|Variety of loan types||0.0|
Although your credit score does not determine whether you are approved for a loan, it does affect your interest rate. So the higher your credit score, the cheaper your loan will be.
Interest rates, which are fixed, can range from 7% to 34%. Accion makes it easy to determine the total cost of the loan by indicating the annual percentage rate (APR). We like this transparency; lenders who quote only the interest rate do not include the fees associated with the loan.
Apply for a loan
Applying for a microcredit with Accion is a simple process. The application takes a few minutes and a decision can be made quickly.
The first step is to either complete an online application or apply in person or over the phone. Accion will ask you questions about your business and why you need the loan. Once the loan application is submitted, a loan specialist will contact you and work with you throughout the loan process. This same loan specialist will help you manage the funding once you have the cash in your bank account.
Accion specializes in providing loans to these often underserved markets:
- Women-owned businesses
- Minority-owned businesses
- Food companies
- Start-up companies
- Small enterprises
- Veteran-owned businesses
- People with Disabilities
- Green companies
Accion does not place approval requirements on your credit score, but you must have been in business for at least 12 months. In addition, your business must generate more than $ 50,000 in annual sales.
Accion requires the following documents to secure your loan:
- Two valid ID, with at least one photo ID: driver’s license, passport, signed credit card, social security card
- A recent utility bill showing your name and home address (previous month’s balance must be paid in full)
- A copy of your mortgage note, if you have a mortgage
- If applicable, proof of second employment income or other additional household income
- A copy of your signed commercial lease, as well as any amendments, if applicable
- Proof of business ownership (articles of incorporation, EIN registration, appendix K-1)
- Your business plan
- A monthly breakdown of your financial projections for the next 12 months
- Photos of the business space, inside and outside
- Three most recent consecutive commercial bank statements
- Three most recent consecutive personal bank statements
- Corporate and personal income tax for the past two years, federal only
- Annual income statement of your company
You won’t get a loan if you have any of the following:
- More than 30 days late on bills, loans, credit cards and other payments; if you are late, the balance must be less than $ 3000
- Mortgage rate adjustments due during the term loan
- Bankruptcy declared in the last 12 months
- One seizure in the last 24 months
- Late rent or mortgage payment in the past year
- For startups, over $ 3,000 in overdue debt
Whether you have bad credit or no credit, Accion will work with you to find your business or financial strengths to approve a loan.
Did you know? Microloans are a great way to start a business, meet a cash flow requirement, or continue to grow. With Accion, you don’t have to be in business for years or have a high credit score.
Accion loan amounts vary by location. Because Accion works with a network of lenders, loan terms vary among borrowers. Payments are due monthly. There are no prepayment penalties with an Accion microcredit. We appreciate that this lender is willing to work with you to create a repayment plan tailored to your unique situation. Not all lenders do this. Fundbox, for example, has only two repayment terms for its small business loans.
Accion requires the company to guarantee the loan. A personal guarantee is also required in many cases. This ensures that even if the loan is for a small amount, Accion will be compensated if you cannot repay it.
Your location and the Accion partner you work with will determine how quickly Accion can provide funding. In some areas of California, you can get a quick fund of up to $ 8,000 with a quick turnaround time, but it’s not available in other areas of the country.
Accion requires more documentation than the other lenders we looked at, such as Balboa Capital, but its charter is to help business owners, not just lend them money. As a result, you will need to gather documents for approval. It is best to get it back before you start the loan process.
What sets Accion apart is the support: This lender is licensed to provide underserved commercial borrowers with access to capital. But his plea doesn’t stop there; Accion provides borrowers with a network of business consultants and mentoring partners to help you manage your loan and grow your business.
Accion’s business borrowers also have access to online resources such as case studies, white papers, articles, and other information to help small business borrowers.
To remember: Accion requires a lot of documents to approve borrowers for their microloans, but it is worth it as this lender provides advice, guidance and helps you grow your business.
Features of Accion
|Mentoring||Accion is ready to mentor and guide small business borrowers.|
|Relaxed qualifications||This lender serves borrowers who are often turned down by traditional lenders.|
|Flexible terms||The repayment conditions of the microcredit are very flexible and customizable.|
Many small businesses need more than just cash from their lender; they also need advice and mentorship. This is what sets Accion apart. Business owners borrow small amounts for specific needs – for example, to fill a cash flow shortfall, buy more inventory, or meet unexpected demand – and they could often use advice in these situations. Because Accion meets these needs, it becomes more of a partner than a lender. This type of advice can be invaluable to some struggling small business owners.
Accion has no minimum credit score requirement; it uses other criteria to assess your creditworthiness. This can be extremely useful for startups, as many have not had the time to acquire a high credit score.
Accion’s microcredit repayment terms are flexible and customizable to suit a business owner’s unique circumstances, giving you the freedom to repay your loan on terms that meet your needs. It also helps make sure that by taking out a loan, you don’t go into an even deeper financial hole than when you initially needed that money.
To remember: We appreciate that Accion doesn’t base its loan approval decisions on credit scores and lets you choose how you pay off your loan.
Business borrowers can reach Accion by email and phone. The lender also has a ton of helpful online resources including guides, tools, and videos.
Accion’s networking program connects borrowers with business experts who act as mentors and help you enroll in special training programs. The lender also subscribes to a charter of rights designed to protect borrowers.
A potential downside to Accion is the amount of paperwork and documentation required during the application process, which may not be appealing to some time-pressed business owners.
In addition, you should work with an Accion partner in your region, rather than Accion directly. If this is of concern to you, you better find another lender. Accion is not for business owners who just want financing; this non-profit lender wants to help small businesses grow. If you don’t want a lot of attention, you might be better off with another lender.
Advice: Before applying for an Accion microcredit, be sure to gather all of your documentation. Preparing your documents streamlines the process, which means faster approval and funding.
Accion provides loans of $ 300 to $ 250,000. With this non-profit lender, you have access to affordable financing, flexible terms and ongoing support, making it our best choice for microloans.
We recommend Accion for:
- Business owners who have little or no credit and / or are just starting out
- Small business owners from underserved groups, such as women, minorities and veterans
We do NOT recommend Accion for:
- Those with good credit scores and established businesses that could get a loan without providing much documentation and go through a lengthy underwriting process
- Borrowing companies seeking more than $ 250,000 in financing