Taycor Financial business loans: 2023 review
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At a glance
| Overall Score | 4.2 |
|---|---|
| Overview | Taycor Financial offers a wide variety of lending options for businesses, from equipment refinancing to working capital lines of credit. Founded nearly 30 years ago, the lender has offices in California and Utah. Taycor works with both startups and established businesses. |
| Loan amount: | $500 to $5 million |
| Rates from: | Factor rates, 0.96 to 1.60; interest rates, 3.49% to 28.00% |
| Term lengths: | 2 months to 25 years |
| Minimum credit score: | 500 |
Who Taycor Financial is best for
Taycor Financial works with established businesses and startups alike. Startups may find Taycor particularly appealing: There’s no time in business requirement for Taycor’s equipment financing, and its working capital options require as little as three months in business.
Taycor can also be a solid option for businesses with lower credit. Requirements vary by loan type, but term loans have a minimum credit score of 500, with other loan types in the mid-500s to 600s.
Who Taycor Financial may not be best for
Taycor Financial might not be the best for you if you like to know all the details about a loan product before getting in contact or filling out an application. Its website is light on upfront information about financing amounts, interest rates, fees and other basics. You’ll have to call or start the application process to learn more.
Additionally, though starting interest rates on its equipment loans are highly competitive, Taycor Financial uses factor rates on its term loans and lines of credit. Most lenders use interest rates on these loan types. Because of the way factor rates are calculated, you won’t benefit from paying these loans off early. If you’re eyeing these loan types, and especially if you think you might repay your loan early, you may want to consider other lenders.
Taycor Financial pros and cons
PROS
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Information online is limited
Potentially high factor rates
Low credit score requirements
CONS
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Slow application process
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Not as accessible to borrowers
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Fees
Business loan types offered
Taycor has a special emphasis on equipment financing, but it offers many other business loan types, too.
In addition to the loan products below, Taycor offers accounts receivable factoring in amounts from $5,000 to $5 million. Businesses must be operating for at least four months and have a minimum credit score of 530. Otherwise, details are scarce about this option — reach out to Taycor to learn more.Line of credit
Lines of credit offer revolving funding you can draw on and repay as needed. There are no usage requirements beyond making an initial draw. Applicants need at least six months in business, a minimum credit score of 600 and monthly revenue of $4,167.The loan requires a personal guarantee. There is also an origination fee of up to 3 percent. Payments can be weekly or monthly.Term loans
If you need a lump sum of cash for expenses, term loans are available to businesses with three months in business, a minimum credit score of 500 and a monthly revenue of at least $8,000. Origination fees are 0 to 5 percent. A personal guarantee is required. Repayments can be daily or monthly.
Cash advance
A cash advance provides funding based on future sales. This option through Taycor is for businesses that have been operating for three months or more and make $4,000 in monthly revenue. It sometimes requires a personal guarantee. The origination fee is between 0 and 5 percent. Repayments are daily or weekly.
Equipment finance
Taycor Financial offers 100 percent equipment financing — meaning there’s no down payment required — to startups and established businesses. The minimum credit score is 550.
Payments are flexible and can be monthly, 90-day deferred, semi-annual, step-up or quarterly. Taycor charges a documentation fee and may require a personal guarantee. Taycor does not disclose revenue requirements for its equipment financing.
Equipment lease
Taycor also offers equipment leases with the option to buy out the lease at the term’s end. Startups are also eligible for the equipment lease with a minimum credit score of 550.
There is a documentation fee of an undisclosed amount, and you may need to sign a personal guarantee. This loan offers the same flexible payment options as the equipment loan.
Equipment financing
If you’re looking for a better rate on an existing equipment loan, Taycor offers loan refinancing. Your company will need at least three years in business and a minimum credit score of 550. The minimum annual revenue amount is not disclosed.
Payment options are flexible. There is a documentation fee of an undisclosed amount, and you’ll need to sign a personal guarantee.
SBA 7(a)
SBA 7(a) loans are designed for small businesses. Taycor doesn’t specify a time in business or revenue requirement. However, the credit score minimum is higher than for the lenders’ other loans, at 670. Taycor doesn’t list fees, though, like all SBA loans, it requires a personal guarantee.SBA Express
SBA Express loans are named as such because approval can be shorter than other SBA loans, with application responses within 36 hours. The SBA Express also has a 670 minimum credit score. It also requires a personal guarantee.
Do you qualify?
Taycor Financial does not lend to adult entertainment, gaming/gambling or marijuana industries. Aside from this restriction, check out the qualification requirements for each loan product to determine whether you may qualify.
The lender states that products are available across North America.
What we like and what we don’t like
Below are several features that make Taycor stand out, as well as some potential drawbacks.
What we like
- Works with startups: Taycor has a new business program, and certain lending products are available to startups.
- Live customer support for applicants: Taycor’s website directs you toward contact with a finance professional. This can be a good feature if you have many questions and want to ensure you get the best financing for your situation.
- Low credit score requirements: All products except the SBA loans have a minimum score requirement in the 500s.
What we don’t like
- Information online is limited: Taycor Financial’s website offers limited information on loan products, which can make it hard if you’re trying to compare them to other lenders before applying.
- Factor rates may be high: Factor rates can go up to 1.36 for term loans. If you took out $10,000 for one year at that rate, you’d repay $13,600 — equivalent to an interest rate of 70 percent. Make sure to calculate costs and compare with interest rates from other lenders before committing.
- Fees: The documentation and origination fees charged on some loans add costs to what may already be a costly loan.
How to apply for a loan with Taycor Financial
Taycor offers a simple online application that doesn't require any tax returns for amounts up to $400,000. Applying with Taycor Financial requires only a soft credit pull, which won’t hurt your credit score — though lenders that do this typically run a hard credit check upon acceptance of a loan offer.
To contact Taycor Financial, fill out their contact form, send them an email at info@taycor.com or call 800-322-9738. Application help is available from 10 a.m. to 7 p.m. EST, Monday through Friday.
Taycor Financial FAQs
How Bankrate rates Taycor Financial
Overall Score 4.2 Accessibility 5.0 Taycor Financial offers a broad range of loan amounts, low minimum credit scores and fast funding times. Affordability 3.9 High maximum factor rates and a couple of fees ding this score. Transparency 3.8 Taycor performs a soft credit check. While its website is light on upfront details, they readily shared rates and qualification requirements with Bankrate. Customer experience 3.6 Though Taycor’s application is online, borrowers can’t manage their loans through a web portal. Flexibility 4.6 A broad array of loan types and easier documentation requirements for repeat customers make for a high flexibility score. Methodology
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 20 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.