Altbanq: Startups Welcome, But Low-Revenue Businesses Need Not Apply
Altbanq offers fast access to large amounts of funding. But the short repayment terms may be challenging for some small-business owners.
The bottom line:
Altbanq offers short-term loans up to $10 million — more than most competitors. Borrowers need solid credit and at least 12 months of operating history. Repayment terms max out at 24 months, and the minimum revenue requirement is high compared with other online lenders.
Loan details
Min. Loan Amount
$100,000
Max Loan Amount
$10,000,000
Max Term Length
24 months
Max APR
40%
Qualifications
Min. credit score
650
Min. Time in Business
12 months
Min. Annual Revenue
$800,000
Pros & Cons
Pros
Same-day funding available.
Prepayment discounts available.
Accessible to high-revenue startups.
Strong customer support.
Cons
Higher credit score requirement than some online lenders.
Repayment terms max out at 24 months.
Minimum revenue requirement much higher than other online lenders.
Known for its large loan amounts and streamlined underwriting process, Altbanq allows you to apply for its short-term small-business loans in minutes. Some borrowers can receive financing as soon as the same day.
Is Altbanq right for you?
Consider Altbanq if you: | Skip Altbanq if you: |
|---|---|
Want financing faster than banks can offer. | Can’t meet the high annual revenue requirement. (Instead, take a look at our list of the best loans for low-revenue businesses.) |
Need a large amount of capital. | Need less than $100,000 in financing. (Consider a CDFI loan instead.) |
Can afford repayment over a shorter term. | Have good-to-excellent credit. (Try for a bank or SBA loan instead, as they come with longer terms and better rates.) |
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Altbanq business loan details
Here’s what you can expect from Altbanq’s business term loan:
Loan amount | $100,000 to $10 million. |
Estimated interest rate | Up to 40% |
Fees | Origination fee: 2% of the loan amount. |
Terms | Up to 24 months. |
Repayment schedule | Weekly, bi-weekly or monthly. |
Funding speed | Approval and funding as fast as the same day. |
Altbanq’s loan application process
This Writer's Take
I'm Karrin Sehmbi, editor and content strategist for small business at NerdWallet. I tested Altbanq’s pre-application flow, and here's what I learned.
Fast facts
- Time to complete: 6 minutes.
- Total clicks: 3.
- Number of follow-up emails: 0.
What impressed me
The online application process was truly quick. The application consists of only two sections: funding information and business information. I appreciated the note in the second section that requested a business EIN and a Social Security number; it clarified that Altbanq will access the applicant’s credit report without impacting their credit score. (This is what’s known as a soft credit pull.)
The third page of the app was where I ended my flow. It asked me to connect my business bank account to the Altbanq platform using Plaid. This is a common method many online lenders use to quickly assess your business financials and creditworthiness. The application also gave me an alternative option to upload bank and credit card statements myself.
What surprised me
Based on my experience with other online loan flows, I expected a few email reminders to complete the application. It’s possible, however, that Altbanq’s software detected the dummy data I entered, excluding me from the standard follow-up flow.
Where Altbanq stands out
Large maximum funding amount
Altbanq offers term loans up to $10 million — making it a good option for entrepreneurs who need to make large investments in their businesses. Altbanq’s funding maximum is much higher than similar competitors. National Funding and iBusiness Funding, for example, each offer business term loans of up to $500,000. However, you’ll likely need strong credentials to qualify for larger loan amounts.
» MORE: Compare the best large business loans
Quick funding
You might consider Altbanq if you need a same-day business loan.
The lender offers a simple, streamlined application process that took NerdWallet only minutes to complete. To apply, you’ll provide basic information about yourself and your business and then upload three months of business bank statements. You also have the option to connect to your bank via Plaid.
Altbanq uses artificial intelligence to help underwrite your application and can approve and fund loans as soon as the same day.
Startup-friendly
Altbanq only requires that your business has been operating for at least 12 months to qualify for funding. Additionally, Altbanq’s term loan doesn’t require physical collateral, making it a good option for startups that lack substantial assets. (The lender does, however, file a UCC lien on your business.)
Taking out a loan from Altbanq can also help your startup build business credit, which may improve your chances of qualifying for more financing in the future. The lender automatically reports to the major commercial credit bureaus, allowing you to grow your business credit through on-time payments.
Where Altbanq falls short
Not a good option for bad-credit borrowers
Altbanq requires a minimum personal credit score of 650 to qualify for financing. This threshold is higher than some online competitors, such as National Funding (600) and Fora Financial (570). If your credit score is lower than 650, you’ll need to consider other lenders.
Short repayment terms
Altbanq’s repayment terms are capped at 24 months, while competitors like Quantum Lending Solutions and iBusiness Funding offer terms up to 60 months.
With shorter repayment terms, your monthly payments will be higher than they would be with a longer loan term. For example, a $500,000 loan with a 10% interest rate repaid monthly over 24 months results in a sizable monthly payment of $23,072.46.
By contrast, repaying the same loan over 60 months would lower the monthly payment to $10,623.52. While a longer-term loan results in more interest paid over time, the lower monthly payments may be more manageable for some businesses.
» Want to estimate payment amounts and loan costs? Use our business loan calculator.
Rates and fees information not available online
Altbanq does not provide any information about its interest rates or fees on its website. You’ll have to submit an application or reach out to a sales representative to find out more about loan costs. Providing these details up front can save borrowers time and make it easier for them to compare offers.
NerdWallet gathered interest rate and origination fee information directly from the lender.
Altbanq customer service
Altbanq offers customer support by phone and email.
Although its online presence is limited, the lender has overwhelmingly positive reviews on Trustpilot, as of this writing. Reviewers highlight the speed and ease of the process, as well as the professionalism of its representatives. Many borrowers even mention staff by name, noting that they are responsive and knowledgeable.
When NerdWallet called Altbanq’s customer service line, we were given two options: speak to an operator or access the company directory. We chose to speak to an operator, who answered within 30 seconds. The representative was polite and professional. When we asked about typical interest rates, we were told they are qualification-based and depend on each applicant’s financial situation.
Overall, the representative was responsive and likely would be helpful for borrowers applying for a loan. However, the menu options could be more useful, especially since Altbanq offers two different products.
Alternatives to Altbanq
SBA 7(a) loan
U.S. Small Business Administration
SBA 7(a) loan
Max Loan Amount
$5,000,000
Apply nowwith NerdWallet Small Business
Consider an SBA loan over Altbanq if you:
- Can afford to wait several weeks for financing.
- Have a good to exceptional credit score.
If you want lower interest rates and longer repayment terms than Altbanq offers, consider an SBA 7(a) loan. SBA 7(a) loans offer rates from 10% to 13.5% and repayment terms up to 25 years.
Like Altbanq, SBA 7(a) loans offer large loan amounts (up to $5 million) but you’ll need to meet stricter credit-score and time-in-business requirements to qualify. Plus, SBA 7(a) loans can be slow to fund, taking anywhere from 30 to 90 days.
Accion Opportunity Fund
Accion
Accion Opportunity Fund Small Business Working Capital Loan
NerdWallet Rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
4.8
Max Loan Amount
$250,000
with NerdWallet Small Business
Consider Accion over Altbanq if you:
- Need a loan of no more than $250,000.
- Don’t meet Altbanq’s high annual revenue requirement.
Accion can provide longer repayment terms than Altbanq but generally funds faster than an SBA 7(a) loan. Accion offers repayment terms up to 36 months and can issue loans in an average of seven days. Although its maximum loan amount is lower compared with Altbanq, Accion may offer more affordable funding, with interest rates ranging from 9.99% to 28.95%.
Accion can also be a good option for borrowers with lower credit scores or businesses that are still building their revenue. The lender only requires a minimum credit score of 620 and $300,000 in annual revenue, compared with Altbanq’s 650 and $800,000 requirements.