Fundera Online Lender Review

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Fundera Online Lender Review

Published By Janet Gershen-Siegel at May 2, 2018

OnDeck Online Lender Review, Lending Club Online Lender Review, Credit Suite, Yellowstone Capital Online Lender Review, Lendio Online Lender Review>

Fundera is an online lending company. They offer small business loans with a variety of options. They also have SBA loans and equipment financing, among other financing options. We look at the specifics and drill down into the details of Fundera online lending.

Background

Fundera is located online here: https://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.

SBA Loans

Your company must be in business for two or more years. You need to have a personal FICO credit score of 620 or better. Your company must have $100,000 or more in annual revenue. Loan amounts run from $5,000 – 5 million, with 5 – 25 year terms. You can get funding in as little as 3 weeks. However, they may require collateral.

Fees

Their interest rates start at 6.5%.

Term Loans

Your company must be in business for one or more years. A personal FICO credit score of 600 or better is required. Your company must have $90,000 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.

Fees

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

Equipment Financing

Your company must be in business for 11 months or more. A personal FICO credit score of 600 or better is required. Your company must have $100,000 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

Your company must be in business for 6 months or more. Your company must have $50,000 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 1 day.

Fees

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

Invoice Financing

Your company must be in business for 6 months or more. Your company must have $50,000 or more in annual revenue. The maximum advance is equivalent to 50 – 90% of the total amount of invoice. Approval is in as little as 1 day.

Fees

When the customer pays, you will receive the remaining 10 – 50% minus fees. Fees are generally 3% plus a percent per week outstanding. These fees are based on the time it takes for a customer to pay off the invoice.

Short Term Loans

Your company must be in business for one or more years. A personal FICO credit score of 550 or better is required. Your company must have $50,000 or more in annual revenue. $2,500 – 250,000 amounts are available, with 3 – 18 months terms. Approval is in as little as 1 day.

Fees

Interest rates start at 10% with a weekly payment plan. Annual rates are higher than for long term loans.

Merchant Cash Advances

Your company must be in business for one or more years. A personal FICO credit score of 500 or better is required. Your company must have $50,000 or more in annual revenue. $2,500 – 250,000 amounts are available. One week to funding.

Fees

The factor fee is 1.14 – 1.18.

Small Business Startup Loans

Up to $150,000 available, with 6 months – 4 years terms. Funding is in as little as 2 weeks. Exceptional credit is required.

Fees

There are 7.9 – 19.9% interest rates, but these loans are interest-free for the first 9 – 15 months with no prepayment penalty.

Personal Loans for Business

A personal FICO credit score of 580 or better is required. There is up to $35,000 available, with 3 – 5 year terms. Funding is in as little as 1 day. This loan reports on your personal credit history.

Fees

Fundera will charge 5.99 – 36% APR.

Advantages

Advantages include flexible options and a fairly low annual revenue requirement. Some options allow for rather low minimum FICO scores, making Fundera an option for entrepreneurs who do not have stellar credit.

Disadvantages

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

Upshot

With fairly low annual revenue and minimum FICO score requirements, the Fundera online lender program is 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.

And finally, as with every other lending program, 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, including building business credit, in order 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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