You might be a merchant who recently received a loan approval from Fratello Capital and are now wondering whether Fratello Capital is a direct lender, a broker, or even a legitimate company. This concern is completely understandable. Many small business owners in the United States are already familiar with big names like OnDeck, Kapitus, or CAN Capital. These companies are well-known because they invest heavily in marketing and work with a wide network of brokers. Fratello Capital, on the other hand, has fewer broker partnerships, which is why their name is not as widely recognized. As an underwriter, I will share real insights about Fratello Capital that can help you decide whether taking a loan from them is the right choice for your business.
Table of Contents
- What is Fratello Capital?
- Available Loan Options
- Rate, Terms and Payback Options
- Minimum Qualifications for Fratello Capital Loans
- Application Process
- Customer Service
- Best Alternatives
- Is Fratello Capital a Good Choice for Your Small Business Funding?
- Conclusion
What is Fratello Capital?
Fratello Capital is a New York–based direct lender specializing in providing financing solutions to small and mid-sized businesses across the United States. It was founded in July 2022 by Ben Khaimov. The company offers a range of funding options, including merchant cash advances and revenue based business financing to support businesses in various industries.
Available Loan Options
Currently, Fratello Capital offers two business loan programs: Revenue-Based Funding and Merchant Cash Advance. Loan amounts are available up to $2,000,000.
If you qualify for an MCA loan, Fratello will deduct a fixed percentage of your daily or weekly sales. On the other hand, if you qualify for a Revenue-Based Funding loan, you will pay a fixed daily or weekly amount. Payments remain consistent regardless of sales fluctuations.
Rate, Terms and Payback Options
Fratello Capital does not charge regular bank interest. Instead, it uses a factor rate from 1.25 to 1.50, which determines the total repayment amount. As a private lender, its loan terms are shorter than banks, usually 3 to 24 months.
Repayments are available only in daily or weekly payments. On high sales days, you pay more; on slower days, you pay less. Daily payments are smaller and spread out, while weekly payments combine the total into one larger payment. This flexibility helps businesses manage cash flow easily.
Minimum Qualifications for Fratello Capital Loans
To be eligible for a Revenue-Based Business Loan or Merchant Cash Advance from Fratello Capital, your business must meet the following requirements:
- At least 6 months in business
- Minimum credit score of 550
- Monthly gross sales of $30,000 or more
- No defaults, bounced payments, or negative history with previous lenders
- No bankruptcy or unresolved tax issues
Meeting these criteria does not guarantee approval, but it increases your chances of qualifying for funding.
Application Process
You cannot apply directly to Fratello Capital for a business loan. As mentioned earlier, they primarily work through broker partnerships. To get a loan, search for top-rated brokers who are partnered with the private lender, and they can help arrange the funding for you. Alternatively, you can email Fratello Capital directly, and they will suggest brokers who can assist with your loan application.
Customer Service
Since Fratello Capital does not work directly with merchants before funding, you cannot apply to them on your own. However, once your loan is funded, you can contact the lender directly for any questions or support at 212-464-8108.
Best Alternatives
If you think Fratello Capital is not the right fit for your business, several other lenders offer similar short-term funding options with almost same terms and reliable support:
- OnDeck: Offers business loans and lines of credit with competitive rates and fast funding. Ideal for small businesses with steady revenue.
- Kapitus: Provides flexible financing solutions including short-term loans and equipment financing. Known for quick approval and transparent terms.
- CAN Capital: Specializes in Merchant Cash Advances and business loans for small businesses. Offers simple application and fast access to funds.
- Bitty Advance: Bitty Advance is a merchant cash advance (MCA) provider that offers fast, flexible funding to small businesses across various industries. You can get up to $250k from this lender.
- Vader Mountain Capital: Another strong alternative to Fratello Capital is Vader Mountain Capital, which provides business funding ranging from $2,600 to $250,000. They offer flexible financing solutions designed to support the growth of small businesses.
- National Funding: Offers working capital loans and MCAs with flexible repayment options, suitable for businesses with seasonal fluctuations.
Is Fratello Capital a Good Choice for Your Small Business Funding?
The answer is simple. Like most private lenders in the U.S., Fratello Capital works through brokers. This approach helps lenders comply with regulations like TCPA and makes it easier to reach potential borrowers. Working with a broker is not a problem—it is a common practice in the industry.
Fratello Capital’s rates and terms are similar to most other private lenders. The exact rate you receive depends on factors such as your personal FICO score, your business bank deposits, and the industry your business operates in.
Keep in mind that brokers typically add a 2–15% commission when arranging your loan. If you can negotiate with your broker, you can often secure better terms, which will save your business money in the long run.
Conclusion
Fratello Capital is more of a “hidden gem.” They mainly work through brokers instead of directly marketing to merchants, which is why their name is less widely recognized. However, when you compare their rates and terms with most other private lenders, Fratello Capital often comes out a step ahead.
