How It Works
ExtraCredit Loans is a loan marketplace. You tell us about your business, we match you with a lender that fits, and the lender makes the decision. Here is each step, who we work with, and how we get paid.
The three steps
- Tell us about your business. Our form asks seven questions: how much you need, your name, business name, email, phone, monthly revenue, and time in business. It takes about a minute.
- We route you to a lender. If your answers fit, we send you to the full application with Kapitus, our primary lender. That application can return offers from Kapitus and from lenders in its network. For deals that fit better elsewhere, we work our own lender relationships.
- You review offers and decide. The lender sets the amount, cost, and terms. An offer may come as a loan or as revenue-based financing, which is not a loan. You can accept an offer or walk away.
What lenders look for
The starting points across our marketplace:
- 2 years in business
- $250,000 in annual revenue
- A personal credit score of 600 or higher
The first two are what Kapitus, our primary lender, publishes for its business loans. Credit floors run from 600 to 680 depending on the lender. Under 600, we have no fit today. From 600 to 640, some lenders in our marketplace will look, usually at a higher cost. At 640 you clear every floor except our primary lender's: Kapitus publishes 650 and in our experience approves at 680 and above. Lenders also weigh your industry, bank balances, and existing debt. Meeting a minimum does not guarantee approval. If your answers fall well short, we tell you so before you spend time on a full application.
How we get paid
We do not charge you a fee to apply. We act as a broker. When a financing we arranged closes, the lender may pay us a commission. That is how brokers in this industry are typically paid.
A commission is a reason to be skeptical of any broker, including us. So compare every offer on two numbers: the total you will repay and the APR. Our guide to factor rates and APR shows how.
Our relationship with Kapitus
Kapitus is the primary lender we work with, and most applications we receive go there first. Josh Jones, a partner in ExtraCredit Loans, works for Kapitus.
We tell you this so you can weigh our recommendations with that in mind. You are never required to accept an offer from Kapitus or anyone else.
Common questions
Is ExtraCredit Loans a direct lender?
No. ExtraCredit Loans is a loan marketplace. We act as a broker: we connect your business with lenders. The lender makes the credit decision and provides the money.
What do I need to qualify?
Across our marketplace: 2 years in business, $250,000 in annual revenue, and a credit score of 600 or higher. Floors run from 600 to 680 depending on the lender: some lenders look at 600 to 640, and our primary lender approves at 680 and above. Some products have different requirements, and meeting a minimum does not guarantee approval.
How fast can I get funded?
On term loans and lines of credit, our primary lender reports decisions in as little as 4 hours and funding in as little as 24 hours. SBA loans take weeks to months.
Will my offer be a loan?
Not always. An offer can come as a loan or as revenue-based financing, which is a purchase of future sales and not a loan. The agreement says which one it is. Compare either on total payback and APR.
Does it cost anything to apply?
We do not charge you a fee to apply. If a financing closes, the lender may pay us a commission. Your financing agreement lists every cost you pay.
Will applying affect my credit?
No. Applying does not affect your personal credit score. If you accept an offer, the lender may run a hard credit inquiry before funding.
Do I have to accept an offer?
No. You can walk away from any offer at any point before you sign a financing agreement.