If you run a small business or startup and need financing, you may have come across Patriot Funding during your research. However, it can be hard to get a clear picture of lenders through reviews alone.
In this basic Patriot Funding review, we will take a quick look at their business loan products, rates, eligibility criteria, customer feedback, alternatives, and ultimately whether they are a recommended financing choice for your company.
Company Background and Overview
Patriot Funding was founded in 2015 as an online lender focused on providing fast, easy funding to small businesses through various loan products and financing options. They are based in Stamford, CT and offer financing in all 50 states.
Some of the main types of funding offered by Patriot Funding include:
- Term loans – From $25,000 to $500,000 with terms of 2-4 years
- SBA loans – For those who qualify for SBA-guaranteed financing
- Lines of credit – Revolving credit up to $500,000
- Equipment financing – For purchasing vehicles, equipment, machinery
- Invoice factoring – Selling outstanding invoices for immediate cash
Their stated goal is to provide accessible financing for underserved small businesses not feel supported by traditional banks.
Review of Patriot Funding Loan Options
Here is an overview of the main products Patriot Funding offers and how their rates and terms compare with competitors:
Term Loans
- Loan amounts from $25K – $500K
- Interest rates from 7% – 30% APR
- Terms of 2-4 years available
- Competitive with other alternative lenders but higher than banks
SBA Loans
- Offer 7(a), 504, and microloans
- Rates are very competitive – around 6% – 10%
- Require SBA eligibility and underwriting
Lines of Credit
- Credit lines up to $500K
- Interest rates from 10% – 40% APR
- More expensive than competitors’ lines of credit
Equipment Financing
- 100% financing for heavy equipment purchases
- No down payment is often required
- Competitive rates but high origination fees
Invoice Factoring
- Advance 80-90% of the face value of invoices
- Expensive with fees from 1-6% of invoice amounts
- Faster than competing invoice factoring services
Patriot Funding Benefits and Advantages
There are several areas where Patriot Funding shines compared to other alternative small business lenders:
Fast and Easy Application Process
You can apply entirely online in under 10 minutes and get a decision within 1 business day without piles of paperwork.
Variety of Loan Products
With term loans, SBA loans, lines of credit, and invoice factoring, you can get multiple types of financing.
Quick Access to Funds
Get funding as fast as the next business day after approval. Great for time-sensitive needs.
Strong Customer Service
Patriot Funding gets rave reviews for responsive and knowledgeable customer support.
Low Documentation Requirements
You don’t need tax returns, bank statements, or business plans. Just basic info is required.
Competitive Rates and Terms
While not the lowest, rates beat most credit cards and other online lenders. Several term options.
Patriot Funding Limitations and Disadvantages
However, there are a few potential downsides to consider with Patriot Funding:
High Minimum Credit Scores
A personal credit score of 650+ and a business score of 575+ is required for most products.
Large Origination and Processing Fees
Expect to pay 2-6% of the loan amount in upfront fees. Higher than competitors.
Mixed Customer Service Reviews
Some reviews cite communication issues and unclear terms after funding.
Lack of Transparency on Rates/Terms
No rate details are provided until completing the full application, unlike competitors.
Strict Approval Criteria
Requires strong revenue and a solid credit history that some businesses lack. Higher denial rate.
Patriot Funding Customer Reviews and Ratings
Third-party review sites provide insight into real customer experiences with Patriot Funding:
- Trustpilot – 4 out of 5 stars based on over 230 reviews. Most praise the fast funding process. Complaints about poor communication.
- Google Reviews – 3.8 stars out of nearly 90 reviews. Customers appreciate the easy applications but some report misleading terms.
- BBB – A+ rating despite a high volume of complaints (191 closed in the last 3 years). Problems with communication and fees seem most common.
Eligibility Criteria for Patriot Funding Loans
To qualify for financing from Patriot Funding, here are some of the key eligibility criteria:
Credit Requirements:
- A personal credit score of 650+
- Business credit score of 575+
Time in Business:
- 6+ months in business for most products
- 2+ years for larger loans over $250K
Revenue Requirements:
- $120K+ in annual revenue
- Higher for loans above $300K
Industry:
- All except adult entertainment, gambling, marijuana, firearms, and pawn shops
Collateral:
- Not required for loans under $250K
- May be required for larger loan amounts
How to Qualify for the Best Rates and Terms
If you meet the basic requirements, here are some tips to get the best offers from Patriot Funding:
- Maintain personal and business credit scores above 720
- Provide 2 years of solid revenue history and projections
- Put up collateral if possible, even when not required
- Be transparent with expenses and debt obligations
- Negotiate on origination fees and compare lender quotes
Having strong credentials will get you the lowest rates, longest terms, and highest loan amounts to match your funding needs.
Alternatives to Patriot Funding
Some top alternatives to consider beyond Patriot Funding include:
Banks and Credit Unions
Can provide the lowest rates for those with excellent credit. Worth checking local community banks or credit union options.
SBA Loans
For borrowers eligible for SBA-backed loans, going directly to the SBA or via a participating lender may get better terms than Patriot Funding brokerage.
Peer-to-Peer Lenders
Sites like LendingClub and Prosper offer business lines of credit with competitive rates.
Other Online Lenders
Kabbage, OnDeck, and BlueVine also provide quick business loan options at lower costs than Patriot.
Equity Financing
Selling company shares can provide funding without taking on debt. Options like angel investors, VC firms, and crowdfunding platforms.
Is Patriot Funding Recommended?
Patriot Funding is best for companies that need fast financing but have good credit and operating history. Their easy applications, quick funding, and variety of loan products make them solid alternative lenders for established businesses.
However, the high fees and strict eligibility requirements make them less suitable for newer businesses or those with credit challenges. Transparency is lacking on rates before applying.
For the right borrower, Patriot Funding delivers fast financing with great customer service. But be sure to compare all options to find the best rates and terms for your specific situation.
Conclusion
Getting a small business loan does not need to be a painful, time-consuming process with the right lender. Online lenders like Patriot Funding are meeting the demand for fast financing and an easy application process.
Based on Patriot Funding reviews and our analysis, they excel at quickly funding term loans, SBA loans, and lines of credit for businesses with good credit and operating history.
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