Business Funding Rating Criteria
Most businesses require funding at some point, whether in the start-up phase, as operations grow and expand, or in times of crisis. Because the quality of lending services can make or break a business, we take our reviews and ratings very seriously, following a precise methodology. Here are just some of the reasons readers can trust the Merchant Maverick rating system:
- Merchant Maverick has been reviewing lenders and funding services since 2015.
- Over the years, we’ve evaluated 150+ funding services, including traditional term loans, online loans, short-term loans, start-up loans, lines of credit, merchant cash advances, and equipment financing options.
- Each review involves 10-15 hours of initial research, followed by 5-10 hours of research for each review update.
- We update our loan and funding service reviews at least every 12 months, though most reviews are updated twice a year, and a few of the platforms most popular with our readers receive quarterly updates.
While we research and compare many loans and funding options, the reviews displayed on the site have been handpicked based on metrics like overall popularity, availability, and quality. The goal is to provide the most actionable and accurate information to our readers, so while we love to recommend great products, we don’t shy away from pointing out the areas where popular providers fall short.
Our expert writers engage in independent research and testing for each loan and funding service review, evaluating interest rates, upfront (and hidden) costs, additional services, business eligibility, availability, credit score requirements, and more. When determining the star rating for a vendor, we score the following areas:
- Rates & Fees
- Services
- Eligibility Requirements
- Application
- Sales & Advertising Transparency
- Customer Support
- User Reviews
Each section’s score is weighted differently, with the highest weights going to Rates & Fees, Services, and Eligibility Requirements. The scores for each section are displayed openly in the review and then combined to create a holistic rating for the product out of 5 stars.
Read on for a more minute explanation of how we determine the individual section ratings.
Note: We use a slightly different rubric to rate lending marketplaces.
Rates & Fees
20% of the total score
The Rates & Fees score is broken into two sections:
- Pricing (50% of the total section rating)
- Affordability (50% of the total section rating)
Our expert reviewer looks at many things when determining this score, including the pricing model, term length, and repayment structure of the funding product, the transparency of any upfront or additional costs, and prepayment penalties, if any.
Services
20% of the total score
The Services score is broken into three sections:
- Lending Services (40% of the total section rating)
- Lending Lending (30% of the total section rating)
- Payment Portal & Mobile App (30% of the total section rating)
When determining the Services score, we evaluate the breadth of any additional lending services, the range of the cash amounts available to borrow, transparency about borrowing limits, and the availability of an online portal for loan management.
Eligibility Requirements
20% of the total score
The Eligibility Requirements score is split into three sections:
- Availability (30% of the total section rating)
- Borrower Qualifications (50% of the total section rating)
- Transparency (20% of the total section rating)
Our expert reviewers begin by looking at the nationwide availability of the funding product. Some loans are only available in certain states or territories, for example. Then, we examine industry and time in business requirements, minimum revenue requirements, credit score qualifications, and the transparency in which eligibility requirements are communicated to the potential borrower.
Application
15% of the total score
In this section, we score two different areas:
- Application Process (50% of the total section rating)
- Application Timeline (50% of the total section rating)
Our reviewer looks carefully at the ease and transparency of the application process, checking to see if the application is easily found on the vendor website, for example, and if instructions for completing the application are clear. Then we look at the average time taken to process borrower applications, comparing it to industry standard. Lastly, we research the length of time between application approval and funding.
Sales & Advertising Transparency
10% of the total score
This section is broken into two sections:
- Sales Practices (60% of the total section rating)
- Web Presence (40% of the total section rating)
Since some funding products, such as merchant cash advances, can be predatory to unsuspecting business owners, we take this section very seriously. Our expert reviewer looks into the sales practices used to advertise loans and lending products, looking at the reputation of the lender and ensuring there are no underhanded or shady tactics at play. We also check to ensure that the website of the lender or funding product is up to date, clear, and transparent about fees, rates, extra costs, and repayment terms.
Customer Service
10% of the total score
The Customer Service score is broken down into two sections.
- Personal Support (50% of the total section rating)
- Self-Service (50% of the total section rating)
When scoring customer service, we pay the most attention to the number of support options available (phone, email, in-person, etc.) and the quality of personal support received.
User Reviews
5% of the total score
The Customer Reviews score is comprised of two sections.
- User Feedback (30% of the total section rating)
- Review Site Aggregate (70% of the total section rating)
We scour the internet for user feedback on all the products we review, looking for positive and negative feedback. Merchant Maverick is not a user review platform, so for part of this total rating we rely on aggregate user scores from review sites such as The Better Business Bureau, TrustPilot, and more.
