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Fundera business loans review

Get connected with short-term funding, SBA loans, lines of credit and more.

Bottom line: Fundera by NerdWallet is a solid way to look for business funding. However, collateral and fees vary widely by lender. Get our 30-second take or read the full review.

Details

Min. Amount$2,500
Max. Amount$5,000,000
Loan Term3 to 300 months
Min. Credit Score680
APR7% to 30%
Requirements$300,000+ of annual revenue, 680+ personal credit score, in business for 3+ years
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Pros

  • Simple process and quick funding
  • Bad credit OK
  • Wide range of amounts

Cons

  • Unclear eligibility criteria
  • May require collateral
  • Fees vary by lender

Our take on Fundera

Fundera by NerdWallet is best for small business owners who want to look at several options before signing on the dotted line. Its lending specialists match borrowers to a slew of potential products, letting you compare all offers and choose the one that best fits the needs of your business.

Its willingness to work with business owners with no credit or less-than-perfect credit makes it a viable solution to startups or owners trying to get back on their feet. And it’s fast — you might be able to get your funds in just one day. Overall, Fundera is a good place to start searching for loans and other services — just remember to research the lender you're matched with before agreeing to financing.

But unlike other business loan connection services, it doesn’t have any hard-and-fast eligibility requirements. This means you’ll have to fill out its online form to see if you even qualify. And you might be asked to secure your loan with collateral depending on the lender you’re connected with and your business’s finances.

Apply for SBA 7(a) loans and more through Fundera

Because Fundera connects businesses to lenders, you can find a wide variety of financing through it, including SBA 7(a) loans, term loans and lines of credit. There are also alternative ways to finance your business — though these may be more expensive and offer less flexibility with payments.

SBA 7(a) loans

SBA 7(a) loans are a standard term loan backed by the Small Business Administration (SBA). They take more time to apply for than a term loan from a bank, but they offer lower interest rates.

Fundera also works with lenders that offer other types of SBA financing, including 504 loans and microloans. The 7(a) loan program is the most common, though, and Fundera has a few lenders in its network that can help you get SBA-backed loans.

SBA loan rates, fees and terms

  • Loan amount: Up to $5 million
  • Interest rate: Prime rate + 2.25%–Prime rate + 4.75%
  • Loan term: 10–25 years
  • Collateral: May be required

Term loans

Fundera works with banks, credit unions and online lenders to give you the most variety when you need a business term loan. These allow you to borrow a set amount — up to $600,000 — for a large expense. And because the interest rate, fees and loan term are all determined when you borrow, you'll be able to calculate the exact amount your business will spend to pay back your loan.

Term loan rates, fees and terms

  • Loan amount: Up to $600,000
  • Interest rate: 7%–30%
  • Loan term: 1–5 years
  • Collateral: May be required

Lines of credit

Fundera's network of lenders also offer lines of credit. And while it states lines of credit can be anywhere from $10,000 to $1 million, you'll find the most common credit limits are $50,000 to $500,000. Still, it's a good option if your business has frequent expenses and you want lower interest rates than with a credit card.

Line of credit rates, fees and terms

  • Loan amount: $10,000–$1 million
  • Interest rate: 7%–25%
  • Loan term: 3–18 months
  • Collateral: May be required

Invoice financing

Invoice financing allows you to receive an advance on unpaid invoices. These are usually considered a short-term option and are more expensive than traditional financing options for businesses, but they are a quick way to collect on invoices.

Fundera works with a few invoice financing companies. But be sure to determine the factor rate — the fee you pay — and repayment terms before you use your unpaid invoices as collateral for an advance.

Invoice financing rates, fees and terms

  • Loan amount: Up to 100% of the invoice value
  • Factor rate: Varies by lender
  • Loan term: Varies by lender
  • Collateral: Secured by invoice

Equipment financing

Equipment financing is generally a low-interest way to buy or lease the equipment your business needs to function. Like most lenders, the lenders in Fundera's network offer up to 100% of the equipment's value. You may still need to provide a down payment, but these are easier to qualify for than other types of business financing.

But they're not always low interest. Fundera states its lenders have interest rates up to 40% — so be cautious before committing to an equipment loan over a term loan.

Equipment financing rates, fees and terms

  • Loan amount: Up to 100% of the equipment value
  • Interest rate: 4%–40%
  • Loan term: 5–6 years
  • Collateral: Secured by equipment being financed

3 more financing options

Fundera also offers startup loans, short-term business loans and merchant cash advances. The amount you qualify for — and your options — will depend on how much your business makes annually and how long you've been in business.

In general, these are more expensive than other types of business loans. However, the requirements to qualify are less strict. This means you may still qualify with a lower revenue, time in business or credit score.

How Fundera compares to other providers

Fundera by NerdWallet is a solid place to start looking for lenders. But if you're trying to find a direct lender and skip the middle man, start here instead:

Name Product Filter Values Loan amount APR Requirements

Biz2Credit business loans
Finder Rating: 4.7 / 5: ★★★★★

Biz2Credit business loans
$25,000 – $6,000,000
Starting at 5.99%
6+ months in business; $100,000+ monthly revenue; 500+ credit score
Get only the capital you need through secure, prescreened lenders with this highly rated company offering SBA, expansion, working capital and other loans.

Lendio business loans
Finder Rating: 4.75 / 5: ★★★★★

Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.

ROK Financial business loans
Finder Rating: 4.7 / 5: ★★★★★

ROK Financial business loans
$10,000 – $5,000,000
Starting at 6%
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.

OnDeck short-term loans
Finder Rating: 4.6 / 5: ★★★★★

OnDeck short-term loans
$5,000 – $250,000
As low as 35%
600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
A leading online business lender offering flexible financing at competitive fixed rates.

Fundbox lines of credit
Finder Rating: 4.2 / 5: ★★★★★

Fundbox lines of credit
$1,000 – $150,000
Not stated
6 + months in business, $100,000+ in annual revenue, 600+ credit score
Get flat rate, short-term financing based on the financial health of your business, not your credit score.
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Compare up to 4 providers

Fundera receives mostly positive reviews

BBB accredited Yes
BBB rating A+
BBB customer reviews 1 out of 5 stars, based on 6 customer reviews
BBB customer complaints 6 customer complaints
Trustpilot Score 4.8 out of 5 stars, based on 821 customer reviews
Customer reviews verified as of 15 December 2021

Overall, Fundera users leave positive comments about the application process. However, some business owners had problems with the SBA process — especially when it was helping people find loans through the Paycheck Protection Program (PPP).

And like many services that connect lenders and borrowers, there are complaints about marketing calls and emails from Fundera's partners.

So while there are an abundance of positive reviews, be aware that you may receive calls and emails from lenders — even after you complete an application and get funded.

Eligibility varies by loan option

Because Fundera isn't a direct lender, it doesn't set specific eligibility criteria. Instead, your business will need to meet some basic requirements to qualify. And lenders may have more strict requirements depending on the type of loan your business needs.

That being said, strong revenue and a good personal credit score are a must if you want the most competitive interest rates. And it does explain that most business owners who were approved for a loan met these criteria:

  • Annual revenue of over $300,000
  • A personal credit score of 680 or higher
  • In business for more than three years

How the process works

To get started, you will need to fill out a brief form with information about your business. This includes general information like the industry you're in, your monthly revenue and if your business is profitable.

This is also the account creation process. Once you've finished, Fundera offers personalized help to walk you through the application process. But this is optional — you can also view your options for free and apply directly to one of its partner lenders.

However, qualifying for a lender doesn't mean your business is approved. You will need to submit proof of revenue and other documentation before you complete a full application.

Fundera is one of the better all-in-one tools

Because of the wide range of options — from loans to credit cards to payment systems — Fundera by NerdWallet has built itself up as a platform for your business needs. It's not perfect by any means, but it's a great way to start searching for ways to build your business.

But like any similar service, you'll want to ensure you look into the actual product you're signing up for.

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.

What makes Fundera business loans unique?

Fundera is a one-stop-shop that makes getting financing for your business a breeze. You simply answer a few questions online about your business and Fundera connects you with a specialist who finds the best loan options for your unique situation — all for free. If approved, you may be able to get your funds as soon as the next day.

It offers SBA loans, business term loans, business lines of credit, startup business loans, equipment financing, short-term business loans, personal loans for business, invoice financing and merchant cash advances. It claims to have helped over 35,000 small businesses secure more than $1 billion in funds.

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