Fundera
4.6
6.8
Overall Score
Author: Kaitlyn Short
Fundera is an online marketplace that works to help match small business owners with business loans that fit their needs and situations. Since its founding in 2014, the company has helped more than 85,000 small businesses and has secured over $2.5 billion in loans. Unlike a direct lender, Fundera matches borrowers with a number of financing options and reviews each loan offer to ensure that clients have the information necessary to make the best decision for their businesses.
Fundera works with 20 online lenders in its partner network to facilitate a variety of business loans for borrowers.
Consumers who are considering Fundera should remember that they must have a credit score of 550 or higher.
The Good
- Helpful Guides and Resources
- Variety of Loan Options
- Simple Process
- No Hidden Fees
- Flexible Credit Requirements
Helpful Guides and Resources
Fundera has multiple guides, including numerous tools and templates, e-books, and videos, to help individuals looking to obtain small business loans and make it easier for potential Fundera borrowers to understand the logistics and the overall loan process.
The company also operates an online publication known as Fundera Ledger that consistently publishes high-quality articles to help borrowers with financial decisions and guide them through every step of the financing process.
Variety of Loan Options
Fundera offers a variety of loan funding options to ensure that customers receive the type of loan that is best for them and their unique business. Available loan options include the following:
- SBA loan
- Business line of credit
- Term loan
- Startup loan
- Equipment financing
- Invoice financing
Each of these loan options are explained in detail in Fundera's blog and resource section including extensive information and details on how to qualify and apply for that specific type of loan, as well as a list of pros and cons.
Simple Process
Fundera has a simple small business financing process in place that makes it easy for borrowers to find out if they qualify for a loan and for how much capital.
First, the borrower will fill out an online funding questionnaire, which a Fundera representative will review and discuss with them over the phone or through email.
Next, the borrower can apply to multiple lenders with a single application, which the loan specialist will facilitate, and then Fundera will review the offers with the borrower.
According to the company's website, borrowers can compare several small business loans at once for free and will not have their credit scores affected.
No Hidden Fees
Fundera does not receive any money from borrowers directly, so there will never be any hidden fees. Additionally, the company's network of lenders boasts an excellent average origination fee of 0 to 9 percent.
Flexible Credit Requirements
Fundera does not have strict credit score requirements. Unlike other funding options, Fundera has a lower credit requirement of 550 or higher. A traditional lender, such as a bank, will only service customers with higher credit scores in the mid to high 600 range. Fundera's lower minimum credit threshold makes business funding possible for a wider range of borrowers.
Fundera's resource center includes information on pursuing a business loan with bad credit. While it may be difficult, it's not impossible to obtain financing when your credit isn't ideal. In some cases, time in business and monthly or yearly cash flow can favorably impact your loan eligibility.
The Bad
- Limited Partner Network
Limited Partner Network
Fundera highlights four lending companies with specific loan products within those companies. Beyond that, it partners with a total of 20 lenders. However, the size of the lender network pales in comparison to that of some other loan marketplaces which partner with several hundred lenders.
The more lenders within a network, the more options the borrower has and the less incentivized the marketplace is to promote a particular company even if a different one would be better for the consumer.
Currently, Fundera focuses on the following loan products:
- Funding Circle's term loan
- Bluevine's term loan, line of credit (Flex Credit), and invoice factoring
- Fundbox's invoice financing and line of credit
- Kabbage's line of credit
The Bottom Line
Overall, Fundera is a good online marketplace avenue to consider for small business loans. The company has helpful guides and resources to make the lending process easy to understand, as well as a simple loan application process and a variety of loan options.
Plus, Fundera has several positive reviews below. Fundera reviews reflect overall satisfaction with the company and note quick business funding, a simple application process, and attentive staff. Unlike some other business financing options, Fundera seems to be a trusted online lender with a satisfied customer base.
If you'd like to see multiple loan options available to you with only one loan application and if you have a credit score of 550 or higher, Fundera is worth looking into.
Keep in mind that your loan term, interest rate, and financing options depend on your personal and business financials as a small business owner.
