Introduction Small Business Borrowing
Welcome! This page will explain how small business borowing on Daric works. You can learn everything here that you need to know about growing your small business with a loan from Daric. If you have any lingering questions that aren't answered by this page, please send us a message at firstname.lastname@example.org.
Daric offers unsecured, fixed-term, fixed-rate loans, based on your good financial history and business' health. The APR for a loan will never change for the duration of the loan, and there are no surprise fees. Simply register, add a bank account to your profile, and apply for a loan. With Daric, except in rare cases, you do not even need to upload any documents. We will then analyze your application and financial history to determine if we can offer you a loan. If approved, your loan will then be posted onto the Daric platform to await funding by investors on Daric. Once your loan is funded, the amount of the loan will be deposited into your specified bank account. Daric will then begin the repayment process and make automatic ACH withdrawals out of that bank account for the duration of the loan until it’s paid off. Read The Process section for an in-depth explanation of how Daric works.Back to top
How much can I borrow?
You may borrow any amount between $1,000 and $50,000 for your first small business loan with Daric.
How much does it cost?
All services that Daric offers to you are free of charge until you receive a loan, so you have nothing to lose by registering and applying for a loan for your small business. The cost of the loan varies on your financial history and the size of your loan. Base interest rates vary between 6.03% and 28.69%. Read The Process section to learn the details.
Who can borrow money?
Due to lending regulations, not everybody can borrow money through Daric. You must meet certain eligibility criteria for your loan application to be considered, as listed below:
- Must be a US citizen, a US national (for those in US territories and possessions), or a US permanent resident
- Must be 18+ years of age
- Must have a valid bank account
- FICO score must be 660 or above. If FICO is 740 or higher, you must have less than 9 credit inquiries in the last 6 months. If FICO is below 740, you must have less than 4 credit inquiries in the last 6 months
- Must have 4 or more accounts in credit report, of which 2 or more are currently open
- Must have at least 3 years of credit history
- Cannot have maxed out all credit cards
- Debt-to-income ratio below 35%
- No current delinquencies
- No bankruptcies within the last 7 years
- No open tax liens
- No charge-offs
- No medical collections account in past 12 months
Please read the Borrower Agreement for more information.Back to top
All loans are unsecured, fixed-term, fixed-rate loans. If the loan is in an amount greater than $5,000 then you may choose for the loan to have a 36-month term or a 60-month term loan. All loans with lesser amounts must have 36-month terms.Back to top
Loan Rates and Fees
Loans are subdivided into 35 different loan grades with corresponding base interest rates from A1 to G5, as shown in the table below. Your financial background and the amount of money you're borrowing affects what grade and corresponding base interest rate your loan will be assigned. For every loan, we then take this base interest rate and adjust it based on our analysis of your financial background to reach your final APR. Every loan is optimized in this way so we can give each borrower an individualized APR.
|Loan Grade||Base Interest Rate||Example 36-mo APR||Example 60-mo APR|
Daric assesses certain fees, as listed below.
Borrower Origination Fee
The Borrower Origination Fee is the compensation for the services that Daric provides. This fee is included in the Annual Percentage Rate calculation, and varies depending on the size of the loan, your financial history, and your business' financials'; it may be up to 5% of the loan amount.
Unsuccessful Payment Fee
If an automatic payment fails and is rejected by the borrower’s bank, an Unsuccessful Payment Fee of $15 is charged to the borrower to cover the cost Daric incurs on the transaction. Possible causes of a failed payment include an insufficient balance in the borrower’s bank account, a suspended bank account, or a closed bank account. An Unsuccessful Payment Fee may be assessed for every failed attempt to collect the monthly payment since each attempt is considered a separate transaction, up to 3 times.
Late Payment Fee
Borrowers receive a 15-day grace period. However, if a payment is late, a Late Payment Fee is assessed on the 16th day to compensate investors for the delay in repayment. This fee is prorated and passed on to the investors. The Late Payment Fee is the greater of 5.00% of the unpaid payment amount or $15, and is only charged once per late payment.
Registering and applying for a loan with Daric is simple and quick. You just need to know your social security number, and the routing number and account number for the bank account you would like to use. You can find your bank account information printed on the bottom of a check tied to your bank account.
We recommend that you estimate your APR before you even register for Daric. This allows you to see how much a loan would cost, and it allows us to determine if you meet some minimum required for a loan application to be considered. To estimate your APR, you simply enter in the desired loan amount, loan purpose, and your current credit score. Estimating your APR will not trigger a credit report inquiry, and is free of charge and obligation. Please note that the APR you receive is an estimate; if you choose to register and apply for a loan, your actual APR may vary depending on information in your financial history. However, we do our best to ensure that the APR you estimate is very close to the APR you will receive on an actual loan.
Add Bank Account
In order for you to receive your loan, we need to connect your Daric profile to your bank account. Add a bank account by logging in to your account, then click on Account Management > Banking Information.
Apply for a Loan
Simply navigate to New Loan > Apply for Loan, then enter in a loan title, purpose, term duration, description, and amount for your loan. If your loan is in an amount greater than $10,000, you will be able to choose if you want a 36-month term or a 60-month term loan. This information will be displayed to investors. Loans that have a well-written, precise description tend to be funded faster. Please refrain from including any information that allows you or your business to be identified, especially proper nouns and names, as we cannot display such information by law. You must agree to our Credit Profile Authorization Agreement to finish the process. Please note, applying for a loan requires Daric to pull your credit report and access your financial history.
Daric will then verify and analyze your information to make a decision whether to approve or reject your loan application. We usually are able to make a decision in as little as an hour, or even less, without requiring you to upload any documents. However, in rare cases this process can take up to 14 days, and we may contact you and request that you furnish certain documents to help us. You will be notified when we have made a decision.
If your application is approved, we will notify you and display your official APR along with the Truth in Lending Disclosure Statement for the loan. This is a standard statement provided for any type of loan. It details the APR, total finance charges, loan amount, the origination fee, and length of the loan. You may choose to accept or decline the loan offer. There is no obligation to accept the loan offer if it is unsatisfactory. If your loan application has been rejected, you will receive notification with a secure message that details the reasons for rejection.
Once you accept your loan offer, your loan is posted onto Daric platform for investors to fund. The funding process can take up to 14 days. However, most loans are funded within a few days, if not hours. There are three different outcomes from the funding process, based on how well your loan is funded. In most cases, the loan is 100% funded within the 14-day funding period. You will be notified when this happens, and you may then choose to accept or cancel the loan. If, after 14 days, your loan is under 60% funded, Daric unfortunately cannot fulfill a loan. You may either cancel the loan application, or repost it on the platform in hopes that it will be successful the next time around. If, after 14 days, your loan is more than 60%, but under 100% funded, Daric can fulfill a partial loan based on the amount that was funded, with a revised APR and Truth in Lending Disclosure Statement. You may either accept the partial loan, or cancel it, or repost the loan onto the platform.
If you accept a loan, Daric will then deposit the amount of the accepted loan into the bank account you specified. That’s it!
Repaying Daric loans is easy. In fact, you don’t have to do anything at all! All repayments are automatic ACH withdrawals out of your specified bank account on the monthly anniversary of the date the loan was originated. For example, if you receive a loan on January 17 with a 36-month term, you will receive the full amount of the loan on January 17, and Daric will automatically deduct your monthly payment on the 17th day of the month for the following 36 months, starting on February 17. If a payment does not go through, you will be subject to an unsuccessful payment fee. There is a 15 day grace period for making a payment. On the 16th day after a payment is due, you will be subject to a late payment fee. If you fail to make payments, our collection agency partner will have to pursue action against you. Repayment information is reported to credit bureaus, so late payments or defaults will hurt your credit score. Refer to the Borrower Loan Agreement for more information.