Looking for quick loan for ecommerce or SAAS business? Clearbanc can be your solutions. In this article we give Clearbanc review which is the biggest ecommerce investor in the world. You get idea about Clearbanc loan process, rate and repayment and disbursement period.
Clearbanc Business Loan Review :
What is clearbanc?
The first question is legitimacy of Clearbanc. Yes, Clearbanc is legitimate company. You can consider Clearbanc as alternative of VC Funding or traditional business loan. Clearbanc is founded in 2015. Its headquarter is in Toronto Canada. The company has raised $420 million and has helped well known eCommerce and online business up to today.
Are your business eligible for Clearbanc loan?
The vital question is eligibility of loan. Your business should have past business history to get this loan. This loan is not for newbie.
Following criteria should be fulfilled for application of Clearbanc loan:
- Your business should be in eCommerce, SAAS or in subscription business.
- Average monthly revenue should be at least $10,000
- Business must be incorporated. – Corporation or LLC
Clearbanc revenue share model:
Unlike traditional loan when you pay on installment basis per month, Clearbanc gets repayment of loan from your monthly revenue or sale amount. The money gets deducted directly from bank every month as a percentage of sales.
What is the loan limit of Clearbanc?
Clearbanc lends from $10000 to $10,00,000 and can money available in your bank within 3 days.
Benefits of Clearbanc business loan:
No loss of ownership / equity:
Unlike Venture Capital , there is no risk of loss of equity while getting fund for your eCommerce business. You get the loan and repay with revenue and you own the business at the end.
No burden of monthly installment:
One of the difficult thing of regular loan is monthly installment. We all know that you cant get equal revenue per month from any business. There are good days and bad days. It becomes very difficult to pay installment when you have bad month and lack of fund. Clearbanc deducts repayment on % of monthly revenue. So when you have less income, you need to pay less amount to Clearbanc.
Lets understand this with example. Clearbanc disburses you loan with 5% revenue share model. One month you get $20000 as sales. You need to pay $1000 as loan repayment. Another month, you get only $8000 as sales. You need to pay $400 as repayment. Got the point?
Fast and easy loan process:
Getting loan with Clearbanc is easier comparing to other options. If your business has strong revenue history, you get fund within 2 business days in your account. Unbelievable. Isn’t it?
No personal guarantee or warrants required:
It is hard to get business loan when you have no personal guarantee.With clearbanc, this is not the case. Clearbanc assess the capability and strength of business and loan is not aligned with personal credit history. That’s why it does not ask personal guarantee or warrants.
No fixed payment timeline:
The Clearbanc loan gives flexible loans. There is no timeline to repay of the business loan. Even you can do the repayment fast with high earning months and close the loan. There is no prepayment charges here.
No advance fees:
There is no any loan processing fees. You need to repay with fixed fees which determined at the time of taking the advance.
Affordable loan rate:
The platform decides the loan fees taking consideration of business data. You get advance with the rate 6% to 12.5%. There is no compound interest complexity here. This will be fixed amount charge and you know the charge upfront at taking the loan and there will be no increase in fees later. So you get transparency here.
No credit check:
As I mentioned earlier in this post, the whole loan sanction process is linked with the strength of your business. That’s why there is no credit score required to get this loan.
Clearbanc reviews on Trust pilot:
Clearbanc has very good review on Trust pilot. It is 4.5 and 83% of the all reviews has rating of 5 stars. The reviews says that the company has very good customer support, easy and flexible loan process. Clearbanc is the only source of fund for many businesses. The company has really proved itself as true partner during Covid19 crises.
How to apply for Clearbanc loan?
Now, lets understand the easy process of application.
- Fill the application form
- The team will review your application and contact you.
- Create account and Connect your bank account and ecommerce account
- Upload all required documents.
- Get the suggestion for loan amount and agree the repayment and other terms.
- Loan shows up in your account within 1 or 2 days.
Other FAQ on Clearbanc Loan:
Q. Can I get multiple advance at the time?
Ans. Yes, you can get more than one advance. The team will analyse your business condition and process your application. It will take much longer time while applying for multiple advance.
Q. What will be the repayment percentage ?
Ans. The loan repayment % will be from 1% to 20% on your monthly future revenue. Every business has unique conditions and repayment terms are determined by you and the clearbanc team together.
Q. What documents are required to get Clearbanc loan?
Ans. Clearbanc requires proof of business and ID proof of business owner. It includes article of incorporation and government photo id.
Q. Why does it require bank account connection ?
Ans. It requires you to connect your bank accounts to determine the eligibility of loan. This is required to save time and automate loan sanction process.
Q. Can I apply for loan with my business partner?
Ans. Yes, you can apply. However, identity proof of you and your business partner are required.
Q. How can I know my repayment details?
Ans. You can check your repayment history on your Clearbanc account dashboard.
Q. Will I receive card?
Ans. Yes, Clearbanc will give you master card. You can pay your business marketing expense with it.
Q. Will Clearbanc loan affect my credit score?
Ans. The loan is directly assessed based on your business performance. So the loan will not affect your credit score in future.
Clearbanc Work History:
Clearbanc impacted and helped well know businesses including Untuckit, Public Goods, Leesa, Strip Supply, Club Monaco, Spotify, Cause box, Head Space.
- It had helped more than 2200+ online businesses.
I want to end the article with this beautiful quote.
“A ship in harbor is safe, but what is not what ships are built for.”
John A. Shedd
Company like Clearbanc is the Jittery of your business boat. Get benefits of it and take your business to next level. Many companies have double the revenue with its service. Grab the chance and apply today.