How Able Works

Frequently Asked Questions

  • We issue loans for one to five years.

  • Our loans range from $25,000 to $500,000.

  • By asking you to bring Backers into your loan, we can offer some of the lowest interest rates in the alternative lending space. Our rates range from 8 to 16 percent. We also charge a one-time origination fee for loan management. There are no pre-payment penalties.

  • You need to raise 25% of your total loan amount from three to five people, and then we fund the remaining 75% of capital.

  • Borrowers may choose to raise more than 25% from Backers, which lowers their overall interest rate. Able may also require some riskier borrowers to raise more than 25% from Backers. You’ll never have to raise more than 50% from Backers.

  • A Backer can be a friend, family member, advisor, or customer who believes in you and your business. Non-family members must equal or exceed family members, both in numbers and in amount.

  • A Backer in your loan can’t be people without a valid U.S. bank account; people not legally domiciled in the U.S.; the borrower or any principal, officer, or full-time employee of the borrower’s business; anyone with whom we are legally prevented from doing business with; and anyone who we suspect presents a risk of money laundering or other illegal activities.

  • Yes, we are here to help. Our loan brings both financial and legal structure to friends & family lending, and since your Backers earn interest each month as you payback your loan, it is a unique pitch. See additional tips here.

  • Backers can charge the same interest rate as Able, or choose to go as low as half of our rate.

  • Unfortunately, no—a borrower can’t also be a Backer in their loan. The external Backer requirement is necessary for our underwriting. We want to see that you, the entrepreneur, can source three to five people who are willing to back you and your business.

  • After you complete a short profile here, we will be in touch within the day to request some financial information about your business. After reviewing your financials and a credit check, we then get back to you with a decision on your loan within three business days. Then, you find three to five friends & family members to pledge 25% of your loan amount. Able collects their funds, organizes the loan, and ensures legal agreements are signed. After this takes place, funds are electronically deposited into your account within a few days.

  • Loans are repaid monthly to Able, and payments include the principal loan amount and interest. The monthly payment amount is equally amortized over the loan’s term.

  • As you pay back your loan each month, Able distributes interest payments to your Backers. In the final fourth of the loan term when Able is paid back in full, Backers begin to receive their principal back plus interest payments unless default occurs. See a sample Backer repayment schedule here.

  • You can repay your loan at any time before the terms ends without any pre-payment penalties.

  • In the event of default, Able works with you to restore good standing. If restoration is not possible, your Backers take first loss since they are subordinated to Able in the loan structure. If default occurs before the loan term ends, Backers do get to keep the interest accrued to-date but lose their principal loan amount.

  • Yes, we welcome questions and feedback. Email us, or call us at 512.222.5425.