About Fundera

Founded in 2013 and based out of New York, NY, Fundera is an online company that claims to help small business owners get the capital they need to grow by “looking beyond the world of traditional banks,” and by providing a centralized place where you can compare all your options. On top of this, Fundera claims to match you with up to 3 lenders in as little as 6 minutes, while remaining completely transparent and easy to understand.

In contrast to many short-term lenders, Fundera claims to only work with handpicked, prescreened lenders that have a strong reputation for low interest rates, great customer support, and positive online reviews.

Ultimately, Fundera claims to do all the hard work, so you can focus on running your business. But is they service they provide worth the price you’ll pay? Let’s take a look.

What Types of Loans Does Fundera Offer?

Fundera claims to specialize in helping small businesses in almost any industry to obtain financing, although it’s important to emphasize that they do not provide any loans themselves. In other words, depending on your needs, they claim to help match you with a lender that can provide a funding solution.

With this said, Fundera’s third-party vendors are claimed to offer the following types of loans:

  • Small Business Loans – These offer the possibility of obtaining up to $1 million in financing, with repayment terms ranging between 6 months and 10 years.
  • Merchant Cash Advance – If you need funding quickly and most of your business’s income is through credit card payments, this may present a good option.
  • Equipment Loan – Can help you purchase business-related equipment by using the equipment itself as collateral.
  • Factoring – Gives you the ability to finance 80% of your invoices purchased by a factoring company.
  • 401K Rollover Funding – Allows you to finance the purchase of your business using funds from your 401k.
  • Business Line of Credit – Provides a pre-set amount of available funds, which can be withdrawn at will, much like a credit card.

According to Fundera’s website, most of their lenders are focused on providing financing for growing businesses, although some may be able to provide a solution even if you’re a startup or are purchasing an existing business.

For full details about all of the funding options available through Fundera, be sure to read through their Business Loans page.

What Are “Non-Traditional Banks?”

According to Fundera, the alternative lenders they do business with are smaller and more agile, and as a result, are able to “take on the risk and complexity associated with lending to small business owners.”

This means that their underwriting criteria for your business loan can be much broader, including factors such as “real-time shipping schedules, records held in a business's accounting software, and even social-media traffic.” 

However, because these lenders are taking on a greater risk, they’ll often charge higher interest rates and associated fees (we’ll talk more about this in the Pricing section).

How To Apply For a Business Loan Through Fundera

According to the Fundera website, their application process works over 3 steps:

  1. Answer a few simple questions, such as your business’s annual revenue, credit card volume/average ticket size, average bank balance, current accounts receivable, and debt sources (line of credit, mortgage, tax lien, etc.). When applying through the Fundera site, you can also connect directly to your QuickBooks or Xero account for an even simpler application process, which is something we haven’t seen before.
  2. Based on your answers to these questions, you’ll receive a list of available loan options and lenders. If you choose to move forward in the process, these lenders can format your loan based on credit score, credit card transaction volume, your accounts receivable, and a variety of other factors. 
  3. Get your loan funded, which can take anywhere from 2 days to 2 weeks.

What Are the Requirements for Obtaining a Loan Through Fundera?

Like any other business, the lenders that Fundera works with will each have their own specific criteria for loan approval, although “generally speaking you should be producing 9k to 10k per month in gross sales on a consistent basis, and have been in business for two years.” Otherwise, you may be subjected to especially high interest rates and shorter payback periods.

Unlike many other alternative lenders we’ve reviewed here at HighYa, after your application is complete, Fundera claims that you’ll get to choose which lender(s) you want to hear from, so you won’t have to worry about a deluge of cold calls that can sometimes last months.

Fundera’s Customer Reputation

Although there weren’t any online customer reviews available for Fundera at the time of our research, the company has been featured in a wide variety of popular publications. This includes the NY Times, who wrote that Fundera is “offering a middle path between banks, which lend primarily to the most creditworthy small businesses, and cash advance lenders, which thrive on subprime candidates.”

And while Fortune seemed to be generally approving of Fundera, they noted that, “In private beta, Fundera has matched more than 200 companies with lenders, nine of which have resulted in a loan.” Although we didn’t uncover any current application-to-approval statistics, this is a much lower approval rate than the mainstream banks the company is claiming to compete against.

Fundera Interest Rates & Fees

Although it’s completely free to send an application through Fundera, interest rates can range between 0.5% and 20%, depending on the type of product you choose, the lender you choose it through, as well as your business’s financials.

In addition, some of Fundera’s lenders may charge a factor rate, which can further increase your costs, as well as early repayment penalties. Because of this, you’ll want to run the numbers using Fundera’s loan calculator, which is available on each of their loan types pages. Also, make sure to familiarize yourself with their Borrower’s Bill of Rights.

Regardless of the type of loan you choose though, Fundera claims that, “many, but not all, loan options offered through Fundera would be of a shorter duration (1-2 years).”

If you have a question about Fundera’s application process or the types of loans their lenders provide, you can contact customer service at (888) 602-6935 or through live chat.

Can Fundera Provide Your Business with the Cash it Needs?

Chopping to the point: The short answer to this question is, maybe. This is because, although Fundera’s lenders may have much broader underwriting criteria than traditional banks, you’ll still need to meet some fairly stringent guidelines. And even if you do meet these guidelines, you’ll likely pay a fairly high interest rate and/or associated fees, although not as much as a traditional short-term lender.

With this said, it appears that Fundera takes pride in their reputation, as well as the reputation of the lenders they do business with. In addition, it appears that their intent is to arm their applicants with as much information as possible before they decide to pursue a loan.

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4 Consumer Reviews for Fundera

Average Consumer Rating: 3.0
Rating Snapshot:
5 star: 2 4 star: 0 3 star: 0 2 star: 0 1 star:  2
Bottom Line: 25% would recommend it to a friend
Showing 1-4 of 4
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  • 4 out 4 people found this review helpful

    Very helpful

    • Kentucky,
    • Feb 13, 2017
    • Verified Reviewer

    Brad was very helpful in offering me advice. Although Fundera's marketplace was not for me, he did send me information on options that would suit my needs. Thumbs up!

    Bottom Line: Yes, I would recommend this to a friend

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  • 15 out 20 people found this review helpful

    A good experience so far

    • Boston, MA,
    • Sep 9, 2015

    I want to provide a follow up to my prior review of Fundera. As a long time entrepreneur I know how a negative review can affect a business. I will admit I was quick to judgment. Prior to even writing my review a senior member of Fundera's management team reached out to me immediately when he learned of a dissatisfied customer. The fact that the representative I was working with went to management owning up to what might have been some shortfalls shows me this company is very concerned about their customers and reputation in the marketplace.

    I recently had a lengthy conversation with Tom. What impressed me most was he was not just trying to apologize and appease the situation but he sincerely wanted to learn about my experience so he could institute new operating measures to insure better overall customer experience. I was very impressed with Tom. He took the time to learn about my company.

    This is a new field in the marketplace established to help small businesses/entrepreneurs source capital that may not be available by traditional institutions. I have since had a change of heart and would would recommend Fundera to those seeking assistance in obtaining capital. I would even turn to them again in the near future. I want to extend my sincere apologies to the employees of Fundera and I wish the company nothing but continued success.

    Bottom Line: No, I would not recommend this to a friend

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    • Mar 4, 2015


      So lets see, you are applying for a loan and you are upset they ran your credit. What planet do you live on? Of course they will run your credit. If you had decent credit, you would of qualified for the loan. If you go to buy/lease a car, lease equipment or even apply for a department store credit card they run your credit. Here you are applying for someone to give you thousands of dollars, but No, don't run my credit. I think you need to rethink your expectations. Seriously!

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  • 13 out 18 people found this review helpful

    Stay away

    • Chicago, IL,
    • Aug 31, 2015

    My law firm recently applied for a line of credit. Apparently this company requires one to have a certain number (in addition to a dollar amount) of deposits per month, but this requirement is not disclosed anywhere prior to having to provide them with tax returns etc. From reading the initial materials we determined we qualified. Overall, this was a very negative experience for me and I told them to stop processing my application. They claim they did not run a hard credit check but I have not yet confirmed this. If anyone else wishes to discuss their negative experience with this company we are considering a complaint with the Attorney General. Please contact us at www.tsamislaw.com.

    Bottom Line: No, I would not recommend this to a friend

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    • Sep 8, 2015

      The Fundera Team, Customer Success

      Hi Betty,

      Thank you for taking the time to leave feedback on your Fundera experience. This is what helps improve our experience for future small businesses.

      We would like to verify that your credit was not pulled. At Fundera, we do not pull credit. This only happens after applications have been submitted to the lenders you select, and it would be the lenders who pull your credit (if that is part of their application process).

      You have some really good feedback in your review about how you wish you had known about the deposit minimums prior to producing documentation. We'd like you to know we've already talked to our sales and product team about this.

      Our #1 goal at Fundera is to create an easy and transparent application process. It seems like we did not deliver this in your case.

      Again, we apologize for the negative experience and want you to know that your feedback was heard.


      The Fundera Team

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  • 5 out 11 people found this review helpful

    Credit Card Company

    • Jun 16, 2015

    In my initial communication I asked Demetri "what is it you guys offer at Fundera? I was clear that I was not interested in wasting my time applying for a credit card. Demetri had me supply credit reports and told me "we have some preliminary offers". The reality of this was that there was one offer and that offer was nothing more than a credit card that is EXACTLY like every other credit card I have been offered by every bank and creditor. So it appears all of the advertisements about offering better rates than banks and bank-free, hassle-free funding are nothing but a load of crap. And all of the great 5 star Fundera reviews out there on sites no one has ever heard of are simply paid advertisements.

    Bottom Line: No, I would not recommend this to a friend

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    • Sep 8, 2015

      The Fundera Team, Customer Success

      Hi Justin,

      Thank you so much for taking the time to provide feedback on your experience with Fundera. It helps us build a better product to further help small businesses.

      I am terribly sorry to hear that you were disappointed with your loan options and experience with Fundera, and I take your feedback to heart.

      I just want to note that we are not a direct lender. We are a marketplace, so we are here to communicate what your options are and help you decide whether or not they are a smart option for your business.

      We think it is important to clarify that we do not advertise our rates as lower than a bank. A bank loan will always be the lowest cost capital available to a small business, and we make that known in our marketing and on all our customer calls.

      Lastly, our customer success team has worked hard for the reviews that are found online. These reviews are legitimate and are not paid for. We are more than happy to provide multiple customer references if interested.

      We hope you were able to find a great loan option for your business. If you ever have any questions about financing in the future, don't hesitate to give us a call.


      Jared Hecht

      Fundera CEO

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