How a $250,000 Growth Loan is Funded
From a Friend
From a Fan
The money you raise from your network is amplified by Able to maximize your funding
Able makes peer to peer loans work for businesses. Raising funds helps you unlock dramatically more capital than you would normally have access to through traditional funding methods.
- Traditional Loan
- Able Loan
Loan Term36 Months
Credit Score680 Credit Score
The Able loan helped us increase our production capacity by 45%, boost throughput on the brewhouse side, and expand our taproom space for our community of craft brew enthusiasts.
Able’s loan model was exactly what we were looking for — we liked the opportunity to involve Backers, people who believe in our mission, to help fund a portion of the loan to help us empower women through design.
- 20% businesses approved
- Up to 9 months to fund
- Down payment up to 33%
- Long application process
- Piles of paperwork
- 48% businesses approved
- Funds within 30 days
- 10-50% from your network
- Apply in minutes
- Online application
- Personal and Public funding pages
- Built in reminders for your Backers
- Management Dashboard for your campaign
We Learn About Your Business
You'll provided us with preliminary information about your business to get the ball rolling.
We Pre-Approve Your Loan
Based on the information you provide we'll provide a pre-approved loan offer.
We Analyze Your Business
We underwrite your business to determine the final loan offer for you to accept.
You Raise Backer Support
You'll get in touch with potential backers and begin collecting pledges with our funding tools.
Documents are E-Signed
You and your backers will sign all the necessary paperwork completely digitally.
Your Business is Funded
Funds are deposited in your account for you make the next big leap for your business.
The loan terms for a Growth Loan are from one to five years.
Growth Loans range from $25,000 to $1,000,000.
Able is the lowest-cost online lender in the nation. Our rates start at 8 percent. We also charge a one-time origination fee for loan management of 5%. There are no prepayment penalties.
Growth applicants must be operating for at least one year, have $50,000 in revenue, and have a personal credit score of 600 or higher. Don’t meet these requirements? Check out Able Start.
The more you raise from friends, family, and fans, the more you save on your rate. Most businesses need to raise at least 10% of your total loan amount from two people, and then Able funds the remaining percent of capital. Well-qualified customers are eligible for non-backer loans.
The more you raise from friends, family, and fans, the more you save on your rate. Able may also require some riskier borrowers to raise more than 10% from backers.
You, the owner, are always welcome to contribute money as a backer, which will lower your rate. But owner money does not count towards the required backer amount.
A backer can be a friend, family member, advisor, or customer who believes in you and your business. We require that you recruit at least two outside backers for your loan. Spouses and children can participate as backers, but can’t contribute to the required minimum backer amount.
A backer in your loan can’t be people without a valid U.S. bank account; people not legally domiciled in the U.S.; the business entity; anyone with whom we are legally prevented from doing business with; and anyone who we suspect presents a risk of money laundering or other illegal activities.
No. We structure self-backing as a loan, so it needs to come from a separate (legal) person.
Yes! We will help you strategize who to ask and give you marketing materials you can use to explain your business and Able.
Our minimum is $1000. Our maximum is up to 50% of the total backer amount.
You can work with each backer to agree on the rate charged. Backers can come in as high as Able’s rate, or as low as 2%.
Yep. You can go as low as 2% and as high as Able’s rate (we do it this way to prevent adverse tax consequences to you).
Just let us know. We are here to help.
Once you’ve raised all your backers, it typically takes a little less than a week to fund.
Able collects all the backer money then disburses it together with the Able money. We do it this way to deter fraud.
There’s no firm limit, but borrowers usually aim to fund within four weeks. Much longer than that and we’ll have to reevaluate your business.
Growth Loans are repaid monthly to Able, and payments include the principal loan amount and interest. The monthly payment amount is equally amortized over the loan’s term.
Your backers receive interest-only payments until Able is paid in full, then backers will start receiving principal and interest payments.
By insisting that Able gets paid first, we can significantly decrease our risk. This gets passed onto the borrower in the form of lower interest rates.
You can repay your Growth Loan at any time before the terms ends without any prepayment penalties.
In the event of default, Able works with you to restore good standing. If restoration is not possible, your backers take first loss since they are subordinated to Able in the loan structure.
Crowdfunding is raising a little money for a lot of people without any promise of repayment. Able is raising a lot of money from a small group of people with a promise of repayment (and interest!).