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SMB Compass Small Business Loans: 2024 Review

Updated Feb 26, 2024

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4.4
Rating: 4.4 stars out of 5
Bankrate Score
Caret Down
Accessibility
Rating: 4.8 stars out of 5
Affordability
Rating: 4.1 stars out of 5
Customer experience
Rating: 4.3 stars out of 5
Transparency
Rating: 5 stars out of 5
Flexibility
Rating: 4 stars out of 5
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Overview

SMB Compass offers nine loan products with low starting rates, long terms and fast approvals. It provides everything from term loans and business lines of credit to equipment and invoice financing.

Lender Details

  • Moneybag

    Loan amount

    $10,000-$10 million

  • Rates

    Interest rate

    5.25% APR

  • Clock Wait

    Term lengths

    6 months-25 years

  • Dollar

    Min. annual revenue

    $100,000

  • Business

    Min. time in business

    6 months

Who SMB Compass is best for

Business owners who have been in business for more than two years and have solid personal credit scores and high annual revenue should have an easy time qualifying for SMB Compass’s wide variety of loan products. If you don't have much time in business or revenue, you may still qualify for an SMB Compass business line of credit or equipment financing. 

Who SMB Compass may not be best for

Startups may have a hard time qualifying for some of SMB Compass’s loans. Lines of credit, SBA loans and inventory financing require two to three years in business. SMB Compass term loans require only six months but also strong annual revenue of $500,000 and a personal credit score of 680.

SMB Compass: in the details

SMB Compass pros and cons

PROS

  • Checkmark

    Low starting rates

  • Checkmark

    Nine types of business loans

  • Checkmark

    Fast funding for most loans

  • Checkmark

    Accessible to variety of borrowers

CONS

  • Close X

    Not available to sole proprietors

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    Not available in all 50 states

  • Close X

    Strict requirements for some loans

Business loan types offered

SMB Compass small business loans provide options to many types of borrowers. And its website does an impressive job of making it easy for small business owners to find important loan details in one spot. 

The lender offers nine loan products, which is more than many other lenders. Some loans are open to newer businesses and business owners with poor credit. The SMB Compass website notes that certain loans set the minimum credit score at 600, but a spokesperson stated their minimum score can go as low as 550.

Businesses will need to meet the specific requirements for each loan. Here’s a closer look at some of what the lender offers.

Loan quick facts

  • Amounts: $250,000 to $10 million
  • Terms: Revolving
  • APR: Starting at 5.25%

SMB Compass asset-based loan overview

This type of loan lets businesses use assets to secure a loan at 75 percent to 85 percent of the assets’ value. While SMB Compass typically funds loans within 24 to 48 hours, asset-based loans take anywhere from 10 to 14 days for full underwriting. The assets must be easily liquidated, such as accounts receivable, equipment or real estate.

Loan quick facts

  • Amounts: $10,000 to $5 million
  • Terms: Revolving
  • APR: Starting from 7.99%

SMB Compass business line of credit overview

SMB Compass's business lines of credit have high credit limits and low starting rates compared to other online lenders. Its minimum requirements of a 600 credit score and $100,000 in annual revenue are low, but you need at least two years in business.  

Loan quick facts

  • Amounts: $25,000 to $5 million
  • Terms: Up to 10 years
  • APR: Starting from 5.99%

SMB Compass equipment financing overview

SMB Compass’s equipment loan could be its easiest loan to qualify for — one year in business and a minimum credit score of 600. You can finance up to 100% of the equipment’s cost with long terms of up to 10 years, depending on the lifespan of the equipment.

Loan quick facts

  • Amounts: $100,000 to $10 million
  • Terms: 10 to 25 years
  • APR: Starting from 6.25%

SMB Compass SBA loan overview

SMB Compass also offers SBA loans, which is rare for an online lender. Unfortunately, its requirements are strict and aimed at established creditworthy borrowers rather than assisting startups, bad credit or businesses in underserved communities.

In addition to the SBA’s requirements of collateral and a down payment to qualify, SMB Compass requires at least three years in business, a business credit score of 650+ and $500,000 in annual revenue. But SMB Compass's interest rates for SBA loans are incredibly low, starting at 6.99 percent.

Loan quick facts

  • Amounts: $25,000 to $5 million
  • Terms: 2 to 25 years
  • APR: Starting from 6.99%

SMB Compass term loan overview

SMB Compass’s terms loans have strict requirements. You need a stellar credit history with at least a 680 business credit score and at least $500,000 in annual revenue. But if you meet these requirements, you can qualify for a term loan with as little as six months in business.  

Loan quick facts

  • Amounts: $25,000 to $10 million
  • Terms: 6 to 24 months
  • APR: Starting from 12.00%

SMB Compass invoice financing overview

Invoice financing relies more on the credit history of your clients than your business credit. Businesses with subprime credit may qualify for this type of loan. SMB Compass will advance a portion of your unpaid invoices, injecting working capital into your business until those invoices are paid. 

SMB Compass provides a few alternative loan options to help businesses get funding quickly and keep up with growing demands. Businesses may qualify for these products with less-than-stellar credit. 

  • Bridge loan. Meant to help you bridge financing gaps until you find a permanent solution, this loan comes with terms from six to 36 months. This loan requires a minimum credit score of 650 and a low debt-to-income ratio.
  • Inventory financing. Product-based businesses can use their products as collateral for a loan, as long as it’s not a perishable product. You need at least two years in business to qualify.
  • Purchase order financing. Businesses that sell finished products but need financing to fulfill large customer orders qualify. But you need at least 30 percent profit margins and must use reputable suppliers. 

Do you qualify? 

SMB Compass’s qualifications vary based on the type of business loan you’re applying for. It may accept subprime credit for some of its loans, such as invoice or purchase order financing and equipment loans. But these are the general requirements for most SMB Compass loans. 

  • 600 to 680 personal credit score, depending on loan
  • Minimum of 6 months to 3 years in business
  • $100,000 to $500,000 in annual revenue
  • Available in all U.S. states, except California
  • All industries welcome, except adult entertainment

What we like and what we don’t like

SMB Compass isn’t short on options. If you’re looking for a specific type of financing, it likely offers it. But you need to meet its lending criteria for each type of loan. 

What we like

  • Low starting rates. Starting interest rates range from 5.25 percent to 15.00 percent APR, which is lower than many online lenders.
  • Variety of loan types. Whether you need to fund new business equipment, boost working capital or bridge cash flow gaps, SMB Compass provides loan options that meet different funding needs.
  • Fast funding for most loans. SMB Compass provides fast funding within 24 to 48 hours, unless you need an asset-based, SBA or term loan. 
  • Accessible to many borrowers. SMB Compass provides options for a variety of businesses and credit levels, from purchase order financing to term loans.

What we don’t like

  • Not available to sole proprietors. Businesses not registered as a business entity, like LLC or corporation, don’t qualify for its loans.
  • Not available in California. Businesses in California will have to look elsewhere for funding.
  • Strict requirements for some loans. The $500,000 minimum annual revenue for term loans and SBA loans is steep.

How SMB Compass compares to other lenders

SMB Compass business loans have low interest rates, long repayment terms and fast funding. Its nine loan products, which include term loans, business lines of credit, SBA loans, equipment loans and invoice financing, range from $10,000 to $10 million. Terms are as short as six months and as long as 25 years, making it potentially a good fit for long-term and short-term borrowing. 

Thanks to its streamlined application process, funding can take as little as 24 to 48 hours. And its low credit score requirement makes it a good fit for fair-credit businesses.  But the lender's requirement of at least $500,000 in annual revenue for certain loan options can disqualify some businesses, so they may find another lender to be a better fit. 

Rating: 4.4 stars out of 5
4.4

Bankrate Score

  • Loan amount

    $10,000-$10 million

  • Interest rate

    5.25% APR

  • Term lengths

    6 months-25 years

  • Min. time in business

    6 months

  • Min. business annual revenue

    $100,000

Rating: 4.6 stars out of 5
4.6

Bankrate Score

  • Loan amount

    $25,000-$500,000

  • Interest rate

    7.49%

  • Term lengths

    6 months-10 years

  • Min. time in business

    24 months

  • Min. business annual revenue

    $50,000

Rating: 4.6 stars out of 5
4.6

Bankrate Score

  • Loan amount

    $5,000-$10 million

  • Interest rate

    1.11 Factor rate

  • Term lengths

    3 months-10 years

  • Min. time in business

    6 months

  • Min. business annual revenue

    $180,000

Read our review

on Bankrate

SMB Compass vs. Funding Circle

SMB Compass and Funding Circle both offer term loans, lines of credit and SBA loans. SMB Compass caters to a broader range of business owners who require a greater variety of loan products since it offers a total of nine loan products, as well as longer terms and higher loan amounts. 

One thing that stands out about Funding Circle is that the lender does not assess prepayment penalties, which means businesses can save on interest if they decide to pay off their loans early. Although it is unclear what fees businesses may face with SMB Compass, APR start as low as 5.25 percent, which is lower than Funding Circle's starting APR of 7.49 percent. 

To qualify with either lender, you'll need fair-to-good credit. At a minimum, you’ll need at least $50,000 in annual revenue for a term loan and $150,000 in annual revenue for an SBA 7(a) loan. SMB Compass requires businesses to have at least $100,000 to $500,000 in annual revenue, with the range varying widely based on the type of loan. For example, its business term loans and SBA loans require at least $500,000 in annual revenue. 

SMB Compass vs. Credibly

SMB Compass and Credibly are online lenders offering diverse business financing solutions, including SBA loans, invoice factoring and equipment loans. 

While both provide speedy application processing and loan funding, Credibly specializes in smaller, short-term loans, whereas SMB Compass caters to businesses seeking larger amounts of financing with extended terms. Credibly business loans range from $5,000 to $10 million, with terms spanning three months to 10 years. SMB Compass allows businesses to access $10,000 to $10 million, with terms from six months to 25 years.  

Credibly specializes in offering financing to businesses that may struggle with approval from traditional lenders, so it only requires a minimum of six months in business, a credit score of 550 or higher and an annual revenue of $300,000 for approval. SMB Compass also requires six months in business, but its annual revenue requirement of $500,000 for certain loans may pose a challenge for younger businesses. 

How to apply for a loan with SMB Compass

You can apply online with SMB Compass without a hard pull to your credit history. If you have questions throughout the process, access its live chat feature directly from the SMB Compass website or call 888-853-8922 for a representative.

Required application information:

  • Business name
  • Time in business
  • Personal credit score
  • Average monthly sales
  • Industry
  • Phone number
  • State
  • Email address

SMB Compass frequently asked questions

How Bankrate rates SMB Compass

Overall Score 4.4
Accessibility 4.8 SMB Compass offers fast funding speeds and high loan amounts to meet businesses’ growing demands.
Affordability 4.1 Interest rates are low, but SMB Compass does charge an origination fee.
Transparency 5.0 Rates and loan information are readily available on its website.
Customer experience 4.3 There are a variety of contact methods for customers, though it lacks an app to manage loans on the go.
Flexibility 4.0 Outside of the ability to change due dates, its repayment features are standard.

Methodology

Clock Wait
47
years in business
Credit Card Search
30+
lenders reviewed
Loan
22
loan features weighed
Rates
770+
data points collected

To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 30 lenders and gave each a rating, which consists of five categories:

  • Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
  • Affordability: This section measures interest or factor rates and fees.
  • Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
  • Customer experience: Customer service hours, online applications and app availability are considered in this category.
  • Flexibility: This category considers factors like the number of loan products and ability to change payment due date.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.