Torro Review

Overview

Torro is an online loan marketplace, based in Nevada, that focuses on giving small businesses access to funding through their wide network of private lenders, investors, and independent brokerages. There are two main types of business loan options and these are available to existing businesses and startups alike. A major drawback to Torro is the higher cost associated with obtaining a loan along with higher interest rates that vary based on credit health.

Loan Details

Torro is not a lender. Instead, they act as a loan broker or middleman between lenders and borrowers. With Torro, businesses of almost any type can access working capital and start-up capital solutions. Loan specifics will vary according to each lender, but Torro has set a minimum and maximum amount threshold for borrowers. Their $250,000 maximum loan amount for business lines of credit is higher than the industry average. For merchant cash advances, they also have one of the highest amount ceilings in the market at $750,000.

Do note that although there are a variety of business loans with quick approvals, Torro does not have a payment deferral program for businesses in hardship or any rewards program. The revolving loan offers flexible funding for businesses.

Start-Up Capital

Business owners who want to launch a new venture or dip into an existing one can access up to $125,000 of funding through Torro. The platform accepts applicants whose business is less than six months old with a maximum monthly revenue of $5,000. They do prefer entities with at least a 600 credit score.

Working Capital

Working Capital loan products are designed for businesses that have been operating for over six months. Businesses must have at least $10,000 in monthly revenue but credit score requirements can change. In cases like these, it is best to maintain the best score in order to qualify for a better interest rate.

Open Ended Funding

Torro offers a revolving loan to existing businesses that can be compared to a credit card. Business owners can take out the amount they need from this fund. Loan amounts can go up to $125,000 with more flexible terms compared to the traditional business loan.

Loan Fees, Rates, and Requirements

Since Torro is not a direct loan provider, loan fees can be confusing as they vary with each lender. Torro does claim that APRs do not go past 36%. Upon application, you can gain better insights into what fees and rates your chosen lender will charge you. It is important to take this into consideration and see if it fits your budget before you finalize an agreement.

Torro’s partner lenders have different loan requirements which make it challenging to state a minimum set of qualification. On average, a higher credit score will allow you to qualify for a better interest rate. Funded loans are available through Torro for applicants with credit scores that reach 400.

Existing businesses will be asked to provide two to five years’ worth of tax returns. For new businesses, a business plan and some business references may be required. If the credit score requirement is not met, both new and existing businesses can offer collateral to help their loan application.

How to Apply for a Loan?

Lenders take a comprehensive approach when they evaluate applicants for business loans. The credit score is not the sole determining factor here. The business’ monthly revenue, projections, length of operations, previous loan experience, and monthly debt obligations also play a role in what rates you qualify for.

Applicants can complete their loan application online or reach out to a representative via phone. The loan application only takes a few minutes asking for your business name, type of industry, credit score, and monthly revenue.

Applying for a loan through Torro requires a soft credit check which does not affect the credit score at all. If you do decide to accept a loan offer from a lender, that’s the time a hard pull will be done. Some additional documents may be required after application so it’s best to keep these readily available:

• Social Security Number

• Tax ID Number

• Business Tax returns

• Personal tax returns

• Bank statements for three months

• Business lease (if available)

Torro goes through its network of loan providers to match the applicant with the loan that they need. Their aim is to find the best loan option available. Because there is no business appraisal, limited asset verification, and minimal paperwork to complete, business owners can access their funds much faster.

Customer Support

Torro’s customer support team is available via phone ((866) 858-2404) every Monday to Friday. Borrowers can also use the chat support function on the website. Their Better Businesses Bureau profile has an A+ rating. In the past three years, seven complaints were recorded, resolved, and closed.

Bottom line

There are two types of funding available to businesses. New businesses can apply for start-up capital while existing businesses can look into working capital. Start-up capital can be used to make a business idea become a reality and obtain materials and equipment. These loans can also allow business owners to leverage their invoices and sales to fund expansion efforts or even everyday expenses