Breakout Capital Review

Breakout Capital Review [Small Business Loans 2021]

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Breakout Capital Review

Breakout Capital (Breakout Finance) was launched in 2015 as an online lending and business matchmaking platform.

What differentiates Breakout Capital from the rest of the online lenders is their focus on transparency and emphasis on making their products as customizable as possible. 

Breakout Capital offers short term loans, invoice factoring, and business matchmaking services for customers eligible for loans from other lenders. In terms of market positioning, Breakout Capital is best for businesses that cannot decide what type of financing they need.

The team at Breakout Capital will assess such businesses and offer a tailor-made solution. 

Onto our Breakout Capital review!

Services Offered

  • Short term loans
  • Invoice factoring (Outsourced)
  • Business matchmaking
Breakout Capital Loans

Breakout Capital Rates and Terms

Short term loans

  • Borrowing Limit. Up to $250,000.
  • Term Length. Up to 2 years.
  • Fixed Fee. 1.25% – 3.5% of the borrowing amount per month.
  • Origination Fee. 2.5%.
  • Collateral. UCC-1 blanket lien, personal guarantee.

As mentioned above, the loans offered by Breakout Capital are tailored and determined on a customer by customer basis and may carry different rates and terms for each customer. Some will be offered to pay weekly or bi-weekly, and others monthly. Whatever the case may be, the upper limit for the loan term will be 2 years. 

Breakout Capital doesn’t charge interest rates, instead, it uses a factor rate like many other online lenders. The factor rate is a flat rate that is calculated on the total amount borrowed. So for instance, if a borrower has been offered a 1.1 factor rate, that translates to a $10 factor rate, so if a business borrowed $100,000 they would have to pay $10,000 extra, making it $110,000 in total. 

The difference with Breakout Capital is that while other lenders do not offer any incentive for early payment when they apply factor rates, Breakout Capital allows the incentive of discounts on early payment and if the borrower refinances the loan, then they forgo the origination fee for the subsequent loans as well. The origination fee of 2.5% is included in the borrowing amount and is deducted before the funds are transferred to the borrower. 

FactorAdvantage

  • Borrowing Limit. Up to $500,000.
  • Term Length. Up to 2 years.
  • Fixed Fee. Starts at 1.25% of the borrowing amount per month.
  • Origination Fee. 2.5%.
  • Collateral. UCC-1 blanket lien, personal guarantee.

Factor Advantage is a blended product and works together with invoice factoring and short term loans offered by Breakout Capital. At present Breakout Capital doesn’t offer in house invoice factoring, instead, it sources the service from other invoice factoring companies. The terms are similar to the short term loan.

Breakout Capital Logo

Breakout Capital Application Process

The application process of Breakout Capital is very simple. Applicants can either sign up on the website and fill up a simple pre qualification form or call the company and talk to a representative to apply for a loan. Applications will be required to furnish information like tax ID, bank statements, business address etc. This data will be used by Breakout Capital to determine the best rates and services for the applicant. 

The team at Breakout Capital will assess the data and after consultation with the applicant through a specially assigned representative, the best product that suits the needs of the applicant will be decided. If the product or service is offered by the company then the contract will be offered, signed and the funds will usually be transferred usually within 24 hours. 

If however the applicant cannot find suitable products with Breakout Capital, then the team or the special representative will match the client with the lending partners.

Customer Service 

Breakout Capital can be contacted through:

  • Phone
  • Email
  • Live Chat

In addition to this, customers can also check out resources present on the official website, these resources include blog posts, FAQs and other articles that can help customers understand the products and the services that are offered. Breakout`s customer service largely has positive reviews, customers are happy with the way their problems are handled by the customer service.

Breakout Capital Reviews

It is interesting to note that Breakout Capital hasn’t got a single negative rating on the Better Business Bureau. The most frequent complaint that customers have is related to the term of the funding, customers looking for longer term funding feel dissatisfied as the maximum term offered by Breakout Capital is 2 years. Some customers find the rates higher than banks, which is quite a common complaint with all lending platforms but it must be understood that these rates are higher because these platforms provide faster, flexible and more convenient service. 

On the positive side, customers like Breakout Capital for a number of reasons. The two most noted reasons have been the renewal or refinance service, that comes at a discounted price and the commitment of the team to improve the credit worthiness of the customers so that they can be eligible for lower rates for the refinanced loans. 

Breakout Capital Pros and Cons

Pros

  • Good customer retention policies
  • Provides matchmaking service if customers cannot find the right product with the company
  • Refinanced loans are cheaper
  • The team gets involved to improve the creditworthiness

Cons

  • Low term lengths
  • Finance limits are low to moderate, useful only for cash flow management or asset purchase
  • A bit on the expensive side

Breakout Capital Review: Final Verdict

Breakout Capital has been able to differentiate itself from a market that has some tough competition going on. Breakout Capital offers some exciting opportunities and products for customers such as short term loans, matchmaking, invoice factoring, team support to improve creditworthiness, and discounted refinancing. Yes, this comes at a slightly higher cost, but in the end, is worth it when you look at the positives and the net gain. Breakout Capital is ideal for businesses that have moderate to stable financials, and especially for those who do not know what type of lending product their business requires. So if you have done your due diligence and are confused about which lender to choose, perhaps Breakout Capital may be a good choice.

Business Loans With Breakout Capital

Business loans tailored to what’s best for your business

Thanks for reading our Breakout Capital review.

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