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Stop! Before You Borrow, Check Out Our Fundera Review

Published By Janet Gershen-Siegel at May 2nd, 2018

Stop! Before You Borrow, Check Out Our Fundera Review

Looking for Funding? You Need to Read Our Fundera Review

Today, Credit Suite reviews Fundera. Fundera is a marketplace connecting small business owners to financing for their business via traditional and alternative lenders. There are several financing options. We look at the specifics and drill down into the details of Fundera. Welcome to our Fundera review.

Background

Fundera is located online here: www.fundera.com. Their physical address is:

123 William Street, 21st Floor
New York NY 10038.

You can call them here: (800) 386-3372. You can email them at: [email protected].  Fundera is financed by Khosla Ventures; SGE Susquehanna Growth Equity, LLC; Core Innovation Capital; First Round; and QED Investors.

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SBA Loans through Fundera

Is Fundera an SBA lender? Why, yes.

Most companies approved had four or more years in business. Most business owners approved had 680 or better credit scores. And most companies approved had $180,000 in annual revenue. Loan amounts run from $5,000 – 5 million, with 5 – 25 year terms. You can get funding in as little as 2 weeks. However, they may require collateral.

Fees

Their interest rates start at 6%.

Term Loans

Most companies approved had three or more years’ time in business. Most business owners approved had a credit score of 680 or better. And most companies approved had $300,000 or more in annual revenue. $25,000 – 500,000 is available. Terms are 1 – 5 years. It is as little as 2 days to approval.

Note: when they were available, Fundera provided PPP loans. If Congress authorizes more money for the program, it may be possible to get a Fundera PPP loan.

Fees

Their interest rates range from 7 – 30%, and there are possible prepayment penalties.

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Equipment Financing through Fundera

Most companies approved had been in business for two or more years. Most business owners approved had a credit score of 630 or better. And most companies approved had $130,000 or more in annual revenue. Your loan amount up is to 100% of equipment value. The term is the expected life of the equipment, and the equipment serves as the collateral. You can get approval in as little as 2 days.

Fees

Interest rates range from 8 – 30%. Equipment depreciation may be required; this cuts into tax deductions.

Business Lines of Credit

Most companies approved had been in business for a year or more. Most business owners approved had a credit score of 630 or better. And most companies approved had  $180,000 or more in annual revenue. $10,000 to over $1 million in funding is available, with 6 months to 5 years terms. Approval is in as little as one day.

Fees

Interest rates range from 7 – 25%. However, they may require collateral. There are higher rates for lower credit scores.
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Invoice Financing through Fundera

Most companies approved had been in business for one year or more. Most business owners approved had a credit score of 600 or better. And most companies approved had $130,000 or more in annual revenue. The maximum advance is equivalent to 100% of the total amount of invoice. Approval is in as little as one day.

Fees

Get a fast advance of about 85% of the value of invoices. Most of the other 15% is paid later. The factor fee is 3% + %/week outstanding. These fees are based on the time it takes for a customer to pay off the invoice.

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Advantages

Advantages include several flexible options. And some of them can get an approval with rather low minimum FICO scores. This choice makes Fundera an option for entrepreneurs who do not have stellar credit. You can also get some forms of funding with fairly low annual revenues. Companies with comparably low annual revenue could get approvals for startup loans and personal loans for business.

Disadvantages

Disadvantages include your fees for invoice financing are based on how fast your customer pays, so any deadbeat customers will cost you.

Fundera Review: Upshot

With fairly low annual revenue and minimum FICO scores still able to get funding, the Fundera program can be a good choice for newer businesses that haven’t quite gotten up to speed yet. However, because your company will be charged for deadbeat clients, even a startup will need to be certain their customers will pay on time if they are getting invoice financing.

And finally, as with every means of getting funding, whether online or offline, remember to read the fine print and do the math. Go over the details with a fine-toothed comb, and decide whether this option will be good for you and your company.

In addition, consider alternative financing options that go beyond lending. So these include building business credit. This way, you will be able to best decide how to get the money you need to help your business grow. Today, we want to hear from our audience! Share your voice with us about your experiences with online lenders.

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