Fundo offers merchant cash advances (MCAs) from $500 to $10,000. It specifically caters to microbusinesses, gig workers and other self-employed individuals. It has lenient requirements to qualify, including only $1,500 in monthly revenue and three months in business.
But it’s an expensive form of funding, with factor rates as high as 3.5, and it doesn’t disclose rates or fees on its website. It also has shorter loan terms than some competitors, meaning weekly payments could be steep depending on how much you borrow.
If you want to explore your options fully, check out these alternative loans like Fundo, which may have better rates or more favorable terms. We also included other types of business funding to consider if a Fundo MCA isn’t the right move for you.
Lendzi is a highly rated business loans marketplace that allows you to compare multiple lenders with a single application. Like Fundo, it has merchant cash advances, but it also offers other loan types and a team of lending specialists that can help you determine the best type of financing for your business. It has a low minimum credit score to qualify, and some loan options can be funded as soon as the same day.
But it doesn't disclose rates and fees on its website, and some types of financing can be pricey. It's also geared more toward small businesses than individuals, so some self-employed workers may not qualify.
Loan amount
$5,000 – $20,000,000
APR
Varies by lender
Min. Credit Score
580
Lendzi is a highly rated business loans marketplace that allows you to compare multiple lenders with a single application. Like Fundo, it has merchant cash advances, but it also offers other loan types and a team of lending specialists that can help you determine the best type of financing for your business. It has a low minimum credit score to qualify, and some loan options can be funded as soon as the same day.
But it doesn't disclose rates and fees on its website, and some types of financing can be pricey. It's also geared more toward small businesses than individuals, so some self-employed workers may not qualify.
Pros
Explore multiple lenders with one application
Low credit requirements
Same-day funding possible
Cons
Not transparent about rates and fees
Some loan options are expensive
May not be appropriate for some self-employed workers
Loan amount
$5,000 – $20,000,000
APR
Varies by lender
Min. Credit Score
580
Loan term
6 months to 25 years
Requirements
Minimum credit score of 580, minimum annual revenue of $120,000, preferably one to two years in business
Small businesses that use PayPal to process sales can access up to $200,000 in MCA funding (or $300,000 for returning customers) from PayPal Working Capital. That's far more than you can borrow from Fundo, and you only need to bring in $15,000 in annual sales with a PayPal Business account, or $20,000 with a Premier account, similar to Fundo's revenue requirement.
But it doesn't disclose its rates and fees, so you'll need to apply to find out the cost. And you're required to pay at least 5% or 10% of your loan amount, depending on your loan term, every 90 days. If you don't meet the minimum, your entire loan balance could become due.
Loan amount
Up to $200,000 for first-time borrowers
Min. Credit Score
Not required
Small businesses that use PayPal to process sales can access up to $200,000 in MCA funding (or $300,000 for returning customers) from PayPal Working Capital. That's far more than you can borrow from Fundo, and you only need to bring in $15,000 in annual sales with a PayPal Business account, or $20,000 with a Premier account, similar to Fundo's revenue requirement.
But it doesn't disclose its rates and fees, so you'll need to apply to find out the cost. And you're required to pay at least 5% or 10% of your loan amount, depending on your loan term, every 90 days. If you don't meet the minimum, your entire loan balance could become due.
Pros
MCAs up to $300,000
Same-day funding possible
No credit check
Cons
Not transparent about rates and fees
Minimum payment required every 90 days
Must have a PayPal Business or Premier account
Loan amount
Up to $200,000 for first-time borrowers
Cost:
Not stated
Min. Credit Score
Not required
Loan Term
Not fixed — repayment tied to PayPal sales
Requirements
Use of PayPal for sales, history of at least $15,000 in annual PayPal sales
If you use Square payment processing for your business, you might be eligible for up to $350,000 in financing, much more than you can get from Fundo. But it's also good for microbusinesses because loan amounts start as low as $100. There's no impact on your credit to apply, and you typically only need to bring in $10,000 a year in Square sales.
But applications are by invitation only, you're required to repay at least 1/18 of your balance every 60 days and it requires daily repayments.
Loan amount
$100 to $350,000
Min. Credit Score
No minimum stated
If you use Square payment processing for your business, you might be eligible for up to $350,000 in financing, much more than you can get from Fundo. But it's also good for microbusinesses because loan amounts start as low as $100. There's no impact on your credit to apply, and you typically only need to bring in $10,000 a year in Square sales.
But applications are by invitation only, you're required to repay at least 1/18 of your balance every 60 days and it requires daily repayments.
Pros
Wide range of funding amounts
Low annual revenue requirement
Same-day funding possible
Cons
Must be invited to apply
Minimum payment required every 60 days
Must use Square for payment processing
Loan amount
$100 to $350,000
Cost:
Undisclosed fees
Min. Credit Score
No minimum stated
Loan Term
Varies
Requirements
Invitation to apply, $10,000 in annual Square sales, used Square at least 20 days in the last year
Factor rates for MCAs from Credibly start as low as 1.11, which is much better than Fundo's lowest rate of 1.7. And it offers larger loan amounts — up to $600,000 — and longer loan terms. Or if you decide a business cash advance isn't the right fit, Credibly also provides other types of business financing, such as term loans or lines of credit.
But its lowest loan amount is on the high side compared to Fundo, at $5,000, which may be more than some small businesses need. It also requires at least $15,000 in monthly revenue. Plus, while the minimum credit score is only 500, you'll need good credit and strong financials to qualify for the best rates.
Loan amount
$5,000 to $600,000
Starting Factor Rate
1.11
Min. Credit Score
500
Factor rates for MCAs from Credibly start as low as 1.11, which is much better than Fundo's lowest rate of 1.7. And it offers larger loan amounts — up to $600,000 — and longer loan terms. Or if you decide a business cash advance isn't the right fit, Credibly also provides other types of business financing, such as term loans or lines of credit.
But its lowest loan amount is on the high side compared to Fundo, at $5,000, which may be more than some small businesses need. It also requires at least $15,000 in monthly revenue. Plus, while the minimum credit score is only 500, you'll need good credit and strong financials to qualify for the best rates.
Pros
Low starting factor rates
Loan amounts up to $600,000
Also offers other types of business financing
Cons
Requires $15,000 in monthly revenue
Relatively high minimum loan amount
Need good credit for the best rates
Loan amount
$5,000 to $600,000
Cost:
As low as 1.11
Min. Credit Score
500
Loan Term
3 to 24 months
Requirements
500+ credit score, 6+ months in business, $15,000+ average monthly bank deposits
For businesses that invoice other businesses or government agencies, invoice factoring by FundThrough is another option to consider. It's similar to an MCA in that you're basically selling future revenue for cash now rather than taking out a loan. Plus, there's no minimum credit score or time-in-business requirements, and funding is as fast as the next business day.
But it's typically one of the more expensive forms of business funding, like a Fundo MCA. It's also only suitable for certain types of businesses.
Loan Amount
Up to $10 million
Fee for Terms
2.75% to 8.25%
For businesses that invoice other businesses or government agencies, invoice factoring by FundThrough is another option to consider. It's similar to an MCA in that you're basically selling future revenue for cash now rather than taking out a loan. Plus, there's no minimum credit score or time-in-business requirements, and funding is as fast as the next business day.
But it's typically one of the more expensive forms of business funding, like a Fundo MCA. It's also only suitable for certain types of businesses.
Pros
Funds up to 100% of eligible invoices
No credit score or time in business requirements
Funding as soon as next day
Cons
Typically an expensive form of financing
Cost increases the longer it takes your customers to pay
Only makes sense for B2B firms
Loan Amount
Up to $10 million
Fee for Terms
2.75% to 8.25%
Min. Credit Score
500
Loan Term
1 to 3 months
Requirements
Outstanding invoices to one creditworthy customer, invoices other businesses or government agencies, invoices for completed work, no construction or real estate
For a more flexible form of funding than an MCA from Fundo, OnDeck offers unsecured business lines of credit. You only pay interest on the funds you use, and your available balance replenishes as you pay it back. It also gives you access to instant draws up to $10,000, even on days when banks are closed, and it helps to build business credit — something Fundo doesn't do.
But rates can be high if you don't have excellent credit, with an average APR of around 56%. Plus, you'll need at least $100,000 in annual revenue, and the minimum credit score to qualify is 625.
Loan amount
$6,000 to $100,000
APR
35.9%
Min. Credit Score
625
For a more flexible form of funding than an MCA from Fundo, OnDeck offers unsecured business lines of credit. You only pay interest on the funds you use, and your available balance replenishes as you pay it back. It also gives you access to instant draws up to $10,000, even on days when banks are closed, and it helps to build business credit — something Fundo doesn't do.
But rates can be high if you don't have excellent credit, with an average APR of around 56%. Plus, you'll need at least $100,000 in annual revenue, and the minimum credit score to qualify is 625.
Pros
Lines of credit up to $100,000
Access to instant funding draws up to $10,000
Builds business credit
Cons
Rates around 56%
Requires $100,000+ annual revenue
Minimum 625 credit score
Loan amount
$6,000 to $100,000
APR
35.9%
Min. Credit Score
625
Loan term
12, 18 or 24 months
Requirements
1 year in business, 625 FICO score, $100,000 in annual revenues, business checking account
Fundo provides MCAs up to $10,000 for microbusinesses, gig workers and other self-employed individuals who may have trouble qualifying for more traditional financing. Funding is fast, and it has relaxed revenue and time-in-business requirements. But it’s more expensive compared to other options on our list, and it has a relatively low maximum loan amount.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf. See full bio
A review of Fundo, a financial services company that offers merchant cash advances to small businesses, gig workers, freelancers, contract workers and other self-employed individuals.
Compare some of the top lenders offering business lines of credit and the pros and cons of each one.
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