BayFirst Financial Review

Pros and cons.

Pros

• Best publicly held option
• Maximum rates and fees set by SBA
• Expedited approval process compared to non-preferred SBA lenders

Cons

• Average funding times
• Stricter requirements for new businesses

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Loan offerings through BayFirst Financial.

The flagship product, the SBA 7(a) loan, is particularly aimed at businesses looking for long-term financing to grow, acquire another business, or refinance existing debts. These loans are funded through CreditBench, BayFirst’s SBA loan division. BayFirst also offers BOLT SBA loans, which provides up to $150,000 for working capital within days instead of weeks.

Besides SBA 7(a) loans, BayFirst also provides SBA 504 loans ideal for purchasing real estate or heavy equipment, and Express Loans which offer a quicker turnaround for smaller financing needs.

Outside of SBA loans, BayFirst Financial offers other loan types as well. These include working capital loans, business acquisition loans, real estate loans, business lines of credit, and more. This review, however, will focus mainly on BayFirst’s SBA 7(a) loan offering.

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Things to consider.

SBA-preferred lender.

Being an SBA-preferred lender, BayFirst Financial has the authority to process, approve, and fund SBA loans without the direct oversight of the U.S. Small Business Administration. This designation not only streamlines the borrowing process but also significantly reduces the time from loan application to funding. For businesses in urgent need of capital or those that cannot afford lengthy approval times often associated with traditional SBA loans, this can be a valuable advantage.

Moderate funding time.

Since BayFirst Financial is a preferred SBA lender, its SBA loan applicants get prioritized approvals with the SBA.

BayFirst takes 10 days to internally approve applicants, then they typically get SBA approval within 24 hours. For businesses looking to get SBA loans up to $150,000 for working capital, BayFirst’s BOLT program has quicker funding times.

Getting an SBA 7(a) loan through BayFirst takes longer than an online term loan, but definitely comes with competitive repayment terms that work well for planned expenses.

High loan amounts.

BayFirst Financial stands out by offering high loan amounts, with funding available up to $5 million. This substantial ceiling caters to a broad spectrum of business financing needs, from expansion and acquisition to refinancing and operational expenses. 

Competitive interest rates and low lender fees.

SBA 7(a) loans are known for having competitive interest rates. The rate, however, depends on the length of the loan term and the loan amount. All rates are based on the WSJ Prime rate, which is variable.

For loans that mature in seven years or less, the following maximum rates apply:

• $25,000 or less: WSJ Prime Rate + 4.25%
• $25,000 to $50,000: WSJ Prime Rate + 3.25%
• $50,000 or more: WSJ Prime Rate + 2.25%

For loans that mature in more than seven years, the following maximum rates apply:

• $25,000 or less: WSJ Prime Rate + 4.75%
• $25,000 to $50,000: WSJ Prime Rate + 3.75%
• $50,000 or more: WSJ Prime Rate + 2.75%

BayFirst’s lender fees are fixed based on your SBA loan characteristics. There are no upfront or annual service fees for loans under $500,000. There is a 2% packaging fee for loans up to $50,000 and a flat $2500 packaging fee for loans greater than $50,000.

There are, however, prepayment penalties for loans that are 15 years or longer and when 25% or more of the outstanding balance is prepaid. The fee ranges from 1% to 5% of the prepayment amount. 

Typical SBA loan requirements.

BayFirst Financial requires a minimum time in business of two years and a minimum credit score of 675 for regular 7(a) loans and 700 for BOLT loans. Annual revenue requirements will vary but typically start at $90,000 a year.

Consistent repayment terms.

The length of your repayment term depends on the purpose of the loan funds. You’ll pay back your SBA loan for up to 10 years if the funds are used for working capital, equipment, or inventory. The repayment term can go up to 25 years if used for commercial real estate.

Good customer reviews.

BayFirst Financial online reviews stand out considerably compared to most other lenders. The lender has an A+ rating with the Better Business Bureau. Their third party reviews typically range between 3 and 5 stars across platforms. These reviews are for all loan types, not just business loans, but it still demonstrates the company’s commitment to providing good customer service.

Evaluation

BayFirst Financial is best for:

• Established businesses looking for growth. With SBA 7(a) loans up to $5 million, BayFirst Financial caters to companies aiming for expansion, acquisition, or significant capital investments.
• Companies in need of quick SBA loan processing. Through BayFirst’s BOLT SBA product, you can receive an SBA loan in less than a week.
• Entrepreneurs looking for flexible funding options. Offering multiple SBA loan types, BayFirst Financial serves a breadth of business needs from working capital to real estate.
• Businesses with solid credit backgrounds. A minimum credit score of 675 qualifies businesses for BayFirst’s SBA loans, aligning with companies that have demonstrated financial responsibility.

Where BayFirst Financial might fall short:

While BayFirst Financial offers significant advantages for many businesses, there are scenarios where it may not be the ideal lender:

• New businesses or startups. Since BayFirst Financial favors businesses with a proven track record, startups or newer businesses might find it challenging to meet the eligibility criteria, particularly the minimum requirement of two years in business.
• Businesses seeking rapid, short-term funding. Given the moderate funding times, particularly for larger loan amounts, BayFirst might not be the best fit for businesses that need immediate, short-term funding solutions.
• Entrepreneurs with lower credit scores. With a minimum credit score requirement of 675, BayFirst may not be accessible to business owners with poor credit history, limiting options for those who have faced financial struggles.

How to apply for financing from BayFirst Financial through Lendio.

Applying for financing through BayFirst Financial 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 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 BayFirst Financial 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 BayFirst Financial, you will work directly with their team to finalize the loan details. This may involve additional verification steps or documents.

The bottom line.

BayFirst Financial represents a solid opportunity for businesses that are well-established and ready to scale up their operations. BayFirst’s loan products, especially the SBA 7(a) loan, address diverse needs from operational growth to real estate acquisition, making it a versatile choice for entrepreneurs.

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