BFS Capital Review of Small Business Loans

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BFS Capital is a lender which provides credit lines to businesses that qualify. It might be difficult to come across a lender who is favorable than BFS Capital.

Actually, it only takes some minutes for business owners to apply, get a decision on their repaying rates and charges, and they start making the withdrawal of funds. Even for a company that is famous for providing quick decisions when it comes to lending, that is swift.

However, the swift lending decision comes with a cost. The lender offers some of the costliest loans you can ever come across, as the charges go up to 10% of the borrowed amount every month.

Although the lender does not penalize for prepayment, their loans are front-loaded, which most merchants do not like. Reason being, repaying earlier might not save you a lot of money.

But, there is so much to like regarding BFS Capital, irrespective of the possibly high cost. An easier to get financial safety net provided by the line of credit loan and monthly repayments, as well as swift and easier application.

Actually, BFS Capital provides the easiest line of credit to access in the market. Apart from BFS Capital allowing merchants to request funds through mobile app or desktop, they provide them with a spending card, which you can use to pay for the appropriate amount spent, directly from the credit line.

  • Services provided by BFS
  • BFS Capital provides lines of credit to businesses
  • Loan Qualification Requirements

Below is all you require, in order to qualify for a loan from BFS Capital:

  • Time spent in business: At least 12 months
  • Your credit score: N/A
  • Revenues generated: $50,000 in a year, or $4,200 in the last three months

BFS Capital does not specify the credit score requirement. Nonetheless, during your loan application, the lender checks your credit.
Loan conditions and charges

Below are the loan conditions and charges that BFS Capital states on its website:

  • Amount to borrow: A max of $250,000
  • Repayment Duration: 6 or 12 months
  • Loan borrowing charges: 1.5% -10% every month
  • Draw charges: None
  • Efficient APR: 24%- 99%

The term length of BFS Capital loans is six months or 12 months. Every month, you repay 1/6th or 1/12th of the total amount borrowed and charges incurred.

Although BFS lender does not fine a prepayment penalty, it is worth noting that the charge structured used by BFS Capital is front loaded. Thus, for a six-month loan and a 12-months loan, you will be charged around 1.5%-10% of the total borrowed amount, for the first two and six months respectively.

You will then be charged 1% of the total amount for the months remaining in both cases. But, you can easily understand how their charges work, because BFS website features a user-friendly calculator for its users.

Also, you should note that based on how charges get provided, loans from BFS Capital do not technically come with an APR. But, APRs are approximately 24%-99%.

Apart from the monthly borrowing charges, there are no additional charges on BFS loan. For instance, BFS will not charge you a prepayment fine, unused line charges, servicing charges or draw charges.

Prior to accessing your loan, BFS Capital sends you a SMART Box, which entails all details you should know in regards to their loans, in order to make a sound borrowing decision. The details comprise efficient APR and total charges of the loan.

Loan application process

All loan application processes get completed online. You will be required to provide personal information and that of your business to BFS Capital. Besides, you will provide the lender with “lender-read only” access to the bank account of your business, as well as other payment methods linked to the account, such as PayPal, Amazon, and QuickBooks. The information provided get used in determining your maximum credit line and monthly charges.

During the application phase, BFS runs a thorough check of your credit. The lender uses your credit history in determining your identity and in determining risk, irrespective of not stating the minimum cutoff.

An algorithm determines your charges and rates. Generally, the system takes some minutes to decide if your application should be approved or denied. But, the process might be longer, if BFS is facing challenges in verifying your information. Besides, the lender might request you to provide additional information, so as to provide you with a huge credit line.

You start requesting funds immediately after approval. Also, you can request for a BFS Capital card, which is free of charge. With the card, you can pay for goods and services directly from your credit line.

Clarity in advertising and sales

Unlike some other lenders, BFS Capital website displays all the conditions of service, application process, charges, and numbers. On my part, I am used to their help center in checking common questions, and their loan calculator to understand their charge structure. In addition, you can determine if the loan is worth with the help of their ROI calculator.

Unlike other lenders, BFS sends a SMART Box which provides all financial information you should know before you have borrowed. The information includes the monthly repayment, APR, total capital cost and cents on dollar cost, for easier comparison and decision making.

Customer service support

If answers to your questions are not available on website help center, you can call or email the ever available BFS Capital support team. Also, their support team is very responsive on Facebook and Twitter.

According to the Better Business Bureau, BFS Capital has an A+ rating. However, in the past three years, the lender got 51 complains and 3 bad reviews. Also, the lender is rated on Trustpilot and Sitejabber.

Below are common complaints regarding their service:

• A high rate of rejections: Not all applicants can get the credit line from BFS Capital. Based on all information gathered when applying for the loan, you might be denied the loan, irrespective of meeting the minimum requirements of the lender.
• Costly charges: BFS loans are costly because the APR is approximately 24%-99%. Thus, you should compare with other lenders before borrowing.

• Front loaded charges: Due to the high charges that one has to repay during the early duration of the entire repayment term, BFS has been criticized a lot. Irrespective of the lender not having a technical prepayment fine, you might not save noticeable amount even after deciding to repay earlier, due to the front-loaded charges.
• Unexpected loan limit reduction: The lender always checks your cash flow. Therefore, your credit line can be eliminated completely, or your borrowing limit reduced once your business starts to make losses. However, you will continue repaying the outstanding debt, even if this happens to you.

Testimonials and good reviews

Apart from the testimonials available on their website, the total rating of BFS Capital on Trustpilot is positive. Here are the reasons making merchants happy:

• Swift and easy application process.
• Friendly and responsive customer support.
• Easier access to cash.

Also, according to testimonials, most merchants like the financial safety net provided by their loan structure. BFS Capital is always available whenever you need them, but after getting into their system.

The positive side of BFS Capital outweighs the negative side. Among the things you will like about the lender includes their transparency in regards to the provision of necessary information before deciding to borrow and their ever-available support, as well as the swift and easier application process.

Nevertheless, their charges are costly, hence the need to compare them with other lenders before making any decision.