Fundera Business Loans
Fundera is a US-based loan marketplace that allows business loan applicants to apply once and receive information about various loans with specific terms designed to meet their needs. With Fundera, you’ll speak with a business loan specialist who can provide additional information and recommendations about different types of business loans.
Fundera’s software makes recommendations and your business loan specialist reviews the options with you to help you evaluate various loan types and terms. The specialist can also help you position your business to qualify for better loan products down the road.
Fundera Loan Types Available
Fundera offers connections to multiple lenders for qualified applicants. Business owners can explore options for funding through a Small Business Administration (SBA) Loan, Business Term Loan, Business Line of Credit, Invoice Financing, Equipment Financing, Short-Term Business Loan, or Merchant Cash Advance.
Good for: Good Credit History
Credit scores make a big difference with SBA loans, so this type of funding works best for business owners who have a good credit history. They are ideal for growing businesses and provide a much-needed source of lower-interest funding for businesses who can’t get a traditional business loan.
- Loan Amounts: $5K – $5M
- Loan Terms: 5 – 25 years
- Interest rates for SBA loans start at 7.75%
- Fundera’s SBA loan customers have an average credit score of 680 and have been in business for four years
Applicants who receive approval can receive funds in as little as two weeks. This type of funding requires a lot of paperwork and the application process could take longer than other types of loans.
The Small Business Administration (SBA) isn’t a direct lender. They use federal money to guarantee a percentage of loans from private sources to help remove some of the risk lenders face when they lend to small business owners.
Business Line of Credit
Good for: Ongoing Funding Needs
A business line of credit works for businesses that have ongoing funding needs that vary over time. With a business line of credit, you only use the amount you need, but you can borrow up to a set amount.
For businesses that are new, have frequent cash flow issues, or need working capital to expand or handle seasonal demands, a business line of credit may be the ideal solution.
- Loan Amounts: $10K to over $1M
- Loan Terms: 6 months to 5 years
- Fundera’s Business Line of Credit borrowers have an average credit score of 630 and have been in business over one year
Interest rates vary from 7% to 25%, depending on credit rating. If approved, you could have access to a business line of credit in just one day. The application is simple and quick. If you decide to work with a bank and need a larger line of credit, both the application process and funding could take longer.
Business Term Loan
Good for: Fast Cash
Businesses that need fast access to a sum of cash to pay for a large purchase, cover payroll or taxes, or purchase inventory may benefit from a business term loan. Getting approved depends on whether the business or business owner has good credit, how much revenue the business generates, and how long it has been in business.
- Loan Amounts: $25K to $500K
- Loan Terms: 1 – 5 years
- Fundera’s Business Term Loan borrowers have an average credit score of 680, average annual revenue of $300,000, and have been in business longer than three years
This type of loan has a longer repayment term than many other types of financing. The amount you qualify for depends on revenue and credit rating. With a business term loan, you could get access to funds in just two days. This is a predictable type of financing with a set interest rate and set monthly payments. There may be fees and prepayment penalties associated with this type of loan, so be sure to ask about the total cost of borrowing with a small business term loan.
Good for: Fast Access to Funds for Invoices
Invoice financing tends to work well for business owners who need fast access to capital and have outstanding invoices tying up the company’s cash. It’s best for business owners who haven’t yet established credit or have a lower credit score.
- Loan Amounts: As much as 100% of invoice value; 85% immediately and 15% later
- Loan Terms: Loan automatically paid when customer pays outstanding invoice
- Fundera’s Invoice Factoring borrowers have an average credit score of 600 and have been in business for at least one year
Invoice financing, or accounts receivable financing, treats outstanding invoices owed to the business as an asset. The business can borrow against outstanding invoices to get nearly immediate access to cash for any purpose. Since the invoices serve as collateral for the loan, invoice factoring credit requirements may be more relaxed than other kinds of financing.
Delayed payments from customers can slow business growth and create a frustrating trap for business owners who need capital to purchase more inventory or make necessary upgrades and improvements to equipment or property.
This type of financing typically connects directly to your invoicing software so you can get immediate access to as much as 85% of the funds upon issuing an invoice. The lender will hold 15% of the invoice back to cover fees. For example, a lender may keep 1% of the invoice as a fee each week until the customer pays. Then, they’ll return the 15% minus applicable fees.
Good for: Need Cash for Business Equipment
With equipment financing, you can get access to up to 100% of the value of your new or used business equipment. This type of loan is great for businesses that need cash but don’t have the credit history required to get an unsecured loan or those who need to purchase new equipment but can’t pay for the things they need with cash. The equipment serves as collateral for the loan, so this type of financing may be more accessible for business owners with less than great credit.
- Loan Amounts: Up to 100% of equipment value
- Loan Terms: Expected life of equipment
- Fundera’s equipment financing borrowers have an average credit score of 630 and have been in business longer than two years.
Interest rates for equipment financing are typically between 8% and 30%, depending on credit ratings. You could get access to the funds in just two days. The amount of the loan depends on the value of the equipment, since it secures the loan.
Short-Term Business Loan
Good for: Businesses with Good Cash Flow
Short-term business loans are great for businesses with good cash flow. It’s an ideal option for a business owner who can’t get a traditional business loan because of their low credit scores or imperfect credit history.
- Loan Amounts: $2.5K – $250K
- Loan Terms: 3 to 18 months
- Fundera’s Short-term business loan borrowers have an average credit score of 600 and have been in business for more than two years
Interest rates for short-term business loans start at 10%. You can get the funds in just one day, and you’ll apply for the loan online. The process is simple and fast. Most lenders require bank statements, tax returns, and access to credit files.
A short-term loan can help manage cash flow, handle unexpected cash problems, pay for expansion efforts, or refinance expensive debts.
Merchant Cash Advance
Good for: Quick Funds without Collateral
This type of business funding differs from a traditional loan. It’s best for merchants that have multiple debit and credit card transactions each day. There’s no need for collateral or great credit, so it works well for business owners who need quick access to cash but who can’t get approved for other types of traditional business funding.
- Loan Amounts: $2.5K – $250K
- Loan Terms: Paid daily via your merchant account
- Fundera’s Merchant Cash Advance borrowers have an average credit score of 550 and have been in business for over two years
With a merchant cash advance, the lender takes a percentage of each debit and credit transaction plus a small fee. You’ll need to have enough revenue coming in to justify the total amount of the loan, which the merchant cash advance lender can quickly calculate using information from your credit card processing statements. Some lenders also require access to your credit reports and bank statements. Funding could be available within 48 hours of approval.
- No fee to use Fundera’s services
- Fundera does not receive incentives to work with specific lenders
- Access to 30+ reputable lenders with one application
- Wide variety of lending products
- You’ll work directly with a lending specialist to help you evaluate options
- You won’t know your APR on various loan products until after you apply
- Very little information about why you don’t qualify for some loan products
- Interest rates and fees on some loan products could be high
With Fundera, you’ll talk through potential options with a dedicated loan specialist and fill out a single application. They can help you understand your options and figure out which loan product works best for your business and your budget. Your loan specialist will use Fundera’s system of evaluating potential lenders to shop for loan products that you’ll be able to access.
There’s no fee for using Fundera’s services. They make money by taking a percentage from the lender. Fundera doesn’t receive specific incentives to work with certain lenders, meaning their specialists are free to help you make the decision that is truly best for you.
Depending on the loan product you choose, you may need to provide Fundera with proof of identity like a drivers license or passport. They may ask for tax returns, banking information, transaction data, and account numbers so that Fundera can verify the information on your application. Whether your application includes a hard credit pull depends on the type of loan or funding you decide to explore with your Fundera loan specialist.
Privacy & Security
Fundera is a loan marketplace, which means they don’t make decisions about whether you are approved for a loan or type of financing or funding. They simply collect your information and match you with a lender that offers the type of business financing you need.
The Fundera website uses SSL encryption and authentication procedures to protect the personal and private information of businesses and individuals who work with the company to explore financing options or obtain financing.
Customer support is available via phone at 1-(800)-386-3372 or via email at firstname.lastname@example.org. Like most loan marketplaces, you’ll enter into an agreement with a loan provider, not Fundera, if you decide to get financing with one of Fundera’s partners.
After you receive financing, your loan specialist will stay in contact to help you work toward getting better financing deals in the future. They can’t handle issues with the loan itself, however.
Fundera offers a multitude of funding and lending options for businesses that need access to cash. Understanding which types of financing may fit your business can be confusing, so it’s a nice perk that Fundera matches business owners with a loan specialist to help you figure out which options may be best for your business. With a wide network of lending partners and 9+ options for financing and loans, this no-fee platform is a great option for business owners who want individual attention without having to hire an expert for advice.
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