Torro is an online commercial loan marketplace that connects business owners and entrepreneurs with lenders in its network of partners. The service facilitates fast, easy, and convenient comparisons of various funding options, helping borrowers find the best available rates and terms. Torro supports a streamlined, efficient application process, and approved borrowers typically receive funding within 48 hours of approval.
In this review, we’ll look at the types of funding Torro offers and what kind of rates and terms borrowers can expect to find. We’ll also analyze how the service stacks up in the competitive online lending industry.
Torro’s Loan Types
As of October 2020, Torro offers loans in two main categories: startup capital and business capital. Its startup loans are available to entrepreneurs seeking to launch new business ideas, increase their cash flow as their new ventures get up and running, and acquire other businesses or business assets.
The company’s business capital loans are tailored for established companies. They come in two types: fixed-term funding programs that function like standard loans, and flexible, open-ended solutions that act more like business lines of credit.
In addition to these financing options, Torro also offers:
- Merchant cash advances, which provide retail business with an alternative to standard loans by forwarding them sums of money in exchange for a small percentage of their daily credit card sales until the debt has been repaid with interest
- Accounts receivable loans, in which borrowers essentially “sell” unpaid invoices to the lender in exchange for an up-front cash advance
- Asset financing, which enables borrowers to leverage the value of assets they already own in order to obtain cash or working capital
Torro’s startup and business capital loans feature differing amount limits, interest rates, and repayment terms. These loan features are set by the end lenders in the company’s network, but include some caps, limits, and general standards:
- Borrowers have access to loan amounts ranging from $10,000 to $575,000
- Fixed-term loans have repayment terms ranging from 3 months to 24 months (2 years)
- Interest rates vary but will not exceed 36.00%
Several factors weigh into the decisions of end lenders regarding loan amounts, interest rates, and repayment terms. These include:
- The duration of time the company has been in business
- The company’s location
- The company’s revenue levels
- The primary borrower’s credit score
Torro does not explicitly state firm borrower requirements on its website, as the end lenders in its network of partners maintain differing standards. Prospective clients seeking startup capital usually apply based on their own personal credit histories. Meanwhile, established companies looking for business capital loans must normally meet the following minimum requirements:
- At least three months in business
- Minimum monthly revenue of $7,000
External sources note other characteristics commonly displayed by borrowers who file successful applications. For entrepreneurs launching startups, these include:
- A verifiable business entity filing
- A detailed statement explaining the borrower’s intended use of their loan proceeds
- Proof of current income
- Two years of personal tax returns
- Three years of personal bank statements
Similarly, established businesses seeking loans stand the best chance of approval if they:
- Are in good standing with creditors and tax authorities
- Have a valid tax identification number
- Offer a verifiable business credit history, or the verifiable personal credit history of a principal owner
- Have fewer than six credit inquiries on their relevant credit report during the 90-day period immediately preceding the loan application
Established companies should also have a registered business name, physical address, and dedicated business telephone number.
Torro’s Application Process
On its website, Torro highlights its ability to deliver same-day funding. While this is true in some cases, most borrowers receive their loan proceeds within 48 hours of returning their signed documents after accepting a loan offer.
To reach this phase of the process, would-be borrowers follow several easy steps:
- Create a Torro account and provide the requested personal and business details.
- Specify the type of loan you’re seeking and the amount of money you’d like to secure, and submit your application.
- Compare terms and choose the loan offer with the most appealing terms.
- Provide any necessary supporting documentation and await the end lender’s decision.
- Review and return the loan documents to receive your funding. This step of the process can be completed electronically.
Torro uses proprietary technology branded as the QuickWrite system to ensure your loan proceeds are delivered quickly once you’ve been approved.
Pros and Cons of Torro
On the plus side, here’s what professional third-party reviewers and actual borrowers like about the Torro platform:
- New entrepreneurs seeking to fund business ideas and startups have access to a wider-than-usual range of funding options
- Most loans and borrowing programs do not require the customer to offer collateral
- Standard and flexible loan options are available
- Funding is released quickly upon approval
Torro also has a few downsides and drawbacks. Consistently cited examples include:
- The Torro website contains only general information, and specifics are largely unavailable unless a user completes and submits an application
- Torro has a limited capacity to assist users with questions and issues related to their loans
- The network has few options for credit-challenged borrowers
What Others Are Saying about Torro
The Better Business Bureau (BBB) profile of Torro indicates the company has been accredited since 2015. As of October 2020, Torro has an A+ rating with the BBB, with 33 registered customer reviews giving the service an average score of 4.36 out of 5.
Torro enjoys similarly strong numbers on Trustpilot, where it has more than 340 reviews as of October 2020, with an aggregate rating of 4.6 out of 5. Of those reviews, 92% awarded Torro a perfect 5 out of 5 score.
The Bottom Line
Businesses often have a hard time securing the capital they need to meet their operational and cash flow needs. This is particularly true of emerging entrepreneurs, who typically face significant limitations and obstacles in their efforts to secure funding.
Torro offers a wide range of flexible options to borrowers in these situations. It has excellent customer satisfaction ratings and is well-positioned as a leading marketplace for business owners seeking loan amounts in the low to moderate range.