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Marlin Capital Solutions Business Loan Review

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Marlin Capital Solutions issues business loans to cover equipment purchases, working capital needs and franchise expenses.

It is a financing brand under Marlin Business Services Corp., a financial holding company based in Mount Laurel, N.J. The company’s subsidiary, Marlin Business Bank, serves as its primary funding source. In 2018, Marlin Business Services reported $25 million in net income. 

Marlin Capital Solutions, which went public in 2003, offers flexible online financing options for small businesses with an established track record and substantial income. Keep reading to find out if a Marlin business loan is right for you. Information mentioned in this article is accurate as of the date of publishing.`

What Marlin Capital Solutions offers

Eligible small business owners could apply for several types of financing from Marlin Capital Solutions.

Working capital loans

Marlin offers working capital financing from $5,000 to $200,000 with a minimum turnaround time of 24 hours. Borrowers can use working capital loans to fund daily expenses or other investments such as marketing, business expansions, new inventory, debt consolidation or refinancing, accounts payable reductions or technology services. Repayment terms span six to 24 months. The weighted average rate on working capital loan originations was 34.34% in the second quarter of 2019, according to the company’s most recent earnings report.

Marlin doesn’t charge an origination fee on working capital loans. To collect repayments, it makes daily, weekly or monthly withdrawals from borrowers’ bank accounts. Borrowers in good standing could be eligible to pay off their debt early with a 5% discount.

Equipment financing

Marlin provides equipment financing up to $50,000 with repayment terms up to 72 months. There’s no minimum funding amount for equipment financing, and payments are made daily until the debt is paid off, according to a Marlin spokesman. Qualified applicants could be approved for financing without a down payment.

Marlin provides deferred payment options for 30, 60 or 90 days, depending on your credit profile. It reviews borrowers’ business and personal credit for the deferred payment program and offers structured payment programs for low-credit borrowers. The weighted average rate on equipment financing originations was 9.71% in the second quarter of 2019.

Franchise financing

Marlin’s financing is designed for both franchisees and franchisors looking to grow. Franchise loans are available from $5,000 to $1 million with terms up to 84 months. Seasonal or deferred repayment options are available. The lender does not require an application fee or liens on personal assets to secure franchise loans. If applicants ask for less than $300,000, financial statements are not required. As with its other financing products, Marlin does not disclose interest rate ranges online. The company’s quarterly report doesn’t discuss franchise financing originations.

Who is eligible for Marlin business loans?

Marlin Capital Solutions serves a wide range of businesses. The lender works with manufacturers, distributors, suppliers, resellers and dealers to create custom financing solutions for borrowers.

Marlin specializes in the following industries:

  • Telecom
  • Commercial vehicles
  • Security and surveillance
  • Technology
  • Construction and industrial
  • Office equipment
  • Health care
  • Food service

Marlin’s requirements are most detailed for its working capital loans. Eligible businesses must meet the following criteria:

  • At least two years in business
  • Minimum annual revenue of $880,000
  • Minimum average daily bank balance of $12,000
  • No more than one bankruptcy at least two years before applying

To be approved for working capital loans between $150,000 and $200,000, borrowers must have $2 million in annual revenue and an average of 20 bank deposits a month.

Marlin has similar requirements for franchise loans and equipment financing. Performance reviews are possible with franchise loan applications. The review could look at the overall franchise, as well as the individual business.

How to apply

Marlin advertises a simple online application process and approvals within hours. It could transfer funds to your bank account in as few as 24 hours after approval, though it may take one to two days for the money to appear in your account.

Loans less than $50,000 require a month-to-date bank statement. For loans less than $100,000, Marlin requires applicants to submit their three most recent bank statements. A business utility bill would also be required for loans between $50,000 and $100,000. For loans exceeding $100,000, Marlin asks for six months’ worth of bank statements, a site inspection and corporate tax returns, if applicable.

Additionally, Marlin requires a personal guarantee, which makes borrowers personally liable to repay debt if their business defaults on the loan. Marlin’s approvals are valid for 30 days, giving you time to think about your loan offer before accepting.

Pros and cons of Marlin Capital Solutions

Before applying for a Marlin business loan, here are some pros and cons to consider.

Pros Cons
Simple application process Interest rates not disclosed upfront
Broad range of industries served High revenue requirements
Multiple types of financing offered 2 years in business needed to be approved for working capital; startups not eligible

The fine print

Beyond types of financing, loan amounts and repayment terms, keep these details in mind when considering a Marlin business loan.

Marlin owns your equipment

When you finance equipment through Marlin, you would be leasing assets that Marlin would legally own. As the owner, Marlin would be required to pay annual business personal property taxes based on the jurisdiction where the equipment is located. But under the terms of the lease agreement, you would have to reimburse Marlin for taxes paid on leased equipment.

Marlin would calculate the anticipated tax and send you an invoice for the amount. Instead of building the tax into the interest rate on your lease, Marlin would break it out as a separate cost. You would receive a refund if the estimated amount is higher than the actual tax. Conversely, you would owe the difference if the estimate is lower than the actual amount.

No interest rates are provided upfront

Beyond some averages that we found in the company’s latest earnings report, Marlin doesn’t advertise its interest rates on business financing. You may not know how much a loan would cost until after you apply. Your business loan agreement should outline the total cost of your loan, as well as other details about your obligations as a borrower. Be sure to review this document to understand what’s expected of you before accepting a loan offer. 

Marlin offers business CD accounts

If you’re searching for financial services beyond lending, you could look into Marlin’s business CD accounts. Marlin Business Bank is a Federal Deposit Insurance Corp.-insured institution that provides online CDs to business owners who want to grow their wealth. To open a CD, you need a minimum deposit of $100,000. Terms range from 12 to 60 months, and Marlin may charge an early withdrawal penalty if you take your money out before the end of the term. DepositAccounts, a LendingTree subsidiary, gives Marlin Capital Solutions an A+ health rating.

The bottom line

Marlin Capital Solutions provides working capital loans, equipment financing and franchise financing to qualifying small business owners. Loan amounts range from as little as $5,000 to upward of $200,000 — or $1 million for franchise loans — allowing you to finance large business purchases.

Marlin requires working capital loan applicants to have at least two years in business and sizable annual income, ruling out the possibility of startups or newer businesses being eligible for this type of financing. It also reviews credit profiles when approving applicants, but the lender does have equipment financing programs for those with poor credit.

If you run an established business that earns consistent revenue, a Marlin business loan could be the right solution for you. Since Marlin doesn’t disclose its interest rates upfront, be sure to shop around to get the best offer for your small business.

 

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