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Fundera Review 2022: What Our Expert Has to Say?

If you own a small business and you've been thinking about getting a small business loan for an upcoming opportunity, you might want to check out Fundera. Loans from Fundera work best for companies that can take a loan and pay it back before its scheduled term. Which means that they're probably going to get lower rates.

Fundera review
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    Written by Anthony Edmundson, updated on 12/28/2021
    Financially Reviewed by
     Gordon Scott, CMT on 7/1/2021

    Fundera is an alternative lender that operates both as a direct lender and a loan marketplace. This means that Fundera may choose to fund the entire loan themselves or to partner up with one of the lenders that they have matched you with. That allows for a lot of flexibility and speed for you, the customer of the loan. 

    Fundera's strength is that they have many types of loans, but it's also true that you can get loans with a relatively low credit score. That's because there are so many opportunities. They also have a comprehensive matching algorithm and they have a high approval rate.

    Fundera Review Video

    Our expert, Gordon Scot reviews and describes Fundera business loans in detail.

    The Fundera Loan Application Process (Rated 3.0/5) 

    Let's look at the application process and some of the screens you can expect to see when you apply for the loan. 
     
    You'll see screens that ask about you and your location, pretty standard stuff.

    Most of the information that Fundera has you go through is pretty straightforward. The screens are easy to get through, the only thing about them is there's a lot of them. 

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    In fact, as I went through this I noticed that there were 22 different screens that asked for information.

    Most of the screens that you'll see are just single question answers that you can quickly provide.

    It's all part of a comprehensive matching algorithm that allows them to give you as many opportunities as possible.

    Although it will take longer than you might experience with some other alternative lenders, it's worth it to see it through.

    For Application Process, Fundera scores a default rating of 3.0, which is indicative of its lack of any cumbersome informational requirements or cutting-edge offerings.

    After breaking down the application process, let's explore Fundera's key parameters in more detail. 

    Advantages and Disadvantages of a Fundera Business Loan

    Fundera Advantages

    • Flexibility - There’s an impressive range of loan types, repayment terms, and borrowing amounts on offer here. Fundera covers just about every type of lending a small business will ever need
    • Competitive rates - Interest rates can start from as low as 6%, meaning those with good credit scores have a good chance of securing a deal here
    • Connections to multiple lenders - Fundera works with a huge range of big-name lenders across the country and has good coverage across all 50 states
    • Soft credit check - When connecting you with lenders, your credit history will only undergo a soft check. You can view deals without having to worry about your score taking a hit

    Fundera Disadvantages

    • Potentially lengthy funding times - It could take up to three weeks to get the funding deposited into your account. While most customers will receive their cash much sooner than this, it’s still something to be aware of
    • Unclear eligibility criteria - Many of Fundera’s eligibility criteria aren’t made clear until you actually apply. This can make it a little difficult to plan ahead

    Fundera Loan Options (Rated 4.4/5)

    Fundera offers 8 loan options:

    Fundera SBA Loans

    SBA loans are business loans that have been guaranteed by the federal government and are intended to promote economic development. Fundera acts as an approved provider and can be a good option for those that have been rejected by the banks:

    Loan Type

    SBA loans

    Term length

    Up to 30 years

    Repayment period

    Monthly

    APR range

    Starting at 2.75%

    Min - Max amount

    Up to $2 million

    Fundera Term Loans

    Term loans are a fairly standard offering that’s repaid on a monthly basis. Fundera will connect you to dozens of lenders that can provide this type of loan.

    Loan Type

    Term loans

    Term length

    1 - 5 years

    Repayment period

    Monthly

    APR range

    7% - 30%

    Min - Max amount

    Up to $600,000

    Fundera Business Line of Credit

    Business line of credit works a little like a credit card but with lower interest rates. You’ll be allotted a portion of cash you can draw when needed. You’ll then pay interest only on funds drawn.

    Loan Type

    Business line of credit

    Term length

    3 month - 18 months

    Repayment period

    Flexible

    APR range

    7% - 25%

    Min - Max amount

    $10,000 - over $1 million

    Fundera Equipment Financing

    Equipment financing is quick funding for buying new or used equipment for your business, which can then serve as its own collateral.

    Loan Type

    Equipment financing

    Term length

    5 - 6 years

    Repayment period

    Monthly

    APR range

    4% - 40%

    Min - Max amount

    Up to 100% of the cost of the equipment

    Fundera Invoice Factoring

    Invoice factoring enables you to borrow funds against the value of your unpaid invoices. Unlike other platforms, Fundera will let you borrow against the full value of all outstanding invoices. A good option for B2B businesses. 

    Loan Type

    Invoice financing

    Term length

    Until your customers pay their invoices

    Repayment period

    Usually weekly or daily

    APR range

    3% processing fee, ~1% each week until invoice is paid

    Min - Max amount

    Up to 100% of the value of your invoices

    Fundera Microloans

    Designed to assist small businesses and startups, microloans can be paid in a lump sum and used for a variety of purposes. 

    Loan Type

    Microloans

    Term length

    Up to 6 years

    Repayment period

    Monthly

    APR range

    8% - 13%

    Min - Max amount

    Up to $50,000

    Fundera Commercial Real Estate Loans

    Commercial real estate loans are used to finance the purchase of a building, shop, office space, or other commercial property. Terms are much longer than other business loans and limits much higher.

    Loan Type

    Real estate loans

    Term length

    Up to 25 years

    Repayment period

    Monthly

    APR range

    5% - 30%

    Min - Max amount

    Up to the full value of the property, although no limit is disclosed

    Fundera Merchant Cash Advance

    Merchant cash advance loan is for business owners who aren’t able to qualify for other types of business loans. Here, you’ll be paying your loan back on a daily or weekly basis directly from your credit card sales and can expect high rates.

    Loan Type

    Merchant cash advance

    Term length

    3 - 6 months

    Repayment period

    Daily or weekly - Typically around 15% of sales

    APR range

    Factor rates between 1.15 and 1.48

    Min - Max amount

    $2000 - $500,000

    Fundera gets a 4.4 for Loan Options. This near best-in-class score reflects a very broad offering of loan terms, highly flexible loan limits, and very accommodative repayment options.

    Fundera Interest Rates and Fees (Rated 3.1/5)

    As Fundera is a connection service only, it can be a little difficult to get information on fees before you sign up. These will vary from lender to lender and is something you should always check for in the fine print of your agreement before you sign on the dotted line. Keep an eye out for:

    • Origination fees - Typically anywhere between 1% - 5% on average, any higher than this and we wouldn’t recommend it
    • Prepayment fees - Most lenders won’t charge you for repaying early so if these fees are particularly high it could be a red flag
    • Late payment fees - This will usually be a percentage of that month’s missed payments, usually around 5% - 10%
    • Maintenance fees - This is usually found on a line of credit and will be around $50 per month. You shouldn’t really be paying these fees on other types of lending

    The same is true for interest rates, and you won’t really know what you’ll get until you apply. However, Fundera offers the following indicative rates for each loan type:

    • SBA - From 2.75%
    • Term Loans - Between 7%-30%
    • Business line of credit - Between 7%-25%
    • Equipment financing - 4% - 40%
    • Invoice financing - A 3% flat charge on the total amount, plus ~1% per week on any outstanding balance
    • Microloans - From 8%
    • Commercial real estate - Between 5% - 30%
    • Merchant cash advance - Factor rates between 1.15 - 1.48

    The high rates on term loans and equipment financing points out something that you need to be aware of as a small business owner. 

    If you were to carry a term loan for five years at 30% interest, you might end up paying double the original amount of the loan. That doesn't make business sense to most small business owners. 
     
    These kinds of loans need to be the kind of thing that you can pay back rather quickly. 

    Fundera scores a below average 3.1 on Interest Rates & Fees. This reflects the average of the following measures: 2.0 for high borrowing fees, 4.0 for no prepayment fees, 3.0 for average late payment fees, 4.7 for a very high minimum interest rate, and 1.0 for a worst-in-class maximum interest rate.

    How to Qualify for a Fundera Loan? (Rated 5/5)

    The only stated requirement of a Fundera loan is that applicants must have a credit score of at least 550. However, even if you have lower credit you may still be accepted based on other financial criteria, so it’s worth applying. 

    With regards to other requirements, you’ll find the platform is pretty flexible. There are no set annual revenue criteria, nor is there a minimum time you need to have been in business. The lenders you’re being connected to will use a whole range of different assessment methods to determine your eligibility, so even those new to borrowing don’t need to worry.

    You won’t receive a hard pull on your credit rating to view your offers, making it easy to check exactly what you’re eligible for before you need to submit a formal application. 

    A summary of all loan types is below:

    Criteria

    Less Than $100,000 Loan

    More Than $100,000 Loan

    Minimum Credit Score

    550+

    550+

    Minimum Annual Revenue

    No minimum requirement

    No minimum requirement

    Minimum Time in Business

    No minimum requirement

    No minimum requirement

    On Qualification Leniency, Fundera boasts a best-in-class rating of 5.0. This perfect score reflects the average of the following measures: 5.0 for a very lenient credit score requirement (< 550), 5.0 for a minimum annual revenue requirement of only < $75K, and 5.0 for a best-in-class business history requirement of < 6 months.

    Fundera Customer Support (Rated 3.0/5)

    You can get in touch with customer support via telephone or by email; however, operating hours aren’t listed on the website. Once you’ve actually signed up for a loan, you’ll need to go directly to that lender with any queries, so you might want to do some additional research before accepting any offers. 

    For Customer Support, Fundera gets a below average score of 3.0. It earned 1.0 point for each of the following service offerings: access to live CSR Rep, standard call center support from 9:00-6:00 EST, and multi-channel support.

    Fundera Loan Online Reviews (Rated 4.9/5)

    Fundera has a very impressive 4.7 stars out of 5 on TrustPilot and 5 out of 5 on Site Jabber. Customers are generally very satisfied with the fast, efficient and friendly service offered by the platform. The company is praised for its clear communication and the very personal service its agents give to help customers choose the right loan. 

    Where any criticism is raised, Fundera responds to this quickly, and always offers to assist in putting things right. In some rare instances, customers have expressed dissatisfaction with loans, however, this doesn’t fall under the responsibility of Fundera as the platform doesn’t set rates and terms. 

    Positive Fundera Reviews

    Negative Fundera Reviews

    Great customer Support Team

    Some issues when responding to emails

    Fast application process and approvals

    Covid relief loans can be difficult to arrange

    Highly personalized service

    Terms changed by the lender after application

    Efficient application process

    Some lenders have high fees

    Fundera has a peer leading User Reviews rating of 4.9. It reflects the average rating from 2 independent user review sites, including a TrustPilot score of 4.7.

    Conclusion

    While Fundera might not be the biggest player in the market, it certainly makes up for it by offering an impressive range of loan types with efficient and friendly service. It welcomes applications from long-standing businesses, new startups, and those with bad credit, and there’s an excellent chance you’ll find what you’re looking for here. 

    Most customers have good things to say about Fundera. They say that Fundera is fast, they have great customer service, and that there are many opportunities for different loans that are offered to them.