USA Funding Applications is a financial services company that provides business funding and personal loans. They advertise that they can help people secure financing even if they have poor credit or have been denied by banks.
But is USA Funding Applications legitimate company? In this article, we’ll take an in-depth look at their services, legitimacy, and whether or not they are recommended for financing.
Overview of USA Funding Applications
USA Funding Applications is an online lender that provides various types of loans and financing options for businesses and individuals. Some of their advertised services include:
- Small business loans and financing
- Equipment financing
- Commercial real estate loans
- Bad credit personal loans
- Lines of credit
- Merchant cash advances
The company claims to have access to hundreds of lending sources and over $1 billion in capital. They state they can help applicants secure funding in as little as 24 hours with minimal documentation required.
USA Funding Applications says they work with “hard money” private lenders that can approve financing faster than traditional banks. They claim to have high approval rates even for borrowers with poor credit or who have been denied funding in the past.
Is USA Funding Applications Legit or Scam?
When researching the legitimacy of any financial services company, it’s important to look into their business practices, reputation, and transparency. Here are some key factors to consider for USA Funding Applications:
Licensing and Certifications
USA Funding Applications does not disclose any licensing, certifications, or registrations on their website. They do not appear to be registered with the Better Business Bureau (BBB).
Lack of disclosed licensing raises questions around their legitimacy as a lender or broker. Licensed lenders must comply with state and federal laws around lending practices.
Company History and Ownership
USA Funding Applications provides minimal information about their company history or ownership on their website. There are no identified executives or leadership team members.
The company’s history and ownership structure is unclear. Lack of transparency is a red flag when researching lenders.
Online reviews for USA Funding Applications are very limited. They do not have a BBB profile or many third-party reviews available.
Lack of substantial reviews makes it difficult to assess their customer service and lending practices. Legitimate companies typically have more reviews available.
Complaints and Lawsuits
While there are few online reviews for USA Funding Applications, a search of the company name does reveal some troubling complaints and legal actions.
In 2018, the state of Nevada issued a cease and desist order against USA Funding Applications for operating without proper licensing for short-term lending.
There are also a few complaints online describing predatory lending practices like excessively high fees and interest rates.
Lawsuits and cease and desist orders raise red flags around their lending practices and compliance.
So is usa funding applications legit? Based on these findings, USA Funding Applications lacks the expected transparency, certifications, and positive reputation that legitimate financial companies typically have.
While they market fast funding opportunities, they appear to lack proper licensing and have concerning complaints around predatory lending behavior. This makes their overall legitimacy as a company highly questionable.
USA Funding Applications Loan Products and Rates
USA Funding Applications offers a variety of different loan and financing products for both businesses and individuals. Here is an overview of some of their advertised products:
Small Business Loans and Financing
- Term Loans – traditional installment loans issued for a set dollar amount and term length.
- SBA Loans – loans backed by the Small Business Administration.
- Equipment Financing – funding for purchasing equipment.
- Commercial Real Estate Loans – loans for purchasing and improving commercial real estate.
- Startup Business Loans – financing for new business ventures.
- Business Lines of Credit – revolving credit facilities.
- Merchant Cash Advances – funding provided in exchange for a percentage of future sales.
While exact rates are not advertised, USA Funding Applications claims they can provide funding with APRs from 4% to 85%. However, based on complaints, their rates can sometimes exceed 100% APR.
Bad Credit Personal Loans
USA Funding Applications promotes personal loans and lines of credit for individuals with bad credit. Loans ranging from $1,000 to $15,000 are advertised. Specific rates or terms are not disclosed.
High Risk of Predatory Lending
Unfortunately, many of the complaints about USA Funding Applications involve predatory lending in the form of excessively high fees and interest rates. This suggests that while they market loans to high risk borrowers, they charge very high rates that can exceed 100% APR.
This level of pricing is generally considered predatory and makes it very difficult for borrowers to reasonably repay the loan. Legitimate lenders are upfront about rates and adhere to responsible lending practices.
Pros of USA Funding Applications
- Fast funding – can provide money quicker than banks if approved
- Low documentation requirements advertised
- Approves applicants with bad credit history
- Variety of business and personal loan products offered
Cons of USA Funding Applications
- Not an accredited or rated lender
- No clear licensing, certifications, or registrations
- Lack of transparency around ownership and management
- Scant history and reputability
- Complaints around predatory lending terms and excess fees
- Cease and desist order issued in Nevada for unlicensed lending
Warning Signs of a Predatory Lender
USA Funding Applications exhibits some warning signs that it may be a predatory lender according to consumer advocates and financial regulators:
- Vague about fees, rates, and terms
- Pressures borrowers to take on more debt than they inquired about
- Touts guaranteed or instant approval
- Focuses on borrowers with poor credit history as easy targets
- Requires upfront fees before providing the loan
- Avoid answering questions about rates and terms
- Threatens serious consequences if loan is not repaid
- Heavy focus on requiring collateral like car title instead of borrower’s ability to repay
Reputable lenders are upfront about rates and terms, take time to assess if the borrower can reasonably repay, and comply with responsible lending laws. Predatory lenders look to trap borrowers in excessive fees and debt through murky terms and aggressive collections tactics.
Alternatives for Bad Credit Borrowers
For those with poor credit history or a past bankruptcy, there are alternatives to seek financing that may be safer and more affordable than using a company like USA Funding Applications:
Federal Credit Unions – Some federal credit unions offer second chance checking accounts and loans for borrowers looking to rebuild credit. Interest rates are capped at 18%.
SBA Community Advantage Program – The SBA Community Advantage pilot program allows community development financial institutions to lend up to $250,000 to small businesses. More flexible credit standards.
Online Lending Marketplaces – Peer-to-peer lending through companies like LendingClub and Prosper connect borrowers and individual investors. May offer more competitive rates than predatory lenders.
401(k) Business Financing – Solo entrepreneurs can leverage their 401(k) or IRA funds to finance a business without tax penalties through companies like Guidant and Penta.
Microloans – Non-profit lenders like Kiva and Accion provide small microloans (under $50,000) for business owners. More flexible approval requirements.
Credit Builder Loans – Loans issued specifically to help you improve your credit history by reliably making payments each month. Offered by some credit unions.
While these options have more requirements than a predatory no-credit check loan, they provide legit financing sources that help build your credit and business on responsible terms.
Is USA Funding Applications Legit: Our Recommendation
Based on the research conducted, USA Funding Applications does not appear to be a recommended or legitimate lender for small business loans or personal borrowing. The lack of transparency, limited verifiable reputation, and concerning legal actions against them are too significant to overlook.
The few borrower complaints available suggest USA Funding Applications engages in predatory lending with unrealistic approval promises that trap applicants in expensive high interest loans they cannot reasonably repay. Their website and marketing promotes fast money for bad credit borrowers but hides important rate and fee info.
Alternative sources of financing like community lenders, responsible online lenders, SBA loans, and credit builder products can provide affordable funding access without the ethical concerns associated with companies like USA Funding Applications.
There are situations where seeking financing from a lender like USA Funding Applications is unavoidable for some high risk borrowers. But applicants should proceed with extreme caution, demand clear documentation for any financing offer, and consult legal expertise to ensure they understand the terms before signing any agreement. Predatory loans can intensify financial hardship for consumers if they cannot meet overwhelming repayment requirements.
Overall, USA Funding Applications generates many substantive concerns about their legitimacy and lending practices. Applicants should very carefully evaluate all available funding options and the potential consequences before doing business with online lenders that lack transparency or have a history of complaints. Responsible borrowing supported by legal protections will serve your finances far better in the long run.
When seeking a personal loan or financing for your business, it is critical you research lenders thoroughly and avoid companies engaging in predatory practices. USA Funding Applications markets quick loans but is lacking in transparency and complaints suggest they impose excessively high rates on borrowers. Their lack of licenses and cease and desist order in Nevada are also concerning.
Alternative sources like credit unions, SBA loans, and responsible online lenders can likely offer better rates and terms, especially for borrowers with bad credit. While USA Funding Applications promotes easy approvals, applicants must beware of potential predatory lending that can trap them in debt. Carefully evaluating all financing options and consulting professionals can help you secure funding from a reputable source on fair terms.