Founded in 2013, QuarterSpot Inc. provides short-term loans of up to $250,000, with qualifications evaluated within minutes and money available in less than 24 hours.
QuarterSpot loans carry no prepayment fees or penalties. Qualification requirements are relaxed to accommodate business owners with moderate credit ratings. However, repayment rates are relatively high.
Consider QuarterSpot if you:
- Need a short-term loan (terms up to 18 months) of $5,000 to $250,000
- Are generating about $200,000 or more a year in revenue
- Have a personal credit score of 550 or higher
QuarterSpot offers short-term loans with fast approval for small business owners with modest revenue and credit ratings. QuarterSpot financing features:
- Loans from $5,000 to $250,000
- Loan terms of up to 18 months
- Factor rates (instead of interest rates), meaning you repay the amount you borrowed plus an additional flat fee
- Origination fees
- No prepayment penalties, with your payments going toward paying both principal and factor rates (fully amortizing) and no extra fees if you pay off early
- Personal guarantee as collateral, meaning your personal assets can be seized if you don’t repay your loan, plus QuarterSpot reserves the right to place a lien on your business assets if you default
Unlike some lenders, QuarterSpot uses factor rates instead of interest rates. In contrast to an interest rate, where the amount you have to pay varies over time with the amount of principal you still owe on your loan, a factor rate is a flat fee calculated up-front and expressed as a multiplier of your original amount (such as 1.1) or as a percentage added to your original amount (such as 10%).
For instance, if you borrow $10,000 at a factor rate of 10%, you must repay $11,000.
As with many lenders, QuarterSpot doesn’t list its factor rates on its site. According to third-party reviewers, QuarterSpot’s factor rate ranges from about 10% to 40%. Short-term loans tend to be more expensive than long-term loans because of lower qualifying requirements, which represent a higher risk to the lender.
QuarterSpot Lending Experience
QuarterSpot uses an easy online application process that walks you through a series of screens:
- First, you will be prompted to enter some basic contact information and information about your business, including information about how many years you’ve been in business, your sales per month and your personal credit score
- You will then be prompted to verify the information you entered using a valid identification (ID), voided check, your 3 most recent business statements and your latest business tax return
- If you qualify, you will receive an offer within minutes
- You will then be required to enter into a legal contract
- Finally, if you are approved funding will become available within 24 hours
The QuarterSpot application process uses a soft pull on your credit rather than a hard pull. This means that your application won’t appear on your credit report and will not affect your credit rating, unlike a hard pull which can lower your credit score. Instead of using a hard pull on your credit, QuarterSpot uses a secure online portal to review your bank transaction data. QuarterSpot treats this information as a real-time profit and loss statement to evaluate the creditworthiness of your business.
The application process is quick. You will normally find out if you qualify within minutes. If you are approved, funding should become available within 24 hours.
The Pros of QuarterSpot
QuarterSpot offers a number of advantages to borrowers:
- You can receive funding even if you only have a moderate credit score
- Applying won’t hurt your credit rating
- The approval and funding process is fast
- You have the flexibility to repay your loan without prepayment penalties
The Cons of QuarterSpot
On the other hand, QuarterSpot users should be aware of potential cons:
- Repayment rates are higher than long-term loans
- Your personal and business assets may be at risk if you default on your loan
You can read both positive and negative QuarterSpot reviews on the Better Business Bureau’s website.
Requirements for QuarterSpot
You stand the best chance of getting approved for a QuarterSpot loan if you meet these conditions:
- Time in Business 1+ Years
- Personal Credit Score 550+
- Average Daily Balance $2,000+
- Monthly Revenue $16,000+
What You Need to Apply
To apply for a QuarterSpot loan, you need:
- A valid ID such as a driver’s license
- A voided business check
- Your last 3 business statements
- Your most recent business tax return
Final Say: QuarterSpot Reviews
Overall, QuarterSpot is a viable option for small business owners who are generating good revenue, have a moderate credit rating and don’t mind paying higher repayment rates to obtain short-term capital.
If you haven’t yet started generating sufficient revenue to qualify, or if you want a lower repayment rate, other options may be better suited to your needs.