Looking for loans given at low credit scores? Accion’s Low Credit Business Loans are here to help you with that. Their unique user-friendly approach is something that makes them stand apart from other lending organizations. It offers loans to small businesses needing capital to build their business and thrive.
This article will offer an in-depth analysis of the essential details associated with the Accion Credit Business Loans.
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Accion Small Business Loans
Accion Opportunity Fund is a non-profit organization offering to assist individuals and entrepreneurs with varying rates depending on their needs and repayment plans.
The minimum amount of Loan that can be borrowed is $5,000 all the way to up to $250,000. The amount is given at transparent terms with no prepayment penalty.
The best part about this loan is that it doesn’t assess your repayment capacity based on your credit score, rather it takes other factors into account as well to check the viability of the business.
Accion Small Business Loan Eligibility Criteria
Before applying for the loan make that you satisfy the following conditions:
- Having enough income source(s) that can repay the loan amount.
- Even for the ones who have a low credit score having a personal score of 575 would help you get qualified for the loan.
- The business for which the candidate is applying loan for is required to be at least operating for 12 months before the application.
- Businesses should have an average annual revenue collection of $50,000.
- It is required for the applying candidate to provide a sales forecast or income projections for their business.
Accion Small Business Loans: Application Procedure
To apply for the Accion Small Business Loans follow the steps given as follows:
- Visit the Application page of the Accion Small Business Loans.
- Fill in the application form with appropriate details and other credentials about you and your business.
- Provide supporting documents(if any).
- Await the Accion’s response.
Following are some of the documents that you might require in your later steps, these can be:
- Personal tax returns
- Business tax returns
- Business plans
- Bank statements
- similar documents to back up your financial claims.
Generally, the application can get assessed and the disbursement of the loan can take place after 15 days. Candidates can always talk to a representative of the Accion to clarify doubts or to learn about the status of their application.
Accion Small Business Loan: Interest Rates, Repayment Terms, Directed Use of Loan Funds
Other than learning about the eligibility criteria and application procedure it is also essential to have a look at the Repayment terms of the company and other details.
Accion’s target customers mainly include owners from diverse backgrounds such as minorities, women, etc. Interest rates range from 5.99% to 25.99% Annual Percentage Rate. However, these may vary based on factors like loan application, credit score, and similar factors.
Loan terms offered by Accion are quite flexible and are to the customer given based on the repayment capacity of the individual. These terms can be availed in 12, 24, 36, or 60 months.
An origination fee may be charged which can be charged which can be somewhere between 3% to 5% of the amount borrowed. In certain cases, Accion can demand some form of collateral from the borrower as a guarantee.
Repayment terms for the loans offered by Accion are accommodated with great flexibility as per the needs and capacity of the clients. For example, the length of the loan duration ranges between 12 to 60 months.
Repayment of the loan amount should be made in monthly installments to ensure and maintain a consistent payment schedule. Another great aspect of Accion’s payment scheme is that there are no prepayment fees imposed on the borrowers in case of returning the complete loan amount at once.
Borrowers can pay their monthly installments via direct bank transfer, digitally, or over the phone.
Directed Use of Funds
Accion’s main aim behind providing loans to business owners is to help them invest money in their business, thus the borrowed amount comes with certain restrictions which dictate the areas where the candidate is allowed to spend their money, thus the area of expenditure includes:
- Working Capital
- Purchasing Goods
- Expansion or Renovation
- Debt Refinancing
- Marketing or Advertising
Comparing Accion with other Financiers
Other companies and loan providers are also essential to be looked at before considering Accion as your final loan financier. The table provided below will help you understand and compare Accion with other financial institutions in terms of their interest rates, credit score, etc.
|Lowest Listed Rate
|Min./Max. Loan Size
|Min. Credit Score
|Up to $5 million
|Up to $5 million
|4.66% draw rate
|Up to $150,000
|4.66% draw rate
|Up to $150,000
|2% monthly fee