- Excellent public reputation
- Transparent terms and fees
- High factor and interest rates
- Some additional fees
Founded in 2013, Fundera is a business funding matchmaker. Much like a loan broker, this company does not originate loans; instead, they match you up with other business funders you may be qualified for.
Fundera is very selective about which business funders they partner with. While other matchmakers may partner with as many as 50 – 100 direct funders, Fundera currently partners with much fewer. The company is so exclusive about who they partner with that Jared Hecht, the founder, has claimed that they have to “swat lenders away with a bat.”
Nonetheless, Fundera’s partners offer a range of products, including 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).
If you are completely overwhelmed by your options, Fundera is a good place to start your search for business funding. You will be able to determine which products you may be eligible for by simply making an account and providing very basic business information. Fundera can help you get and compare offers from the some of the best funders in the industry, all with one application.
Not only is Fundera convenient and helpful, but everything about the service is transparent, the customer service is reportedly friendly and informative, and the company has an excellent reputation across the web.
Fundera is not the only business funding matchmaker available. However, because the company is selective about who it partners with and provides a number of tools and information to help merchants find the financing they need, it is certainly one of the best matchmakers out there.
Interested in learning more? Read on for the details!
Table of Contents
Fundera is a business funding matchmaker.
Because Fundera works with a number of different funders, they do not have any specific requirements regarding how long you’ve been in business, how much revenue you make, what your personal credit score is, or any other business characteristics.
Each of Fundera’s partners has their 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 become eligible for new products.
Rates and Fees
You will not have to pay a fee directly to Fundera at any point during the process.
Instead, Fundera receives compensation from their funding partners. Whenever a loan is funded through Fundera, the company collects a fee of 2% – 5% of your loan amount from their 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 your loan might cost a little more than it would have if you had bypassed Fundera. Here is what Fundera has to say on the subject. However, any business person should understand the importance of paying for good services.
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 list of common fees charged by business lenders.
Fundera provides a comprehensive explanation of the application process on their website.
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 you are officially approved for financing, your information will need to be verified.
When you have 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.
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 upon which lenders you’re applying for, but according to the FAQ, commonly required items include:
- Bank statements, tax returns and credit card statements
- Balance sheets and profit & loss statements
- Verification from your landlord if you rent office space
When the application is complete, you will be presented with offers. You can compare these offers and choose the best for your situation. Of course, if you need help choosing, your Fundera representative is available to help you out.
When you have chosen the offer best offer for your business and filled out the necessary paperwork, your loan will be funded.
Sales and Advertising Transparency
It is evident that Fundera is committed to providing a transparent service.
It shouldn’t come as a surprise that Fundera is a signatory on 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.” See Fundera’s explanation of the bill here.
Customer Service and 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, which includes business loan calculators, lender reviews, financial templates, glossaries, and a host of other information about business loans and finances.
Negative Reviews and Complaints
Reviews on the above sites are largely positive, but here are the few complaints voiced by customers:
- Limited funding options: Fundera works with relatively few lenders. Some customers may prefer an aggregator that casts a wider net (such as Lendio).
- Denial after preapproval: One customer was disappointed to learn that they were not, in fact, eligible for products Fundera had previously stated they were qualified for. Unfortunately, Fundera and their partners often cannot say for certain whether you’re eligible for a product before they’ve seen and verified certain financial documents and other information.
- High interest rates and/or fees: Some of Fundera’s partner funders come with high-interest rates or fees. In general, the older and larger your business, the smaller your fees. If the fees are higher than you’re willing to pay, you may want to consider waiting until your business has grown and you have access to better financing, or consider the possibility of taking the loan and then refinancing when your business is eligible for better products.
- Unresponsive customer service: A couple customers reported difficulties reaching their customer service representatives.
Positive Reviews and Testimonials
On TrustPilot, about 98% of reviewers have rated Fundera four or five stars, giving the service an aggregated rating of 9.6 out of 10. Facebook has a few more negative reviews, but overall the reviews are positive.
Customers were especially happy with these aspects of Fundera’s service:
- Informative website
- Easy-to-use customer interface
- Helpful customer service
- Fast time from application to funding
But we’d like to hear from you! Have you tried Fundera’s service? Was your experience good or bad? Leave a message in the comments!
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 funders, so if you are not eligible for funding from Fundera’s partners you may still qualify for funding elsewhere. There is a good chance, however, that other lenders would come with higher rates and fees than those on the Fundera platform.
Regardless, matchmakers like 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.