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Fundera Loans For Small Businesses Review

The Fundera loans for small businesses review shows in detail how to apply for different loans online to boost your business and make it more profitable.

We will see how Fundera as an online financing platform works and the different types of loans. 

I will also show you the requirements you need to meet before applying for a loan, how to apply, and give your some other helpful information about this company.

Fundera Company Overview

The NameFundera Inc.
Date of creationFounded in 2013 and owned by NerdWallet.
HeadquartersNew York, United States. 
SpecialtiesFinancial services (small business finance and online lending).
PricingFree to join and use.
Customer Rating9 out of 10. 

What Is Fundera Inc About?

Founded in 2013 and headquartered in New York, Fundera Inc. is a subsidiary of NerdWallet.

This online platform is a marketplace of all types of business loans and grants available all across the United States.

It also features many other services, including accounting, banking, credit cards, HR and payroll, legal services, etc.

However, this review will not talk about all the above services. It will limit its scope on business loans and grants.

So, relax and read this review if you are looking for top-rated financing options to boost your business and take it to the next level of profitability.

How Does Fundera Works?

You must first fill out a simple loan application by answering several questions regarding your business and its area of activity.

Once done, the assigned funding advisor will reach you quickly to discuss your business and learn better about the products or services it offers.

This step is mandatory because every business has its particularities and funding needs.

Ensure to provide accurate information so that your advisor can find you a loan or grant perfectly tailored to your needs.

After collecting these data, your funding advisor will introduce them into the Fundera credit analysis system that, in turn, will match you with the financial products you qualify for.

Ensure to trust your funding advisor. He will work on your behalf and find the best funding options for you.

When he gets back to you with the different lending offers you are entitled to, you will analyze each option together and choose the most appropriate one.

In the next step, you and your advisor will set up a financing plan that will allow you to get the loan you have applied for.

The process is free of charge from the beginning to the end. The owners of Fundera will not ask you to pay a penny.

Fundera business loans

Only when you have got the financing that yiu will you start paying it back with interests according to the agreed terms and conditions.

Fundera Business Loans Options 

This company’s loans options range under the following categories:

1. Fundera SBA Loans

The U.S Small Business Administration partially guarantees some “BA loans.”

You can, for example, apply for these types of loans if you are in short money and want to replenish your cash flow.

Moreover, SBA loans serve many other business purposes like buying new equipment, real estate, inventory, refinancing other debts, etc.

These programs have lower interest rates and extended repayment terms than traditional lending, making them the most preferred by business owners nationwide. 

There are three essential SBA loan options for which you can apply:

1) 7(a) Loan Program

The limit of this loan is $5 million. You can use borrowed money for different business purposes according to the agreed terms. The interest rates can also be variable or fixed.

Your credit score will also come into play when determining the interest rate, and the bank lender will also consider the term of your loan. 

2) CDC/504 Loan Program

You can apply for this loan if you want to purchase real estate or fixed assets, but the lenders will ask you at least 10% of the purchase price of the goods you wish to purchase.

This loan limit is $5.5 million. The banner on this page will take you to the Fundera official website, where you can check the details and apply. 

3) SBA Microloan Program

These are small loans compared to the two previous ones because you can only apply for up to $50,000.

They were designed for startups, small businesses, and other similar entities needing quick cash.

You can, for example, use an SBA microloan to refurnish your cash flow; purchase supplies, office equipment, and other goods.

This loan’s interest rate typically varies from 8% to 13%, depending on the lending bank. You will pay back the borrowed money within six years or less.   

2. Business Term Loans

The maximum amount you can borrow$600,000.
Loan termOne to five years.
Interest ratesThey vary from 7% to 30%.
Credit granting timeOne business day.

This is a traditional form of small business loan in the US. Once the bank lender accepts your application, it will put at your disposal a lump sum that you will repay with a fixed interest rate.

The term of this loan typically varies:

  • In exceptional circumstances, short-term loans vary from a few months to one year or eighteen months.
  • The repayment periods of medium-term loans are typically one to five years.
  • You will repay your long-term loan in more than five years as long as you qualify for it.

That said, you can use these types of loans to expand your business, refinance your debts, purchase equipment, real estate, or other investments.

The table below gives a summary of these types of loans.

The table below summarizes the conditions you must meet to qualify for a business term loan. 

Fundera SBA Loans

Meanwhile, you may also consider reading this review if you have money to invest in other profitable opportunities.

You will learn more about a company that offers one of the US’s best financial advisory and wealth management services. 

3. Business Lines of Credit

A business line of credit is the amount of money you can borrow and use when you need capital. You to borrow from $10,000 to $1,000,000, through the Fundera online platform.

This type of loan differs from the traditional term loans because the lender will not charge you interests as long as you have not tapped into the allocated funds.

Moreover, the interest rates are lower than those charged on traditional term loans. Of course, if everything is equal (similar amounts of loans).

However, it will help if you be careful and spend to the limit of the allocated funds.

Otherwise, you will incur high-interest rates that weigh heavily on your business’s activities and profitability. 

Maximum loan amount$10K to over $1M.
Loan termThree months to 18 months.
Interest rates7% – 25%.
Waiting timeYou can get this loan in under 24 hours.

4. Startup Business Loans

It can be challenging to get enough capital to fund your business’s activities and grow it fast, especially at the beginning of your activities.

That is where the startup business loan can come into play and give you a big push.

If you are in this category, there are different types of funding available for startups like SBA microloans you can apply for through the Fundera platform.

For example, you can apply for asset-based loans, business credit cards, or any other lump sum to use for various purposes depending on the needs of your startup business.

The limit of this type of loan is $50,0000. You can repay the borrowed money for up to six years at an interest rate ranging from 8% to 13%.

5. Invoice Financing Loans

Also called accounts receivable, invoicing financing is one of the most popular credits for companies with a high volume of business transactions.

You can, for example, apply for account receivable or invoice financing lines depending on the urgent financial needs of your business.

All you need is unpaid invoices that will serve as a guarantee for you to repay the invoice financing loan.

However, the financing companies will not advance you the total value of your invoices at once.

You will first get up to 85%, and they will release the balance when your customers have paid your invoices.

In summary, invoice financing can be a big push for your business, especially if you are short of cash flow.

This loan will help you to alleviate the problems in cash caused by customer invoices non paid yet.

Invoice Financing Loans

6. Equipment Financing Loans

An equipment loan will enable you to buy new or used equipment for your business. You can, for example, use it to purchase machinery, technology, vehicles, etc.

These types of loans offer many benefits, including:

  • The lender can fund 100% of the amount required to purchase the equipment you need.
  • These loans are typically faster than some others that can take weeks or months for you to get the funds.
  • You will not need to put your business’s properties or real estate as collateral because the equipment will secure your loan.
  • Typically, you will not have problems qualifying for this loan even if you have bad credit.
  • The interest rates range from 4% to 40%, and there are ways to benefit from the tax deductions.
  • Besides that, this loan doesn’t require a lot of paperwork.  

However, you also need to be aware that loans for equipment financing have some drawbacks.

You can, for example, purchase modern pieces of equipment today, and they become obsolete a few years later when you have already fully repaid the loan.

In such a case, you will have no other choice than to borrow money again and modernize your equipment, which could seriously handicap the profitability of your business.

Many business owners prefer leasing rather than being victims of obsolete over time.

8. Merchant Cash Advances

Some people call “a Merchant Cash Advance” a loan by misuse of language because it consists of selling a business’s future debit and credit card transactions at a discount.

Another company will advance you a lump sum, and you will use a percentage of your daily credit and debit card sales plus fees to repay the borrowed money.

In principle, the period to repay your loan will depend on your sales volume. The more sales you realize, the faster you will pay back the loan.

That said, it is easy to qualify for merchant cash advances. You can apply and get it quickly, no matter whether you are a startup or have bad credit. 

9. Small Business Grants

Besides the types of loans described in the previous sections, you can also apply for various Fundera small business grants.

However, I will not talk about them individually because they are too many.

All I can tell is that your business can qualify for such or such grants depending on its financial situation and the availability of the grants.

For example, the struggling businesses who have applied for the “State-Based COVID-19 Relief Grants” created in 2020 have received from $25,000 to $50,000 depending on the state from where they operate. 

This is a big push if you consider that you don’t have to repay the grant. It is just a way for the government to help you face challenging economic times. 

Now that you know the different types of loans available on the Fundera platform let’s see how you can apply for the most suitable for your business in the net section.

How To Apply For The Loans or Grants You Like?

There is no single process to apply for one or several loans through the Fundera platform.

Please understand that this platform serves as a middleman between you as a borrower, financial institutions as lenders, or government institutions offering grants.

Therefore, a banner below will take you to the Fundera official website, where you will see the process to apply for the loans or grants you like.

This platform is free to use; the owners will not ask you to pay them a penny. It is just a free marketplace for all types of business loans, grants, and many other financial services.  

The Final Thoughts 

Allow me to end the Fundera loans for small businesses review here. I hope this information will help you get the funds your business needs to succeed. 

Fundera offers you the opportunities to discover all types of loans and grants your business qualifies for and apply for the ones you like from a single dashboard. 

Just take advantage of this platform, as do many other business owners nationwide. 

It will also help if you read the HR Block review to discover one of the best free tax preparation software that exists today.

Thank you for reading the Fundera small business loans review. You can ask questions or leave a comment at the bottom of this page. I will reply quickly. 

2 thoughts on “Fundera Loans For Small Businesses Review”

  1. Thank you for the review of Fundera Loans. These loans and other financial services sound good to ensure your small business starts and keeps running well. I wonder if Fundera plans to expand its services in other countries outside the USA. 

    That would be interesting because businesses from other countries would also benefit from these financial services and make their activities more profitable.

    Reply

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