Accord Business Funding: 2023 Review
 | Starting factor rate: Not disclosed Best for: Borrowers who want to work with a loan broker. There may be extra incentives for small business owners based in Texas. |
Pros and cons of Accord Business Funding
| Pros | Cons |
|---|---|
No hard pulls on your credit, only soft pulls Merchant cash advances are available nationwide If you run a business in Texas, your loan may be given preferential consideration | Can only apply through a broker Only product is merchant cash advances, which can be an expensive way to borrow Accord Business Funding does not publicly share most details of its merchant cash advances |
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Accord Business Funding small business loans review
Accord Business Funding provides one product: merchant cash advances. If you want a merchant cash advance from Accord Business Funding, you can’t go about it directly. Accord Business Funding only works with Independent Sales Organizations (ISOs). ISOs are business loan brokers that serve as an intermediary between small businesses who need to borrow money and direct funders like Accord Business Funding.
Who is Accord Business Funding for?
- Business owners who need money quickly. Accord Business Funding’s only product is merchant cash advances, which tend to be more expensive than traditional business loans but much quicker to fund.
- Borrowers who want to work with a broker. You can only borrow from Accord Business Funding if you go through an ISO.
- Business owners who don’t want a hard pull on their credit. Accord Business Funding only does soft pulls.
Accord Business Funding small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated factor rate | Fees |
|---|---|---|---|---|
| Merchant cash advance | $5,000 to $150,000 | Not disclosed | Not disclosed | Not disclosed |
Merchant cash advance
The only product you can get through Accord Business Funding is a merchant cash advance, which is a cash advance paid back through a portion of the business’s future credit and debit card sales, ranging from $5,000 to $150,000. Instead of a business loan interest rate, a merchant cash advance’s borrowing cost is calculated as a factor rate. To determine your total borrowing costs, multiple the advance amount by the factor rate.
Accord Business Funding doesn’t publicly share repayment terms, factor rates or fees. This may be because you can only get a merchant cash advance through its ISO partners, which means you’ll be going through a business loan broker. While it does issue merchant cash advances nationally, Accord Business Funding has a particular affinity for lending to small businesses based in its home state of Texas.
First-position merchant cash advances vs. second-position merchant cash advances
The lender is scant on details about its products, but Accord Business Funding does disclose that it provides both first-position (A paper) and second-position (B paper) merchant cash advances.
A first-position merchant cash advance is generally available if you have good credit. The business industry you operate in and if you have a history of paying your debts on time also go into determining if you qualify for an A-paper merchant cash advance. You’re more likely to qualify for a second-position merchant cash advance if you have a fair credit score or if you already have a merchant cash advance.
Examine your business finances with a fine-tooth comb before taking out a second-position merchant cash advance. Merchant cash advances are an expensive way to borrow, and B-paper advances tend to be a little more expensive still.
Also, if you need a second-position advance, odds are higher that you have a history of not paying your debts on time or in full. Accord Business Funding does have a history of legally pursuing borrowers who do not fulfill their repayment agreements.
Accord Business Funding borrower requirements
| Minimum annual revenue | Not disclosed |
| Minimum time in business | Not disclosed |
| Minimum credit score | Not disclosed, but presumably you will need at least fair credit. |
Accord Business Funding does not publicly share its business loan requirements, but you may be able to get more information from your loan broker. Because it does issue B-paper merchant cash advances, it’s reasonable to assume that you’ll need at least fair credit in order to qualify.
One positive of applying for a merchant cash advance with Accord Business Funding is that it does not do hard pulls on applicants’ credit — only a soft credit pull. Hard pulls can negatively impact your credit score, though depending on your credit history the impact is usually nominal.
Alternatives to Accord Business Funding
| Accord Business Funding | Uplyft Capital | Reliant Funding | |
|---|---|---|---|
| Minimum credit score | Not disclosed, but presumably you’ll need at least fair credit. | 500 | 525 |
| Loan products offered | Merchant cash advances | Merchant cash advances | Merchant cash advances |
| Time to funding | Not disclosed | 1 to 2 days | As soon as next day |
| Starting factor rate | Not disclosed | 1.24 | 1.10 |
| Maximum loan size | $150,000 | $1,000,000 | $400,000 |
| Minimum annual revenue | Not disclosed | $144,000 | $60,000 |
Accord Business Funding provides very few details about its merchant cash advances, making it difficult to compare to other lenders. Let’s give it a go anyway, comparing their product primarily by looking at lending amounts. Bear in mind that since Accord Business Funding only does a soft pull, there’s no harm in applying through a broker to see if they offer you more or less favorable terms than other lenders.
Accord Business Funding vs. Uplyft Capital
Uplyft Capital provides merchant cash advances in amounts of $3,000 to $1,000,000. This could potentially make it a better option for those who want to borrow less than Accord Business Funding’s minimum amount ($5,000), or more than its max merchant cash advance amount ($150,000).
Accord Business Funding vs. Reliant Funding
Reliant Funding can get you financing as soon as the next day. If you need to borrow an amount between $150,000 and $400,000, you’ll want to look at Reliant Funding over Accord Business Funding. Both Reliant Funding and Uplyft Capital are also better options if you want to apply directly rather than through a broker.