Torro Business Funding Review: Advantages, Disadvantages, And How To Apply

When running a small business, you might need a business loan now and then. However, due to several options available on the market, it can be overwhelming to choose the right one. To help you narrow down your preferences, getting a review of Torro business funding is better.

In this article, you will get a review of Torro business loans and how they work. Apart from that, you will also learn about the lender’s legitimacy.

In addition, you will learn about Torro’s various advantages and disadvantages. Finally, you will find out how to apply for this business loan. Hence, to learn more, read on to the end of the article. 

Torro Business Funding: A General Overview 

Torro Business Funding comes with a fast and convenient business loan application process. The turnaround, approval, and funding are all quite fast in general.

Basically, Torro specializes in startup financing and has become popular among startup owners. In fact, many startup owners and influencers on social media recommend Torro. 

Apart from that, Torro also offers different funding options. This helps businesses to get support in their financial situations. Since this financier offers fast funding, it is getting quite popular among startup owners.  

Generally, financial companies and banks do not lend quickly to startups. This is because startups are not proven businesses. 

Regarding banks and financial institutions, securing a loan for your startup can be extremely difficult. On the other hand, Torro allows you to access funds faster than most financial providers. Basically, the company mainly focuses on convenience and efficiency in the loan-securing process. 

Hence, whether you are an experienced business or a startup, you can receive a loan from financers like Torro and Everest business funding.

Torro can offer you fast loans because it is an alternative financial service provider. Generally, these lenders know how to address cash flow and the needs of working capital. 

How Does Torro Business Funding Work? 

Torro Business funding comes with two distinct loan programs: 

Startup Capital Loans 

These are for startups that have operations for six months or less.

Here are the necessary details: 

A startup that is looking for ways to open or grow a new business can get financing up to $125K. Moreover, since it is hard for a startup to generate revenue, the term can go up to four years. This gives room for the startup to repay the loan. 

Hence, if you are starting your business, this loan option from Torro can be a great choice. 

Working Capital Loans 

These loans are for businesses that are older than six months.

The following are the necessary details of the loan: 

If you have been in operation for at least six months and have a $10K monthly revenue, you are eligible for a Torro Working Capital Loan. Here, you can qualify for a loan of up to $575K. Furthermore, you can use the loan for a variety of business purposes. 

No matter which loan you apply for your business if you qualify, you will get funding within the same day. In fact, you can receive funding within twenty-four hours of approval. 

Is Torro Business Funding Legit?

Of course, Torro Business Funding is legit. Torro is a legitimate fintech direct founder. Apart from that, it has also had accreditation from the Better Business Bureau (BBB) since 2015.

Apart from that, it also received good ratings on various review sites. Moreover, customers also reviewed this business as legitimate on Trustpilot. 

The sound ratings are primarily for a fast, transparent, and streamlined approval process. However, one of the of Torro is that the cost of the loan is quite high. For example, the loans have a high APR and high origination fees. 

Advantages And Disadvantages Of Torro Business Funding 

The following are some of the major advantages and disadvantages of Torro Business Funding: 

Advantages 

Here are the major advantages of Torro Business Funding that you will benefit from as a business owner: 

1. Fast Funding 

Torro’s specialty of helping business owners receive fast business funding and search for capital sets it apart. Moreover, the online application is convenient, and even same-day credit is available in some cases. 

2. Same-Day Funding 

If the lender approves your loan, you can receive your funds within 24 hours. Apart from that, some customers even praised the fact that the whole process ended on the same day. Also, they received funds on the same day they applied.  

3. A Boon For Startups 

One of the major benefits of Torro is that it offers business financing for new startups. Generally, traditional lenders hesitate to lend to businesses with less than 6 months of operations. This is because the nature of business is unproven. However, with Torro Business Funding, even a startup like this can receive funds within a day (if eligible). 

4. No Prepayment Penalties

The loan has no prepayment penalties if you pay the principal earlier. This is possible since Torro uses an APR-based interest rate (which is generally high). Hence, you get the chance to pay off your loan early without any penalty. 

Disadvantages 

Here are a few disadvantages of Torro Business Funding that you need to be aware of: 

1. Fewer Options 

Torro offers only two types of loans for new startups and older startups. Hence, the options are fewer. On the other hand, many lenders offer a variety of loan options when a startup or a small business approaches them. 

2. Funding Range Is Low 

For startups, the maximum loan amount is $125K, while for established businesses, the maximum loan amount is $575K. Both amounts are low for many businesses to fund their operations. On the other hand, many lenders offer loans to startups that amount to millions. 

3. High APR Cost 

The cost is one of the most crucial disadvantages of Torro Business Funding. For instance, the APR of the business loan can go up to 36%. This number is high compared to many other loan options by other financial institutions and creditors.  

4. High Origination Fees 

Additionally, a 5% origination fee, along with ACH fees, make the loan pretty expensive for a startup. Hence, a startup might struggle to pay the initial cost of the loan. 

Therefore, you can see that the high costs and interest rates of the loan are tradeoffs for the convenience and speed of service from Torro. However, before you apply for Torro Business Funding, ensure your business can repay. 

How To Apply For Torro Business Funding? – Steps To Follow 

The following are the steps you need to follow if you want to apply for Torro Business Funding: 

Step 1. Complete Loan Application 

To apply for a loan, you can fill out the online application form on Torro’s official website. Here, you will need to state how much funding your business needs and what type of loan you are applying for. 

Additionally, you need to offer basic information about yourself as well as your business. This includes your credit score and your monthly income. Also, you create your login credentials on the website to access your loan account. 

Step 2: Offer Documents 

As usual, like every loan application, you need to share the necessary documents about you and your business.

These include: 

• Social Security number (SSN). 

• Tax ID number (TIN). 

• Personal tax returns. 

• Business bank statements for the previous three months. 

• Tax returns for Businesses (if applicable). 

• Business leases (if applicable). 

Step 3: Loan Approval 

If you are eligible for fast approval, you can receive the loan on the same day. Basically, to underwrite and approve applications, Torro uses its fintech system called QuickWrite. 

Step 4: Speak To An Expert 

Although receiving the loan from Torro is easy, like the application process, queries can arise. However, to know how the application process works or for further queries, you can speak to a Torro expert. You can also get guidance about how to use the loan and how to apply from those funding experts, as per your needs. 

Step 5: Receive Funding 

By opening your Torro account, you can check your approval status. For instance, if you get fast approval, you can receive your funds within 24 hours. 

Wrapping Up

Hope this article is helpful for you to understand the advantages and disadvantages of Torro Business Funding. Apart from that, you also have a better idea of how Torro’s loans work in general.  

However, before you apply for a loan, make sure you can afford to repay the loan. This is because the loan comes with a high interest rate and initial cost. 

Do you have more information to share about Torro? Consider sharing your personal experience in the comments section. 

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