The Credit Junction Review
With so many new Fin-Tech companies popping up in the business lending space, The Credit Junction certainly stands out for asset based business loans. They offer Asset Based Loans to small businesses and midsize businesses (SMES). Utilizing a tech enabled platform for underwriting and fast decision making they will get you answers quickly. A major differentiator for The Credit Junction style of asset based lending is underwriting loans using traditional methodology, just a little more quickly than most other traditional lenders.
Here is our review of The Credit Junction
Based off of a small business owners (MRKT Client) experience working with The Credit Junction. If you are looking for a loan from The Credit Junction feel free to contact us so we can help make sure you get the best possible deal, or you can apply for an asset based loan here. There are a lot of web based lenders popping up and they all have strengths and weaknesses, allow MRKT to help you navigate which lender is best for you.
- Quick Business Funding Decisions - The Credit Junction uses a series of algorithms for underwriting and a tech enabled application and lending platform. This provides for quick business lending decisions. They are one of the faster groups with a real Asset Based Loan offering. According to their website they aim to fund in as little as 14 days.
- Traditional Business Loan Underwriting - With a staff of experienced lenders they are still underwriting deals with a traditional mentality. This is good for the borrower for a few reasons. It keeps costs low as they are properly managing risk, and they stick to industry standard processes that you will be familiar with.
- Pricing is Fairly Competitive - Depending on the size of your loan request their pricing is competitive. If you are looking for a loan greater than $2,500,000 you may still find better pricing from a more traditional lender. Pricing according to their website is from 14%-19%.
- Lack of Local Representation - The Credit Junction Teams have offices in NYC(1460 Broadway 10th floor New York, NY 10036) and in DC(718 7th St NW 3rd floor Washington, DC 20001). Outside of those two locations they are working with Brokers and advisors to distribute and market their business loan products. Service is still strong via phone or email, but if you are looking for an in person meeting a local lender may be a stronger option for you.
- Lack of Flexibility - Like most Fin-Tech or Tech Enabled platforms they are built for scale. Offering too much flexibility in underwriting and processes makes it challenging to scale. That being said, you will find their offering to be quite favorable in regards to processes and procedures.
- Lending Limits - According to their website they offer credit facility from $500,000 - $5,000,000. I would imagine their sweet spot is somewhere between $500,000 and $1,500,000.
Top Credit Junction Competitors
As a lower middle market Asset Based Lender there is tons of competition to fund small business growth. As you narrow down what The Credit Junction is really good at there are few that do it as well as they do. There are a few competitors that stick out. In no particular order here are three lenders that compete with them. Interested in securing the best loan for your business? Speak to a MRKT representative today.
- Dealstruck - Dealstruck provides business term loans and business lines of credit. Pricing may be slightly higher, however they are more interested in the smaller deal space. Dealstruck is taking on loans from $20,000 - $250,000. A similar technology enabled underwriting platform for quick decisions, Dealstruck is probably the least flexible of the three.
- Dwight Funding - Dwight Funding is known for their expertise as Asset Based Lenders. The founders come from a strong history in lending providing them with know-how to structure creative deals and get them done quickly. They are a MRKT favorite when it comes to lower middle market Asset Based Loans from $500k - $5,000,000. While pricing is competitive with The Credit Junction, time to close may be a little slower. The biggest benefit of Dwight Funding is flexibility and traditional lending experience.
- Fundation - Fundation will look at similar loans to The Credit Junction but their credit box is slightly different. Fundation is more focused on cashflow loans or cash advances(some call them merchant cash advances) and they have a specific formula they follow. While they play with the same size companies their focus to deploy their capital is slightly different. Pricing may be slightly higher but deals get done more quickly.
MRKT Conclusion on The Credit Junction
With dozens of Fin-Tech companies jumping into the online lending space The Credit Junction has done a great job marrying traditional Asset Based Lending strategies with a tech enabled offering. Working with The Credit Junction you will get quick answers and access to a business loan that is meaningful to your business. They are also actively involved with sbe council (small business entrepreneurship council), We are excited to continue watching these guys to see how they develop. MRKT hopes to see them increase their offering to take a more holistic approach to business lending. If you are in need of a business loan let MRKT help you secure the right type of financing. Speak to a MRKT representative for more information. You can begin here.