Rocket Mortgage is well known as America’s largest mortgage lender. But did you know they also offer small business loans? Rocket Mortgage business loans provide financing to new entrepreneurs and existing small business owners who need capital to start or grow their company.
In this article, we’ll explain what makes Rocket Mortgage business loans unique, who qualifies, how to apply, loan amounts, rates, terms, fees, and more. We’ll also compare Rocket Mortgage to other small business lenders like Kabbage and OnDeck
Overview of Rocket Mortgage Business Loans
Rocket Mortgage entered the small business lending space in 2018. They offer term loans from $2,000 to $50,000 for 1 to 5 years Loans can be used for working capital, equipment, inventory, renovations, marketing, and more.
As an online lender, Rocket Mortgage promises fast approvals and funding in as little as 24 hours. They focus on simplicity and ease of use for the borrower.
Rocket Mortgage Business Loan Requirements
To qualify for a Rocket Mortgage business loan you’ll need
- Minimum 6 months in business
- Personal credit score of 600+
- Annual revenue of at least $50,000
- No recent bankruptcies or tax liens
Rocket Mortgage will review your personal and business finances including credit reports, bank statements, tax returns, profit and loss statements, and accounts receivable.
If approved, loan amounts up to $25,000 can be unsecured meaning no collateral is required. Loans above $25,000 will need to be secured by business assets.
How to Apply for a Rocket Mortgage Business Loan
Applying with Rocket Mortgage is 100% online and takes about 10 minutes. You’ll need to provide basic information on yourself, your business, and the requested loan amount.
After submitting your application, you’ll typically get a response within 1 business day on whether you pre-qualify. If pre-qualified, you’ll then need to provide financial documents to verify your identity and business finances.
Rocket Mortgage aims to fully approve and fund qualified business loans in as fast as 1 day. So the entire process from application to funding could take just 1-3 days.
Rocket Mortgage Business Loan Rates and Terms
Rocket Mortgage business loan rates start as low as 7% APR for those with great credit and go up to 29.99% APR for riskier applicants. Their rates are competitive with other online small business lenders.
Loan terms are 1 to 5 years. Payments are made monthly and can be set up for automatic withdrawals from your business bank account. There are no prepayment penalties if you pay off your loan early.
In addition to interest, you’ll pay an origination fee of 2% to 6% deducted from your loan proceeds. There are no other fees.
Rocket Mortgage Business Loan Amounts
Rocket Mortgage offers business loans from $2,000 up to $50,000.
Loan amounts up to $25,000 are always unsecured. This gives added flexibility to small businesses or startups without a lot of assets to secure a loan.
Loans above $25,000 will require some form of collateral like business equipment, accounts receivable, or real estate.
How Rocket Mortgage Compares to Other Lenders
Rocket Mortgage business loans fill a need for small loan amounts and fast funding times. But how do they compare to other popular online small business lenders?
Rocket Mortgage
- Loans from $2,000 to $50,000
- 1 to 5 year terms
- Rates from 7% to 29.99% APR
- Approval in 1 day
- Funding in 1-3 days
Kabbage
- Loans up to $250,000
- 3 to 36 month terms
- Rates from 10% to 40% APR
- Approval in minutes
- Funding in 1-3 days
OnDeck
- Loans up to $500,000
- 3 to 36 month terms
- Rates from 10% to 98% APR
- Approval in 1 day
- Funding in 1-3 days
As you can see, Rocket Mortgage offers lower maximum loan amounts than Kabbage and OnDeck. But their minimum loan of $2,000 can be a better fit for brand new startups or tiny businesses.
Pros and Cons of Rocket Mortgage Business Loans
Pros
- Fast online application and approval
- Funding as fast as 24 hours
- No collateral on loans up to $25,000
- Fixed monthly payments
- No prepayment penalties
Cons
- Max loan amount of $50,000
- Origination fees of 2% to 6%
- Require good personal credit
- Short 1 to 5 year repayment terms
Tips for Improving Your Chances of Approval
Since Rocket Mortgage business loans depend heavily on your personal credit, having a score of 600+ is key. Pay all bills on time and pay down credit card balances before applying.
Have your business and personal tax returns, bank statements, and financial statements ready to submit. Thorough documentation will speed up approval.
Be prepared to explain how Rocket Mortgage’s financing will help your business expand. Show you have a solid business plan and growth prospects.
Final Thoughts on Rocket Mortgage Business Loans
For small business owners who need quick financing of $2,000 to $50,000, Rocket Mortgage is an attractive online lender to consider. Their business loans feature fast approvals, competitive rates, flexible terms, and no collateral requirements on loans up to $25,000.
Just be sure you have a personal credit score over 600 and can provide documentation verifying your business’s financial health. With responsible use, a Rocket Mortgage term loan can provide the capital you need to take your small business to the next level.
Mortgage Lenders – The Problem with Rocket Mortgage Nobody Talks About
FAQ
Does Rocket Mortgage do loans for LLC?
Is Rocket Mortgage a good company to do business with?
What credit score is needed for a small business start up loan?
What credit score do you need for a Rocket Mortgage?
Is Rocket Mortgage a reliable lender?
Rocket Mortgage is a reliable lender that offers a wide range of loan options and serves borrowers in every state in the country. It accepts credit scores as low as 580 for FHA and VA loans, making it an option for those with subpar credit who are otherwise eligible for a loan.
What refinance options does Rocket Mortgage offer?
Rocket Mortgage offers various refinance options, including government-backed, energy-efficient, jumbo, and cash-out loans. The lender’s refinance loan volume is among the largest in the industry, according to the latest federal data. Additionally, they offer a home equity loan.
How does Rocket Mortgage ® work?
Get approved to buy a home. Rocket Mortgage ® lets you get to house hunting sooner. Like your mortgage lender, your business lender will do a hard pull on your credit when you apply for a business loan from a traditional bank. Again, this hard pull will only drop your score slightly, usually by 5 points or less, and for only a short time.
Is Rocket Mortgage a good lender for FHA loans?
Rocket Mortgage is the No. 1 FHA lender in the nation, helping borrowers with limited down payment funds. It is a good lender for FHA loans. All home buyers and refinancers can take advantage of the lender’s convenient website and app to both apply for and manage their loans. Rocket Mortgage consistently ranks high in customer-satisfaction surveys.