Fundera Review: Breakdown, How to Apply, Pros & Cons

Founded in 2013 and acquired by NerdWallet in 2020, Fundera aims to simplify the process of finding and applying for business financing by aggregating offers from multiple lenders in one convenient location. Catering to the diverse needs of small businesses, including startups, the service offers solutions such as term loans, lines of credit, SBA loans, and equipment financing.

By providing detailed information and comparison tools, Fundera empowers business owners to make informed decisions about their financing options. The lending marketplace features a user-friendly interface and personalized customer support, enhancing the borrowing experience and enabling entrepreneurs to secure the necessary funds to grow and sustain their operations efficiently.

In addition to loan options, Fundera also offers other financial services suitable for entrepreneurs and startups, including business credit cards, banking accounts, and merchant services. Their comprehensive approach ensures that small business owners can find a wide range of financial products tailored to their specific needs, including financing options geared toward startups. Fundera's expert advice and educational resources help users understand the intricacies of business finance, enabling them to manage their financial health effectively.

Reviews of Fundera often highlight the platform's efficiency, transparency, and the quality of customer service. By acting as a one-stop shop for business financial services, Fundera has established itself as a valuable resource for entrepreneurs, particularly startups, seeking to navigate the often challenging landscape of business finance.

Once submitted, Fundera's algorithm assesses the loan eligibility based on the information provided and matches the applicant with suitable lending options from various lenders, allowing them to compare rates, terms, and conditions all in one place.

After reviewing the options, and understanding aspects such as the origination fee and the repayment term, business owners can select the loan that best fits their needs and proceed with the application process directly through Fundera. The platform offers personalized support from loan specialists—who help clarify any questions about eligibility—guiding users through each step, ensuring a smooth and efficient process. Fundera's comprehensive approach not only saves time but also increases the chances of securing favorable loan terms, making it an invaluable tool for small businesses seeking financial assistance.

Business Term Loans

Looking for financial flexibility for your business? Consider installment loans—ideal for businesses seeking a lump sum of cash with a fixed repayment term and interest rate, which can range considerably based on creditworthiness and other factors.

• Credit Limits: $5,000 to $500,000, with the option of installment loans offering structured repayment plans.
• Interest Rates: 7% to 30%, potentially more favorable with installment loans if your business has solid credentials.
• Term Lengths: 1 to 5 years, a common range for both short-term funding and installment loans' repayment terms.
• Time in Business: At least 1 year, a typical minimum eligibility criterion for many financing options, including installment loans.
• Minimum Annual Business Revenue: $175,000, which may influence the eligibility and terms of installment loans.
• Minimum Personal Credit Score: 600, reflecting the flexibility of credit score requirements in the eligibility process for business financing.

Remember, collateral isn't always required, especially for businesses with strong financials seeking installment loans. Explore your options and unlock potential growth with the right funding strategy.

Business Line of Credit

In exploring financing options for your business, a Business Line of Credit could be a versatile choice. It offers a flexible funding solution to manage cash flow, purchase inventory, or cover other short-term needs.

• Credit Limits: $10,000 to $1 million, adaptable to your business needs and a critical financing factor for operational flexibility.
• Interest Rates: 8% to 24%, competitive rates contribute to making this an affordable lending option for many businesses.
• Term Lengths: 6 months to 5 years (revolving), giving you the ability to withdraw funds as needed within this period.
• Time in Business: At least 6 months, allowing newer businesses to access capital without years of financial history.
• Minimum Annual Business Revenue: $50,000, ensuring that even smaller businesses have the opportunity to secure funding.
• Minimum Personal Credit Score: 600, making it accessible to a wider range of business owners.

SBA Loans

• Credit Limits: $30,000 to $5 million
• Interest Rates: Prime + 2. 25% to 4.75%
• Term Lengths: 5 to 25 years
• Time in Business: To ensure eligibility, at least 2 years in business is typically required.
• Minimum Annual Business Revenue: $250,000
• Minimum Personal Credit Score: 650

Invoice Financing

• Credit Limits: $20,000 to $5 million
• Factor Rates: .05%-5%
• Term Lengths: Based on invoice terms
• Time in Business: Startup and beyond
• Minimum Annual Business Revenue: $750,000
• Minimum Personal Credit Score: Not Required

Equipment Financing

• Credit Limits: $5,000 to $5 million
• Interest Rates: 8% to 30%
• Term Lengths: 1 to 5 years
• Time in Business: At least 11 months
• Minimum Annual Business Revenue: $50,000
• Minimum Personal Credit Score: 600

Merchant Cash Advance

• Credit Limits: $5,000 to $1,500,000
• Interest Rates: Factor rates of 1.14 to 1.48, making the financing factor an important consideration for borrowers as it determines the overall cost of the cash advance.
• Term Lengths: 3 to 18 months, offering a flexible repayment term tailored to your business's cash flow pattern.
• Time in Business: At least 4 months
• Minimum Annual Business Revenue: $120,000
• Minimum Personal Credit Score: 500

When considering a merchant cash advance, understanding the financing factor and repayment term is crucial in ensuring that the funding option aligns with your business's financial strategy.

Startup Business Loans

• Credit Limits: $500 to $750,000
• Interest Rates: 7. H3: Startup Business Loans
• Credit Limits: $500 to $750,000
• Interest Rates: 7.9% to 19.9%
• Term Lengths: 1 to 25 years
• Time in Business: No minimum requirement
• Minimum Annual Business Revenue: No minimum requirement
• Minimum Personal Credit Score: 680

These diverse loan products provide flexible financing solutions for businesses at various stages of growth and development, targeting especially startups and those who may not meet traditional bank lenders' criteria. The competitive interest rates and flexible terms offered tailor to the unique challenges that startups often face, making loan eligibility more accessible for burgeoning companies. Fundera's approach to small business funding ensures that even applicants with credit challenges have a fair shot at securing the capital they need for success.

What are the Qualifications and/or Requirements to Apply with Fundera

Fundera offers a comprehensive suite of business loan products through its network of alternative lenders, designed to meet the diverse financing needs of small businesses. Each loan product has specific qualifications and documentation requirements, ensuring that businesses can find tailored solutions for their financial needs.

Business Term Loans

• Time in Business: At least 1 year
• Monthly Revenue Required: $15,000
• Credit Score: 600
• Documentation Needed for Approval:
• 1-Page application
• Business bank statements
• Business Tax Return (in some cases)
• Profit and loss / Balance Sheet statements (in rare cases)
• Accounts Receivable/Accounts Payable (in rare cases)

Business Line of Credit

• Time in Business: At least 6 months
• Annual Revenue Required: $50,000
• Credit Score: 600
• Documentation Needed for Approval:
• 1- page Application
• Business bank statements
• Business Tax Return (in some cases)
• Accounts receivable and payable reports (in some cases)

SBA Loans

• Time in Business: At least 2 years
• Annual Revenue Required: $120,000
• Credit Score: 650
• Documentation Needed for Approval:
• SBA Application
• Personal Financial Statement
• Personal & Business tax returns (multipole years)
• Business bank statements
• Profit and loss / Balance Sheet statements
• Business plan
• Debt schedule

Invoice Financing

• Time in Business: At least 3 months
• Annual Revenue Required: $100,000
• Credit Score: 530
• Documentation Needed for Approval:
• I-Page Application
• Client Roster
• Sample invoices with terms
• Client Agreements (if applicable)
• Business bank statements
• Accounts Receivable Aging Report

Equipment Financing

• Time in Business: At least 11 months
• Annual Revenue Required: $50,000
• Credit Score: 600
• Documentation Needed for Approval:
• 1-Page Application
• Equipment quote or invoice
• Business bank statements

Merchant Cash Advance

• Time in Business: At least 4 months
• Annual Revenue Required: $75,000
• Credit Score: 550
• Documentation Needed for Approval:
• 1-Page Application
• Business bank statements
• Credit card processing statements (if applicable)
• Business tax returns (in some rare cases)

Startup Business Loans

• Time in Business: No minimum requirement
• Annual Revenue Required: No minimum requirement
• Credit Score: 680
• Documentation Needed for Approval:
• TBD

These qualifications ensure that business owners understand the requirements for each type of loan, helping them to prepare the necessary documentation and improve their chances of securing the financing they need.

What are Fundera’s Interest Rates and or Fees? How do they compare? How does Fundera Get Paid?

Fundera’s interest rates and fees vary depending on the type of loan, 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 like the borrower's credit score and business financials. Overall, Fundera's lender's rates are competitive within the alternative lending market, though it's essential for businesses to compare offers to ensure they receive the best terms.

Fundera gets paid through referral fees and commissions from the lenders in its network when a business successfully secures a loan through its platform. This means that while the service is free for business owners to use, Fundera earns revenue by connecting borrowers with lenders and facilitating the loan process.

How to apply for a Business Loan with Fundera

Applying for a business loan with Fundera involves a straightforward process designed to simplify securing financing. First, complete the online application on Fundera's website, providing essential business and personal information. Once submitted, Fundera matches you with potential loan options from their network of lenders, allowing you to compare and select the best offer, with a loan specialist assisting you throughout the documentation and finalization process.

Pros:

• Simplifies the loan application process
• Access to multiple lenders and competitive rates
• Personalized support from loan specialists
• Wide range of loan products and financial services

Cons:

• Interest rates and terms can vary significantly
• Stringent qualification requirements for some loan products
• Potentially high rates for riskier loans (e.g., merchant cash advance)
• Fundera is NOT a direct lender, but a broker

Funding Timeframes:

• Merchant Cash Advance: As fast as 24 hours
• Business Term Loans and Lines of Credit: 1 day to 5 days
• SBA Loans: Several weeks to a few months
• Equipment Financing and Invoice Financing: Typically, 2 to 7 days
• Invoice Factoring: 3 to 5 days to set up, same day funding thereafter
• Start-Up Loans: To Be Determined

Service Highlights:

• Efficiency: Streamlined application and fast funding process.
• Personalized Support: Dedicated loan specialists provide tailored assistance.
• Comprehensive Solutions: Access to a wide range of loan products and financial services.
• Customer Feedback: Generally positive reviews, though individual experiences may vary.

What do I do if my business is declined by Fundera for a Business Loan?

If your business is declined by Fundera for a loan, there are several steps you can take to improve your chances of future approval or explore alternative funding options. Start by understanding the reasons for the decline, such as credit score, revenue, or time in business. Work on improving these areas, such as boosting your credit score or increasing your business revenue, and consider alternative financing options like microloans, crowdfunding, or grants. Fundera's loan specialists can provide guidance on how to strengthen your application and suggest other potential lenders.

Steps to Take:

• Understand the Decline: Identify the specific reasons for the loan denial.
• Improve Qualifications: Work on enhancing your credit score, revenue, or business history.
• Explore Alternatives: Consider other financing options from other lenders and marketplaces like Advancepoint Capital, microloans, crowdfunding, or grants.
• Seek Guidance: Consult with Fundera’s loan specialists for advice on improving your application and finding other lenders.

Alternatives to Fundera

Alternative lenders to Fundera offer a variety of business loan options, each with unique qualifications and terms, catering to different business needs. Advancepoint Capital, LendingTree, and Lendio are notable alternatives that provide a range of financing solutions with distinct credit limits, interest rates, term lengths, and qualification requirements, helping businesses find suitable funding sources.

Advancepoint Capital

• Credit Limits: $10,000 to $2 million
• Interest Rates: 5% to 45%
• Term Lengths: 3 months to 10 years, up to 25 years for SBA Loans
• Time in Business Requirements: At least 6 months
• Minimum Annual Business Revenue: $120,000
• Minimum Personal Credit Score: 500

LendingTree

• Credit Limits: $5,000 to $500,000
• Interest Rates: 4.99% to 35.99%
• Term Lengths: 3 months to 5 years
• Time in Business Requirements: At least 1 year
• Minimum Annual Business Revenue: $100,000
• Minimum Personal Credit Score: 550

Lendio

• Credit Limits: $500 to $5 million
• Interest Rates: 6% to 30%
• Term Lengths: 3 months to 25 years
• Time in Business Requirements: At least 6 months
• Minimum Annual Business Revenue: $150,000
• Minimum Personal Credit Score: 550

These alternative lenders provide flexible and accessible financing options, allowing businesses to find the most suitable terms based on their unique financial profiles and needs.

3^rd Party Reviews

Trust Pilot

Buck Bryant | Date of experience: April 10, 2024

Bre did a Totally Awesome Job! WOO HOO!!! Bre did a Totally Awesome Job helping me through the Funding Process with Fundera by Nerdwallet. She was Very Pleasant, Knowledgeable, and "Patient with this Old Guy"! I would recommend to anyone in need of Business Funding to "Give Her/Fundera a Call". God Bless You! Philippians 1:3-6! Have a Wonderful Day in the Neighborhood & "Stay on the Nice List"! 🙂

Ross Payan | Date of experience: April 04, 2024

Chris Stuppy spent almost two hours on…Chris Stuppy spent almost two hours on the phone today across multiple calls to help us find the best solution regarding our capital needs. He was very informative and helped us create a plan to move forward. Great service. Would highly recommend.

The Bottom Line: Fundera Review Summary

The bottom line for Fundera is that it offers a valuable service for small business owners looking to simplify the loan application process and access multiple financing options. With its user-friendly platform, personalized support, and wide range of loan products, Fundera can be an excellent resource for businesses seeking competitive rates and tailored financial solutions. However, potential borrowers should be aware of the varying terms and interest rates from different lenders, and ensure they meet the qualification requirements before applying.

Fundera Review Summary:

• Pros:
• Streamlined application process
• Access to multiple lenders and competitive rates
• Personalized support from loan specialists
• Wide range of loan products and financial services
• Cons:
• Interest rates and terms can vary significantly between lenders
• Stringent qualification requirements for some loan products
• Potential for high rates with riskier loans like Merchant Cash Advance

Overall, Fundera is a strong option for small business owners needing diverse financing solutions, but it is crucial to carefully compare offers and understand the terms before committing. My personal experience with Fundera highlighted the convenience and support provided by their platform, but also underscored the importance of thorough research and preparation to ensure the best possible loan outcome.

Remaining at the forefront of tech advancements in personal finance, NerdWallet's comprehensive tools use cutting-edge algorithms to provide tailored financial guidance.
In November 2020, NerdWallet expanded its tech-driven personal finance offerings by purchasing Fundera, a leading fintech company known for being a business funding matchmaker.

This acquisition seized the opportunity to blend NerdWallet's robust personal finance expertise with Fundera's specialized approach to small business lending, thereby offering a broader spectrum of financial solutions to entrepreneurs striving for growth and stability.