Fundera By NerdWallet Review: What It Is & How It Compares

Pros

• Multiple types of financing are available
• Website advertising is clear and informative
• Customer service is helpful
• Multiple avenues of customer support

Cons

• Rates can be expensive
• Charges some additional fees

What Is Fundera?

Fundera is a business funding matchmaker. Much like a loan broker, this company does not originate loans; instead, it matches you up with other business funders you may be qualified for. Fundera’s partners offer merchant cash advances, short-term loans, lines of credit, medium-term loans, SBA loans, equipment loans, invoice financing, and personal loans (that can be used for business).

Not only is the company convenient and helpful, but everything about the service is transparent. The customer service is reportedly friendly and informative and has an excellent reputation across the web. Because Fundera is selective about the funders it partners with and provides tools and information to help merchants find the financing they need, it is undoubtedly one of the best matchmakers out there.

Services Offered

Fundera is a business funding matchmaker. With this online service, you complete a single application, which Fundera uses to match you with suitable business financing options on offer from affiliated lenders in its network.

Some business lenders Fundera might match you with include BlueVine, Credibly, OnDeck, Fundbox, and others. Some of the financing services offered through Fundera’s network include:

Installment Loans

The term “installment loan” refers to financial products that provide the borrower with a lump sum. In exchange, you’ll make regular payments (usually monthly but sometimes weekly) until you’ve paid off your loan plus interest.

Installment loans typically have terms longer than a year.

Short-Term Loans

Short-term loans can be a good (if expensive) way to get money in a hurry. Short-term loans often have expedited application processes and term lengths of less than a year. Rather than pay interest, at least in the traditional sense, you’ll pay a flat fee. That fee is a percentage (or a multiplier) of your borrowing amount. So if you’re borrowing $10,000 and have a factor rate of 1.3, you’ll owe $13,000.

Payments are made every week or every business day; make sure you’re comfortable repaying on an accelerated schedule before you commit to anything.

Lines Of Credit

If you don’t need your money in a single lump sum, you may want to consider a line of credit. The way it works? You’ll be approved for a credit limit, which represents the maximum amount of money you can borrow within your term. During that time, you can draw upon your line of credit in whatever increment you want, as often as you want, so long as the total amount borrowed doesn’t exceed your credit limit. You only pay interest on the amount that you’ve borrowed.

Equipment Loans

Equipment loans are very similar to installment loans, with one major difference: Since the loan is specifically used to purchase equipment, the equipment you’re buying acts as collateral (security) for the loan.

Secured loans usually come with better rates and terms than equivalent unsecured loans.

SBA Loans

The Small Business Administration (SBA) is a government agency tasked with assisting small businesses. It doesn’t directly lend to small businesses but instead guarantees loans made by banks and other lenders. That guarantee allows businesses to access excellent rates and terms. The trade-off is that you’ll have to go through a long, slow approval process to satisfy all of the program’s requirements.

Check out our guide on SBA loans to learn about the different types available.

Invoice Financing

If you have unpaid invoices, you may be eligible for invoice financing. This type of financing allows you to receive a portion of the unpaid invoice (typically around 85%) to clear up cash flow issues. Once the invoice is paid, you can receive the remaining percentage minus the lender’s fee.

Merchant Cash Advances

A merchant cash advance gives you a lump sum of cash in exchange for future credit and debit card sales. Repayments are typically made daily or weekly until the advance (plus the lender’s fee) is repaid.

This is an expensive form of funding; however, it may be an option worth considering if your business is brand new or has bad credit and can’t qualify for other funding.

Borrower Qualifications

Because Fundera works with several different funders, it does not have any specific requirements regarding how long you’ve been in business, how much revenue you make, your personal credit score, or any other business characteristics.

Each of Fundera’s partners has its own requirements regarding business characteristics; as such, you may not be eligible for certain products.

If you make an account and find you are not eligible for the products you’re interested in, Fundera offers an eligibility tracker that can inform you when you do qualify for new products.

Rates & Fees

Fundera’s rates vary based on factors such as the lender you work with, your selected funding product, and your credit history.

You will not have to pay a fee directly to Fundera at any point during the process. Instead, Fundera receives compensation from its funding partners. Whenever a loan is funded through Fundera, the company collects a fee of 2%-5% of your loan amount from its partner. If you are not matched with a lender through Fundera, the company will not receive any money.

Because Fundera acts as a middleman, there is a possibility that the lending partner may pass some costs on to you. In a worst-case scenario, that means your loan might cost a little more if you go through Fundera than it would have if you went directly through the lender.

Otherwise, your fees will vary, depending on the lender you’re ultimately partnered with. For a list of what fees to expect, check out our post on common fees charged by business lenders.

Application Process

Fundera provides a comprehensive explanation of the application process on its website.

Create Account & Submit Questionnaire

To begin the process, you’ll be required to create an account and fill out a short questionnaire about the age of your business, your annual revenue, your personal credit score, whether or not your business is profitable, and what industry you’re in. The company will use the information you have provided to determine which products you may be eligible for.

It should be noted that until you officially apply, all of this information is self-reported. Before Fundera approves you for financing, your information will need to be verified.

Review Available Loan Products

After you’ve completed the questionnaire, Fundera will show you available loan products. A representative will reach out to you to explain your options, educate you on the products, and help you determine which is right for your business.

Apply For Funding

At this point, if you would like to apply for funding, you can choose the products and funders you’re interested in and fill out an application.

Your application will consist of answering questions and submitting documentation. The questions and document requirements will vary depending on which lenders you’re applying for, but according to the FAQ, items commonly required include:

• Bank statements, tax returns, and credit card statements
• Balance sheets and profit and loss statements
• Verification from your landlord if you rent office space

Compare Loan Offers

When the application is complete, you will be presented with offers. You can compare these offers and choose the best one for your situation. Of course, if you need help choosing, your Fundera representative is available to help you out.

Choose An Offer & Receive Funding

When you have chosen the best offer for your business and filled out the necessary paperwork, your loan will be funded.

Sales & Advertising Transparency

Fundera seems committed to providing a transparent service.

The website contains information about Fundera’s service and business loans at large. Fundera discloses what to expect from the process, how fees are collected, and any other information you might need to know before signing up. The website even has Shakespearean-style legalese in layman’s English on its Terms of Service and Privacy Policy pages.

It shouldn’t come as a surprise that Fundera is a signatory of the Small Business Borrower’s Bill of Rights and has therefore pledged to uphold certain standards, including “transparency, fairness, and putting the rights of borrowers at the center of the lending process.”

Fundera also provides a wealth of information about specific lenders and financial products and can serve as a solid resource.

Customer Service & Technical Support

Customer service is available by phone, email, or live chat via the website. Customers have reported positive experiences working with Fundera’s representatives — most claim that the customer service was helpful, informative, and not pushy.

Fundera also provides an in-depth FAQ that covers many questions you may have about the process, from application to repayment. The company also offers a well-populated resource center, including business loan calculators, lender reviews, financial templates, glossaries, and a host of other information about business loans and finances.

User Reviews

There are numerous Fundera reviews on Facebook and Trustpilot, where Fundera has earned a rating of 4.6/5 out of 860+ reviews.

The company is accredited by the BBB, and it currently has an A+ rating. Three complaints have been filed within the last three years, and all have been answered or resolved. Reviews are overall positive, with a handful of complaints mixed in.

Negative Reviews & Complaints

• Limited funding options due to fewer lending partners
• Denial after preapproval
• High-interest rates and other fees
• Unresponsive customer service

Positive Reviews & Testimonials

• Informative website
• Easy-to-use customer interface
• Helpful customer service
• Fast time from application to funding

Final Verdict

Fundera is an excellent resource to help you find the funding you need. The website and customer support services are transparent and informative, and the application process is streamlined.

One thing to keep in mind: Fundera works with relatively few lenders, so if you are not eligible for funding from Fundera’s partners, you may still qualify for funding elsewhere. However, there is a good chance that other lenders would come with higher rates and fees than those on Fundera’s platform.

Regardless, matchmakers such as Fundera provide a valuable service to small business owners. The search for business funding is often a long, confusing, and arduous process, but with Fundera, you don’t have to go it alone.

Looking for more small business financing options? Explore our team’s picks for the best small business loans, the best business lines of credit, or the best corporate credit cards.

The Merchant Maverick Seal of Approval 🏆

Fundera by NerdWallet	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Fundera by NerdWallet for yourself.

The Merchant Maverick Seal of Approval 🏆

Fundera by NerdWallet	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Fundera by NerdWallet for yourself.