Why a home equity line of credit is better than a small business loan
- Figure offers a fast and easy way to turn your home equity into cash, up to $400k5navigates to numbered disclaimer
- Get rapid funding and forget the long bank timelines.* With Figure, you can apply in 5 minutes with funding in as few as 5 days.2navigates to numbered disclaimer
- Enjoy the flexibility to redraw funds at a fixed interest rate for continuous business financing.1navigates to numbered disclaimer
Checking your rate will not impact your credit.3navigates to numbered disclaimer
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Figure’s HELOC vs. The Average Small Business Loan
Choosing a HELOC over a small business loan could streamline your path to financing, especially in the early stages of your business. Compare our HELOC and the average small business loan side-by-side to help you make an informed decision about tapping into your home's equity.
| Figure HELOC | Average Small Business Loan* | |
|---|---|---|
| Approval Timeline | Fast | Slow |
| Use of Funds | Flexible, can be used for any business need | May have restrictions based on the type of business expense |
| Loan Qualification | Homeowners can qualify easily. The loan is secured by home equity1navigates to numbered disclaimer | Stringent lender-specific requirements like solid operating history, minimum net worth, and more |
| Redraw Option | Allows redrawing on the credit line as the balance is repaid | Typically does not allow redraws |
| Prepayment Penalty | Never | Possible, varies by lender |
| Fund Disbursement | Funding in as few as 5 days5navigates to numbered disclaimer | Could be weeks |
| Application | 100% Online, see your rate instantly | Varies by lender. May require in-person processes |
- * According to data available via BankRate as of Dec 18, 2023 (https://www.bankrate.com/loans/small-business/reviews/sba-loans/ Opens in a new window.)
Learn why Figure’s HELOC could be the better choice:
Faster and easier
With Figure, you could get approved in as little as 5 minutes with funding in as few as 5 days, all with a 100% online application. Small business loans often require more documentation and can take longer to process. No need to jump through hoops or waste time with lengthy in-person appointments.
Trusted with billions
At Figure, we've helped thousands of people achieve their financial goals through our innovative and convenient lending solutions. Over $9 billion in HELOCs has been funded using Figure’s platform, making us a trusted and experienced lender in the industry. Our innovative technology and customer-centric approach make us the best choice for your financing needs.
Unrestricted Fund Usage
A HELOC provides the flexibility to use your funds as you see fit, without stringent restrictions. This makes it easier to manage cash flow and adapt to the financial demands of your business.
Redraw Options to Empower Your Business
Figure’s HELOC allows you to re-borrow funds as you pay down the principal balance, maintaining a continuous flow of capital. Unlike the average small business loan, which typically lacks a redraw feature, our HELOC keeps your financial options wide open.
Enormously helpful throughout the process
I recently took a loan through Figure. They were enormously helpful throughout the process. Being a senior citizen businessman I appreciated their making my time count. I plan on using them again if possible to fund my future business needs.
Written by customer— Joe M.
Now my go-to source for funding
As a small business owner who periodically needs capital, I am so happy I found Figure. This is now my go-to source for funding. I’ve borrowed from them twice. They are fast, friendly, and efficient — and their rates have been amazing. Buh-bye, hard money lenders.
Written by customer— Lynne P.
Fast, Smooth and downright AMAZING!
I have never had such a smooth experience with a lending institution. Your system is spot on (I own a software company). The ease of use, speed and ability to do EVERYTHING on line was incredible!
Written by customer— Ezra W.
2651 Excellent Reviews on trust pilot
Trustpilot reviews Opens in a new window.Have more questions?
If you have everything ready, you can have funding initiated in as few as 5 days.2navigates to numbered disclaimer
A HELOC is secured by your home which means you are offered a lower rate, longer terms, and typically lower payments compared to an unsecured loan.4navigates to numbered disclaimer
Have your ID ready. You will also need login credentials to your online bank accounts for both income verification and setting up your disbursement account.
Depending on how you use the funds, interest payments from a home equity loan or home equity line of credit might be tax deductible when filing your annual taxes. Consult a tax advisor about your specific situation.
Figure’s HELOC is faster than the average small business loan
- A HELOC is easier to qualify for than an unsecured loan that doesn't have an asset attached to it.
- A HELOC could come with a lower interest rate.
- Borrow up to $400k.5navigates to numbered disclaimer
- Redraw up to 100%.
- Funding in as little as 5 days.2navigates to numbered disclaimer