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Fundera Review: 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
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
Written by:Gordon Scott
Chartered Market Technician (CMT)

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.

Summarized Ratings

This parameter considers loan terms, repayment optionality, and loan limits. For each financing arrangement offered, each of these features was evaluated using the five-point scoring system. Then, the various scores were aggregated and averaged to establish an overall loan features score.

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

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

Fundera Review Video

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

The Fundera Loan Application Process

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.

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.

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

Fundera Loan Options

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 length Up to 30 years
Repayment period Monthly
APR range Starting at 2.75%
Min - Max amount Up to $2M

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.

Term length Up to 30 years
Repayment period Monthly
APR range Starting at 2.75%
Min - Max amount Up to $2M

Fundera Business Line of Credit

Business line of creditworks 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.
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

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.

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.

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.

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.

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 Interest Rates and Fees

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.

How to Qualify for a Fundera Loan?

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:

Minimum Credit Score 550+
Minimum Annual Revenue No minimum requirement
Minimum Time in Business No minimum requirement

Fundera Customer Support

  • Fundera offers several customer support options: You can receive assistance by phone, email, or live chat through the website.
  • Fundera website features a robust FAQ page: which explains how Fundera works and what you can expect if you use them to secure financing for your business.
  • 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 Loan Online 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 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 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 is impressive. It 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 as a small business owner, 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:

Due to the fact Fundera is a business loan marketplace and acts as a middleman, 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

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.

Frequently Asked Questions (FAQ)

Is Fundera legitimate?
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. Fundera can be a great choice if you’d like to find the ideal loan for your unique business and loans, regardless of your credit or how long you’ve been around.
Is Fundera an SBA approved lender?
If you’re in search of a Small Business Administration or SBA loan, Fundera can help you out. The marketplace 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. This is because Fundera receives compensation from its lending partners. However, before you move forward with a loan, keep an eye out for fees like 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

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