Common Questions

Answers to common questions on Refinancing with Able

What are the loan terms for a Debt Refinance Loan?

The loan terms for a Debt Refinance Loan are from one to five years.

What are the loan amounts for a Debt Refinance Loan?

Refi loans range from $25,000 to $1,000,000.

What are the loan rates for a Debt Refinance Loan?

Able is the lowest-cost online lender in the nation. Our rates start at 8 percent. We also charge a one-time origination fee for loan management of 5%. There are no prepayment penalties.

What are the minimum requirements for a Debt Refinance Loan?

Refi applicants must be operating for at least one year, have $100,000 in revenue, and have a personal credit score of 600 or higher.

How much will I save by refinancing my high-interest debt with Able?

On average, borrowers save $5,416 by refinancing high-interest short term debt and credit cards with Able. Get your true rate and savings amount by using our True Rate Calculator.

How much of my Refi loan do I need to raise from outside friends and family?

The more you raise from friends, family, and fans, the more you save on your rate. Most businesses need to raise at least 10% of your total loan amount from two people, and then Able funds the remaining percent of capital. Well-qualified customers are eligible for non-backer loans.

Will I ever need to raise more than 10% for my Refi loan?

The more you raise from friends, family, and fans, the more you save on your rate. Able may also require some riskier borrowers to raise more than 10% from backers.

Can I fund the required 10% of backer capital in my Refi loan?

You, the owner, are always welcome to contribute money as a backer, which will lower your rate. But owner money does not count towards the required backer amount.

Who can be a backer in my Refi loan?

A backer can be a friend, family member, advisor, or customer who believes in you and your business. We require that you recruit at least two outside backers for your loan. Spouses and children can participate as backers, but can’t contribute to the required minimum backer amount.

Who can’t be a backer in my Refi loan?

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 business entity; 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.

Can my business be a backer?

No. We structure self-backing as a loan, so it needs to come from a separate (legal) person.

Can you provide some tips on how to recruit backers?

Yes! We will help you strategize who to ask and give you marketing materials you can use to explain your business and Able.

What is minimum and maximum contribution per backer for my Refi loan?

Our minimum is $1000. Our maximum is up to 50% of the total backer amount.

What interest rate do backers charge me for my Refi loan?

You can work with each backer to agree on the rate charged. Backers can come in as high as Able’s rate, or as low as 2%.

If I’m self-backing, can I still chose my interest rate?

Yep. You can go as low as 2% and as high as Able’s rate (we do it this way to prevent adverse tax consequences to you).

How quickly can I get my Refi loan?

Once you’ve raised all your backers, it typically takes a little less than a week to fund.

How does the funding work?

Able collects all the backer money then disburses it together with the Able money. (We do it this way to deter fraud).

How long do I have to find backers if the proposal has an expiration date on it?

There’s no firm limit, but borrowers usually aim to fund within four weeks. Much longer than that and we’ll have to reevaluate your business.

What is the loan payback schedule for a Debt Refinance Loan?

Refi 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.

How soon will my backers be paid back for a Debt Refinance Loan?

Your backers receive interest-only payments until Able is paid in full, then backers will start receiving principal and interest payments. 

Why does Able do it this way?

By insisting that Able gets paid first, we can significantly decrease our risk. This gets passed onto the borrower in the form of lower interest rates.

What if I want to repay my Refi loan early?

You can repay your Refi loan at any time before the terms ends without any prepayment penalties.

What happens if I default on my Refi loan payments?

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.

How is this different from crowdfunding?

Crowdfunding is raising a little money for a lot of people without any promise of repayment. Able is raising a lot of money from a small group of people with a promise of repayment (and interest!).

Can I contact Able with questions?

Yes, we welcome questions and feedback. Chat, email, or call us at 1-866-229-0272.