How FundBizPro rates lenders — last reviewed May 2026
The FundBizPro Efficiency Score rates a lender on four dimensions: Speed, Cost, Accessibility, and Transparency. Each dimension is scored independently on a 0–10 scale. The composite score is a simple average of the four:
Scores are displayed as X.X / 10, rounded to one decimal place. A score of 7.0 or above indicates a lender that performs well across most dimensions for most borrowers. Scores below 5.0 typically reflect a structural trade-off — high cost, restricted access, or opaque terms — that borrowers should understand before applying.
Small business lending has a disclosure problem. Lenders routinely quote factor rates instead of annual percentage rates (APR), making direct cost comparison impossible without doing the conversion yourself. A factor rate of 1.35 can represent an APR of anywhere from 35% to over 200% depending on the repayment term — and most lender marketing does not clarify this.
Fee disclosure is equally inconsistent. Origination fees, draw fees, monthly minimums, and prepayment penalties are sometimes buried in term sheets or disclosed only after a credit pull. Renewal terms — which can reset the effective cost of capital significantly — are rarely disclosed before signing.
Borrowers comparing two lenders on the basis of their marketing materials are often comparing incompatible numbers. The Efficiency Score converts published lender terms into a single, consistent benchmark across all four dimensions, on the same scale, using the same definitions.
Time from completed application to funds in account
Speed scores reflect the lender's typical time-to-fund based on published timelines, verified customer reviews, and direct research. “Typical” means the median experience for an approved borrower with a complete application — not the fastest possible case.
| Score | Funding Timeline |
|---|---|
| 9–10 | Same-day or next-business-day funding |
| 7–8 | 2–3 business days |
| 5–6 | 1–2 weeks |
| 3–4 | 2–4 weeks (typical for SBA 7(a) loan programs) |
| 0–2 | 4+ weeks, or no published timeline available |
Note: SBA 7(a) loan programs score in the 3–4 range by design — the underwriting process is more thorough, which is reflected in lower rates. Speed and Cost dimensions are inversely correlated for most products.
Effective APR benchmarked against Federal Reserve small business loan averages
All cost comparisons are made on an APR basis. When a lender quotes a factor rate, we convert it to APR before scoring using the standard formula: APR = ((Factor Rate − 1) ÷ Loan Term in Years) × 100. We use the lender's published typical term; where a range is given, we use the midpoint.
The benchmark is the Federal Reserve's reported average APR for small business loans at commercial banks. As of Q4 2024, that benchmark sits in the 8–11% APR range for fully collateralized term loans. SBA 7(a) rates (currently prime + 2.75–4.75%) fall within or just above this range.
| Score | Effective APR | Typical product type |
|---|---|---|
| 9–10 | Below Fed avg — typically <10% APR | SBA 7(a), bank term loans |
| 7–8 | 10–25% APR | Online term loans, credit unions |
| 5–6 | 25–50% APR | Revenue-based financing, lines of credit |
| 3–4 | 50–100% APR | Short-term business loans |
| 0–2 | 100%+ APR | Typical merchant cash advance (MCA) territory |
Factor rate example: A 1.35 factor rate on a 6-month term converts to approximately 70% APR. The same factor rate on a 12-month term converts to approximately 35% APR. Term matters. We always score based on the APR-equivalent, not the factor rate.
Minimum requirements to qualify — credit score, revenue, time in business, industries served
Accessibility measures how broad the lender's qualifying criteria are. A lender that approves applicants with a 500 credit score and 6 months of revenue history scores higher than one requiring 700+ credit and 3 years in business — even if the latter offers better rates. These are different products serving different borrowers. Accessibility scoring reflects that distinction without penalizing lenders for who they are built to serve.
The four sub-factors are weighted equally:
| Score | Typical requirements |
|---|---|
| 9–10 | 500 credit score, <$10K/mo revenue, <6 months in business, most industries accepted |
| 7–8 | 550–600 credit, $10–15K/mo revenue, 6–12 months in business |
| 5–6 | 620–650 credit, $15–25K/mo revenue, 1–2 years in business |
| 3–4 | 660–680 credit, $25–50K/mo revenue, 2–3 years in business |
| 0–2 | 700+ credit, $50K+/mo revenue, 3+ years in business, restricted industry list |
A high Accessibility score does not mean the lender is better — it means they serve higher-risk borrowers, which is typically reflected in a lower Cost score. Use both dimensions together.
Disclosure quality — APR, fees, prepayment, renewal terms, CFPB complaint history
Transparency is scored on a point accumulation basis. Points are awarded for each disclosure practice the lender follows, then deducted for documented disclosure failures:
| Disclosure practice | Points |
|---|---|
| Lender publishes APR (not just factor rate) on product pages or term sheets | +3 |
| Origination fees and draw fees disclosed before application or credit pull | +2 |
| Prepayment penalty policy clearly stated (including if there is none) | +2 |
| Renewal terms — including any rate reset — disclosed before signing the original agreement | +3 |
| Deduct: CFPB complaints citing fee surprise, disclosure failure, or misleading APR representation | −1 to −3 |
Maximum before deductions: 10. Deductions are applied based on the volume and specificity of Consumer Financial Protection Bureau (CFPB) complaints in the public complaint database that cite disclosure-related issues. One to five complaints of a disclosure type: −1. More than five with a consistent pattern: −2 to −3.
A lender that quotes factor rates and buries fees will score 0–3 on Transparency regardless of how competitive their rates are. The two are scored independently.
The four dimension scores are averaged without weighting. No dimension is treated as more important than the others by default. The result is rounded to one decimal place.
In the example above, a 6.5 composite reflects a lender that funds quickly and approves weak profiles but charges significantly above the Federal Reserve benchmark. A borrower who needs speed and cannot qualify elsewhere may accept this trade-off consciously. A borrower with a strong profile and no urgency should not. The dimension breakdown — not just the composite — is always shown in our reviews.
The best way to understand how dimension scores combine in a real review is to look at one. Our OnDeck review walks through each of the four dimensions with the specific data points that drove each score, then shows how the composite was calculated.