Expansion Capital Group Small Business Loans Review

Pros and cons.

Pros

• Low minimum required credit score
• Minimum time in business of just 6 months
• Fast funding times

Cons

• Daily or weekly payments, unlike traditional loan products
• Potentially costly factor rates

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Loan offerings through Expansion Capital Group.

Expansion Capital Group provides financing options that grant quick access to capital for businesses. This funding can be used for various purposes, such as bridging a cash flow gap, investing in growth opportunities, or purchasing inventory. Their primary financing option is revenue-based financing, which enables businesses to repay their loan as a percentage of their future sales. This flexible repayment structure can be particularly beneficial for businesses with fluctuating revenues.

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Things to consider.

Fast funding times.

One of the standout features of Expansion Capital Group’s loan offerings is the notably quick funding times. For small businesses that require immediate financial support, ECG’s ability to provide funding within 24 hours of approval is a significant advantage. This rapid turnaround can be crucial for businesses facing unexpected expenses, needing to replenish inventory quickly, or wanting to seize immediate business opportunities. 

Moderate loan amounts are available.

Expansion Capital Group offers loan amounts up to $300,000, which can accommodate a wide range of small business needs, from emergency repairs to significant expansion efforts. While these loan amounts are moderate compared to traditional bank loans, they are designed to be quickly accessible. Businesses that require larger funding amounts may want to consider other lenders.

Average fees & rates for revenue-based financing.

Expansion Capital Group has flexible eligibility requirements. Because of the potential risk involved with relatively easy financing, the lender fees are quite high compared to a traditional bank loan. There are two types of charges you can expect when taking out this type of financing.

The first is an origination fee, which varies depending on the amount of financing you choose. Here is a breakdown of flat fees for each range of financing.

The origination fee is deducted from your funds before you receive them.

Additionally, you’ll pay a financing fee, which is charged as a factor rate of 1.2 to 1.6. So, if you finance $75,000 with a 1.5 factor rate, your outstanding balance would be $112,500.

Flexible requirements to get a loan.

Expansion Capital Group (ECG) offers flexibility in its lending criteria, making it easier for a broader range of small businesses to access funding. Unlike traditional banks that often have strict credit score and collateral requirements, ECG requires a minimum credit score of just 500 and a minimum time in business of six months. This level of flexibility is especially beneficial for newer businesses or those recovering from financial setbacks, providing them with the opportunity to secure funding that might otherwise be out of reach.

Business owners must understand that while these more lenient requirements can make accessing funds more straightforward, the cost of borrowing may be higher. Therefore, businesses should carefully assess their financial health and growth prospects to ensure that taking on a loan supports their long-term strategy.

Flexible repayment options.

Any borrowed funds from ECG are repaid over three- to 12-month terms. Borrowers can choose between daily or weekly payments automatically debited from your business bank account. For some businesses, this might feel like a squeeze on their cash flow, but for others, it may seem better than making one large payment each month. Businesses needing longer repayment terms or a monthly repayment schedule may want to consider other lender options.

Excellent customer reviews.

Expansion Capital Group has an A+ rating with the Better Business Bureau and averages 4.5 out of 5 stars on Trustpilot. Of more than 600 reviews, 84% give an “excellent” rating. Customers most frequently talk about fast funding times and an efficient application process.

Evaluation

Expansion Capital Group is best for:

• Businesses needing quick funding. For companies that require immediate capital, whether to cover unexpected expenses, purchase inventory, or take advantage of a timely opportunity.
• Small businesses with lower credit scores. With a minimum credit score requirement of 500, ECG makes financing accessible to small businesses that may not qualify for traditional bank loans.
• Startups and younger businesses. ECG’s minimum time in business requirement of just six months opens up financing opportunities for newer businesses that are often excluded from traditional funding options due to a lack of history.
• Businesses looking for flexible repayment options. ECG’s revenue-based financing and short-term loans, with the option of daily or weekly payments, provide flexible repayment terms that can align with a business’s cash flow, particularly beneficial for companies with fluctuating revenue.
• Companies seeking small to moderate loan amounts. Businesses in need of moderate funding (up to $300,000) will find ECG’s loan offerings suitable for a range of purposes, from bridging cash flow gaps to facilitating expansion efforts.

Where Expansion Capital Group might fall short:

While Expansion Capital Group (ECG) brings several benefits to the table for small businesses in need of fast funding, there are areas where it might not meet every business’s needs fully. Consider the following points where ECG may fall short:

• High cost of capital. Due to its accessible loan qualifications and fast funding times, ECG’s financing solutions can come with higher costs, including origination and factor rates. These costs may make ECG less economical for some businesses compared to traditional financing options.
• Frequent repayment schedule. ECG requires daily or weekly repayments, which can strain businesses with uneven cash flow. This repayment structure, while beneficial for quick loan repayments, might not suit all businesses, especially those looking for more traditional monthly payment options.
• Limited loan term options. With term lengths only ranging from 3 to 12 months, ECG’s loan products may not suit businesses seeking longer-term financing solutions. This limited range makes it less ideal for those needing extended repayment periods to comfortably manage their financial obligations.
• Low maximum loan amount. Although a maximum loan amount of $300,000 can support a range of business needs, it might not suffice for businesses seeking larger amounts of capital for significant expansions or high-cost investments.

How to apply for financing from Expansion Capital Group through Lendio.

Applying for financing through Expansion Capital Group via Lendio is a streamlined process designed to connect your business with the funding it needs with minimal hassle. Lendio is a small business loan marketplace with multiple lenders that will help match small businesses with loans that suit their unique needs. Here’s how you can get started:

1. Complete Lendio’s online application form: You will fill out a brief online application on Lendio’s website. The form asks for basic information about your business, such as its name, how long it’s been in operation, your monthly revenue, and the amount you want to borrow.
2. Documentation submission: Alongside your application, you will be asked to submit documents that verify your business’s financial standing. These could include recent bank statements, income statements, balance sheets, and tax returns. Having these documents ready in advance can speed up the process.
3. Review and acceptance: Once your application is submitted, Lendio will match you with potential lenders that fit your needs. If Expansion Capital Group is a good fit for your financing requirements, you will receive an offer outlining the terms of the loan. Review these terms carefully to ensure they align with your business goals and repayment capabilities.
4. Finalize the deal: If you decide to proceed with Expansion Capital Group, you will work directly with their team to finalize the loan details. This may involve additional verification steps or documents.

The bottom line.

Expansion Capital Group (ECG) presents a compelling option for small businesses in pursuit of quick, accessible financing solutions. Importantly, while ECG offers significant benefits such as flexibility in loan requirements and rapid funding times, potential borrowers should carefully consider the cost implications, repayment schedules, and loan term limitations.

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