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Fundera by NerdWallet Review: Expert Analysis & User Insights for 2022

Fundera is your one-stop shop for small business loans. Rather than applying directly to one lender, Fundera does the shopping for you and connects you to the best lender to meet your small business needs.

fundera review
fundera
3.9
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Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$5M
Loan Repayment
Loan Repayment Up to 30 years
Gordon Scott
Chartered Market Technician (CMT)

Reviewed by: Sarah Brooks, Personal and Business Finance Writer and Editor

Fact Checked by: Dr. JeFreda R. Brown, DBA, CFEI, and a highly respected financial expert

Expert Reviewer’s Verdict

Fundera's main strength is its connection to other lenders. Because of this, they can help those with low credit scores or minimal time in business to acquire a loan. Fundera’s comprehensive matching algorithm combined with high approval rates make this company a top choice for small business loans.

 

Fundera by NerdWallet User Reviews

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

Where any criticism is raised, Fundera responds to this quickly and offers to assist in making 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 ReviewsNegative Fundera Reviews
Great customer Support TeamSome issues when responding to emails
Fast application process and approvalsCovid relief loans can be difficult to arrange
Highly personalized serviceTerms changed by the lender after application
Efficient application processSome lenders have high fees

Summarized Ratings

This parameter considers the scores achieved from independent user review sites, such as Trustpilot. Ideally, each platform’s rating reflects scores from three distinct user review sites. However, this isn’t always possible. Ultimately, the various scores were aggregated and averaged to establish an overall user reviews score.

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.

Fundera by NerdWallet Review Video

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

 

What is Fundera?

Fundera by NerdWallet is an alternative lender operating both as a direct lender and a loan marketplace. This means that Fundera may choose to fund the entire loan themselves, or they may match you to one of the lenders in their network. This gives you speed and flexibility you may not find elsewhere.

 

Fundera Pros and Cons

Pros
Flexibility
Competitive rates
Connections to multiple lenders
Soft credit check
Cons
Potentially lengthy funding times
Unclear eligibility criteria

Fundera by NerdWallet Loan Features

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:

Term lengthUp to 30 years
Repayment periodMonthly
APR rangeStarting at 2.75%
 
Min - Max amountUp to $2M

Fundera Term Loans

Term loans are what most people think of when it comes to small business loans. They provide fixed interest rates and monthly repayment periods, and funding is typically quick. Fundera will connect you to dozens of lenders that can provide this type of loan.

Term length1 - 5 years
Repayment periodMonthly
APR range7% - 30%
Min - Max amountUp to $600K

Fundera Business Line of Credit

A business line of credit works like a credit card, but typically with lower interest rates and higher loan limits. You draw only on the money you need, and pay interest only on the funds you use.

Term length3 month - 18 months
Repayment periodFlexible
APR range7% - 25%
Min - Max amount$10,000 - over $1 million

Fundera Equipment Financing

Equipment financing offers quick funding for new or used equipment purchases, which then serve as collateral for your loan.

Term length5 - 6 years
Repayment periodMonthly
APR range4% - 40%
Min - Max amountUp to 100% of the equipment cost

Fundera Invoice Financing

Invoice financing enables you to borrow funds against the value of your unpaid invoices. Typically, you can borrow up to 85% of your invoice’s value, and you’ll receive the remaining 15% once your invoices are paid.

Term lengthUntil your customers pay their invoices
Repayment periodUsually weekly or daily
APR range3% processing fee, ~1% each week until invoice is paid
Min - Max amountUp to 85% of the value of your invoices

Fundera Startup Business Loans

Designed to assist new businesses, startup loans can be paid in a lump sum and used for a variety of purposes. We recommend SBA microloans, in particular, because they are backed by the Small Business Administration and usually have less stringent requirements for qualifying.

Term lengthUp to 6 years
Repayment periodMonthly
APR range8% - 13%
Min - Max amountUp to $50,000

Fundera Short-term Business Loans

Short-term business loans give businesses fast access to cash to cover short-term financing needs, such as managing cash flow or dealing with an emergency. Terms are shorter than with business term loans, and repayments are typically made daily or weekly.

Term length3 - 18 months
Repayment periodDaily or weekly
APR range
 
Starting at ~10%
Min - Max amountUp to $250,000

Fundera Merchant Cash Advances

Merchant cash advances are 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 you can expect rates to be high.

Term length3 - 6 months
Repayment periodDaily or weekly - Typically around 15% of sales
APR rangeFactor rates between 1.15 and 1.5
Min - Max amountUp to $500,000

Fundera by NerdWallet Interest Rates and Fees

Because Fundera connects you to other lenders, it can be difficult to get specific information on rates and fees before signing up. We recommend you pay particularly close attention to the following fees:

  • Origination fees - Typically anywhere between 1% - 5% on average, we wouldn’t recommend any higher than this
  • 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 - These will be a percentage of that month’s missed payment, usually around 5% - 10%
  • Maintenance fees - Usually found on a line of credit and will be around $50 per month

For interest rates, 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
  • Startup loans - 8% - 13%
  • Short-term loans - From 10%
  • Merchant cash advance - Factor rates between 1.15 - 1.5

If you have specific questions regarding rates and fees, a Fundera representative is there to help.

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.

How to Qualify for a Fundera by NerdWallet Loan

To qualify for a Fundera small business loan, you should have a credit score of at least 550. However, you may still be accepted based on other aspects of your business.

Fundera will also look at your annual business revenue and your length in business, but there are no minimum requirements for these two criteria. The lenders you’re connected to will use a whole range of different assessment methods to determine your eligibility, so even those new to borrowing may qualify.

A summary of all loan types is below:

Minimum Credit Score550+
Minimum Annual RevenueNo minimum requirement
Minimum Time in BusinessNo minimum requirement

Fundera by NerdWallet Loan Application Process

Fundera makes applying for a loan easy. With just one application, you can apply for multiple loans from multiple lenders.

Fundera will first have you fill out some personal information, including your date of birth, personal annual income, and whether you own or rent your home.

Next, Fundera will ask you your business name and credit score.

In fact, there are 22 different screens that ask for your personal information.

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

And finally, Fundera will give you your loan options, including loan terms and how long it takes to get funded.


Note: When applying, Fundera does a soft credit pull, meaning your credit score will not be affected. If you decide to move forward with a loan, the lender will perform a hard inquiry on your credit.

Fundera by NerdWallet Customer Support

Fundera offers several customer support options by phone, email, or live chat. The email adress is support@fundera.com

The website features a robust FAQ page which explains how Fundera works and what you can expect if you use them.

Once you decide to move forward with Fundera, you’ll be paired with a knowledgeable Funding Advisor. They’ll connect with you to learn more about your business and recommend the ideal product for your unique needs.

Most of Fundera’s reviews regarding customer service are positive. Customers are pleased with its fast, efficient service and appreciate its transparent communication. Here’s what two of them had to say:

“Fantastic customer service - guided us every step of the way!”

“Simply the best customer service and communication!”

Fundera by NerdWallet Perks and Bonuses

Flexibility

Since Fundera is an online loan marketplace, flexibility varies from lender to lender. Some lenders are more flexible than others. Therefore, if you’d like to lock in special rewards or discounts or defer your payments in the event of hardship, let your Funding Advisor know. They can try to match you to a lender that offers the flexibility you’re looking for.

Transparency

Fundera’s website features no shortage of information on how it works, the specific lenders it partners with, and the various loans available. There’s also plenty of useful resources you can take advantage of, including detailed guides and lists of the best business credit cards, best payroll companies, and more.

There is no history of complaints from customers regarding poor sales practices. In fact, most customers praise Fundera for its exceptional transparency.

Technology:

Technology offerings will depend on the specific lender you choose for your loan. Fortunately, many of the lenders Fundera works with offer mobile functionality and the ability to pay online.

Conclusion

Fundera offers an impressive range of loan types with efficient and friendly customer service. It welcomes applications from long-standing businesses, new startups, and those with bad credit, so there’s an excellent chance you’ll find what you’re looking for here.

Frequently Asked Questions(FAQ)

Is Fundera legitimate?
Yes, Fundera is a reputable lender that’s accredited by the Better Business Bureau (BBB) and holds an A+ rating. It’s a subsidiary of NerdWallet, a company that helps people make smart financial decisions.
Is Fundera an SBA approved lender?
Fundera is an approved provider of SBA loans, which are guaranteed by the federal government and designed to help small businesses thrive. With Fundera, you may take out an SBA loan such as the Standard 7(a), 7(a) Small Loan, and SBA Express.
Is Fundera a direct lender?
Fundera is unique in that it acts as both a direct lender and an online business loan marketplace. Depending on your needs, Fundera might fund your loan on its own or partner up with another lender. This provides you with the benefits of speed and flexibility. You can learn more about Fundera’s partner lenders on its website.
Does Fundera charge a fee?
Fortunately, you don’t have to pay a fee to use Fundera because the company receives compensation from its lending partners. However, before you move forward with a loan, keep an eye out for fees such as the origination fee, prepayment fee, late fees, and maintenance fee. Fees vary from lender to lender and will be outlined in your loan agreement.

About the Author

Gordon Scott

Written by: Gordon Scott

Chartered Market Technician (CMT)

Gordon Scott is an author, trading instructor, trading coach and curriculum developer for financial education. He served as the managing director for the CMT Association from 2013 to 2018, overseeing the development and production of the CMT exams and their curriculum.

More about me
Sarah Brooks Personal Finance Writer and Editor

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me
Dr. JeFreda R. Brown

Fact Checked by: Dr. JeFreda R. Brown

DBA, CFEI and a highly respected expert in personal and business finance

Dr. JeFreda R. Brown is more than a financial consultant: she’s an avid teacher and subject matter expert who helps people—individuals and groups in a business setting—master the skills they need to achieve lasting financial wellbeing. As Founder and CEO of Xaris Financial Enterprises, it is her passion and life goal to help others develop and maintain financial wellness.

More about me