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Currency Small Business Loan Review

Currency, formerly Currency Capital, is an online lender providing loans to established business owners with strong credit and consistent sales.

In addition to financing, the Los Angeles-based company offers a point of sale (POS) system for businesses. The system can accompany a loan and would allow your customers to finance their purchases as well.

If you need to finance small or large expenses for your company, continue reading to find out if Currency could provide the right solution.

What Currency offers

Two types of loans are available from Currency:

Amount Terms Interest rates Fees Time to funding
Working capital loan $5,000 to $150,000 24 months 0% for first 90 days; starting at 19.99% thereafter Up to 1.99% origination fee; $200 documentation fee Two business days
Commercial loan Up to $500,000 Up to 72 months Starting at 6.49% $295 documentation fee Two business days

 

Working capital loans provide smaller financing amounts and have a promotional 0% interest rate for the first 90 days. After that period ends, borrowers could receive a rate as low as 19.99%, as well as a 24-month repayment term.

Working capital loans also require documentation fees to cover loan processing costs, although business owners who pay to use Currency’s POS system, CurrencyPay, would be exempt from origination fees. All other borrowers would owe a 1.99% origination fee.

Commercial loans are available for equipment financing and come in larger amounts, up to $500,000. The equipment you’re purchasing would act as collateral and secure the loan. Interest rates start at 6.49% and repayment terms span 72 months. Commercial loans come with a $295 documentation fee for loan processing, but no origination fee.

For both working capital loans and commercial loans, you could receive funding in two business days after approval. You would then make monthly payments to Currency.

What is CurrencyPay?

Currency’s POS program is designed to accommodate larger transactions that could exceed $10,000. You could accept credit, debit, ACH and electronic check payments through the platform. CurrencyPay also offers customers an option to finance their purchases through Currency when checking out.

Three CurrencyPay account plans are available to business owners: Lite, Core and Pro. All of these plans would come with the 0% working capital promotion if you or your customers choose to borrow money through Currency.

CurrencyPay Lite allows you to offer financing to your customers and you would only owe a 1.99% documentation fee if you take out a Currency working capital loan. However, you cannot accept cards with the Lite plan.

The Core and Pro plans let you accept card payments, and the cost would depend on the type of payment you receive:

  • If a card is present: You would owe 2.49% plus $0.30 per transaction.
  • If a card is not present: You would pay 3.49% plus $0.30 for each transaction.
  • For ACH transfers: You’d need to pay 0.5% of the transaction amount, up to $5.

Visa, Mastercard, Discover, American Express and international cards are accepted through the Core and Pro plans. The Pro plan also requires monthly compliance fees up to $499. Both the Pro and Core plans could provide an exemption from the 1.99% documentation fee if you take out financing.

Who is eligible for Currency financing?

Currency prefers to work with established businesses that generate sufficient annual revenue. Here are the minimum requirements to be eligible for financing:

Time in business Min. credit score Min. revenue
Working capital loan 10 years 720 FICO score $100,000 gross annual sales
Commercial loan 1 year 600 FICO score $100,000 gross annual sales

 

Currency’s working capital loans require significant time in business and a strong personal credit score. But business owners with fewer years of experience and less than perfect credit may be able to secure financing through a commercial loan instead.

Both options require the same minimum amount in annual sales to ensure the business could repay debt.

When applying for financing, you may need to provide the following information:

  • Valid ID and proof of U.S. citizenship
  • Business invoice
  • Voided check from your business bank account
  • Bank account verification
  • Proof of business ownership and time in business
  • Signed loan documents

Currency mandates that all signed loan documents must be notarized. Currency also requires a personal guarantee, which would make you personally responsible to repay debt if the business defaults on the loan.

Who is not eligible for funding?

Currency restricts several types of businesses from being eligible for financing. Those include:

  • Products or services with age restrictions
  • Merchants with more than 20% of total sales coming from international card transactions
  • Bail bond services and bankruptcy lawyers
  • Career placement or advice center businesses
  • Crowd-sourced fundraising platforms
  • Dating services
  • Delayed-delivery merchants
  • Online personal computer technical support
  • Personal enhancement products
  • Shipping brokers
  • Travel agencies or tour operators

Based on the minimum criteria described earlier, startups also would not qualify for financing. Business owners with poor credit or those who have yet to generate revenue also would not be eligible.

Pros and cons of Currency loans

Before taking out a loan from Currency, consider these positive aspects and potential downsides.

Pros Cons
  • Variety of loan amounts available.
  • Strict credit score and time in business requirements.
  • Promotional 0% interest rate offered.
  • Relatively slow time to funding.
  • Online application and underwriting process.
  • Many types of businesses are ineligible.

FAQs

  • Where can I find Currency interest rates? Currency does not list its interest rates online, or many other details about its financing programs. You may not know what kind of interest rate you could receive until you submit an application.
  • How do I sign up for CurrencyPay? Currency’s POS system requires an online application, which you can find here.
  • Can I qualify for Currency financing with bad credit? No, you likely would not be eligible for funding if you have bad credit. Currency requires a score of 720 to qualify for a working capital loan and a score of 600 for its commercial loan.
 

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