Fundera Review 2021: Pros, Cons, Rates & Fees

Taming the “wild wild west” of small business financing is what Jared Hecht set out to do by creating Fundera. The popular fintech platform, acquired recently by NerdWallet, doesn’t process loans. It’s simply a marketplace of financial products designed to help borrowers compare their options. Entrepreneurs can quickly access the resources they need to fund and grow their small businesses.

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    When you don’t have a lot of time to seek out the best small business lenders and offers, Fundera’s one-stop shopping marketplace can help you get the job done in a few minutes.

    1. You complete only one application
    2. A wide variety of small business loans are available
    3. Financing is available for startups
    4. All you have to do is wait for the offers to come in
    5. It doesn’t cost anything to compare funding options


    What Is Fundera?

    The first thing to point out is that Fundera loans do not come from the company themselves, they just act as an introducer to loan providers and other financial institutions who, from the information provided, they believe are the best matches for you. Since first opening for business in 2013, it’s a service they’ve provided for over 35,000 companies of every kind.

    I believe that one of the greatest strengths of Fundera small business loans is the great range that they can help you to access. These include Fundera SBA loans, up to 85% of which can be guaranteed by the Small Business Administration, equipment financing and merchant cash advances. Other services that they can introduce you to include invoice factoring as well as low-interest credit cards. So, as you can see, there’s a lot more they can offer as well as Fundera business loans.

    Advantages and Disadvantages of Fundera Business Loans

    Unsurprisingly, there are a number of advantages and disadvantages to looking for a small business loan through Fundera. It will come very much come down to your personal circumstances and outlook as to whether this will influence your decision but it’s worth being aware of some of the key considerations from the outset.


    • Fundera offers a wide range of small business loan products as well as many other services, including introductions to credit card and checking account providers.
    • Unlike some of its rivals, Fundera will work with start-up companies who do not have a track record or previous years’ accounts to support their applications to lenders.
    • Fundera has concentrated on building up close relationships with its partners and limiting these in number. As a result, they are able to negotiate on the behalf of borrowers to get the best deals.
    • The company is often praised for its transparency in all of its dealings and, as it relies on receiving commission from lenders for most of its income, the fees they charge are very competitive.
    • The services of a lending specialist mean that it’s easy to get personal advice tailored for an individual business’s circumstances and requirements.
    • The Fundera website offers comprehensive information and advice covering all aspects of business finance with new content being added frequently.


    • Even though Fundera offers a pre-approval service for small business loans, this is not a 100% guarantee that your application to the lenders themselves will always be successful.
    • In some situations, the funds that you are borrowing can take as long as two weeks to reach your bank account.
    • The interest rates that you are offered will not always be the most competitive available. The smaller number of partners that they work with will also mean that you may have limited options when it comes to looking for better deals.

    How Does Fundera Work?

    As I’ve already mentioned, Fundera does not make the small business loans itself, That’s because it is not an actual lender but is better described as being a loan facilitator. Its role is to provide an online service that aims to bring together small businesses who are looking to borrow with potential providers of the loans and other financial services that may be needed. These can also include credit cards and even business checking accounts.

    It all begins with giving Fundera some details about your business which will allow them to work with the Fundera crunchbase to build up an accurate profile.

    They can then use this information to identify which products and services you may be eligible for from their carefully selected partners. One aspect that I particularly like about the service is that every client is assigned an experienced lending specialist who is able to offer personal advice and assistance. This will include helping to explore and evaluate the different financing options that may be available. They also help with the actual application process, which can give an even greater chance of success compared with handling everything yourself.

    But before you even get near to the application process, it’s the fact that you have an impartial adviser on your side that gives the reassurance that you’re making the right decisions.

    Going forward, your personal lending specialist will also be on hand to build on your business success and help you to gain access to even more competitive loan rates and products, as well as helping you to apply for these too.

    It’s this level of personal service, not often found in online brokers, that means that Fundera reviews are generally full of praise.

    How To Qualify For a Fundera Loan?

    Because of the personal service that they provide, and the flexibility that it allows, there is no fixed set of requirements for qualification. In addition, different lenders will have different criteria.

    Having said this, a little digging on our part has discovered that Fundera have drawn up a profile of the typical requirements, which are as follows:

    • A business should have been in operation for at least two years.
    • Gross monthly sales should average around $10,000 or more.
    • The business’s primary owner should have a personal FICO score of 620 or more.

    It’s important to note that these are only guidelines, not rules set in stone. That’s because the lenders that Fundera deals with share their commitment to supporting small businesses and helping them to grow. This can mean taking some less traditional considerations into account that can include the social media profile of the business as well as the kinds of clients that a company has. As we’ll see a little later in our review, even having a poor or checkered credit history will not necessarily exclude you from qualifying for a loan – although it will probably mean higher interest rates or require some form of security.

    Fundera Rates and Fees

    There are no fees to use Fundera’s platform whether you accept a loan offer or not. The lender you eventually choose compensates Fundera directly for the referral.

    Your loan size, APR, and repayment terms depend on which credit product you choose. The average APR on installment loans is roughly 7%, but the final offer depends on your business history and credit score. Asset-based financing will likely come with a lower APR given the inclusion of collateral. If you qualify for an SBA loan, you’ll secure even more favorable terms.

    Fundera’s lending partners set all rates and fees. For instance, you may be required to pay fees for:

    • Loan origination 
    • Maintenance 
    • Loan preparation 
    • Late payment 
    • Insufficient funds 
    • Prepayment penalty

    If you take an SBA loan, you’ll need a guarantee fee. Lines of credit require a draw fee. However, before signing on the dotted line, the chosen lender must disclose all charges and rates in its offer.

    How To Apply For a Fundera Loan?

    Applying for a loan or business financing through Fundera is a simple and straightforward process with everything done online. There are easy steps to follow to set the process in motion:

    Go to the Fundera website and click on the 'Get Started’ button.

    Enter the details that are requested. These will include information about your average monthly turnover, your length of time in business and your business address.

    When all the fields have been completed the site will find the best funding options from approved providers and allow you to click through to complete your application.

    Documents Needed to Apply

    In order to apply for a Fundera small business loan, the information you will need to provide includes:

    • Previous bank and credit card statements
    • Copies of your federal tax returns
    • Up to date financial statements
    • Verification of your premises and the rent you pay
    • Valid state-issued identification to prove your identity

    Fundera Loans for Bad Credit

    Fundera funding is definitely available for business owners with either a bad credit history or no history at all. This is because of the close relationships that over six years of Fundera financing has helped to build up with lenders, combined with their own excellent reputation. By consulting Crunchbase, Fundera has access to a wealth of data that allows them to take a close and individual look at every application. When shared with lenders, this means that special circumstances are often taken into account, although interest rates may be high.

    Customer Support

    Of all of the aspects of applying for Fundera loans, it’s the level of customer support that really stands out. It’s available by phone or email and there are also useful tools like business loan repayment calculators on the website. The business has a trusted reputation for being helpful, not pushy, and the availability of lending specialists ensures personal service.

    My Conclusion

    It all adds up to the fact that Fundera is a great choice if you are in the market for a small business loan or other financial support. With a commitment to transparency and a dedication to helping small enterprises thrive, we’ve found that they don’t just talk the talk, they walk the walk as well.

    It’s not just our opinion either, Fundera reviews bear this out too. So, make sure that you put them on your list of potential loan finders for your business.

    Frequently Asked Questions (FAQ)

    Does Fundera check credit?

    It conducts one soft credit pull to complete your application. Once you accept an offer, some lending partners might do a hard credit pull, but you’ll be notified about it in advance.

    What is Fundera’s average time to approve applications?

    Applications are typically approved within 24 hours. The next step is up to you. After reviewing loan offers, you’ll need to decide which one is the most affordable.

    What’s Fundera’s interest rate?

    Fundera doesn’t set interest rates. The lending partner you choose sets the interest rate depending on your credit history and market conditions.

    How long does Fundera take to process funds?

    The length of time it takes before the funds are in your account depends on the loan type you choose. In most cases, it takes one day to three weeks. SBA loans and asset-lending products take longer to process.