Fundera business loans review
- Min. Amount
- $2,500
- Max. Amount
- $5,000,000
- APR
- Varies based on lenders
Our verdict
A highly-rated, no-fee business loan connection service, but partners are limited.
Fundera by NerdWallet is a fintech connection service featuring 15+ top lenders, including Paypal, Bluevine and Funding Circle. It’s best for small business owners who want to quickly compare loan options with a single, easy-to-use form. Options include term loans, SBA loans, lines of credit, short-term options and more.
It’s free to use and potentially fast. Depending on the loan, you could have funds as soon as one business day after approval. However, the website is slim on loan details and APR ranges, and its eligibility criteria isn’t disclosed. But overall, it’s a fast and convenient place to start your search for a business loan.
Best for: Any credit type business owner looking to compare different loan options quickly.
Pros
-
No hard credit check to use
-
Bad credit loan options available
-
No fees to use the service even if you get funded
-
In-house loan specialists to support you
-
Good customer reviews online
Cons
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Limited number of partners
-
APR ranges not disclosed
-
Your information is shared with partners
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Origination fees are charged by some lenders
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Unclear eligibility criteria
Details
Product details
| Min. Amount | $2,500 |
| Max. Amount | $5,000,000 |
| Loan term | 3 months to 25 years |
| Min. Credit Score | 520 |
| APR | Varies based on lenders |
| Requirements | $60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months |
What makes Fundera shine?
Fundera stands out for its simplified intake form, which only takes a few moments to fill out. You don’t need to provide your Social Security number or undergo a hard credit check to get matched with lenders. And unlike some other connection services, there’s no funding fee to use Fundera – even if you get matched and funded by one of its partners. Fundera also gets overwhelmingly high marks from customers on Trustpilot, who praise its loan team for its professional, helpful and responsive service.
Where Fundera falls short
Unlike other connection services, Fundera has a relatively limited number of partners – just 15 at the current time – which may limit your options compared to some other services. And there’s not much information about APRs or eligibility criteria. Instead, you need to fill out the form to see if you prequalify with any of its partners. Also, after getting matched with lenders, you may need to provide additional information for each lender you’re interested in.
Fundera loan details
| Minimum credit score/credit range | 520 |
| APR | 6% to 60%+ |
| Loan amounts | Up to $5 million |
| Terms | 3 months to 25 years |
| Approval turnaround | 24 to 48 hours |
| Availability | Available in all states |
| Fees | No fee to use Fundera |
| Other fees | Lenders may charge origination fees, packaging fees, late fees, prepayment penalties, etc. |
Fundera SBA loans
SBA loans are loans backed by the Small Business Administration (SBA) and are a popular choice for business owners that may not qualify for a traditional bank loan. SBA loans are known for their competitive rates and high loan amounts, but they can take several weeks for approval and funding. Fundera partners with lenders that offer SBA loans, including the popular SBA 7(a), 504 and Express loan programs, as well as microloans.
How to qualify for Fundera
Because Fundera isn’t a direct lender, it doesn’t set specific eligibility criteria. Instead, eligibility depends on the specific lender and the type of loan you’re after. For example, you’ll need a minimum credit score in the high 600s for an SBA loan, while merchant cash advances may accept scores in the low 500s.
- A minimum personal credit score of 520 to the mid-600s
- A minimum amount in annual revenue (typically from $50,000 to $150,000+ per year)
- Preferably one to two years in business (six months may be ok for some short-term loans)
Remember, using Fundera is completely free and it won’t impact your credit score to compare lenders. So, even if you have bad or fair credit, it could be worthwhile to check if you prequalify for a loan through its service.
How to apply
Applying with Fundera is fast and straightforward:
- Select Get Started on Fundera’s website.
- Answer some basic questions on the prequalification form.
- If you qualify, you will be presented with a list of lending options.
- Apply directly with a lender and/or wait for one of Fundera’s team members to contact you within 24 to 48 hours.
- Formally apply for a loan and upload any requested information and documents.
- Waiting for final loan approval and funding.
How Fundera compares to other lenders
Fundera by NerdWallet is a fast and convenient place to start looking for lenders. But if you’re looking for a direct lender or want other options, start here instead:
Fundera reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 1 out of 5 stars, based on 2 customer reviews |
| BBB customer complaints | 6 customer complaints |
| Trustpilot Score | 4.3 out of 5 stars, based on 928 customer reviews |
| Customer reviews verified as of | 19 February 2024 |
Fundera gets overwhelmingly positive reviews on Trustpilot from hundreds of customers. Satisfied customers mention helpful and professional – and sometimes above-and-beyond – service from Fundera’s loan officers. Many of these customers mention specific loan officers by name, calling them out for their great service.
Less happy customers mention being surprised by high APRs, which are common with some of the short-term loan options that Fundera offers. And, like many services that connect lenders and borrowers, there are complaints about marketing calls and emails from Fundera’s partners.
Is Fundera legit?
Yes, Fundera by NerdWallet is a legitimate service that works with legitimate lenders. It has helped businesses access over $2.5 billion in funding, and it has a number of programs and resources to help small business owners. It also has a secured website and online form to keep your personal and business information safe.
Frequently asked questions
What is Fundera?
Fundera is a business loans marketplace that lets you quickly compare 15+ of the top business lenders with just a single form. It’s free to use and there’s no impact on your credit score.
Does Fundera do a hard credit pull?
No, Fundera doesn’t require a hard credit pull to use its service. However, you’ll likely need to undergo a hard credit check when applying for a loan through one of its partners.
How does Fundera make money?
Fundera makes money by earning a commission from the lenders it partners with. It never charges a fee to the borrower, even if they get funded through one of its partners.
Who are Fundera’s competitors?
Some of Fundera’s top competitors are other business loan marketplaces like Lendio, Biz2Credit, and businessloans.com.
Is Fundera a direct lender?
No. Fundera is a lending marketplace that matches borrowers with some of the top lenders in the business loans space.
Your reviews
Kellye Finder
Writer
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