Dealstruck Dealstruck
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3 5stars

Dealstruck Review

Dealstruck
Rating:
Bottom Line:
Flexible loan rates and terms with a high-tech application process; ideal for profitable businesses whose owners have good credit or better; customer service is lacking

Full Review:
Dealstruck's goal is to find a way to say yes when a bank says no. It uses "crowd lending" to fund its loans; claiming this enables it to provide more flexibility and affordable terms to small business borrowers, it pulls from a pool of high net worth investors and institutions. The service incorporates technology to make the application process fast and intuitive, and it puts an emphasis on personalization.


Types of Loans Available

Dealstruck offers term loans to small business owners in amounts ranging from $25,000 to $350,000. Available APRs vary, but the average falls between 9.99% and 27.99%. Your rate will depend on a number of factors, including your business credit and profitability, the term you select, how much you need to borrow and your credit health. Loans are available to businesses in a broad variety of industries, from manufacturers and wholesalers to retailers and service providers. The loans are meant to be used as quick money to fund long-term business ventures, such as new equipment or staffing. If you aren't sure whether your business is eligible, you can contact Dealstruck to inquire which industries or types of businesses are disqualified from receiving a loan.



Qualifying

In order to qualify for a loan from Dealstruck, you must have been in business for more than one year and be profitable with an annual income of $150,000 or more. Additionally, the primary business owner must have a personal credit rating of at least 600, although sometimes the service will accept scores as low as 550. For verification, you will be required to submit a minimum of three months of your business' banking statements. You can upload these manually or log into your bank account using Dealmaker, the service's secure underwriting application.




Application Process

The online application process for Dealstruck is a bit different than what we've seen from other small business lenders. You must create an account on the website in order to apply. This allows you to use the Dealmaker application, which guides you through providing necessary information about your business in order to complete an application — including tax returns from the past two years, bank information and the credit scores of the primary business owners. You can search for your business using the Cortera database, which provides credit information on private and public U.S. companies, to prefill much of the application or you can choose to enter it manually.


In addition to providing the information already discussed, you will be asked to enter your business contact information, number of years in business, structure and number of employees, as well as choose your industry from a drop-down list. The list includes an "Other" option, so don't worry if you can't find your exact industry. After providing the necessary personal and business related information, Dealstruck's underwriting team and loan specialists will work to create a loan offer that will suit your individual needs. The service puts a lot of emphasis on personalized loan offers, and it strives to turn as few businesses away as possible. If for some reason you don't qualify, the service will even go so far as to try and connect you with one of its partners who can offer you a loan that will work for your needs.

Once a complete application has been submitted, you should receive a response within 48 hours. If approved, you can expect to have your loan funded quickly — sometimes in as little as one week.


Repayment and Fees

Dealstruck offers repayment terms ranging between 12 months and four years (48 months), depending on how much you want to borrow as well as several other factors. Payments are made monthly and there are no penalties for paying your loan off early. Keep in mind, you can only pay via ACH deposit through a bank account, not by check.

In terms of fees, Dealstruck does charge several fees including documentation fees and advance fees if you take an advance, but the amounts for these will depend on your specific contract. Likewise, there is a $20 fee for a failed payment, but late payments and your grace period are determined by your contract. There is also a fee for prepayment, equal to 1% of the loan amount for each year the loan is paid early. For example, if you had a $100,000 loan with a repayment term of two years, and you paid it off after only one year, Dealstruck would charge you a prepayment fee of 1% of $100,000, or $1,000. Finally, an origination fee between 2.99% and 5.99% will be deducted from your total loan amount before it is disbursed to you. Remember to keep this fee in mind when requesting an amount to borrow.


Customer Service and Trustworthiness

Dealstruck offers customer support via telephone, online chat and an online email form. Customer service representatives are available by phone Monday through Friday from 8 a.m. to 5 p.m. PT, and the email form is available 24/7. It should be noted that the online form serves as a message system for Dealstruck's phone service — any questions or comments sent using this form will receive a follow up phone call. We received multiple phone calls after signing up for an account with Dealstruck, as well as after filling out the form. The online chat is a bit different from what we've seen on other sites. After asking a question, you have the option to wait for an answer or provide your email so you can be notified there when an answer has been received. This is different than our experience of speaking with a live representative, but seems effective so long as you don't need an immediate answer.


Unfortunately, we found customer service to be hit-or-miss. Dealstruck's phone representatives were not very knowledgeable or helpful; emails sent in response to a representative reaching out were unanswered and more than one phone call resulted in us being told no one could answer our questions, leading to an inability to learn pertinent information about the service's fees and other policies. The lack of transparency regarding fees in comparison to other business loan services we reviewed was worrisome. We did have good luck with online chat, but overall, the customer service experience with Dealstruck left us mostly frustrated.

In terms of reputation, the BBB has given Dealstruck an A+ rating and it is also accredited with the organization.




Conclusion

Dealstruck offers a high-tech application process and flexible loan rates and terms. However, its customer service is lacking and there is also a lack of transparency when it comes to disclosing fees prior to a loan application that we were disappointed by. That said, the service does have a high BBB rating and business owners will appreciate the lengths Dealstruck goes to in connecting them with a loan that works for their needs — even if it's with a different service.

Compare to Other Small Business Loans

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Service Details

Minimum/Maximum Loan Amount:$25,000 - $350,000
APR:9.99% - 27.99%
Terms Available:12 - 48 months
Origination Fee:2.99% - 5.99%
Minimum Business Age Required:1+ years
Minimum Annual Revenue Required:$150,000
Owner's Credit Rating:600+

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