Getting a business loan allows companies to access vital working capital and fund growth opportunities. But navigating the various business loan options can be complex for entrepreneurs.
Divvy aims to simplify small business financing. Divvy offers several flexible, fast business loan products designed specifically for SMBs.
This comprehensive guide provides everything you need to know about qualifying, applying, and getting funded with Divvy business loans.
Overview of Divvy Business Loans
Divvy provides four main types of financing for small and medium-sized businesses:
- Term loans - Fixed-amount loans issued with set repayment terms
- Lines of credit - Reusable credit limits to withdraw funds as needed
- SBA loans - Government-backed financing with advantageous terms
- Startup loans - Funding for brand new businesses
Divvy business loans range from $5,000 to $10 million with varying loan durations. Borrowers can apply completely online and access loan decisions quickly.
Funding uses automated underwriting models. Divvy evaluates applicant eligibility and issues competitive loan offers without requiring collateral like traditional lenders.
Benefits of Divvy Business Loans
Divvy loans offer several advantages over other financing options:
Fast and Easy Application Process
- Divvy has streamlined online applications without tedious paperwork
- Link checking accounts for instant insights into business finances
- Get a loan decision in minutes after submitting the application
Flexible Loan Amounts and Terms
- Borrow between $5,000 to $10 million
- Loan terms from 3 months to 5 years available
- Pick repayment plan that aligns with business needs
Competitive Rates and Fees
- Divvy uses risk-based pricing, so stronger applicants get better rates
- No hidden fees or prepayment penalties
- Low origination fee starting at 1% of the loan
Funds Disbursed Quickly
- Approved applicants see funds in their account within 1 business day
- Divvy deposits funds directly rather than mailing physical checks
- Quick access to capital when you need it
Types of Divvy Business Loans
Divvy offers a range of financing products for different business needs:
Divvy Term Loans
Term loans provide a lump sum cash infusion, with fixed monthly payments over a set repayment term.
Divvy term loans range from $5,000 - $5 million with 3 to 60 month terms. The funds can be used for any business purpose like:
- Purchasing equipment
- Hiring employees
- Marketing expenses
- Inventory and supplies
- Managing cash flow
Term loans work well for established businesses looking for an influx of capital. Payments stay consistent month-to-month, making financial planning straightforward.
Strong credit history and healthy revenue required to qualify. Term length influences eligibility requirements.
Divvy Lines of Credit
Divvy offers revolving credit lines from $6,000 to $100,000. Companies only pay interest on the amount withdrawn from the line.
Lines of credit provide flexible access to capital that can be reused over time without reapplying. The funds can assist with:
- Bridging cash flow gaps
- Covering accounts receivable
- Financing inventory orders
- Managing operating expenses
Having a line of credit available helps handle unexpected costs that pop up in running a business. Draw funds whenever necessary.
Divvy SBA Loans
The Small Business Administration partners with lenders like Divvy to provide advantageous loans backed by the government agency.
Divvy offers SBA 7(a) and 504 loans from $50,000 up to $5 million.
Benefits of SBA financing include:
- Lower interest rates
- Longer repayment terms up to 25 years
- Larger loan amounts than conventional loans
SBA qualification requirements focus on the health of the business more than owner credit scores. However, SBA loans have more documentation needs and can take 1-3 months for approval.
Divvy Startup Loans
For entrepreneurs just getting started, Divvy provides startup loans from $5,000 - $500,000.
Startup loans offer:
- 5.99% - 35.99% APR
- 3 or 12 month terms
- Funding as fast as 24 hours
Startup loans work like short-term working capital financing. New businesses can access funds for crucial operating expenses while establishing revenue streams.
Minimum requirements include personal credit over 580 and being registered as an official business entity.
Qualifying for a Divvy Business Loan
Divvy uses technology-driven underwriting to instantly evaluate applicant eligibility. Key requirements to qualify for a Divvy business loan include:
Time in Business
Most Divvy loans require minimum 1 year in business. Startup loans can fund much younger companies.
Annual Revenue
Minimum of $250,000 in annual revenue needed for larger SBA and term loans. Startup loans begin at just $25,000 revenue.
Personal Credit Score
A credit score of 580+ is generally required. But Divvy emphasizes business cash flow more than personal credit.
Industry
Divvy does not lend to certain restricted industries like gambling, marijuana, firearms, payday lending. Most other industries are eligible.
Meeting these criteria makes approval likely. But Divvy still evaluates individual circumstances holistically beyond just these metrics.
How to Apply for a Divvy Business Loan
Divvy built an easy loan application process that takes just minutes online:
1. Fill Out the Application Form
Answer basic questions about your business, desired loan amount, and purpose of funds. Link financial accounts for Divvy to access data.
2. Review Loan Offer Options
If approved, you will receive competitive loan offers outlining APR, terms, and repayment amount. Select your preferred loan.
3. Accept the Loan
Sign your loan agreement electronically. Certify that all provided information is accurate.
4. Loan Funds Disbursed
Once signed, Divvy immediately issues funds by ACH transfer directly into your bank account, typically within 1 business day.
Then it's time to put your financing to work growing your business!
Managing Your Divvy Business Loan
Responsibly managing your Divvy financing ensures your long-term success:
- Set up automatic payments from your business checking account
- Pay on time each month to avoid fees and penalties
- Pay down principal faster to reduce interest costs
- Only draw funds from lines of credit as needed
Also monitor your credit. Divvy reports to the business credit bureaus. Good payment history helps build your business credit profile.
FAQs About Divvy Business Loans
What credit score is required to qualify for a Divvy loan?
Divvy generally requires a personal credit score of at least 580 for approval. Startup loans may have higher minimums. Strong business metrics can offset lower personal credit scores.
How fast can I get funding after approval?
Divvy issues loans in as little as 1 business day. Once you accept loan terms, funds are transferred directly to your bank account via ACH transfer.
What documents do I need to apply for a Divvy business loan?
Divvy automates underwriting using linked business accounts, with minimal documents. Basic docs like business formation documents, bank statements, and tax returns may be needed.
Can I get a Divvy loan if I have a new startup business?
Yes, Divvy offers specific startup loans for new businesses less than 1 year old. Just meet the minimum requirements in terms of time operating, revenue, and credit score.
How do Divvy's rates and fees compare to other business lenders?
Divvy uses risk-based pricing but offers competitive rates averaging 10-30% APR across products. Origination fees start at just 1%.
Get the Financing You Need with Divvy
Accessing capital is easier than ever with Divvy. Their online business loans provide fast, fair funding so you can take your company to the next level.
Divvy's easy application process delivers loan offers in minutes. Funds reach your account within one business day after accepting terms.
Whether starting up or scaling up, Divvy business loans power growth with flexible financing.
Review your options and apply for a Divvy business loan today!
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