Fundera Review

Fundera is an online service that allows business borrowers to source, compare, and apply for various types of loans and enterprise financing. According to Fundera’s website, clients can secure their funding faster than they would through a traditional financial institution. Fundera also highlights some impressive numbers: it has financed more than 85,000 businesses since its 2013 founding, forwarding in excess of $2.5 billion in loan capital.

Borrowers do not receive their loan proceeds directly from Fundera. Instead, the company acts as a kind of matchmaker, linking customers with partner lenders who offer the types of financing they need. Fundera earns money through commissions, which it collects from partner lenders when a customer sources a loan through the platform. Thus, the service is 100% free to use.

Fundera also provides an extensive collection of informational resources on its website. These digital assets educate borrowers on their loan options, money management skills, and many other finer aspects of enterprise financing and administration covering the following categories:

Let’s take a closer look at Fundera and examine what kinds of loans borrowers can get, how to qualify, and the pros and cons of the Fundera system.

Loan Types

As of October 2020, Fundera links borrowers to loans and financing opportunities in six key categories:

Loan Terms

Fundera has about 25 lending partners in its network as of October 2020, and each end lender sets its own rates and terms. Here’s a breakdown of the current loan terms, loan limit ranges, and annual percentage rates (APRs) attached to each of the funding types Fundera supports:

SBA Loans

Small business term loans

Short-term loans

Business lines of credit

Startup loans

Personal loans for business owners

Who Qualifies for a Fundera Loan?

Fundera does not disclose specific borrower requirements, and the partner lenders in the Fundera network maintain their own eligibility standards. However, Fundera does note that the majority of approved applications share some common features:

Your business might still qualify if you do not meet these criteria. However, your loan options may be more limited, and your repayment terms may be less favorable than an ideally qualified borrower.

Pros and Cons

Here’s what borrowers and experts like about Fundera:

On the down side, the Fundera system displays a couple noteworthy drawbacks:

End lenders in the Fundera network also impose their own terms and conditions, which may include prepayment penalties, origination fees, and hard credit checks that might temporarily affect your score. Some customers say these factors negatively impacted their application and borrowing experiences.

What Others Are Saying

Fundera has generated a significant customer feedback footprint, given that it has been around since 2013. The company has been accredited by the Better Business Bureau (BBB) since November 2016 and holds an A+ rating there as of October 2020.

Over on Trustpilot, Fundera has more than 800 user-generated reviews as of October 2020, with an average score of 4.9 out of 5. A very strong 88% of those reviews awarded Fundera 5 out of 5, while 95% gave it 4 out of 5 or higher.

The Bottom Line

Relative to some competitors, Fundera seems to have stricter borrower requirements and a narrower range of partner lenders and financing options. However, it appears to offer a great deal to customers who meet eligibility standards and are in the market for one of the loan types the platform supports.

Excellent customer service and an extensive library of educational resources heighten the value of Fundera’s appeal. It is a strong option well worth considering if you’re seeking one of the six loan types Fundera facilitates.