What Is Torro?
Torro (also known as Torro Funding Group) is a business funding marketplace headquartered in Salt Lake City, Utah. Founded in 2000, the company connects businesses with a network of lending partners rather than lending money directly.
Think of Torro as a matchmaker between your business and hundreds of potential funding sources. You submit one application, and Torro's team matches you with lenders that fit your specific situation.
The company has been BBB-accredited since 2015 and holds an A+ rating. It operates out of three offices in Utah and Nevada under the leadership of owner Cameron Montgomery.
Torro at a Glance
Funding from $5,000 to $575,000
APRs up to 36%
Startup and established businesses accepted
Minimum credit score: 400 for working capital, 600 for startups
Loan terms from 12 to 48 months
No prepayment penalties
BBB-accredited with A+ rating since 2015
How Does Torro Work?
Torro operates as a loan syndication platform. Instead of using its own capital, funding comes from a pool of affiliate investors and lending partners.
Here's what that means for you: after submitting your application, Torro's team reviews your business profile and matches you with one to three lending options from their network. Each option comes with its own rates, terms, and fee structure.
This model has a clear upside: businesses that struggle to qualify through traditional banks may find options here. The downside is that since you're dealing with third-party lenders, the exact terms can vary widely and aren't always transparent before you apply.
Torro Funding Requirements
Torro has two main tracks depending on whether your business is already generating revenue or still in the startup phase.
Working Capital Loans:
- Minimum credit score: 400 (higher scores get better rates)
- Minimum monthly revenue: $10,000 ($120,000 annually)
- At least 6 months in business
- Funding up to $575,000
Startup Funding:
- Minimum credit score: 600 (700 preferred)
- Maximum monthly revenue: $5,000
- Funding up to $125,000
- Loan terms of 12 to 48 months
Torro claims to consider applicants regardless of previous bankruptcies or poor credit history. While that sounds appealing, keep in mind that riskier borrowers will face higher APRs and fees.
Torro Rates and Fees
Transparency is one of Torro's weak points. Since each lending partner sets its own terms, exact rates and fees depend on the specific match you receive.
Here's what we know based on available data:
APR: Up to 36%, which varies by state regulations, lender, and your creditworthiness. For context, SBA loans typically range from 5% to 10% APR, making Torro significantly more expensive.
Origination Fee: Approximately 5% on most loan products.
Broker Fee: Multiple customer reviews report a 10% fee on the qualifying amount. On a $50,000 loan, that's $5,000 paid to Torro for matching you with a lender.
No Prepayment Penalty: You can pay off your loan early without extra charges.
The combination of a 36% APR cap, origination fees, and a broker fee can make the total cost of borrowing substantially higher than what you'd find at a traditional bank or credit union.
Watch Out for Hidden Fees
Several customers report being surprised by fees that weren't clearly disclosed during the application process. Always request a full fee breakdown in writing before signing any agreement.
How to Apply for Torro Funding
The application process is straightforward and happens entirely online:
- Visit torro.com and use the slider to select how much funding you need
- Choose between a line of credit or startup capital
- Indicate whether your business is established or still an idea
- Fill out the application form with your business details
- Submit and wait for Torro to review your application
Decisions typically come back in under an hour. If approved, you may need to submit additional documentation like bank statements or a copy of your credit report (available free through services like Credit Karma).
Funding can arrive in as little as 24 to 48 hours after final approval.
Is Torro Business Funding Legit?
Yes, Torro is a legitimate company. It holds an A+ rating from the Better Business Bureau and has been accredited since 2015. The company is registered in Utah and has been operating for over 25 years.
That said, "legitimate" doesn't automatically mean "good deal." Customer reviews paint a polarized picture:
On Trustpilot: Torro has a 4.5 out of 5 rating based on over 1,000 reviews. Many positive reviewers praise fast funding and responsive customer service.
On BBB: The company maintains a 4.7 out of 5 rating from over 90 customer reviews. However, BBB complaint records show concerns about fee transparency and communication issues.
On Reddit: Small business owners share mixed experiences. Some report smooth funding processes, while others warn about high fees and pressure to sign up for credit monitoring services.
The pattern in negative reviews is consistent: customers feel blindsided by fees that weren't clearly explained upfront. If you move forward with Torro, get every fee and term documented before committing.
Torro Reviews: Pros and Cons
After analyzing hundreds of customer reviews across Trustpilot, BBB, and Reddit, here's what stands out.
Pros
Fast application with decisions in under an hour
Startup-friendly with funding for pre-revenue businesses
Low credit score requirements (400 minimum for working capital)
Hundreds of lending partners increase approval odds
No prepayment penalties
BBB-accredited with A+ rating for over 10 years
Cons
APRs up to 36%, well above traditional bank rates
Reported 10% broker fee adds significant cost
Limited fee transparency before applying
Some customers report aggressive sales tactics
Online chat not available 24/7
Alternatives to Torro
If Torro's pricing concerns you, consider these alternatives:
SBA Loans: Lower rates (5-10% APR) and longer terms, but stricter qualification requirements and slower funding. Best for established businesses with good credit.
Traditional Bank Loans: Competitive rates for qualified borrowers. Most banks require two or more years in business and strong revenue history.
Online Lenders: Companies like Upgrade and Upstart offer personal loans that some business owners use for smaller funding needs, often with more transparent terms.
Credit Unions: Often offer small business loans at lower rates than marketplace lenders. Membership requirements apply but are usually easy to meet.
For startup businesses specifically, look into SBA microloans (up to $50,000) or local small business development centers that can connect you with grants and low-interest loans.
The Bottom Line
Torro fills a genuine gap in the business lending market by serving startups and borrowers who can't qualify for traditional financing. If you need funding fast and have limited options, Torro can connect you with capital when banks won't.
But that convenience comes at a price. Between APRs up to 36%, origination fees, and broker fees, you could end up paying significantly more than you would through a bank, credit union, or SBA loan.
Our recommendation: use Torro as a last resort after exploring cheaper alternatives. If you do apply, request a complete fee schedule in writing before signing anything, and compare the total cost of borrowing against at least two other options.
Frequently Asked Questions
Is Torro business funding legit?
Yes. Torro is a legitimate company founded in 2000 with an A+ BBB rating and accreditation since 2015. However, some customers report concerns about fee transparency and aggressive sales tactics. Always get all fees in writing before committing.
How does Torro funding work?
Torro is a loan marketplace, not a direct lender. You submit one application, and Torro matches you with lending partners from its network. Each partner has different rates and terms. Torro charges a broker fee for the matching service.
What credit score do you need for Torro?
For working capital loans, Torro accepts credit scores as low as 400. For startup funding, the minimum is 600 with 700 preferred. Lower scores will result in higher APRs and stricter terms.
How much does Torro charge in fees?
Torro charges an origination fee of approximately 5% plus a reported broker fee of around 10% on the qualifying amount. APRs go up to 36%. Exact fees vary by lending partner and are not always disclosed before applying.
How fast can you get funded through Torro?
Torro claims most applications receive a decision in under an hour. Once approved and all documentation is submitted, funding can arrive in 24 to 48 hours.
