Published By Janet Gershen-Siegel at March 3, 2018
Fundation Group LLC is one of many lending companies online. They provide term loans and lines of credit.
Fundation confirmed the information we found about them online. They were one of the only online lenders to do so. We look at the specifics and drill down into the details with respect to Fundation Group LLC.
Fundation Group LLC is located online here: http://www.fundation.com/. Their physical address is located in Reston, VA. The Fundation (Fun) version is based in New York, NY. You can also call them at: (888) 390-0064.
The company’s contact page is here: http://www.fundation.com/about-us/#contact.
Their capital base has come from Goldman Sachs; Garrison Investment Group; and Midcap Financial, LLC.
Funding as soon as one business day. $20,000 – 500,000 is available; terms are 1 – 4 years. Payments are twice per month. No specific collateral is needed.
They want a personal guarantee. They will take out a UCC-1 blanket lien for most borrowers. There is a one year time in business requirement. Another requirement is having at least 3 employees.
Your company must also have $100,000 or more in annual revenue. So you will need to have good personal credit.
Rates are risk-based; the higher the risk, the higher the rate. APR runs from 7.99% – 29.99%. There is up to a 5.0% origination fee (deducted from net proceeds). There are no prepayment fees.
$20,000 – 100,000 is available. The new balance after each draw is then amortized in equal installments over 18 months. Payments are monthly. No specific collateral is needed. They want a personal guarantee. They will take out a UCC-1 blanket lien for most borrowers.
There is a one year time in business requirement. Another requirement is having at least 3 employees. Your company must have $100,000 or more in annual revenue. You will need to have good personal credit.
There is a $500 closing fee. A 2.00% draw fee deducted from each draw. Their rates are risk-based; the higher the risk, the higher the rate. Their APR is 7.99% – 29.99%. There are no prepayment fees.
Advantages include a short time in business requirement. Also, their closing fee is low and is a flat rate.
Disadvantages include the draw fees and a very high maximum APR. Also, they want personal guarantees for pretty much everything and will take out a UCC blanket lien.
A company with a better payment history will likely do better with Fundation. This is because that might help to keep the APR down to within reasonable limits. So even companies with poorer payment histories can help their own causes by paying debts off early.
However, the draw fees will potentially also push borrowers to take out more than they need, ‘just in case’. This could make for higher debt, and that is generally harder to pay off.
Entrepreneurs will have to give up a personal guarantee. And they also must have a UCC blanket lien held by Fundation.
A company that goes out of business could be particularly harsh for an business owner. So companies unsure of the chances of their success should seek out other types of funding. These would be where they either hand over a personal guarantee or a UCC blanket lien but not both.
And finally, as with every other lending program, read the fine print and do the math. So go over the details carefully, and decide if this option will be good for you and your company. In addition, consider alternative financing options that go beyond lending, including building business credit, to best decide how to get the money you need to help your business grow. Share this if you agree with our review of Fundation Group LLC.