Expansion Capital Group Small Business Loans Review

Revenue-Based Financing

Instead of applying for a term loan with strict credit and time in business requirements, consider revenue-based financing from Expansion Capital Group. Your loan amount is based on your revenue, and payments are routinely deducted from your bank account—usually based on how much business you’ve brought in.

Evaluation

Early stage companies looking for a boost in working capital could find the right fit with Expansion Capital Group. You’ll need to meet fairly vigorous revenue requirements (at least $100,000 a year), but you only need to be in business for six months to apply. Plus, the minimum credit score is just 500. Fees are high, but funding times are fast. If you need to prioritize extra capital in order to meet demand, ECG is worth considering.

Fast Funding Times

Expansion Capital Group definitely offers fast financing, you’ll receive a financing quote via email within 24 hours. You can then review the offer at your own pace. If the contract looks good, you can sign and send it back to receive your funds within hours. This quick financing is typical for many online lenders, but far faster than traditional banks or SBA lenders. So if you’re looking for a fast turnaround time to get funds in the bank, Expansion Capital Group is worth considering. 

They’re also committed to creating ongoing relationships with borrowers. Clients who are in good standing can also quickly apply for renewed financing to cover time-sensitive expenses or urgent opportunities for their businesses.

Moderate Loan Amounts Available

Businesses can borrow up to $300,000 with revenue-based financing from Expansion Capital Group. This is a moderate amount compared to some small business loans that offer up to $2 million. As a result, this option is best suited for small or midsize companies, not larger businesses ready to make a substantial investment in growing the business.

But if the $300,000 limit is within the range you’re looking for, then Expansion Capital Group could still be an option to consider.

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

The fees associated with Expansion Capital Group can be costly, but that’s because many businesses can qualify. One of the strictest requirements is its annual revenue requirement of at least $100,000. But you need to be in business for at least six months only. So if you recently launched a company that has been a fast success, ECG’s revenue-based financing could help you scale even more quickly.

Additionally, the minimum credit score is just a 500, which is one of the lowest you’ll find among business lenders. In other words, your personal credit score likely won’t impact your eligibility for business financing with Expansion Capital Group.

Flexible Repayment Options

Any borrowed funds from ECG are repaid over three- to 12-month terms. Borrowers can choose between daily or weekly payments that are automatically debited from your business bank account. For some businesses, this might feel like a squeeze on their cash flow. For others, it may seem better than making one large payment each month. It depends on your revenue streams.

Excellent Customer Reviews

Most reputable business lenders average around a 4.5-star review on third-party websites like TrustPilot. Expansion Capital Group reviews are slightly better, averaging 4.7 stars. Of more than 600 reviews, 84% give an “excellent” rating. When you dig into individual customer comments, the most frequent details talk about fast funding times and an efficient application process. 

Wondering what type of financing your business would qualify for with Expansion Capital Group?

Apply and compare multiple lender offers through the Lendio marketplace today.

*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (October 25, 2022). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.