Backd Business Loans Review 2025

Backd is an online lender that offers large lines of credit and merchant cash advances to small-business owners seeking a streamlined application process.
Ryan Brady, CFP®

Written by

Ryan Brady, CFP®
Ryan Brady, CFP®
Sally Lauckner

Edited by

Sally Lauckner
Sally Lauckner

Edited by

Sally Lauckner
Last updated on Jun 2, 2025

Fact checked and reviewed

Why trust NerdWallet

Advertiser disclosure

Ryan Brady, CFP®

Written by

Ryan Brady, CFP®
Ryan Brady, CFP®
Sally Lauckner

Edited by

Sally Lauckner
Sally Lauckner

Edited by

Sally Lauckner
Last updated on Jun 2, 2025

Fact checked and reviewed

Why trust NerdWallet

Advertiser disclosure

Backd - Line of credit

Overview

The bottom line:

Backd offers a business line of credit and merchant cash advance for entrepreneurs seeking quick access to large funding amounts, but prepare for high financing costs.

Loan details

Min. Loan Amount

$10,000

Min. Term Length

6 months

Min. APR

35%

Max Loan Amount

$750,000

Max Term Length

12 months

Max APR

55%

Qualifications

Min. credit score

Min. credit score

650

Min. Time in Business

Min. Time in Business

24 months

Min. Annual Revenue

Min. Annual Revenue

$100,000

Pros & Cons

Pros

    pros icon
    Fast application and funding process.
    pros icon
    Responsive and helpful customer support.
    pros icon
    Prepayment discounts.
    pros icon
    Its line of credit requires a lower credit score than most online competitors.

Cons

    cons icon
    Charges draw and origination fees.
    cons icon
    Can’t be used to build business credit.
    cons icon
    High minimum revenue requirements for its line of credit.
    cons icon
    Its MCA requires a higher credit score than many online competitors.
Founded in 2018 and headquartered in Austin, Texas, Backd provides small-business loans through a fast and straightforward online application process. Qualified applicants may receive funding in as little as 24 hours. But speed and convenience may come at a cost. Like many online lenders, its offerings are expensive compared with traditional lenders.
Backd’s business line of credit offers up to $750,000 in working capital to cover short-term expenses, while its merchant cash advance (MCA) allows business owners access of up to $2 million in funding, with fixed repayments based on a borrower’s business revenue.

Backd’s business funding is best for borrowers who:

  • Need large funding amounts. Backd's lines of credit and merchant cash advance limits are higher than those offered by many other online lenders.
  • Need quick access to cash. Qualified borrowers can receive funds in as little as 24 hours.
  • Can afford higher borrowing costs. Backd’s business funding options will likely be more expensive than traditional bank loans.
  • Prefer a streamlined online process over applying in person. In our experience, the application is straightforward, and customer service via phone and email is prompt.

Backd loan qualifications

To qualify for a line of credit or MCA from Backd, you’ll need to meet the following minimum requirements:
  • Credit score: 650 for a line of credit; 630 for a merchant cash advance.
  • Time in business: 24 months.
  • Annual revenue: $100,000 for a line of credit; $100,000 for a merchant cash advance.

How much do you need?

See Your Loan Options

with Fundera by NerdWallet

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.

Backd loan features

Here’s what you can expect from Backd’s line of credit and merchant cash advance.

Backd line of credit

Loan amount
$10,000 to $750,000.
Estimated APR*
35% to 55%.
Fees
  • 3% draw fee.
  • No prepayment penalty.
Terms
6 to 12 months.
Repayment schedule
Weekly.
Funding speed
As fast as 24 hours.
*Estimated APR includes draw fee.

Backd merchant cash advance

Advance amount
$10,000 to $2 million.
Estimated factor rate
1.18 to 1.28.
Fees
  • 3% origination fee.
  • $150 administration fee.
  • No prepayment penalty.
Terms
On average, borrowers repay their advances within 16 months.
Repayment schedule
Daily, weekly or semimonthly.
Funding speed
As fast as 24 hours.
» Learn more about different types of business loans

How much do you need?

See Your Loan Options

with Fundera by NerdWallet

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.

Where Backd stands out

High business funding limits

Backd offers generous business funding limits compared with many online lenders. Its business line of credit goes up to $750,000, and its merchant cash advance can reach $2 million. These high limits may appeal to businesses with significant financing needs. However, the cost of borrowing will likely be much higher than traditional bank financing. This is especially true for its MCA as MCAs are among the costliest forms of business financing. Receiving an advance this high can result in a significant repayment burden.
» MORE: Best large business loans

Quick access to funds

Backd’s streamlined digital application and fast turnaround can be a big advantage for business owners trying to seize an opportunity or cover an unexpected expense. Qualified borrowers may receive approval and funding within 24 hours, offering a speed advantage over traditional bank or SBA loans.
» MORE: Best fast business loans

Responsive customer support

Backd offers customer assistance through a dedicated phone line and online contact form. When NerdWallet tested both, a representative answered the phone in under a minute and responded to a contact form submission via email in just over 10 minutes. In both cases, Backd’s representatives were friendly, helpful and well-informed.

Where Backd falls short

High borrowing costs

Backd’s financing options come at a premium, especially when compared with traditional bank loans. Small-business owners with tight profit margins or those who qualify for lower-cost funding (such as bank or SBA loans) should explore other options.

Can’t be used to build business credit

Backd doesn’t report payments to any of the major commercial credit bureaus. This means on-time payments won’t help you build or improve your business credit score, something that can help you unlock better terms and rates on future business loans.

Alternatives to Backd

Headway Capital

Headway Capital - Line of credit

Headway Capital

Headway Capital - Line of credit

NerdWallet Rating

4.7

Min Credit

625

Read Review
External link icon Apply now

with Fundera by NerdWallet

Headway Capital is another online lender offering lines of credit to small-business owners. It may be a better fit for newer businesses, as it accepts applicants with just 6 months in business and a minimum annual revenue of $50,000, far lower than Backd’s 24-month and $100,000 requirements. However, Headway Capital’s line of credit tops out at $100,000, well below Backd’s $750,000 maximum. Its APR may also be higher than Backd’s line of credit.

Forward Financing

Forward Financing - Merchant cash advance

Forward Financing

Forward Financing - Merchant cash advance

Min Credit

500

Read Review
External link icon Apply now

with Fundera by NerdWallet

Forward Financing’s MCA is more accessible for business owners with bad credit. It accepts applicants with a credit score as low as 500, compared with Backd’s 630 credit score requirement. Like Backd, it may approve applicants in as little as 24 hours, however, it requires a slightly higher annual revenue of $120,000 and has a lower maximum advance limit ($500,000 versus Backd’s $2 million limit).
» Want more options? Check out our list of best online business loans.