Borrowing on IOU Central


Who can borrow on IOU Central?

To borrow through IOU Central, businesses must have successfully registered on our platform. Our clients are typically owner-operated businesses with daily sales (cafes, restaurants, retail stores, dry cleaners, medical offices, franchisees, etc.).

To qualify, the registered business must:

  • Own 80% or more of your business

    You must own and operate your business.
  • Have been in business for at least 2 years

    You must own a business or have recently purchased a business that has been in operation for a minimum of 2 years.
  • Have an average bank account balance of $3,000 per month

    You must hold a minimum average balance of $3,000 in any given month.
  • Have a separate business bank account

    In other words, your personal bank account must be separate from your business bank account.
  • Operate a store-front or internet business that has daily sales

    Examples include florists, food markets, and specialty stores that have steady cash flow and a diversified customer base with a lot of small ticket transactions. Typically our customers have annual sales of at least $300,000.

What happens if I miss a loan payment?

Borrowers who miss payments face the same consequences as they would if they missed payments on any form of bank or other commercial credit obligation, including the reporting of late payments to credit bureaus.

Since payments are via daily ACH, IOU Central also charges Non Sufficient Funds (NSF) fees, to the extent allowed by applicable law. When a business’s payment is late, we immediately communicate with the business owner to encourage them to immediately bring their account current.

We also take the following actions: When a daily payment fails because of insufficient funds, we charge you a $25 Non Sufficient Funds (NSF)Fee (or such lesser amount as may be provided by applicable law).

When your loan is 63 payments in arrears, we generally transfer your loan to a nationally-licensed collection agency who notifies the credit bureaus of the delinquent account by reporting the debt as a “Collection Account”.

The collection agency makes further attempts to collect the delinquent amounts and have the account brought current.In certain cases, the collection agency recommends that the Company file a lawsuit against the owner of the business in which case the owner is served with a set of legal documents specifying a court date.

A successful lawsuit can allow the Company to garnish the owner’s wages, freeze their bank accounts and place a lien against their assets.

If you are having a problem making your payments, we suggest you contact us. There may be something we can do to help prevent this from becoming a more serious problem.

How do I make my loan payment?

Your daily loan payments will be automatically withdrawn from the verified checking account that you specified when you apply with IOU Central. Payments will be withdrawn on the date they are due.

You may make a payment online by loging on to our website at and going to My IOU. Under My IOU, click on Open Details and click on Make a Payment. The loan balance information will indicate the amount you owe that is required to pay your loan in full.

If you need to make a loan payment by check, please be sure to add a $10 fee to the payment amount to cover processing costs. To make payments by check, please include your screen name and Loan ID on the check and mail to the following address:

IOU Central Inc. 600 TownPark Lane, Suite 140 Kennesaw, GA 30144

What if I want to prepay my loan?

We allow borrowers to make extra payments on, or prepay, their loans in part or entirely at any time without penalty. In the event of a prepayment of the entire remaining unpaid principal amount of your loan, interest will stop accruing after the date on which such prepayment has cleared. The remaining loan guaranty fee balance is included in your loan prepayment/payoff amount.

In the case of a partial prepayment of your loan, we will reduce the outstanding principal balance of your loan by the amount of the partial prepayment but we do not recalculate the amortization schedule. This means the your daily payment remains the same and your loan will be repaid prior to the original maturity date if you continue to make full daily payments.

To see your loan payoff amount, logon to our website at and go to My IOU. Under My IOU, click on Open Details and click on Make a Payment. The loan balance information will indicate the amount you owe that is required to pay your loan in full.

What if I have a fraud alert with the credit bureau?

Your loan status will be shown as “Review” when a fraud alert is found with the credit bureau. We will attempt to contact you to validate your submission for a loan and verify certain information to ensure your identity. Once this information is verified we will continue with the underwriting analysis of your application.

Once my loan request is funded, how quickly will I get my money?

Once your loan request is funded, IOU Central will request a transfer of your loan proceeds to deposit directly into your designated business checking account. Transferring funds into your bank account generally takes one to two business days. Please note that you have the option of choosing instant funding via a wire transfer for an additional cost.

Can I have more than one loan at a time?

No. However your business is eligible for a small business loan renewal once 50% of the loan has been successfully repaid. Specifically, to be eligible to obtain a renewal loan, you must continue to satisfy our minimum credit criteria at the time of the renewal loan request and have successfully repaid your current loan down 50% from the original balance with no delinquencies. We reserve the right to modify eligibility requirements for renewal loans from time to time.

When are my payments due?

Your first daily payment is due on the fifth business day after your loan is funded. All of the following daily payments will be processed Monday through Friday (excluding holidays).

How is Interest Calculated?

Interest is the "rent" charged to use our funds, and is calculated on a daily basis and applied to the outstanding principal balance. Specifically, the interest rate is multiplied by the outstanding principal balance and then divided by the number of days in a year. This result gives the daily interest. The daily interest is then multiplied by the number of days until the next payment due date. This gives the total interest due for the installment period.

Our calculation method is known as "simple interest" because we only charge for the length of time you are using the funds. Other lenders and merchant cash advance funders use alternative interest calculation methods that increase the funding cost and may result in your paying for time calculated after the loan payoff.

There may be errors shown in my loan credit data. How can I get a copy of my credit file?

IOU Central has no way of accessing your credit file or making any changes on your behalf. We use Equifax as our credit partner.

You can contact Equifax at:

Equifax Credit Information Services, LLC
1100 Abernathy Road, Suite 300
Atlanta, GA 30328

How quickly will I know if my application has been approved?

IOU Central’s online application takes just minutes to complete. Pre-approval is immediate, a decision is usually rendered within 1-2 business days of the loan application and funding usually happens within 2-5 business days of the loan application.

What terms are available on IOU Central loans?

Currently, IOU Central offers 6 and 12 month loan terms.


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