Backd Business Loans Review

Pros and cons

Pros

• Flexible loan amounts and repayments.
• Fast approvals and funding are available within 24 hours.
• Excellent third-party reviews.

Cons

• Not available for all industries.
• Potentially costly factor rates.
• Limited loan types.

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Financing offerings through Backd.

Backd provides a few financing products tailored to meet small and medium-sized businesses’ needs. These offerings include:

• Working capital advance: Ideal for businesses looking to manage day-to-day expenses or cover short-term financial needs. These loans are characterized by their flexibility in use, from inventory purchases to operational costs.
• Line of credit: Backd’s line of credit provides businesses with a flexible funding option, allowing them to draw funds up to a predetermined limit as needed. This is perfect for managing cash flow and unexpected expenses.
• BackdPay: Backd also offers BackdPay, a service where Backd will pay a business invoice in full while it pays back the purchase over time. This service offers businesses the flexibility to manage their cash flow more efficiently, ensuring they can continue operations without financial strain while meeting their payment obligations.

Each financing product is designed with speed and simplicity in mind, ensuring businesses can access the funds they need without unnecessary delay. The following table focuses on Backd’s working capital advance.

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Things to consider.

Lenient qualification requirements.

Backd’s requirements are more lenient than those you may find with more traditional lenders like banks and credit unions. While specific requirements may vary depending on the loan product, generally, businesses should have:

• A minimum of one year in operation, demonstrating stability and ongoing operations.
• A minimum monthly revenue threshold starting around $10,000.
• A minimum credit score of 600 or higher for the principal borrower.

Flexible repayments

Backd will help small businesses design repayment schedules that work well for their unique needs. The lender is quite flexible as you can choose from daily, weekly, or semi-monthly payments. This is a huge plus as most traditional lenders require you to adhere to a strict repayment schedule that doesn’t consider your industry, budget, or preferences.

Fast approvals and funding.

Applicants can expect a streamlined application process that, in many cases, allows for decisions to be made within hours of submission. This rapid turnaround time ensures that businesses can gain access to the funds they need quickly, often receiving funding within 24-48 hours after approval. 

Not available for all industries.

While Backd offers funding for many businesses, there are some industries that it doesn’t service. These include:

• Financial services
• Consulting services
• Real estate services
• Legal services
• Government or non-profit agencies
• Flea markets/conventions
• Adult entertainment
• Cannabis
• Firearms

Only offers short-term loans.

Short-term loans from Backd are designed to be repaid within a few months to a year, making them a great choice for businesses that need an immediate influx of cash but don’t want to be tied down to a long repayment period. Borrowers should be mindful that while short-term loans can provide quick access to capital, they often come with higher payments due to the abbreviated repayment timeline. Businesses looking for flexible long-term financing may want to consider other lenders.

Excellent customer reviews.

Backd averages 4.7 out of 5 stars on Trustpilot. The positive customer reviews praise the lender for its professionalism and fast service. Backd is also accredited with the Better Business Business Bureau (BBB) and holds an A+ rating there.

Evaluation

Backd is best for:

• Businesses that require quick cash flow solutions. Backd is ideal for those seeking fast funding to cover immediate operational costs or take advantage of emerging business opportunities.
• Small businesses with less traditional credit profiles. Backd may be a good fit for businesses that may not meet the stringent credit requirements of traditional banks.
• Companies in need of flexible repayment options. Businesses that benefit from daily, weekly, or semi-monthly payment schedules to align with their cash flow patterns may want to apply for a loan through Backd.

Where Backd might fall short:

• Industry restrictions. Backd does not service all industries, which may limit options for businesses in excluded sectors such as real estate, legal services, and cannabis, among others.
• Lack of long-term financing. Businesses in need of long-term financing options may find Backd’s short-term loan focus inadequate for their long-term financial strategies.
• Cost of borrowing. The potentially higher factor rates could make borrowing more expensive compared to traditional lenders.
• Limited loan types. With a narrow range of loan products, companies seeking specific types of financing (e.g., equipment financing, long-term loans) might need to look elsewhere.

How to apply for financing with Backd through Lendio.

Applying for financing through Backd 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 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 need to 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’re looking 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 Backd 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 Backd, you will work directly with their team to finalize the loan details. This may involve additional verification steps or documents. Once everything is in place, you can expect to receive the funds in your business bank account, typically within 24-48 hours.

The bottom line.

Backd offers a lifeline to small businesses in need of quick, flexible financing options. With an emphasis on accessibility and speed, this lender stands out in a crowded market for those who value rapid funding.

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