What is Finance Factory?
Finance Factory is a loan marketplace and business consulting firm. It does not actually lend money itself. Instead, it works as a matchmaker between borrowers and its list of lending partners.
While Finance Factory is based out of Maryland, it does not actually meet customers in person. You need to apply online to see the kind of loans for which you can qualify. This lets the company reach customers and lenders nationwide.
Finance Factory specializes in helping startups, entrepreneurs and other early-stage business owners raise capital. It has raised over $1 billion for its clients, and LendingTree named it one of the top startup funding experts in the country.
But on top of business financing, it also offers a marketplace for personal loans that you can use outside of work. Since it is used to working with businesses that need more money, Finance Factory matches you with lenders that offer larger amounts than your typical online lender. If you need to borrow, is its program right for you? Read on for our Finance Factory loan reviews.
Finance Factory personal loan highlights
- Large loan amounts: Loans available through the marketplace range from $25,000 to $500,000. It isn’t the place to borrow a small amount, but if you need thousands of dollars, it could be a good choice.
- Tougher-than-average lending standards: Finance Factory says ideal candidates would have a credit score of at least 650 and annual income of at least $35,000. It’s not impossible, but tougher than average.
- Long loan funding process: It takes on average 7 to 10 days to complete the process. It’s a two-step process where you first get pre-qualified with Finance Factory, and then you have to be approved by whichever lending partner you pick.
- Business/investment loans available: While loans can be used for standard purposes like paying off credit card debt, you can also use the proceeds to invest in real estate and buy a new business.
Finance Factory Personal Loan Details
Finance Factory product details
Finance Factory is a loan consulting service. Its financial experts are supposed to learn about your needs and figure out which of its lending partners could be a good fit. You can speak with its experts throughout the process to figure out how much you need to borrow, what types of loans make sense and how you could use the proceeds.
After you apply, Finance Factory reviews your criteria to match you with some potential lenders. Once you receive loan offers, Finance Factory will not advise on which is the best option. It will list what for what you qualified, and then it’s up to you to decide on the one that makes sense.
Finance Factory notes that it will do the best to get you a loan, but there is no guarantee you will qualify with any specific lending partner. Each lending partner will need to approve the application themselves.
The personal loans come with fixed terms and fixed monthly payments. It also offers personal lines of credit, where you can borrow, repay the loan and borrow again without reapplying. Finance Factory has funding programs for numerous types of financing for businesses, including SBA loans, equipment financing and startup funding.
On the Finance Factory website, it has an educational blog that covers loans and small-business planning. Beyond that, it does not include any ongoing benefits for personal loans, like free credit scores or unemployment protection. You may get these extra benefits from your lending partner, depending on with whom you match, but they will not come from Finance Factory.
- Minimum credit score: 680
- Minimum credit history: Depends on the lending partner
- Maximum debt-to-income ratio: Depends on the lending partner; Finance Factory suggests a minimum income of $35,000 per year
Since Finance Factory does not make loans itself, it does not have its own eligibility requirements. The actual credit and income requirements will depend on the lending partner with which it matches you.
Finance Factory does list some recommendations for personal loans. It suggests applicants have a credit score between 650 to 800, and that, ideally, your score should be 680 or higher.
Finance Factory also recommends that your annual income be at least $35,000 a year. This can come from a job, from being self-employed, from owning your own business and from disability or retirement benefits. Finance Factory reviews documents like your W-2 and tax returns to make sure this information is accurate.
You can apply through the Finance Factory service from anywhere in the U.S. It requires that all applicants be at least 18.
Applying for a personal loan using Finance Factory
If you’d like to see your options through Finance Factory, you can submit its pre-qualification form online. There is no application fee, and Finance Factory only does a soft inquiry into your credit, so it will not lower your score.
The online application takes a few minutes and will ask questions about your personal financial situation and how you plan on using the loan. Expect to answer:
- How much do you want to borrow?
- What is the purpose of your loan?
- When do you need your loan funded?
- What is your income and credit score?
- Do you own a business? If so, when did you open and how much do you earn?
- Do you have any collateral for the loan?
- What is your contact information, including phone and email address?
Finance Factory will use this information to determine whether you are a good fit for any of its lending partners. If so, Finance Factory will contact you with some potential offers. It will not recommend any of them, and you need to decide whether any are a good fit for you.
If you are happy with an offer, you can request the loan from the lending partner. You are not guaranteed the loan yet, as you will need to go through the lending partner’s approval process. The lending partner could make a hard inquiry of your credit score and ask for documents confirming your income, employment and assets.
Once you find a match, you’ll deal with the lending partner rather than Finance Factory. Finance Factory makes the connection, and then its job is done.
If you have any questions about what type of loan you should get and how much you should borrow, you can contact Finance Factory by phone or by requesting a meeting through its website.
Pros and Cons of a Finance Factory Personal Loan
Who’s the best fit for a Finance Factory personal loan?
Working through Finance Factory can be helpful if you need a large personal loan and can afford to wait while looking for the best offer. The experts at Finance Factory will take the information from your application and search through all its lending partners around the country to find a decent match. This predictably takes time — roughly 7 to 10 days.
That’s why Finance Factory focuses on large amounts. It might not be worth spending a week to get a slightly lower APR for a $1,000 loan. But for $100,000, that makes a difference.
For these large loans, Finance Factory is looking for borrowers with above-average credit and decent income. It recommends you have at least a score of 680 to apply, though you can try with 650. Having higher income and more assets for collateral will help you find better offers.
This program could be more attractive if you are self-employed or are trying to launch your own company. Finance Factory’s staff specializes in small-business loans and startup funding. It may be able to give more advice on these topics than the average online lender.
Where Finance Factory is not a good fit is when you need money quickly. Its two-step approval process may take too long.
Alternative personal loan options
Want to get loan quotes without waiting for Finance Factory’s marketplace? You could take a look through Student Loan Hero’s personal loan marketplace. Here are some alternatives.
- APR: 3.99% – 16.99%
- Credit requirements: 660 minimum credit score
- Terms: 24 to 144 months
- Origination fee: No origination fee
If you want to borrow a large amount, LightStream is another possibility because its personal loans go up to $100,000. With excellent credit, you could qualify for an even lower interest rate through LightStream over Finance Factory. When you apply, LightStream does not charge a fee, but it will perform a hard pull your credit report, which could lower your score.
- APR: 5.98% to 29.99%
- Credit requirements: Minimum 640 credit score
- Terms: 36 or 60 months
- Origination fee: 1.00% - 6.00%
If you need money quickly, RocketLoans is a much faster alternative. It could fund loans the same day of your application. If your credit score is excellent, the rates can be as low as Finance Factory. But its personal loans only go up to $45,000.
- APR: 6.95% – 35.89%
- Credit requirements: Minimum 600 credit score
- Terms: 36 or 60 months
- Origination fee: 1.00% - 6.00%
LendingClub is another way to get multiple loan quotes through one application. After you apply, LendingClub will generate multiple offers with different loan amounts, APRs, monthly payments and terms. You can pick your favorite. LendingClub accepts borrowers with lower credit scores than Finance Factory. But its personal loans only go up to $40,000.
LendingTree is the parent company of Student Loan Hero.
Interested in a personal loan?Here are the top personal loan lenders of 2019!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|5.74% – 16.99%1||$5,000 - $100,000|
|7.54% – 35.99%||$1,000 - $50,000|
|7.99% – 35.89%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|5.99% – 29.99%3||$7,500 - $40,000|
|6.79% – 20.89%4||$5,000 - $50,000|
|9.99% – 35.99%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|