Introducing Nav: Helping Entrepreneurs Stay Afloat
Nav bills itself as a one-stop shop for small business financing needs – from loans and lines of credit to business credit cards and insurance. The Utah-based fintech company was founded in 2012 by entrepreneur Levi King. After running multiple small businesses over 20 years, King was well-acquainted with the financial difficulties facing entrepreneurs.
With his latest venture, King set out to connect business owners with funding sources to help their dreams stay afloat. Nav has certainly seen impressive growth, boasting over 10K Instagram followers and features in Forbes and other major outlets.
But does the hype match reality? In this in-depth critical review, I’ll analyze Nav’s key services, transparency, fees, and value compared to alternatives. My goal is to uncover if Nav truly moves the needle for bootstrap entrepreneurs or falls short of promises.
Nav‘s Main Offerings: Loans, Credit Cards, Insurance & More
Nav acts as a marketplace, matching customers with lending products from third party providers. Main options include:
Business Loans & Lines of Credit
Loans offered range from $5K – $500K+ with APRs of 7.95% – 99%. Nav connects users with lenders like Fundbox, Credibly, and Clearbanc.
The convenience factor here is nice – business owners can quickly view multiple loan options in one spot instead of endlessly Googling lenders. However, it remains to be seen whether Nav actually saves users money compared to researching rates individually.
I compared a $50K loan quote from Nav to a direct Fundbox quote and found identical APRs and origination fees. So at least for Fundbox, no extra savings via Nav.
Business Credit Cards
Over 25 business card offers are showcased from major banks like Capital One and niche providers like Brex. Nav matches users to cards based on personal/business credit stats like typical marketplaces.
The selection is solid, but again, going directly to individual banks would yield the same rates/fees without Nav‘s monthly subscription ($50/month for full services). One perk is users can easily compare rewards points across cards in one spot. But whether that convenience justifies Nav‘s recurring charge depends on your business and financial priorities.
Business Insurance
Nav also plays matchmaker for commercial policies – general liability, professional liability, etc. In my experience though, independent agents usually beat direct insurance carriers on pricing for most industries. I‘d hesitate to buy insurance via Nav instead of shopping quotes with a qualified broker.
Cash Flow Insights & Credit Monitoring
For $50 monthly, Nav provides reporting on income, expenses, account balances, credit changes and action steps to optimize financial health. This can benefit less financially-savvy owners still learning the ropes of monitoring cash flows.
However, the dashboard lacks custom categorization/tagging of transactions that many standalone finance apps like QuickBooks offer. And with all the free credit monitoring services now, I don‘t find Nav‘s credit features worth a monthly outlay.
How Transparent is Nav on Customer Data & Privacy?
As a marketplace, Nav requires access to certain personal, financial, and business data to match users with offers. Their privacy policy seems reasonably transparent about categories of accessed data including bank/credit card statements, tax documents, consumer reports, etc.
I would still prefer an option for one-off anonymous searches instead of handing over data carte blanche. But their disclosures seem comparable to competitors in the lending marketplace space.
That said, I don‘t love seeing clauses like “we are not responsible for any losses resulting from unauthorized access” – feels like liability waiver fine print if breaches occur. Caveat emptor.
What Do Customers Really Think? Assessing Nav‘s Reviews
Nav reviews present a mixed bag – while 73% of ratings on the Play/App store are 5 stars, other sources show higher complaint levels.
Positive reviewers praise the quick convenience of seeing multiple loan and card options in one dashboard. But that‘s table stakes for any fintech marketplace.
Many negative Nav reviews centered around bait-and-switch lending practices, unexpected/undisclosed rate hikes or fees, and poor customer support. Several described cumbersome cancellation processes for unwanted add-on services. Issues seemed most acute around loan offerings instead of business cards or insurance.
Based on these reviews, I hesitate to wholeheartedly endorse Nav as a trusted advisor or partner for securing optimal financing. Performing due diligence on individual lenders appears wise regardless of Nav‘s recommendations.
Should Business Owners Consider Signing Up? Who Nav Really Helps
For business credit cards and insurance, I believe Nav provides more convenience than substantive value. Owners can likely land better deals shopping around a bit more themselves.
Where Nav clearly moves the needle most is consolidating and simplifying loan/credit options for very small, early-stage businesses. The eligibility requirements, expected returns, and risk profiles can be enormously complex to parse for first-time entrepreneurs.
Business owners falling into more complex scenarios – multi-member LLCs, medium-sized operations, niche structures like non-profits/B-Corps, etc – will outgrow Nav‘s simplicity quickly. But for microbusinesses needing a primer on securing startup capital, Nav delivers a decent 101 intro.
I suggest treating Nav as an informative starting point, not a final say on financing. Take their recommendations and independently vet options with trusted advisors before deciding.
Alternatives to Nav Based on Your Business Profile
Rather than adopt a one-size-fits-all solution with Nav, I recommend exploring options tailored to your particular business structure and financing needs:
- Restaurants/retail: Point of sale lenders like Square provide integrated solutions beyond Nav‘s piecemeal offerings.
- Ecommerce companies: Consider merchant cash advance providers like Stripe Capital or PayPal Working Capital.
- Advanced startups: Seek venture capital, accelerators, or use equity crowdfunding instead of Nav‘s basic small business loan marketplace.
- Contractors/consultants: Explore client-factoring arrangements and dedicated marketplaces like HiveFi.
And regardless of your industry, developing relationships with community banks and credit unions can reap long-term rewards Nav cannot match.
Key Takeaways: Who Should (and Shouldn‘t) Use Nav
- Nav simplifies researching financing options, but may not actually save money vs. going direct to providers
- Convenience factor is best for early-stage microbusinesses new to financing
- Transparency about customer data practices seems on par with competitors
- Reviews reveal some predatory lending experiences despite Nav‘s recommendations
- Alternatives like POS lenders, cash advances, or community banks better serve many business types
So is Nav worthwhile overall? Yes for education and awareness, but not necessarily for the best deals or rates long-term.
I suggest new entrepreneurs reference Nav‘s tools and resources, but ultimately make financing decisions based on rigorous direct vetting of providers, not just Nav‘s word.
Frequently Asked Questions
Does Nav offer financing itself or connect me to other lenders?
Nav is a marketplace that curates offers from various third party lending partners. They do not issue loans or other financing directly.
What credit score is needed to qualify for Nav‘s business loan recommendations?
Nav requires a personal minimum credit score of 560 and at least a year in business to qualify for its startup loan marketplace. Higher scores unlock better rates.
Can I get a business credit card without a DBA or tax ID using Nav?
The short answer is no – issuers will still require official business identification and your social security number tied to opened accounts.
What customer data does Nav have access to?
According to Nav‘s privacy policy, they can compile data like bank/CC statements, consumer reports, government IDs, and tax documents in order to match users with financial products.
Does Nav allow anonymous searches before creating an account?
Unfortunately, no. Browsing Nav‘s marketplace requires opening a user account and submitting personal/business documentation for lending eligibility checks by partners.
I hope this transparent yet balanced review helps set proper expectations about whether Nav aligns to your small business financing needs or not. Please reach out with any other questions!
