Cumulus Funding is a new type of lender that provides fast loans with flexible payment schedules to people with poor credit. Instead of charging borrowers interest in the traditional sense, Cumulus requires them to pay a percentage of their income for a set period. This is called an Income Share Agreement. If their income drops or they lose their job, the loan payments drop accordingly. The company was launched in 2011 by Nathan Popkins. It is based in Chicago, IL, and has an A+ rating with the BBB. 

How Does Cumulus Funding Work?

Cumulus provides cash in exchange for a small percentage (10% or less) of a borrower's income. Cumulus doesn't require any collateral so borrowers can use the money for whatever they want. While detractors describe this relationship as a form indentured servitude, Cumulus prefers to describe it as an investment in borrowers that struggle to find credit elsewhere. If the borrower is broke or has a low income, his payments will be low. However, when borrowers do well and their income increases, so do the payments. 

In any case, Cumulus does give borrowers the chance to buy out the loan by paying a lump sum. Exactly how much that lump sum will be depends on the terms of the agreement, which are provided once a borrower completes the loan application.

What Are Cumulus' Interest Rates?

Because of the way Income Share Agreements work it’s impossible to say exactly how much interest a borrower will pay on a loan. It all depends on how much money borrowers make during the period the Income Share Agreement is in place. However, Cumulus provides a series of scenarios that specify the equivalent interest rate that will be paid in each scenario. According to Cumulus, the average equivalent rate on loans has been in the mid-double-digits.

How Much Money Can I Borrow From Cumulus?

Cumulus provides loans ranging from $1,500 to $10,000.

Which States Does Cumulus Operate In?

Cumulus operates in Georgia, South Dakota and Texas.

What Is Cumulus' Application Process Like?

Cumulus has an online application that only takes a few minutes to complete. Once you complete it, Cumulus will give you a no-obligation quote for you to consider. At this stage, Cumulus does not make a hard credit inquiry, so there is no risk in seeing whether you qualify.

If you are interested in the Income Share Agreement, Cumulus will request your permission to run a credit check and verify your bank account to check the information you provided in your application and verify your identity.

Borrowers who satisfy Cumulus’ eligibility criteria and provide the necessary information can receive their funds within one business day.

How Is Cumulus Better Than Other Lenders?

Cumulus provides mid-double-digit interest rates to borrowers with poor credit. These rates are certainly not low, but they are much better than a payday loan. The application process is fast and funds can be transferred within one business day. 

A big advantage of Cumulus over other lenders is that payments are flexible. If you lose your job or your hours are cut, your payments will also drop.  In certain circumstances, they could drop down to zero. The catch is payments also increase your income. If your agreement calls for a 10% of your income and you make $10,000 a month, your payments will be a $1,000 a month regardless of how much you borrowed.

  • Credit bureau reporting
  • Joint loans available
  • Loan Amount
    $1500 - $10000
  • No late fees
  • Max Loan Term (Months)
  • Lend to military?
  • Institution Type
    Direct Lender
  • Approval Speed (Hours)
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0 votes

They make me see credit score which I hate the most .suck!

0 votes

You have to have a 660 transunion score and make a minimum of $22000 yearly. My score was 657 due to my credit union doing a hard pull. These people could have worked with me. They suck!

0 votes

The big mistake I made was not understanding of exactly how this Income Share Agreement would pay out - this is my fault. In my opinion, not much better than a loan shark, which I might have done better by going through one. They make it sound so good by saying they charge low a percentage of your salary; however, taking out a $5,000 loan and repurchasing it in your 19 month at $4,976.41 is insane - over the course of 19 months, I only paid $23.59 to ... the principal, not to mention if I paid out the 60 months out with no income change - it would be a total of $17,820 on a $5,000 loan - interest paid of $12,820. Oh, I blame myself for falling pray and I should NOT have made such a large loan, I just hope that the person reading this thinks twice about taking a loan out with this company. They didn't raise $30 million dollars by nothing other than preying on the sub-prime market. More Less

0 votes

They have an amazing product and are very nice to their customers.

0 votes

They gave me money when I needed it and I am grateful. I wish they would report to credit bureaus but maybe they will eventually. They are a young company with a different way of doing things.

0 votes

Unique loan product that really fit my needs while limiting my downside. They are basically investing in my career!

2 votes

They only provide loans for people with 600 and above credit scores. Anything below 600 will be declined but they claim to give people with poor credit personal loans.

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