Accion Opportunity Fund vs. Lendistry
Accion Opportunity Fund and Lendistry are similar in that they help underserved businesses gain financing, but they do so in different ways. Accion Opportunity Fund provides a term loan designed specifically for minority businesses without weighing credit score and revenue as a main factor.
Lendistry provides two loan options to startups and disadvantaged groups: its startup loan and Small Business Loan Fund. You have to meet specific criteria to qualify, such as being located in an area with 30% or higher poverty rate.
But Lendistry’s maximum loan amounts far surpass what Accion Opportunity Fund offers. You can get funded up to $1 million for the startup loan and $4 million for the Small Business Loan Fund.
Accion Opportunity Fund vs. Fora Financial
Both lenders offer business loans, and neither have many loan options. Yet Accion Opportunity Fund offers terms up to five years, while Fora Financial stops even shorter at 16 months.
You can get more money from Fora Financial — up to $1.4 million compared to Accion Opportunity Fund’s $250,000. But Fora Financial charges a factor rate of 1.1 to 1.4 instead of an interest rate. Factor rates often cost more than conventional loans when converted to interest, and they don’t incorporate other loan fees.
As an example, you’d pay 30.00 percent in interest with a factor rate of 1.4 on a 16-month term loan. Meanwhile, Accion Opportunity Fund’s rates max out at 18.99 percent (simple interest).