GROUNDFLOOR Review

Where does GROUNDFLOOR do business?

GROUNDFLOOR is a business financing offering by GROUNDFLOOR, a financial services company based in Atlanta, GA. Founded in 2013, GROUNDFLOOR offers access to business loans in 24 states (and Washington, DC).

What are GROUNDFLOOR’s rates?

GROUNDFLOOR offers a fixed APR business financing product that ranges from 5% APR up to 26% APR.

Does GROUNDFLOOR charge an origination fee?

Yes, GROUNDFLOOR charges a loan origination fee of 2% to 6% of the loan amount. GROUNDFLOOR deducts the fee directly from your loan amount before disbursing loan proceeds, so make sure you take this fee into account when deciding how much you need to borrow.

What limitations does GROUNDFLOOR set on the purpose of the loan?

GROUNDFLOOR considers loan applications for business purposes, such as:

• Working capital

Does GROUNDFLOOR charge prepayment fees?

No, GROUNDFLOOR does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the loan off early.

How much can you borrow from GROUNDFLOOR?

Loan amounts start at $50,000 and go up to $2,000,000.

What is the maximum loan term you can get with GROUNDFLOOR?

GROUNDFLOOR offers business loans with terms ranging from 6 to 12 months. Having the option of longer terms allows borrowers to take on larger loan amounts while keeping monthly payments more affordable. However, the longer the term of your loan, the more interest you will pay.

What do you need to qualify for GROUNDFLOOR?

GROUNDFLOOR does not require borrowers to have been in business for a minimum number of years. Businesses don't have to meet a minimum annual revenue to be considered.

Applicants with a credit score of at least 640 and up to 850 are eligible for GROUNDFLOOR.

GROUNDFLOOR does not have or does not disclose a minimum annual income eligibility requirement.

The Military Lending Act (32 C.F.R. § 232) prohibits lenders from charging service members more than 36% APR on credit extended to covered borrowers. APRs for the GROUNDFLOOR product fall outside of the MLA limits and as a result the product cannot be issued to these applicants. Active duty service members and their covered dependents are considered “covered borrowers" under the Military Lending Act.

Only U.S. citizens and permanent residents can apply for a loan.

To qualify, applicants may need to provide the following documentation:

• Proof of income
• Proof of identity

Does GROUNDFLOOR report your account activity to credit bureaus?

GROUNDFLOOR reports your account activity to the following credit reporting agencies:

• Equifax
• Experian

Making regular on-time payments to a creditor that reports to one or more credit bureaus will demonstrate your financial responsibility and can help improve your credit score.