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Fundera is an online market place that serves as a bridge between small businesses and lenders. The focus is, in essence, on helping US companies to identify the appropriate type of loan that will solve their financial problems and enable them to expand. Fundera, on the other hand, is not working with hundreds of lenders because they want to raise the best offers for their customers, contrary to much of the financial marketplace. In selecting partners they prefer quality over quantity and are very strict in their selection criteria. Their commitment to quality can be demonstrated by the large number of Fundera reviews on a wide range of customer review websites.
Fundera is also working with a number of business brands who are participating in its Referral Program to provide customers with access to appropriate funding, including providing them with support on their financial options directly from the platform.
Fundera is a digital platform, which was set up in 2013, is now capable of providing you with a wide range of loan types. The most prominent ones are as follows:
- Short-term business loans
- SBA loans
- Term loans
- Startup business loans
- Equipment financing
- Business lines of credit
- Invoice financing
- Merchant cash advance
The maximum amount of loan a business may take advantage of through Fundera shall be determined by its lender and the type of loan. However, Fundera has lenders offering loans ranging from $2,500 to $5 million on average.
We will discuss what you need to know about Fundera, the process and terms of its application, as well as the advantages and disadvantages of using those services during this review.
Fundera’s Borrower Requirements & Terms
Since Fundera is a financing portal where several lenders participate, they do not have special conditions for businesses to be able to avail themselves of loans via their platform. However, it is worth noting that the lenders themselves have their own conditions and requirements which need to be considered when shortlisting your options.
| Feature | Data |
| Minimum time in business | Varies across lenders |
| Credit score required | 550+ on average (higher for SBA and equipment financing loans) |
| Annual revenue required | Varies |
| Borrowing amounts range | $5,000 – $5 million |
| Borrowing fee | None (Fundera doesn’t charge any fee from borrowers) |
| Origination fee (or any other fee) | None |
| Funding time | Varies (can range from 1 business day to 2 weeks) |
| Location requirements | The business must be based in the United States |
| Bankruptcies | No active bankruptcies |
| Eligible industries | All |
| Personal loan guarantee required | Depends on the type of loan and lender |
| Collateral | Varies (may not be required in some types of loans) |
| APR | Different for various types of loans and across lenders |
Most Minimum limits on credit scores, annual revenue, and operating time are in place for most lenders on Fundera. In addition, business and owners who are in active bankruptcy do not receive loans from most lenders. You'll also be required to offer a personal guarantee in many cases. Is it known that 29% of businesses have a cash problem? But there's a lot more reasons why business don't work.
This is one of the common conditions that lenders may be dealing with. This may be different, and it is always wise to take a careful look at the lending provider's conditions prior to submitting an application for credit.
How to Apply for a Business Loan With Fundera?
The Fundera service simplified the difficult task of finding an adequate credit provider for your business. Fundera only connects you to credit providers who meet your requirements in all areas, thanks to a team of financial experts and an easy application process. The following steps shall be taken in the funding process at Fundera:
Step 1 – Fill Out the Application Form
Visit the home page at www.fundera.com, click on Loan Options and you'll be able to see which loan options are available. You will be directed to a new webpage where you’ll be asked to answer a few simple questions regarding your business, which in turn will be used to determine the funding options you qualify for:
- When did you start your business?
- What’s your average monthly revenue?
- What’s your credit score?
- How much money do you need?
Step 2 – Talk to a Lending Specialist
Fundera shall provide a list of loan applications to be made on the basis of your information. You will be connected to a Funderas loan specialist, who will ask you several additional questions about your own business and needs so they can determine the best options available for you in order to help you choose the right lending type and lender.
Step 3 – Compare Your Options and Choose the One That Best Suits Your Needs
In order to determine the best funding option in relation to your credit score and interest rate that you need, a loan specialist will help you evaluate all available options, understand what they mean, and assess them for details.
Step 4 – Apply for the Loan
You will be provided with an official application form to officially apply for this loan as soon as you choose the offer. Please fill out and submit the application form together with the required supporting documents in order to receive funding.
Pricing & Repayment
At any point in the loan process, Fundera shall not charge borrowers an initiation fee as well as a different type of fee. For any client they have acquired through the Platform, Fundera provides lenders with a fee. A commission or an acquisition fee may be as low as 2% to 5% of the loan amount. In any event, depending on the conditions and requirements of lenders, various costs or interest may be charged.
For each type of loan and for both lenders, the conditions relating to granting loans, interest rates or repayment terms differ. In any case, a list of the interest rates and terms that various lenders on Fundera offer for most frequently used types of commercial loans can be found below:
- SBA Loans – SBA loans feature low interest rates since they are government-guaranteed. Fundera offers SBA loans with interest rates starting at 6% and repayment durations ranging from 5 to 25 years.
- Business Term Loans – These loans include interest rates ranging from 7% to 30%, with repayment lengths ranging from 1 to 5 years.
- Business Line of Credit – Depending on the lender, you may acquire a loan with a 7% interest rate or one with a 25% interest rate. Fundera's partners exclusively provide a short-term business loan line with payback durations ranging from 3 months to 2 years.
- Invoice Financing – Invoice financing has no set payback period; it lasts until the invoice is entirely paid. For this sort of company finance, lenders often charge more than a 3% factoring fee.
- Startup Business Loans – Fundera offers startup loans with interest rates ranging from 7.9% to 19.9% and terms ranging from 6 months to 4 years.
- Equipment Financing – Fundera's partners provide equipment financing loans with interest rates ranging from 8% to 30% for the duration of the equipment's projected lifespan.
- Short-Term Business Loans – These loans have interest rates starting at 10% and must normally be returned within 3 to 18 months.
- Merchant Cash Advance – These loans are paid in daily installments with a factoring cost ranging from 1.14% to 1.18%.
Fundera Online Reviews
Although Fundera's name is new in the sector, it has established a strong user base and created significant trust for numerous business owners. There has been a good experience for most users of the platform. In fact, most of Fundera's reviews are good on third party websites such as BBB, Trustpilot and Glassdoor. The company has a total of 4.8 on Trustpilot, with 88% of the reviewers rating its platform as good.
Fundera's BBB rating is also an A+.
Some Fundera user reviews are shared on many reviews platforms:
Fundera Alternatives
Fundera vs Lendio
Fundera and Lendio operate on the same business model: they are both online loan-matching services that are free to use. Customers comment in most Fundera vs Lendio reviews that Lendio has more than 75 lenders on board, thus it provides a wider range of possibilities than Fundera.
Fundera vs Rapid Finance
Rapid Finance (previously Rapid Advance) is a direct lender with a better acceptance rate than most other direct lenders. It also has a speedy processing period and is an excellent alternative for individuals who want quick finance. It does, however, only provide short-term company loans and merchant cash advances. While this may appear to be a disadvantage when compared to Fundera, if that is all you want, Rapid Finance is an excellent choice. It has larger maximum restrictions for certain sorts of funding than Fundera.
Rapid Finance provides merchant cash advances of up to $500,000, as well as short term loans in excess of $1 million. In Fundera, the maximum amount for each of these is $250,000.
Fundera vs BlueVine
There are a number of loan options available at BlueVine, but it is mainly known for invoice financing and credit lines. In the case of invoice financing and lines of credit, BlueVine may offer up to $5 million and $250,000 respectively. By contrast, Fundera does not have a ceiling on invoice financing and offers funds for up to 100% of invoices' value. Fundera is offering an initial loan of up to $1 million for a business line of credit.
One possible benefit of choosing BlueVine is that it is a direct lender, which means you won't have to examine and compare other lenders to choose the best one.
The Wrap-Up
Fundera provides a wide range of resources to small US businesses which need funding, but are not eligible for conventional bank loans. They offer a simple and straightforward application process, clear policies as well as an effective team who can help you through every step of the journey which has been highlighted by several Fundera loan reviews.
In order to assist their customers in obtaining a clear picture of business, finance and financing options as well as learning what are the best practices available on the market, Fundera also provides an abundance of resources.
According to Fundera's review, there is only one downside: it has a relatively small number of lenders. But in their defence, they've got a few lenders as they prefer quality over quantity and are very cautious when selecting partners. If you are unable to reach an acceptable solution, it might be worth checking on peertopeer lending sites.
FAQ
No, you cannot obtain a business loan from Fundera if you are currently in bankruptcy.
Businesses in all industries are deemed qualified to utilize Fundera.
Fundera provides customer service by phone and email. Despite the fact that Fundera has few assistance alternatives, consumers have not complained. Their customer service technique is really effective.
Fundera does not perform a hard credit pull to locate appropriate solutions for you. This has no effect on your credit score and does not appear as an inquiry in your credit history.
All small enterprises in the United States in need of capital.
Fundera is a marketplace rather than a direct lender. As a result, it does not report to credit bureaus. Certain lenders it works with, however, do. BlueVine, OneDeck, Fundation, LendingClub, Seek Capital, and The Business Backer are among them.
Borrowers are not charged a service fee. Lenders, on the other hand, must pay Fundera a commission or customer acquisition charge for each customer acquired through the platform. The cost varies between 2% and 5% of the borrowing amount.
Fundera has a BBB rating of A+. Since 2016, the firm has been recognized with the Better Business Bureau, and Fundera ratings on BBB are positive. Fundera evaluations on other consumer review websites are mostly good as well.
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