Everest Business Funding Review: A Good Loan to Try or Not?

Securing funding can be challenging for small businesses, especially those needing quick cash flow solutions. Everest Business Funding has positioned itself as a key player in the alternative financing market, offering merchant cash advances and short-term loans. With a simple application process and fast funding, it has attracted attention. But are Everest loans worth your time? It’s important to do a review of Everest Business Funding first before trying out their loans.

Overview of Everest Business Funding

Everest Business Funding specializes in alternative financing, providing merchant cash advances (MCAs) to small and medium-sized businesses. Founded in 2015 in Doral, Florida, the company serves businesses across all 50 states and Washington, D.C. Everest loans cater to industries like retail, hospitality, and services, focusing on fast, accessible funding for short-term needs.

Key Features of Everest Loans

Everest funding options range from $5,000 to $500,000, with loan terms between 2 and 12 months. Unlike traditional loans, these advances are unsecured, meaning no collateral is required. Repayment occurs daily, tied to a percentage of a business’s revenue, providing flexibility for companies with fluctuating income.

Loan Eligibility and Application Process

Requirements for Everest Loans

Everest finance products are designed for accessibility, with relatively lenient eligibility criteria:

• Time in Business: At least 3 months.
• Credit Score: Minimum of 500.
• Revenue: At least $5,000 monthly ($10,000 annually).
• Other Documents: Business bank account, recent bank statements, and Tax ID.

Everest business funding caters to businesses with lower credit scores, making it a good option for those who may not qualify for traditional loans. However, applicants should note that Everest performs a hard credit pull, which can impact credit scores.

Application Speed and Funding

Everest funding aims to deliver fast results, approving applications within one hour in some cases and disbursing funds within seven business days. This speed makes it an attractive choice for businesses facing urgent financial needs.

Everest Finance Products: What’s on Offer?

Everest focuses exclusively on merchant cash advances, a funding solution where businesses receive a lump sum in exchange for a portion of future sales. MCAs offer:

• Loan Amounts: $5,000 to $500,000.
• Terms: 2 to 12 months.
• Repayment Method: Automated daily deductions through ACH transfers.

Factor rates for Everest loans range between 1.2 and 1.5, influencing the total repayment amount. For example, a $100,000 advance at a 1.25 factor rate would require $125,000 in repayment.

Everest Business Funding’s Strengths and Limitations

Strengths of Everest Loans

Speed

One of Everest Business Funding’s standout strengths is the speed at which it processes applications and disburses funds. Businesses in urgent need of cash can benefit from same-day approvals, with funds often reaching their accounts within seven business days. This rapid turnaround makes Everest ideal for businesses facing unexpected expenses or temporary cash flow gaps.

Flexibility

Everest loans use a revenue-based repayment model, where repayments are tied to daily business income. This structure is particularly advantageous for businesses with fluctuating revenues, such as seasonal businesses or industries like retail and hospitality. Repayments automatically adjust to your income, providing breathing room during slower months.

Accessibility

Unlike traditional lenders, Everest Business Funding welcomes applicants with lower credit scores, requiring a minimum personal FICO score of just 500. This inclusivity makes it a viable option for startups, sole proprietors, and businesses that may struggle to meet the stricter criteria of conventional loans. Everest also requires minimal paperwork, streamlining the application process for busy entrepreneurs.

Limitations of Everest Loans

Transparency

One significant limitation is the lack of upfront clarity about rates and fees. Everest does not disclose its exact factor rates during initial inquiries, making it difficult for borrowers to gauge the cost of funding beforehand. This lack of transparency could lead to surprises when loan terms are finalized.

Prepayment Penalties

For businesses hoping to save on interest by paying off their loans early, Everest funding reviews reveal a drawback: prepayment penalties. These fees can diminish or eliminate the financial benefits of early repayment, a feature that borrowers should carefully consider before signing a contract.

Communication

Some clients have noted issues with communication during the loan approval process. Complaints include changes to the approved loan amount without prior notice and unclear repayment terms. While Everest excels in speed, its customer service could benefit from improved clarity and consistency to better support its clients.

Who Should Consider Everest Funding?

Suitable Businesses

Businesses with Seasonal Cash Flow

Industries like retail, hospitality, and tourism often experience revenue fluctuations. Everest’s revenue-based repayment model is perfect for these businesses, as it adjusts repayment amounts in line with daily sales. This flexibility ensures that payments remain manageable, even during slow periods.

Startups and Sole Proprietors

New businesses and sole proprietors often struggle to secure funding due to limited credit history or assets. Everest’s lenient eligibility requirements, such as a minimum of three months in business and a low credit score threshold, make it a strong contender for such enterprises.

Businesses in Urgent Need

Everest loans are ideal for businesses facing immediate financial challenges, such as purchasing new inventory, repairing equipment, or covering unexpected costs. The quick approval and disbursement process allows businesses to access funds when they need them most.

Unsuitable Scenarios

Long-Term Loans

Businesses seeking loans with extended repayment periods may find Everest’s terms insufficient. Loan terms max out at 12 months, which could result in higher monthly repayments. Companies needing longer-term financial solutions might consider traditional banks or lenders offering multi-year loan terms.

Lower Interest Rates

Merchant cash advances, Everest’s primary product, typically carry higher costs than traditional loans. Businesses focused on minimizing financing expenses should explore options like SBA loans or lines of credit, which usually offer lower interest rates.

Everest Funding vs. Competitors

Everest loans compare favorably to other alternative lenders in terms of speed and accessibility. However, competitors may offer more transparent rates, a wider range of products, and soft credit checks during prequalification. For businesses unsure about MCAs, exploring traditional financing options or other lenders may provide better terms.

Verdict: Choose Everest for Urgent, Short-Term Needs

Everest Business Funding is best for businesses that value quick access to capital and flexibility over traditional loan terms. If you need funds fast and can accommodate higher costs or short repayment periods, Everest loans could provide the support you need. For those seeking lower rates, long-term financing, or a more transparent lending process, exploring other options is highly recommended. Everest’s offerings can be powerful tools when used for the right purpose, but diligence and comparison shopping will ensure your funding decision reaches new heights.