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Friends and Family Loan

Fund your big idea with a true peer to peer small business loan.

  • Borrow any amount
  • Rates starting at 2%
  • Choose any term

Build Your Loan

A True Peer to Peer Business Loan

The average cost of starting a business is $30,000 (Source: SBA). Since it’s impossible to qualify for a loan without financial history, most early-stage businesses look to their friends, family and fans for capital.

Friends

Family

Fans

Your backer-powered Loan
Funded 100% by Backers

Build a peer to peer small business loan funded by your friends, family and fans in a way that protects your dearest relationships while allowing you to focus on growing your business.

Grow the Right Way

95% of startups are funded by friends, family, and fans. Able provides a way to formally structure these relationships.

Protect Your Relationships

Don’t turn your friends and family into debt collectors. Use Able to streamline your payback process and legal agreements.

Raise More Money

Our platform allows you to invite your network to fund your business helping you raise more money.

Raise Money Faster

With our managed process, you can get your supporters comfortable quickly, and get the deal done faster.

Build a Custom Loan

Startups need to optimize their cash-on-hand. We provide you with a way to design a flexible deal that supports your growth plans.

Ready to Fund Your Startup?

Build a peer to peer small business loan that fits your growth goals. Fund with the help of your network.

Build Your Loan

Get Funded. Retain Control.

Trading equity for cash sounds appealing, but not when it comes with the cost of giving up ownership in your business.

Friends, family, and fans who fund your Able loan don’t take equity so you can:

  • Retain the vision for your business.
  • Choose who to involve in key business decisions.
  • Fund your business for sustainable growth, not an exit plan.
Funded by your Friends, Family, & Fans chart-funding

Graduate to More Capital

  • Able monitors the performance of your business across the life of your loan.
  • Once your startup reaches $100,000 in revenue along with 12 months of operations, Able amplifies the amount of money you initially raised.
  • We scale our capital with your growing business and everyone wins.

Common Questions

What are the loan amounts for a Friends and Family Loan?

Friends and Family Loans range from $1,000 to $1,000,000.

What are the loan rates for a Friends and Family Loan?

Start allows you to build your own loan terms, rate, and payment structure including a grace period and months of interest-only payments. You can build your loan here. Able charges a one-time origination fee for loan management. There are no prepayment penalties.

How much of my Friends and Family Loan do I need to raise from outside friends & family?

One-hundred percent of Friends and Family Loans are funded from friends, family, and fans.

Who can be a backer in my Friends and Family Loan?

A backer can be a friend, family member, advisor, or customer who believes in you and your business.

Who can't be a backer in my Friends and Family 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 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 Friends and Family Loan?

Our minimum is $1000. There is no maximum contribution for a backer.

What interest rate do backers charge me for my Friends and Family Loan?

You can work with each backer to agree on the rate charged. The minimum is 2% and the maximum is 25%.

How quickly can I get my Friends and Family Loan?

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

What is the loan payback schedule for a Friends and Family Loan?

Friends and Family Loans are repaid monthly to your backers, and payments include the principal loan amount and interest. The monthly payment amount is equally amortized over the loan’s term unless you choose to have months of interest-only payments or no payment. You can build your custom payback schedule here.

How soon will my backers be paid back for a Friends and Family Loan?

As you pay back your loan each month, Able distributes principal and interest and payments to your backers. You can build your custom payback schedule here.

What if I want to repay my Friends and Family Loan early?

You can repay your Friends and Family Loan at any time before the terms ends without any prepayment penalties.

What happens if I default on my Friends and Family Loan payments?

In the event of default, Able works with you to restore good standing. If restoration is not possible, your backers will lose any unpaid principal and interest.

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 512.222.5425.

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).

What are the loan terms for a Friends and Family Loan?

Start allows you to build your own loan terms, rate, and payment structure including a grace period and months of interest-only payments. You can build your loan here. Able charges a one-time origination fee for loan management. There are no prepayment penalties.