TruePillars is a marketplace lending platform that helps small- and medium-sized businesses secure finance from approved investors.
TruePillars matches business loan applications with investors that are looking to diversify their wealth. Your business's risk rating is based on your business profile and the loan amount requested. This risk rating determines the interest you'll be charged, which varies between 8% p.a. and 24% p.a. While you pay an establishment fee, no other fees are charged as long as your repayments are made on time.
How does the TruePillars Business Loan work?
TruePillars rates your application with a risk assessment, which is used to calculate the interest due on repayments. Investors also see a summary of your business profile, including information about turnover, operating costs and assets.
During the loan auction period, investors bid to finance units of your loan until the amount is fully funded. The money is then transferred into your account five days after the end of the loan auction. Repayments are made monthly over a maximum loan period of 5 years.
Features of a business loan from TruePillars
If you're interested in securing finance on the TruePillars marketplace lending platform, here are some of the features available:
- Quick application process. You can complete an online application form in less than 30 minutes. The loan auction lasts between 7 and 21 days and, once funded, your loan is available five days after the loan auction ends.
- Anonymous. Investors only see a summary of your business profile on the lending marketplace. TruePillars doesn't disclose your name or your business's name to investors.
- Loan amounts. You can apply for loans of between $30,000 and $250,000 to be repaid over 1 to 5 years .
- Loan purpose. This loan can be used for any business-related purpose.
- Risk rating. Once you submit an application, TruePillars gives your business a risk rating based on the information provided. This gives investors an idea of your business's financial health and the interest rate you should be paying.
- Fixed interest. Once your loan is funded and you accept its terms, the interest rate is fixed for the loan period.
- Early repayments. While you can't make early partial repayments, you can repay your loan in full (including outstanding interest) before the end of the loan term. No fees are charged.
- Security. In some cases, TruePillars will require security as part of your application. This could be a personal guarantee from another party or a security deed over some or all your business's assets. Property is not required as security.
How much does the loan cost?
If TruePillars approves your application and posts it on the platform, you will be liable for the following fees:
- Establishment fee. This is charged as a percentage of the loan amount, varying between 3% and 5% based on the loan term.
- Interest. In addition to repaying the principal, you will also be charged interest due with each repayment.
How to apply for a business loan from TruePillars business
You can apply for a TruePillars Business Loan conveniently online. It takes about half an hour to complete the form. You can also call the customer service line if you'd like more information about the loan.
You'll need to meet the following criteria to be eligible for a loan:
- Your business must be at least two years old.
- Annual turnover must be a minimum of $100,000.
- Your business must be recognised as a company, an unincorporated partnership or a sole trader.
Documents can be uploaded along with the application, so it's a good idea to have electronic copies available. These will include:
- Financial statements
- Tax returns
- Information about assets and liabilities
While signing up for marketplace lending is an interesting alternative, it's still important to compare options from other lenders, even traditional ones. You may not know your investors, but agreeing to loan terms still implies a financial commitment.