com, Commonbond, Bankrate, NextAdvisor, Guardian, Personalloans.org and many others. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and fun.