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Pros
Cons
Backd Features
Backd offers higher borrowing limits than most other online lenders in the small business funding space. You can get a working capital loan between $10,000 and $2 million or a business line of credit between $10,000 and $750,000. Backd offers a choice of repayment terms between six and 12 months for lines of credit and between four and 16 months for working capital loans. Repayment begins immediately, and you can choose daily, weekly, or semi-monthly payments for working capital loans. Draws from a business line of credit are repaid in weekly installments.
Backd Working Capital Loan Features
| Term length | 4 to 16 months |
| Repayment period | Immediate |
| Min - Max amount | $10,000 to $2 million |
Backd Business Line of Credit Features
| Term length | 6 or 12 months |
| Repayment period | Immediate |
| Min - Max amount | $10,000 to $750,000 |
Backd Interest Rates and Fees
Some common fees that lenders sometimes charge include origination fees, maintenance fees, and late payment fees. Backd doesn’t disclose any of its fees or interest rates. The good news is, you can easily check your individual rate without hurting your credit. It only takes a few minutes and only requires a soft credit pull. Once your rates and fees are disclosed, you can decide whether or not you’d like to move forward with the loan. And like other lenders, the better your credit score, the better your rate will be.
Backd Qualification Requirements
To get a working capital loan or line of credit from Backd, you’ll need to be an established U.S. business with a brick-and-mortar address, one year of business history, and established business credit. You’ll also need $100,000 in annual revenue.
However, if you don’t meet those requirements, Backd may still work with a third-party lender to fund your loan. In that case, qualification requirements vary depending on if you’re applying for a working capital loan or line of credit.
Additionally, there are a few restricted industries that Backd won’t work with. These include:
- Financial Services
- Consulting Services
- Real Estate Services
- Legal Services
- Government or Non-profit Agencies
- Flea Markets / Conventions
- Adult Entertainment
- Cannabis
Backd Working Capital Requirements
You’ll just need one year of business history, a business bank account, and $100,000 in minimum annual revenue to qualify for a working capital loan.
| Minimum Credit Score | Undisclosed |
| Minimum Annual Revenue | $100,000 |
| Minimum Time in Business | One year |
| Other requirements | U.S.-based business with business bank account |
Backd Business Line of Credit Requirements
At a minimum, you’ll need at least a 600 FICO score, one year in business, a business bank account, and $300,000 in annual revenue.
| Minimum Credit Score | 600 |
| Minimum Annual Revenue | $300,000 |
| Minimum Time in Business | One year |
| Other requirements | U.S.-based business with a business bank account |
Backd Business Funding Application Process
Once approved for a loan from Backd, funding can happen in as little as 24 hours. While Backd will run a hard credit check during the process, the application begins with a soft credit pull. You’ll start by checking your rate by clicking “Apply Now” from the Backd website.
Next, select the type of loan you’re looking for. On the following page, you’ll select the approximate amount you’d like to borrow. And finally, Backd will ask you how you’ll use the funds.
The next step is to tell Backd about how much revenue your business earns so they can match you with the right loan.
You’ll enter your personal information, including your name, address, date-of-birth, and social security number. By proceeding, you’re opting in to receiving communications from Backd.
You’ll then enter your business details and financial information before viewing your individual rate. If you choose to proceed with your application, you’ll enter the compliance and verification stage. You may be asked to upload additional documents, such as tax returns for your business. At a minimum, you’ll need to provide three months’ worth of bank statements and proof of ownership during the application process.
Finally, you’ll have a funding call with a member of Backd’s team before receiving your payout.
Backd Customer Support
Backd customer support is only available during business hours. You can reach a Backd representative at 737-256-7458 on weekdays between 8am and 5pm ET. You can also reach Backd through the lender’s online form. Email communications from the team will come from info@backd.com.
Backd Online Reviews
Backd has glowing customer reviews on Trustpilot and is also an accredited business with an A+ rating and great reviews with the Better Business Bureau. Many customers call out Backd representatives by name and report that they are friendly, professional, and communicative. Customers also say the loan process is quick and efficient and the pricing is excellent. However, one reviewer mentioned payment processing problems that created headaches.
| The positive reviews are related to | The negative reviews are related to |
| Friendly and professional customer service team | Payment processing issues |
| Quick and efficient application process | |
| Excellent pricing |
Backd Perks and Bonuses
Flexibility
Backd offers flexible payment terms for working capital loans, allowing you to choose whether you make the payments daily, weekly, or semi-monthly. However, unlike some other lenders, Backd does not offer payment deferrals in the event of financial hardship. The lender also doesn’t offer any discounts or rewards to borrowers.
Transparency
Though the information available on the Backd website is clear and easy to understand, important details are missing, such as the lender’s range of APRs and schedule of fees. But Backd doesn’t have any history of complaints regarding poor sales practices. In fact, borrowers have great things to say about the company and the team on third-party websites.
Technology
While Backd offers an online application, a phone call is still required to receive funding. Furthermore, the lender doesn’t offer a mobile app, and it’s unclear whether borrowers can manage their loans online or enroll in Autopay.
Backd Alternatives
Fundbox
Fundbox offers business lines of credit for a variety of purposes, but limits are capped at $150,000. The lender offers the same fast funding as Backd, with funds available as soon as the next business day. You’ll need a 600+ FICO score, just like with Backd, but you’ll only need $100,000 in annual revenue to qualify. Rates start at just 4.66% for Fundbox lines of credit, but the lender offers shorter repayment terms than Backd. You can select a 12 or 24-week repayment term.
Final Thoughts
Since Backd offers relatively high limits and has stricter revenue requirements than other companies, the lender is best for large small businesses with high borrowing needs. The lender offers many benefits, including fast funding, flexible repayment terms, and great customer service. However, you need to provide your personal information to get an estimate of the borrowing cost, since the lender doesn’t disclose the APR range or fee schedule for either of its loan products. Still, since it won’t hurt your credit, it’s worth checking your rate with Backd, especially if other lenders can’t offer the amount you need.
