Fundera is not a lender or loan broker. It is a platform that helps small businesses evaluate their financing options by providing financial education and connecting them with compatible lenders. The startup company was launched in 2014 by Jared Hecht, co-founder of GroupMe, a messaging startup that was sold to Skype in 2011.
How Does Fundera Work?
Fundera is a loan comparison website that matches borrowers circumstances and requirements with compatible lenders. Borrowers only need to fill a single application form to get preapproved by lenders on Fundera's network. Fundera then uses that information to provide up to thee matching lenders. Business owners must then go to the website of the lender they choose to finalize the operation.
What Are The Interest Rates?
Interest rates vary widely depending on the lender used, the business' credit worthiness, the loan amount and term. For instance, OnDeck, one of the borrowers on Fundera's network, has interest rates ranging from 8% to 39%, while SmartBiz SBA Loans ranges from 6% to 8%. Generally you can expect to pay 6-10% for SBA-backed business loans; 6-44% for small business loans; and 4-20% for equipment financing loans.
How Much Money Can I Borrow?
Maximum loan amounts also vary widely by lender. Fundera will search for lenders that meet your requirements. For example, Funding Circle has a maximum loan amount of $500,000 and CelticBank offers SBA loans of up to $5 million.
Which States Does Fundera Operate In?
Fundera has lenders who operate in all 50 states.
What Is the Application Process Like?
To apply for a loan, borrowers must complete a short online form with personal, business and financial information. Fundera then verifies the authenticity of the information and matches the borrower with lenders. Each lender has its own eligibility criteria, but in most cases businesses need a monthly revenue of $9,000 to $10,000 and at least 2 years in business to avoid high interest rates and short repayment terms.
How Is Fundera Better than Other Lenders?
By filling a single form, businesses can pre-qualify for a loan with several lenders and get an idea of what interest rates they can expect without any impact on their credit. Fundera is trying to position itself as the Expedia of small business loans. Currently it only refers borrowers to lenders but it has plans to allow borrowers to perform the entire process on its website. One of the biggest advantages of Fundera over other loan referral companies is that your data is not sold to aggressive brokers so you won't get flooded with cold calls.