StreetShares is a lending marketplace that connects investors with small businesses. Companies use the platform to pitch loan requests to institutional and retail investors. StreetShares has easier to meet credit criteria and less expensive fees than traditional lenders. The company is based in Reston, VA, and was founded in 2013. StreetShares is an accredited business with the BBB and has an “A” rating.
How Does StreetShares Work?
Small businesses first list their loan requests on the platform similarly to how borrowers ask for loans on Lending Club, Prosper, and other lending marketplaces. Investors then study the loan applications to decide whether or not to back a loan. StreetShares is not just a loan underwriting platform, however. It has skin in the game.StreetShares backs a portion of each loan it facilitates.
Once a loan is approved, funds are deposited, and payments can be made directly from your bank account.
What Are StreetShares Interest Rates And Terms?
Interest rates vary depending, among other things, on the credit and revenue of each business. However, APRs range from 6% to 20% APR. Not bad for a marketplace that will consider borrowers with subprime credit.
StreetShares charges an origination fee of 3.95% to 4.95%. This fee is included in the APR but is deducted from the loan amount before it is deposited in the borrower’s account. For example, if you borrow $10,000 and pay a 3.95% origination fee, you will receive $9,605 in your account.
Loan terms vary from 3 to 36 months.
There are no prepayment penalties.
How Much Can You Borrow With StreetShares?
Borrowers can request loan amounts ranging from $2,000 to $100,000.
Which States Does StreetShares Operate In?
As of March 2016, StreetShares is available in all states except the Dakotas.
What Is StreetShares Application Process Like?
StreetShares application process only takes 10 minutes to complete. Borrowers complete a short online application form. Investors then compete to fund your loan. The more investors bid on a loan, the lower the rates. This process takes 1 to 4 days. Once a loan is funded, it takes 1 to 2 days for the money to be deposited.
To qualify for a loan, borrowers must have been in business for at least a year and have $100k or more in annual revenue. The business owners must have reasonable credit and be U.S. citizens or permanent residents.
How Is StreetShares Better than Other Lenders?
- StreetShares offers faster and cheaper loans than most online lenders.
- The credit criteria are more flexible than most traditional banks.
- Interest rates range from 6% APR to 20% APR
- Loan terms go from 3 to 36 months
- Loan amounts vary from $2,000 to $100,000
- There are no prepayment penalty fees
1985 Isaac Newton Square West Suite 103
Reston, VA 20190 USA
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- Unsecured Term Loan
- Business Debt Refinance
- Equipment Purchase
- Lease Improvements
- New Location
- Product or Service Expansion
- Working Capital