- Loan amount: $10,000 to $1 million
- APR: 8% to 25%
- Loan term: One to three years
- Approval time: Average of three to four days
- More: Read Bond Street’s application step by step
Founded in 2013, Bond Street offers small-business owners competitive rates on loans commonly used to finance growth or refinance existing debt.
Bond Street is a good option for borrowers who:
- Are looking for short-term expansion opportunities: Bond Street offers loans up to $1 million that are repaid semi-monthly over one to three years, making it a good fit for a short-term or expensive growth opportunity.
- Want fast cash: Unlike the lengthy process you face with traditional lenders, you can get funded by Bond Street in as little as three to four business days.
- Have businesses with strong cash flow: You need annual revenue of at least $200,000 to qualify
Reasons to use Bond Street
Low rates: Bond Street’s APR range is higher than that of traditional banks but compares favorably with other online lenders. The APR includes a one-time origination fee of 3% to 5% of the approved loan after you’ve been funded. The average APR for Bond Street’s outstanding loans is 15%, though it can range from 8% to 25%. Read our step-by-step guide on the lender’s application process.
Fast access to cash: Funding at Bond Street is among the fastest you’ll find with online lenders. The application takes five to 10 minutes to complete, and loans typically are funded within just three to four business days, according to the company. This makes it a good option for business owners who want to move fast on a growth opportunity, such as buying a new location, purchasing equipment or hiring staff.
No prepayment fee: Borrowers can repay their term loan at any time with no prepayment penalty. Bond Street loans are fully amortizing, so repaying the loan early will save you from paying the remaining interest on the loan. This isn’t always the case with other business loans such as merchant cash advances. Some business loans carry a fixed-fee structure, which means you have to pay interest and other fees regardless of when you pay off the loan; Bond Street does not.
No hard inquiry on credit report: Bond Street does a soft pull on your personal credit score during the application process, which means that applying won’t hurt your credit. Some lenders require a hard pull, which can ding your credit.
Where Bond Street falls short
Need good credit and strong business to qualify: Borrowers need a minimum personal credit score of 640, annual revenue of $200,000 and at least two years in business to qualify. If you don’t meet these criteria, you may still be able to get approved if your business has strong cash flow, CEO David Haber says. The average funded borrower has a credit score of 720, with $2 million in annual revenue and eight years in business, he says.
Frequent repayments: The company’s term loans are repaid in equal semi-monthly payments, on the 1st and 16th of each month. Some borrowers may prefer to repay their loans once monthly, and the repayment structure may not work for businesses with uneven cash flow.
Business lien and personal guarantee required: One or more owners who represent at least 51% of the business must personally guarantee the loan, which means failure to repay puts each guarantor’s personal assets and credit at risk. All loans are also backed by business assets via a UCC-1 filing in case the debt is not repaid.
If Bond Street is the right fit for you:
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NerdWallet has created a comparison tool of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.
Updated July 25, 2017.