Able Lending is billed as the world's first collaborative lender, putting a unique spin on small business loans. Borrowers must find 3-5 backers to contribute 25% of the loan and then Able provides the rest. Loans range from $25k-$500k and repayment terms are between 1-5 years.
Able helps entrepreneurs grow their small business through a collaborative loan involving Backers -- friends, family, or fans willing to help fund your loan. Borrowers must find 3-5 people to help back the investment by providing 25% of the total loan amount requested. Once that first 25% is funded, Able provides the other 75%.
Able Lending's borrower-backer model removes the risk of loans better than any other alternative lender, allowing it to some of the lowest interest rates. Borrowers must provide 25% of the loan. Able then funds the remaining portion of the loan with interest rates varying from 8-16%.
Loan amounts range from $25,000 to $500,000, with 25% of the total loan amount funded by the borrowers personal backers.
Able operates in 40 states and Washington D.C.
Able first has potential borrowers fill out an online form to share relevant information about their busines and specific loan needs. A credit check is performed and within seconds you know if you have been pre-approved -- meaning you meet Able's minimum requirements.
If pre-approved, you're prompted to upload your business’s financial documents - such as your balance sheet and income statement. Here you're given the option of integrating your accounting software and bank account, expediting the underwriting process.
Once that information is provided, Able responds with a decision on a loan within 24 hours.
Able requires borrowers to have been in business for at least six months, to have at least $50,000 in revenue, and for the primary signer to have a 600 or higher credit score.
Able handles all of the repayment process on the borrower's behalf by making monthly withdrawals from their account and disbursing payments to each of the backers. With Able loans there are no pre-payment penalties if you want to pay your loan back early, and the only other fee is a one-time charge of 5% for an account origination fee. Since the borrower has their own backers contributing a portion of the loan, the rates are lower than many other lenders, usually between 8-16%.
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