SoFi business loans review

Loan Details

What makes SoFi shine?

The SoFi business loans marketplace stands out for its quick, streamlined and simplified application process. Unlike other marketplaces that require a lot of information, including your Social Security number, SoFi features a simplified application process that only takes a few minutes.

To get started, you just need to set up an account with your email and answer a few basic questions about yourself and your business. Based on the information you provide, SoFi matches you with available lender offers. And if you want to update your application, it’s easy to go back and start over.

Where SoFi falls short

The SoFi small business loans marketplace only has a limited number of lending partners, and depending on the information you provide, you may only receive a small number of offers. You may find more options by going through its partners directly — like Lendio, for instance, which has 75+ partners in its network, including traditional banks.

As a simplified comparison tool, SoFi’s marketplace is best used to quickly see which lenders you may qualify for before you do a hard application with a lender.

Types of business financing offered by SoFi

SoFi’s business lending partners offer a wide range of loan options for businesses of all sizes and revenues. Here’s what you can expect — along with details on how each option works.

SoFi also offers more financing options like personal loans, which come highly rated by past customers.

SoFi’s business loans in detail

SoFi’s marketplace works to connect you with eight different types of business loans. Here’s a breakdown of how each works.

Short-term loan

Short-term business loans through SoFi’s lending partners are fixed-rate term loans repaid in monthly installments over 18 months or less. And they can be a fast funding option, with a turnaround time as short as 24 hours after approval.

A short-term business loan best suited for short-term funding needs, emergency expenses or cash flow slumps. Repayments for these loans are typically made daily or weekly, but you can pay them back early without penalty.

Rates, fees and terms

• Loan amount: $2,500 to $500,000
• Interest rates: Starts at 8%
• Loan term: Up to 18 months
• Funding time: As soon as 24 hours

Business term loan

Business term loans are fixed-rate loans repaid in monthly installments over one to five years. These loans can be used to cover ongoing expenses like hiring new employees, buying assets or marketing.

While the interest rates for these loans are typically lower than those for short-term business loans, they typically require good to excellent credit, strong monthly revenue and a solid business plan to qualify.

Rates, fees and terms

• Loan amount: $5,000 to $2 million
• Interest rates: As low as 6%
• Loan term: 1 to 5 years
• Funding time: As soon as 24 hours

Business line of credit

A business line of credit through SoFi’s partners allows you to borrow as much as you need when you need it. You only pay interest on the funds you use, and because these are usually revolving lines of credit, you can borrow again as you pay down the line.

Lines of credit can be used for almost any type of business expense. They’re especially useful when you need to cover ongoing expenses or cash flow gaps. But they’re short-term loans that must be repaid in one to two years.

Rates, fees and terms

• Loan amount: $5,000 to $2 million
• Interest rates: As low as 6%
• Loan term: 1 to 5 years
• Funding time: As soon as 24 hours

Business cash advance

A business cash advance is a form of rapid financing, offering quick access to funds by borrowing against future revenue that your business will make. The borrowed amount is repaid through a fixed daily percentage of sales.

While these short-term loans must be repaid within two or three years and carry high interest rates, they can be a viable option during temporary sales slumps. This form of financing is ideal for newer businesses or those with lower credit scores.

Rates, fees and terms

• Loan amount: $5,000 to $1,000,000
• Interest rates: As low as 18%
• Loan term: Up to 2 Years
• Funding time: As soon as 24 hours

Accounts receivable financing

Accounts receivable financing, such as merchant cash advances, use a company’s outstanding invoices as collateral in exchange for a lump sum of cash, typically up to 80% of the invoice’s value. The factoring company then takes over collecting payment from your customers.

The factoring fee is generally based on the net terms for invoice payment, ranging from 1% to 5% of the invoice value. This form of financing is often used by businesses that require fast access to capital and are willing to turn control over their invoices to the factoring company.

Rates, fees and terms

• Loan amount: Tied to receivables
• Interest rates: Starts at 3%
• Loan term: Up to 1 year
• Funding time: As soon as 24 hours

SBA loans

SBA loans are also available through SoFi’s partners. SBA loans are guaranteed by the US Small Business Administration (SBA). An SBA loan is popular with business owners for their competitive rates and terms, but you’ll typically need good credit and a solid business plan to qualify.

SoFi partners with preferred SBA lenders that offer the three biggest programs: SBA 7(a) loans, SBA 504 loans and SBA Express loans. Approval and funding times on SBA loans take much longer than other types of business loans, but choosing a preferred SBA lender can help speed things up.

Rates, fees and terms

• Loan amount: Up to $5 million
• Interest rates: Prime+
• Loan term: 10 to 25 years
• Funding time: 1 to 3 months

Startup loan

A startup loan is a type of financing for new business owners who lack an established track record. The most popular types of startup loans and financing for new business owners include SBA 7(a) loans, lines of credit, equipment loans, microloans and business credit cards — all of which are available through SoFi’s partners.

To qualify for most unsecured startup loans, you generally need very good to excellent credit with a relatively high personal income. Depending on the loan type, you may also need to provide a business plan and financial statements.

Rates, fees and terms

• Loan amount: Up to $150,000
• Interest rates: Up to 31%
• Loan term: Up to 25 years
• Funding time: 2 to 4 weeks

Equipment financing

Equipment financing can be a smart way to purchase business-related equipment, including machinery, trucks and other vehicles. Because equipment loans are secured, qualifying for these loans can often be easier — even if you have a lower credit score.

Eligibility requirements for an equipment loan through SoFi’s network of lenders are less stringent than other financing types. Depending on the lender, you may only need a minimum credit score of 520 and 12 months or less in business.

Rates, fees and terms

• Loan amount: $5,000 to $5 million
• Interest rates: As low as 7.5%
• Loan term: 1 to 5 years
• Funding time: As soon as 24 hours

3 more financing options

SoFi’s network also covers more business loans and financing, which expands your options even more. It has lenders in its network that offer:

• Business acquisition loans
• Commercial mortgages
• Business credit cards

Business acquisition loans and commercial mortgages are for established business owners only, but they tend to have more competitive rates.

How to qualify for SoFi

To qualify for a loan with one of SoFi’s small business lending partners, you’ll generally need to meet these minimum requirements:

• US citizen or permanent resident
• Live in an eligible state
• Be in business for at least six months
• Have a minimum credit score of 520
• Have a minimum annual revenue of $50,000

However, these are general guidelines only. Each lender has its own eligibility requirements, which can vary widely depending on the type of loan or financing desired.

How to apply

Using SoFi’s marketplace is simple:

1. Create an account with your email.
2. Fill out the form to prequalify online.
3. Review your loan offers, then choose one or more to compare.
4. Apply with the lender of your choice with a formal credit check.
5. Wait for approval and funding.

How SoFi compares to other lenders

Compare SoFi’s rates, terms and features to those of other popular loan providers.

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Updated regularly

Product USFBL	Finder Score	Min. Amount	Max. Amount	APR	Requirements
Olympus Business Capital	Finder score 9 Excellent	$500	$250,000	Not stated	Been in business for 6 months registered with the state, active and open bank account in business name, have $10,000 of revenue each month	No credit needed. Funding up to $250,000 with a variety of finance options to best fit your business needs.	Go to site Compare	loading Fetching your data...
Lendio business loans	Finder score 9.6 Excellent	$1,000	$10,000,000	Varies by lender	Operate business in US or Canada for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.	Submit one simple application to potentially get offers from a network of over 75 legit business lenders.	Go to siteMore Info Compare	loading Fetching your data...
Fundera business loans	Finder score 8.6 Great	$2,500	$5,000,000	Varies based on lenders	$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months	Get connected with short-term funding, SBA loans, lines of credit and more.	Go to siteMore Info Compare	loading Fetching your data...
Fora Financial business loans	Finder score 8.8 Great	$5,000	$1,500,000	Varies	6+ months in business, $25,000+ gross monthly sales, no open bankruptcies	Get qualified for funding in minutes for up to $1,500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.	Go to siteMore Info Compare	loading Fetching your data...
National Funding business loans	Finder score 9.6 Excellent	$5,000	$500,000	Undisclosed	In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.	Working capital loans and equipment financing, some high-risk industries may be eligible.	Go to site Compare	loading Fetching your data...
American Express® Business Line of Credit	Finder score 8 Great	$2,000	$250,000	N/A	Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000	Access lines of credit for your small business even if you aren't currently an Amex customer.	Go to siteMore Info Compare	loading Fetching your data...

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SoFi reviews and complaints

SoFi gets mostly excellent reviews on the Trustpilot from thousands of customers. However, many of these reviews are for SoFi’s personal loans, which most reviewers report being happy with. The customers praise the company for its fast, streamlined application process, fast funding and competitive rates.

While there are less satisfied customers on Trustpilot, unhappy customers report a lack of customer service after funding, rude customer service over the phone or being rejected for a personal loan after being prequalified.

Is SoFi legit?

SoFi’s lending model is a departure from traditional lending, but it’s legit. Here’s some more background:

• SoFi is registered as a national bank, meaning it must meet strict regulatory standards.
• SoFi is authorized to offer an array of online financial services, including:
  • Mortgage loans
  • Credit cards
  • Student loans
  • SoFi Checking and Savings account
  • Life insurance
  • Investments
• SoFi acquired community bank Golden Pacific Bank in June 2021, which could fast-track its bank charter application.

However, SoFi had some trouble in the past. In 2019, it entered a settlement with the Federal Trade Commission (FTC), which accused SoFi of inflating the potential savings while misrepresenting the monthly cost of its student loan refinancing product. SoFi agreed to only make savings claims backed by concrete evidence.

Frequently asked questions

Does SoFi do business loans?

While SoFi isn’t a direct lender of business loans, SoFi has a business loans marketplace where you can compare some of the top lenders in the business space, including Lendio, Funding Circle and Biz2Credit. It’s simple and free to use — with no impact on your credit score. However, if SoFi still doesn’t meet your needs, compare your options with some of the best business loans on the market.

Is it hard to get approved for a business loan with SoFi?

It depends on the type of loan. Some business loans, like SBA loans, require minimum FICO scores in the mid-600s with at least a year or two in business. Other types of financing, like business cash advances, may accept scores as low as 500 and just three months in business — as long as you have sufficient revenue.

Does SoFi do commercial lending?

While SoFi doesn’t offer commercial lending directly, its partners, like Biz2Credit, Lendio and Funding Circle, offer a range of commercial financing options for established business owners.