Channel Partners Capital Reviews - Financial Lender Pros & Cons

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Lender Overview

Types of loans
  • Lines of credit
  • Working capital
Loan amounts
$10,000 to $250,000
Terms of payment
6 to 24 months
Pros
  • User-friendly application and approval process
  • Fast approval
  • Easy renewal
  • Felxible repayment schedules
Cons
  • Business Loan Interest rates may be high
  • Personal and business credit check required

Company Profile

Specializing in working capital and lines of credit for small to medium business, Channel Partners Capital offers funding amounts ranging from $10,000 to $250,000. Working capital loans are used to fund operational needs such as payroll or rent, while lines of credit provide a borrowing limit that business owners can draw from as needed. If the line of credit is open, once the designated amount is borrowed and repaid, the line of credit can be replenished. Borrowers can choose daily, weekly or monthly repayment plans, giving businesses the flexibility needed to secure the right kind of funding for their individual needs.

Growing businesses can often need short term capital to cover expenses like new equipment, staff, or property, or to fund regular operations during a cash flow dip. Banks can have stringent qualifying requirements and significant processing times, making a short-term lender like Channel Partners Capital a good alternative.

Channel Partners Capital was founded in 2009 and has since originated thousands of loans and generated loan receivables exceeding $250 million. Rated among the fastest-growing private companies in the US by Inc. Magazine eight years running, this lender is committed to improving credit availability for small businesses.

Credit Policy

Channel Partners Capital carries financing products to propel small and medium businesses. Qualifying for a loan or line of credit with a short term lender is easier than taking a traditional loan from a bank, and faster, but applicants will need to meet several criteria:

  • Applicants must hold 51% ownership
  • The business must have been operational for at least 1 year
  • The lender will check personal credit history
  • Businesses must demonstrate consistent and diverse revenue streams

Businesses meeting these criteria can receive a positive response within 2-4 hours once all documents have been processed. Funds will be transferred immediately and will generally be available within one business day.

Exceptions

Eligibility for financing is based on factors including business cash flow, applicant’s credit health, and time in business. Business that receive a working capital loan or line of credit from Channel Partners Capital are not required to draw the entire approved amount. Rather, borrowers can just use what the need, when they need it. Unused funds are available for 90 days and Channel Partners encourages customers with additional financing needs to inquire about renewal.

Cautionary Industries

Channel Partners Capital serves businesses across a wide range of industries, delivering quick easy capital with flexible repayment terms. There are some industries that Channel Partners Capital does not consider for financing. Businesses in these sectors are considered too high risk and will need to seek funding from other lenders.

  • Adult entertainment
  • Gambling
  • Nonprofit organizations

Target Market

Small to medium businesses across the country have benefited from lines of credit or working capital loans from Channel Partners Capital. This capital can be used to scale up or cover short term gaps in cash flow, ensuring that businesses have the cash they need to succeed.

This lender offers flexible cash flow solution to businesses that qualify and focuses on businesses in the following industries:

  • Construction
  • Transportation
  • Manufacturing
  • Landscaping
  • Healthcare
  • Automotive Repair
  • Restaurants/Franchises
  • Retail
  • Hospitality & Beauty Salons

Term Length

Financing repayment terms range from 6 to 24 months. Once 50% of the financing amount is repaid, businesses can request renewal. Borrowers are given the flexibility to make payments on a daily, weekly, or monthly basis.

What’s Required to Apply

Businesses applying for a line of credit or working capital loan from Channel Partners Capital will need to submit several documents and forms in order to be considered. Borrowers must submit a signed application form and three months of most recent bank statements attesting to steady revenue stream. In order to be eligible for financing, the applicant must have 51% ownership and the business must have been operational for at least a year.

Applicants will also need to provide general business information, such as industry, registered business name and address, business start date, the applicant’s personal information and credit profile. Channel Partners Capital also requests a voided check and a copy of the applicant’s driver’s license.

Once all of the requested documents are submitted and processes, a credit decision will generally be made within 2-4 hours and the fund transferred electronically within the day.

Interest Rates

Unlike standard loans, merchant cash advances aren’t repaid as a combination of principal and interest. Instead, interest is instead charged as a decimal multiplier of the total advance amount. This factor rate determines the total amount borrowers will repay. For an estimate of what a cash advance will cost in total, multiply the amount borrowed by the buy rate. Channel Partners Capital generally offers buy rates between 1.24 and 1.31.

Stacking

Channel Partners Capital’s policy on stacking loans is one of the most flexible in the business. This lender will offer financing up to and beyond the 3rd position, so for businesses carrying multiple active loans, Channel Partners Capital is a good option. Stacked loans can sometimes come with higher buy rates and additional fees, but for businesses anticipating an increase in cash flow it might be worth it to finance now and pay it off after a short period of time.

Documentation Fees

Filing and processing applications is often attached to a fee. At Channel Partners Capital, this fee varies from deal to deal and is generally contingent on the size of the advance. Estimate that the documentation fees will amount to 2.5% of the loan amount.

Origination Fees

Like other fees, origination fees are calculated as a percentage of the financing amount. When borrowing from Channel Partners Capital, expect to pay around 2% to cover the cost of issuing a cash advance.

Renewal Policy

Once an application for financing is approved, businesses can expect funds to be transferred in as little as a day. Borrowers can draw funds as needed and are not required to use the full amount. Unused funds are available for 90 days. Businesses that have paid back at least 50% of the original amount are eligible to renew the financing.

Interest Forgiveness

If the merchant decides to pay back the cash advance before the end of the set term, they will be eligible for some form of interest forgiveness. Depending on the specific circumstances, interest forgiveness on early repayment can be between 1 and 10%.

Loan Use

Channel Partners Capital accepts applicants seeking to finance any business related expenses. Small to medium businesses may require infusions of cash, whether to expand operations or provide temporary cash flow solutions.

The lender’s site lists a range of uses for financing:

  • Purchase equipment and inventory
  • Repair equipment
  • Respond to seasonality
  • Meet payroll
  • Pay off tax liabilities

Online Reputation

This lender has a strong and positive online presence. Channel Partners Capital ranked among the 500/5000 fastest-growing private companies in the US by Inc. Magazine eight years running and ranks 4.8/5 on Trustpilot. Most reviewers have good things to say about the ease of application and approval, terms, and customer support.

Licenses & Accreditations

Channel Partners Capital is accredited by the Better Business Bureau (BBB) and has an A+ rating.

Company Contacts Details

LinkedIn
Phone: (763) 746-7760

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