Quarterspot Reviews - Financial Lender Pros & Cons
- Up to $250,000
- May approve more for well-established businesses
- Funding in as little as 24 hours
- Flexible terms
- Options for businesses with poor credit
- Early payoff rewarded with interest forgiveness
- High origination fee
- More expensive than traditional loans
- Doesn’t lend to businesses in all 50 U.S. states
Who should consider funding from QuarterSpot?
QuarterSpot is best for small businesses in need of short-term working capital loans but without good enough credit to qualify for funding from a bank. The lender provides an alternative both to traditional loans and the merchant cash advances offered by many other “fast cash” companies. However, the high cost of QuarterSpot’s funding makes it impractical for businesses able to take advantage of cheaper options.
QuarterSpot is an online lender offering short-term loans for small businesses seeking alternative funding for working capital. Founded in 2011, the lender’s “goal is to deliver financing with speed and convenience.” A team made up of individuals with experience in the lending industry, business strategy, technology and risk management works with merchants to provide loans of up to $250,000 with flexible terms and predictable payments.
As a “fast cash” lender, QuarterSpot aims to deliver funds in as little as 24 hours from the time a loan offer is accepted. Competitive rates and a focus on business growth put this lender a cut above others in the industry relying on questionable lending practices to close deals. QuarterSpot also emphasizes security, using 128-bit encryption for transactions and housing all customer information in a well-protected data center.
A FICO score of 550 is required to apply for a short-term loan from QuarterSpot, making funding accessible to companies with less-than-perfect credit histories. Unlike applying for a bank loan, where a higher credit score improves the chances of an application being accepted, merchants applying to QuarterSpot need only meet the minimum requirements to gain access to funds. This may allow merchants previously rejected by banks and other traditional lenders to qualify for the money they need to cover expenses, strengthen their companies and invest in growth.
Both customer reviews and QuarterSpot’s website highlight a helpful and dedicated team of lenders with a focus on helping businesses get funding to achieve their goals. Despite listing specific requirements for pre-qualification and approval, the lender is willing to make exceptions to provide funding to merchants in need. Well-established businesses may be able to qualify for and receive more than $250,000 if QuarterSpot feels the level of risk is low enough to extend a special offer.
QuarterSpot provides funding to most of the common industries served by other lenders in its niche. These include retail companies, restaurants, automotive repair and other service-based businesses. “Fast cash” loans are often extended to industries like health and beauty, medical establishments and manufacturing, as well. The lender doesn’t provide a full list of accepted industries on its website, but its marketing language suggests the application process is open to just about any small business meeting basic application requirements.
Several high-risk industries are served by QuarterSpot. These include trucking, construction and law firms, markets some other “fast cash” lenders won’t work with. Real estate businesses are excluded from the industries QuarterSpot will fund.
Companies in ND, RI, SD and VT aren’t currently eligible to apply for loans from this lender.
QuarterSpot offers flexible term rates for businesses in need of leeway in their payment plans. Terms of nine, 12 and 18 months are available, so applicants aren’t saddled with payments and fees stretching over years as may be the case with a traditional bank loan. Although the lender doesn’t specify how terms are calculated, standard industry practice is usually to offer longer terms to merchants with strong financial statuses.
What’s Required to Apply
In addition to meeting the minimum FICO score requirement, merchants applying for QuarterSpot funding must:
- Have an established business history of at least one year
- Bring in $16,000 or more in revenue per month
- Record an average daily balance of at least $2,000
- Have no more than one negative ending day in the most recent month
- Have no more than five negative ending days in the most recent three months
The person filing the application on behalf of the business must own at least 50 percent of the company and provide QuarterSpot with a personal guarantee. No collateral is required, but the guarantee effectively states the applicant is responsible for paying off the loan in full before the terms are up. If payment isn’t made, QuarterSpot reserves the right to file a UCC lien. The lien may put the business in jeopardy in the event the merchant defaults on the loan, and other lenders often refuse to extend funding to companies with active liens.
Applying for a QuarterSpot loan is done entirely online using a free application form accessed by clicking the “Apply Now” button on any page of the site. Before going through the entire application process, merchants can use a quick three-question prequalification survey to determine if they meet requirements.
Qualifying merchants must provide the following information to apply:
- Personal contact details
- Business name
- Business address
- Tax ID number
- Details of existing loans
- Business owner’s name and contact information
- Business owner’s social security number
- Percent ownership of the applicant
QuarterSpot then requests merchants to link their bank accounts via its secure servers to allow their team to review recent transactions. This provides a picture of the financial health of the business over time instead of just a snapshot of a few months. Merchants also have the option of skipping this step and uploading the required bank statements instead. Supporting documentation, such as a voided business check, the most recent business tax return or a copy of the applicant’s driver’s license, may also be provided.
Upon receiving the necessary paperwork, QuarterSpot’s team puts together an offer with complete details of fees and terms. Funds are deposited in the merchant’s business bank account in as little as one day after the offer has been accepted.
According to QuarterSpot’s website, merchants pay “as little as 12.5 cents” on the dollar in loan fees. Merchant Maverick’s review gives a range of $1.10 to $1.40 for every dollar borrowed, or a range of 1.1 to 1.4 in fixed rates. NerdWallet puts fees between 30 and 70 percent APR with an average of 44 percent, and Fundera reports merchants borrowing from the lender may be changed between 23 and 52 percent.
High rates are common in the short-term online lending industry, so QuarterSpot’s fees qualify as competitive when compared to other companies offering similar loan products. However, even at QuarterSpot’s lowest estimated rate, a merchant qualifying for a $100,000 loan would wind up paying $12,500 in fees. At $1.40 for every dollar, fees on a loan of the same size would amount to $40,000. Combined with high origination fees, the total cost of funding from QuarterSpot may wind up being higher than some merchants can afford.
Loans from QuarterSpot have a fully amortized structure, resulting in predictable daily or weekly payments. Merchants must review loan offers carefully before accepting proposed terms and rates to determine if the required payment structure is reasonable in light of the current financial strength of their business.
Merchants with one existing loan may apply for funding from QuarterSpot. This prevents the potentially serious financial consequences of stacking multiple loans to cover mounting business expenses.
In special situations, QuarterSpot will pay off competitors if a merchant can net as little as 10 percent of the loan. Second-position loans may also be refinanced to ease the burden of payments and help companies get out of debt more quickly.
Applying online for a QuarterSpot loan is free.
Fees for QuarterSpot funding are higher than most other lenders in the industry. The exact amount isn’t given on the company’s website, and other sources offer conflicting information. Merchant Maverick reports fees range from 1 to 4 percent; Fundera puts the amount at 6 to 9 percent. Other sources cite fees between 8 and 12 percent.
High origination fees can take a significant chunk out of the funding for which a merchant applies. At a rate of 12 percent, for example, a $100,000 loan becomes $88,000, and this difference could leave a business unable to cover expenses. Merchants may need to apply for a larger funding amount, meaning more fees and more interest, or look elsewhere to get the money they need if QuarterSpot’s fees make funding prohibitively expensive.
Once a merchant has been a QuarterSpot customer for 90 days, it’s possible to request a renewal. Reviews suggest the renewal process is quick and easy as long as all qualifications are met.
Like many lenders offering fast access to working capital, QuarterSpot doesn’t charge any prepayment penalties. However, the lender sets itself apart by offering full interest forgiveness to customers able to pay back their loans early. This can result in significant savings, which may be calculated using an online tool on QuarterSpot’s website.
What this means for merchants is interest is only paid for the amount of time the funding is being used in contrast to merchant cash advances where all fees must be paid in full regardless of when the total loan amount is paid off. Seasonal businesses experiencing higher sales volumes during busy times may benefit the most from this policy as they become able to put more money toward loans and accelerate the payoff process.
Short-term loans obtained from QuarterSpot are intended to be used only for business purposes. The company doesn’t track exactly how the funds it grants are used, but merchants in the industries to which it lends commonly seek such loans for many common reasons, including:
- Taking on extra help for busy seasons
- Stocking up on inventory prior to seasonal sales
- Expanding or renovating an existing location
- Investing in new equipment
- Repairing or upgrading existing equipment
- Covering routine expenses when sales are slow
- Paying off debt
- Refinancing debt
The speed with which funding can be obtained from QuarterSpot also makes its loans helpful in emergency situations. Business owners finding themselves facing unexpected expenses can get the money necessary to handle the problem instead of scrambling to come up with funds on their own or facing the possibility of filing for bankruptcy.
Short-term loans with the fully amortizing structure offered by QuarterSpot are more stable and predictable than other alternative funding like merchant cash advances and allow businesses to budget for regular payments. When faced with a situation where cash is needed sooner rather than later, a short-term loan could mean the difference between getting stuck in a cycle of increasing debt or coming through a tough time without suffering serious setbacks.
With an A+ BBB rating and only one complaint on the BBB site, QuarterSpot is ahead of many “fast cash” lenders. Merchant Maverick and TrustPilot both rate the company at 4 out of 5 stars. Positive feedback praises the lender for:
- Easy application process
- Ease of renewal
- Friendly and helpful staff
- Fast delivery of funds
Negative reviews cite poor customer service and high rates as reasons to avoid pursing funding from this company.
Neither Facebook nor Google show any reviews for QuarterSpot, which narrows the research options for merchants seeking to compare customer opinions of this company and other lenders. However, full reviews on Merchant Maverick, NerdWallet and Fundera provide additional details regarding fees, the application process and the pros and cons of QuarterSpot’s loan policies.
Licenses & Accreditations
QuarterSpot has been BBB accredited since October 2014 and has been featured in articles in the Financial Times, the Wall Street Journal and Yahoo! Finance.
Company Contacts Details
- 1-888-718-SPOT (7768)
- Adam Cohen, CEO
- Lance Emanuel, COO
- Eric Hexter, Chief Technology Officer
- Jim Chonko, Chief Risk Officer
13 User Reviews
May 27, 2020 8:50 AM
NEVER AGAIN WITH THESE PEOPLE! RIPPED US OFF WITH UNBELIEVABLE RATES AND THEN EVEN AFTER AN EARLY WITHDRAWAL OF THE BUSINESS LOAN FROM OUR SIDE, THEY KEPT SPAMING US WITH THEIR USELESS AND FRAUDULENT MARKETING MATERIAL! SUCH AUDACITY! STAY AWAY FROM THESE PEOPLE!Reply
Jun 19, 2020 10:27 PM
I don’t who these colt, kevin or phil are that people here are so praising. All I got was a lousy and unprofessional rep who I would not like to name here out of sheer decency and morality! He was unresponsive, unprofessional and even at times rude. My partner and I had to leave the business loan deal in between and cut these people off due to this guy! The rates were great and we had been approved for an online business loan too but later, because of this guy, the application process seemed like a burden and we didn’t even feel like we can trust these people. Such a waste of time. I don’t know if it is the entire lender or just this guy but I will give a 1 start review because for us, it was a really really bad experience!Reply
Jun 22, 2020 2:03 PM
Hey I worked with Kevin for a short term finance deal and he was great. I don’t know which guy was assigned to you, but you should have complained about him to someone there and I am sure they would have done something about it and assigned you someone else. The deal I got was so satisfactory because I had spent my time on this, researched around and checked other lenders too and Quaterspot’s MCA was the best so far in terms of rates, immediate service and the fact that they accommodate almost new businesses too. And of course Kevin was such great help throughout which made the whole signing up and application process a lot smoother and easier to understand! I suggest you complain about that guy instead of given up the entire deal!Reply
Vicenta Bogisich MD
Jul 12, 2020 4:35 PM
Walter was my representative for a merchant cash advance deal and I am just in awe of his professionalism and honesty. He helped me land the best business loan deal of $150k at 1.1. Used the capital to clear the arrears and manage payroll for my pharmacy. Looking forward to working with these people again!Reply
Lina Dicki DVM
Sep 1, 2020 1:25 PM
Quaterspot is a great and reliable lending partner. An instant cash flow was what I needed for my restaurant in Denver and this lender delivered me just that without any delays and the whole process was straightforward and transparent! No documentation fees which is a big relief as many most lenders and banks charge you a lot in terms of document processing or application processing fee and make money from that but these guys didn’t do that. I got a short term finance deal of 200K at 1.3 buying rate. Only 3 months are left until the deal completes. It’s been a great experience working with quaterspot and watching my business thrive with their business loan!Reply
Nov 11, 2020 9:56 PM
Even though I am no fan of these lending services cold calling you and literally begging you to borrow money from them and I know most people hate it too but trust me when I say Quaterspot’s call to me made a huge difference for me and my business. I own a small self care and spa centre in Ft Lauderdale. I never attempted or even thought of borrowing money from these lenders and banks because I had heard from friends how they rip you off and practically steal from you. Having that impression in mind, I abhorred this business and had no intention whatsoever of borrowing money from these lenders until one fine boring afternoon at the centre when I got a call from these people and just out of curiosity I did not excuse and hang up straightaway after learning that they were calling me to be their client. Business was slow and I was having a hard time managing the finances and paying my staff. Funny how my boredom lead me to make a decision that I still appreciate myself for. It was Colt calling to tell me how my business needed a merchant cash advance to set my finances straight and better the cash flow. He asked me a couple of questions about my business and how it was going, my revenue and how I was managing payroll etc. I answered honestly. After just a small call, he made me realize how much my business needed their working capital loan. He told me about what they were offering and a little about their rates and fees. It all made sense. Owing to Colt’s sincere and professional behaviours, I agreed to meet him and discuss it further and discussed it further we did just the next day. And then we finalised a business loan deal that would serve best for my line of business. Got a $150,000 for 15 months at 1.2! Couldn’t think of a better deal given the capital was supposed to reach me in 24 hours. And it actually did. The instant cash flow made so much difference for my company and I was relieved. It was some 5 years ago. I have recently applied for their business loan again and I am looking forward to working with these people again!Reply
Otho Lubowitz DDS
Nov 24, 2020 3:07 PM
I totally second you on this! I am one of those people who find it hard to just hang up on these cold callers and I often end up wasting my time while trying to be nice and not being able to say no. This happened with a call from Quaterspot too, only these people are actually honest about the work they do and they are not just looking for clients for extra commission or whatever but they do actually help you out! Got an online business loan from these guys in a matter of 2 days. Invested that money in my software and technology company and got a shitload of troubled finances sorted out! I have never been lead into something so beneficial through a cold call until it was Quaterspot!Reply
Feb 2, 2021 2:43 AM
Best business loan providers out there! I was an almost new retail business in Boston and I wouldn’t have progressed in my business if it weren’t for quaterspot and colt who trusted in me and my business, despite its newness! I applied for their online business loan and got approve straightaway and received financing in no time, owing to my discussin with colt who put his trust in my business and saw it’s potential! Small businesses like mine need lenders like these because banks are mostly a no-no for us because of their high fees and strict conditions! A big shout out to quaterspot!Reply
Mar 4, 2021 10:42 PM
I had a good time working with these people, no headaches or chasing after them for updates or statements, they were vigilant about that themselves! Most lenders don’t even bother with the statements and you have to remind them to get a proper statement on time but quaterspot was especially careful about this! I wish they had offered me a lower rate on the commercial loan but they said trucking business is a risky business and that is why they are charging a 1.3 on a 200k business loan. Other than that, everything was good!Reply
Mr. Stanley Pouros
Apr 8, 2021 6:35 PM
Great lender! Totally recommended!Reply
Apr 14, 2021 12:48 AM
Here for David from the renewal department. Amazing fella! Worked with me with full dedication for a business loan for my retail and distribution company in Charleston. I am so glad I found Quaterspot and my business has made so much benefit through their help! Thank you so much!Reply
May 26, 2021 9:26 PM
I would highly recommend these people. I worked with them two times and both times, it was a great experience! First it was colt and then it was Walter the next time and I must say, both of them highly responsive, supportive and eager to help. This shows how these qualities are not merely traits of these individuals but they are instilled by the company itself! Needed an MCA both times to manage my finances at my clinic in uptown Denver! I will definitely work with these people again, without second thought!Reply
Jul 7, 2021 11:36 AM
If only their origination fee weren’t so high, I would give these people a 5 star. The rest of their service was good. The rates were fine compared to what other lenders are charging on their business loans. A special mention for Phil and Colt who were prompt in their responses and very supportive!Reply