Through Ready Capital small business owners and entrepreneurs can access affordable, long-term SBA loans to start or expand their businesses.
WRITTEN & RESEARCHED BY
Lead Staff Writer
Last updated onUpdated
REVIEWED BY
Lead Staff Writer
| Total Rating | 3.5 |
|---|---|
| Rates & Fees4.4 | |
| Services4.3 | |
| Eligibility Requirements3.7 | |
| Application2.3 | |
| Sales & Advertising Transparency3.8 | |
| Customer Service2.1 | |
| User Reviews2.1 | |
Table of Contents
Ready Capital, a subsidiary of as ReadyCap Lending LLC, is a non-bank lender that specializes in Small Business Administration loans, USDA lB&I loans, and commercial real estate loans.
Ready Capital offers SBA 7(a) loans, though the company unfortunately no longer advertises SBA 504 loans. Ready Capital is the nation’s #4 SBA preferred lender and has a proven track record with over $1.6B of SBA funds delivered, plus over $5.4B in other funding types provided in 2021 and $4.8B provided in 2022 (we assume the 2023 numbers aren’t in yet since we’re still in Q1 at the time of this review update).
Ready Capital has a reputation for helping small business owners receive affordable loans with low rates, longer terms, and more flexibility than other options on the market today, making it a worthwhile contender if you’re in the market for SBA or commercial real estate loans.
| Services4.3 |
|---|
| Lending Services 5.0 |
| Lending Limits 5.0 |
| Payment Portal & Mobile App 2.5 |
Ready Capital provides SBA loans and a large selection of commercial real estate loans. Borrowing amounts are competitive and fit a wide variety of business needs. The only downside is that there are no mobile apps offered by Ready Capital, resulting in a section rating of 4.3/5 stars.
Through the 7(a) program, you can use your funds for almost any business purpose, including purchasing or refinancing commercial real estate, consolidating high-interest debt, acquiring a business, buying a franchise, purchasing equipment, or funding startup costs.
USDA B&I loans are designed for “underbanked” rural communities that need more flexible lending options, who otherwise may not qualify for an SBA loan, or want to save their SBA qualification for a different business funding need.
Ready Capital offers the following types of commercial real estate funding:
If you opt for a commercial real estate loan, don’t forget to check out our content on the cost segregation tax credit to see if your business is eligible for significant savings on your tax return.
| Eligibility Requirements3.7 |
|---|
| Availability 4.5 |
| Borrower Qualifications 3.5 |
| Transparency 3.0 |
Ready Capital does not provide all borrower requirements for its loans directly on its website. However, the lender states that the debt service coverage ratio (DSCR) for its SBA loans should be 1.15 to 1.30, depending on how loan proceeds will be used and the borrower’s industry. Learn more about calculating DSCR and how lenders use it.
Additional borrower qualifications are available from the SBA. The SBA sets basic requirements for its loan programs, and this information is readily available on the association’s website, which can be accessed via Ready Capital’s site.
Learn more about the requirements for each program below.
Waives packaging fees for veterans.
To qualify for the SBA 7(a) loan program, you must meet the following requirements:
In addition to your personal credit score, your credit history will be evaluated. Your credit report should be free of liens, bankruptcies, foreclosures, and defaults on government-backed loans.
Collateral may be required to secure your loan. Business assets typically serve as collateral. However, personal real estate or property may be used as collateral if you fall short. It’s also important to note that the SBA will not turn down applications solely based on a lack of collateral, provided the borrower meets all other requirements.
USDA B&I loans have more flexible requirements than SBA loans. To qualify for this type of lending, you need to be a part of a rural community with less than 50,000 people and your business must occupy at least 51% of the property or building you’re looking to get a loan for.
Commercial real estate loans with Ready Capital vary in terms of borrower requirements. DSCR can range from 1.10x – 1.40x and collateral is often required. Luckily, Ready Capital is much more transparent than other lenders, so you’ll be able to find most of the information you need on their website.
You’ll want to pay particular attention to the asset types required for collateral on each type of commercial real estate lending option in order to choose the right one for your business. You can also contact a Ready Capital lending agent for additional support.
| Rates & Fees4.4 |
|---|
| Pricing 5.0 |
| Affordability 3.8 |
Ready Capital is much more transparent with its rates and fees than other lenders. While not all information is disclosed (for example, Ready Capital doesn’t give any interest rate information), you’ll still find most of the loan terms and fees information on their site.
Ready Capital does not provide much information about SBA loan terms and fees on its website, but you can find most of this information on the SBA’s website.
For SBA 7(a) loans, you can borrow $350,000 – $7,000,000 with loan terms up to 25 years. There are no prepayment penalties and you can roll your closing costs into the loan if needed. One stand-out feature of Ready Capital is that the company waives packaging fees for veterans.
One of the best things about SBA loans is that maximum rates are set by the SBA, keeping them affordable for small business owners. Take a look at the loan rates for SBA 7(a) and 504 loans for current interest rates.
SBA partners such as Ready Capital may also charge their own fees, such as closing costs, referral fees, packaging fees, or others. All fees, interest rates, and terms can be discussed with a professional at Ready Capital.
For USDA B&I loans, you can borrow $1,000,000 – $10,000,000 with loan terms from 10-30 years. There’s not much information about USDA B&I fees.
Luckily, there is much more information regarding fees when it comes to Ready Capital’s commercial real estate loans.
Ready Capital has detailed website pages for each type of commercial real estate loan it offers that cover most of the information regarding rates and fees for each loan. The only information not disclosed is interest rates.
Here is a quick breakdown of the main fees for each Ready Capital commercial real estate loan:
| Loan Type | Borrowing Amount | Loan Term | Fees |
|---|---|---|---|
| Commercial Bridge | $5M – $75M+ | Up to 5 years, extensions available | Origination 1%, exit 0.25%, extensions 0.25% |
| Multifamily Bridge | $5M – $75M+ | Up to 5 years, extensions available | Origination fee 1%, exit 0.25%, extension 0.25% |
| Freddie Mac | $1M – $7.5M | 5,7, 10, or 20 years | Origination 1%, legal fees capped at $10k |
| Solution Capital | $5M – $75M | Open with minimum interest | Not disclosed |
| Bridge-To-Agency | $1M – $7.5M | up to 2 years, extensions available | No origination, legal fees may apply |
| Note-On-Note Financing | $5M – $75M | 2 years, extensions available | Not disclosed |
| Construction Finance | $5M – $75M | 12-36 months, extensions available | Interest unknown, origination 1-2%, exit 1-2%, extension 0.5%-1% |
| Residential Finance | $5M – $20M | 12-36 months, extensions available | Interest unknown, origination 1-2%, exit 1-2%, extension 0.5%-1% |
| Affordable Multifamily | $3M – $100M+ | Not disclosed | 1-2% |
| Application2.3 |
|---|
| Application Process 3.0 |
| Application Timeline 1.5 |
To start the application process with Ready Capital, you can submit a quote request through the company’s website. You need to provide a small amount of personal information on the request form, including your name, email address, phone number, city, and state. You can also type a message on this form to provide additional details of your request.
Once you’ve submitted your request, a representative will contact you to discuss the financial products that may be a good fit for your business. If you decide to move forward with a loan, you’ll receive more details on the application process, qualification requirements, and documentation needed to complete your loan request.
Unfortunately, Ready Capital does not provide much information about the application process itself, resulting in a 2.3/5 star rating for this section. Timelines for SBA loans are likely long. Timelines for commercial real estate loans vary, but closing date and funding information is available on Ready Capital’s website.
| Sales & Advertising Transparency3.8 |
|---|
| Sales Practices 3.0 |
| Web Presence 5.0 |
Ready Capital is about average when it comes to sales and advertising transparency. The company does provide some basic information about its loans, including the types of loans available, how funds can be used, maximum borrowing limits, and some borrower requirements.
Ready Capital’s website does not fully disclose all interest rates, fees, and borrower qualifications for its loans. However, it links to the SBA website, which provides a great deal of information and resources for small business owners new to SBA loans.
| Customer Service2.1 |
|---|
| Personal Support 1.8 |
| Self-Service 3.0 |
Prospective and current customers can contact Ready Capital through its website, which has separate secure forms for requesting quotes and general inquiries.
Its parent company, Ready Capital, is also on social media and shares current news and updates through its Facebook, Twitter, Instagram, and LinkedIn profiles.
However, the number of customer support options available are quite lacking compared to other lenders resulting in a 2.1/5 star rating for this section.
| User Reviews2.1 |
|---|
| User Feedback 2.0 |
| Review Site Aggregate 2.2 |
Ready Capital has very mixed online reviews, though most of them have to do with the company’s participation in the now-defunct Paycheck Protection Program (PPP). Most fintech lenders were not equipped or prepared to handle the massive demand for PPP loans in 2020 and 2021. Therefore, PPP-related complaints about an online lender aren’t necessarily reflective of that lender’s quality as a whole.
Ready Capital gets a D- on the BBB with a 1/5 star rating and is not accredited by the BBB. Ready Capital does far better on third-party review sites, with a 3.4/5 star rating on TrustPilot, resulting in a 2.2/5 star review site aggregate rating.
Ready Capital’s negative reviews primarily have to do with the following issues:
There are also positive reviews online for Ready Capital. Ready Capital also has customer testimonials on its website. Overall, customers are pleased with:
Ready Capital offers an impressive number of commercial real estate lending options with transparent rates and requirements, low fees, and large borrowing amounts. The company also offers SBA loans and is a preferred SBA lender with a proven track record of successful small business funding.
The downsides of Ready Capital are that the company’s customer support is lacking, information about the application process is lacking, and there are less positive reviews than we like to see. The company has also stopped offering SBA 504 loans since our last review, making it less of an SBA lending powerhouse than it used to be.
That being said, Ready Capital can still be a good option, especially for commercial real estate loans. If you want to check all your options, see how Ready Capital compares to the best small business loans or the best SBA loans.
Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.
Read more about how we rate business loans and funding products.
When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.
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