Zero hassle business funding
Pros
- Simplified application process
- Access lenders with competitive rates
- Wide selection of loan products and financial services
- Personalized guidance from loan specialists
- Discounted fees for veteran-owned businesses.
Cons
- Interest rates and terms may vary widely across lenders
- Strict qualification criteria for certain loan products
- High rates possible with riskier loans, such as Merchant Cash Advances
Overview
Fundera is an online marketplace designed to connect small business owners with various financial products, primarily focusing on loan facilitation. Established in 2013 and acquired by NerdWallet in 2020, Fundera aims to streamline the process of finding and applying for business financing. By aggregating offers from multiple lenders, it provides a convenient platform for businesses to access a range of financing options, including term loans, lines of credit, SBA loans, and equipment financing, catering to a wide variety of business needs, including those of startups.
Loan Features
Fundera’s interest rates and fees vary based on the loan type, ranging from 5.5% for SBA loans to as high as 60% for invoice financing. While Fundera offers competitive rates compared to traditional banks, the exact terms depend on factors such as the borrower’s credit score and business financials. Overall, Fundera’s lender rates are competitive within the alternative lending market, but businesses should compare offers to ensure they secure the most favorable terms.
Fundera offers its services to businesses free of charge, earning a commission from the lender once the loan is funded. However, depending on the lender you choose, additional fees such as origination, application, or processing fees may apply. It’s crucial to carefully review the lender’s fee disclosure to fully understand the loan’s total cost and ensure these expenses fit within your business’s budget.
The time required to secure funding through Fundera depends on the loan type and the approval process of the selected lender. Quick funding options like merchant cash advances can be processed in as little as 24 hours, while more complex loans, such as SBA loans, may take several weeks. The platform’s efficiency, along with the support of loan specialists, helps expedite the process, ensuring businesses can access funds promptly.
Requirements
Fundera provides a wide range of business loan products through its network of alternative lenders, catering to the various financing needs of small businesses. Each loan product comes with specific qualifications and documentation requirements, allowing businesses to find customized solutions that best fit their financial situation.
| Revenue | Time in Business | Credit Score | Documents | |
| Business Term Loan | $15,000/month | Minimum 1 Year | 600 |
|
| Line of Credit | $50,000/year | Minimum 6 months | 600 |
|
| SBA Loan | $120,000/year | Minimum 2 Years | 650 |
|
| Equipment Financing | $50,000/year | Minimum 11 months | 600 |
|
| Invoice Financing | $100,000/year | Minimum 3 months | 530 |
|
| Startup Business Loans | 680 | |||
| Merchant Cash Advance | $75,000/year | Minimum 4 months | 550 |
|
How to Apply?
The process of applying for a business loan with Fundera is simple and designed to streamline financing. Start by filling out the online application on Fundera’s website, providing necessary business and personal details. After submission, Fundera matches you with potential loan offers from its network of lenders, giving you the opportunity to compare options. A loan specialist will assist you through the documentation and loan finalization process to ensure everything is completed smoothly.
If Fundera declines your business loan application, there are several steps you can take to improve your chances of approval in the future or explore other funding options. First, identify the reasons for the decline, such as your credit score, revenue, or time in business. Focus on improving these areas, like enhancing your credit score or increasing your business revenue. Additionally, consider alternative financing solutions such as microloans, crowdfunding, or grants to meet your funding needs.
Customer Support
Eligibility requirements for business loans can vary depending on the lender. Typically, lenders look for a credit score of 600 or higher. Other factors they may consider include your business’s annual revenue, how long you’ve been in operation, and whether you are a U.S. citizen or permanent resident. For more complex loans, lenders might also request a business plan to assess the viability of your business.
Bottom line
Fundera provides a valuable service for small business owners seeking to streamline the loan application process and explore a variety of financing options. Its easy-to-use platform, personalized assistance, and diverse loan products make it a strong resource for businesses looking for competitive rates and customized financial solutions. However, borrowers should be mindful of the different terms and interest rates offered by various lenders and ensure they meet the eligibility criteria before applying.
