Fundera: Small Business Funding Simplified
Do you ever wonder how one person's business idea becomes a full-blown reality? Undoubtedly, there are a lot of steps in the process. One step, for sure, is acquiring funding. Many people who have a business idea have no clue how to get that idea off the ground without cash. Likewise, many people who have launched the plan find themselves needing a little more capital to keep it going. Fundera can assist in both cases.
Fundera is a business funding matchmaker, which means it does not originate loans. Instead, it matches businesses with funders that can assist with their unique needs. Let’s take a look at the specifics this aggregate loan provider has to offer.
Who Needs Fundera?
People who need business funding but do not know what types of loans and other funds are available.
People who are starting a new business and need funds.
First of all, Fundera is a free service that provides information and connects businesses with funding sources. Fundera makes its money from the lenders they recommend, so exploring Fundera costs you nothing. In this case, Fundera is a valuable source of information for struggling business owners.
Taking out a loan for your business is a huge commitment, so naturally, you want to make sure you have seen all of the options. Fundera can help by laying out your choices, which allows you to compare and choose what's right for you and your business. Your relationship with Fundera does not end after they have revealed your choices, though. They have an excellent customer service team available to assist you with questions that might arise. Finally, if you are starting a new business, Fundera is one of only a few similar companies with access to start-up capital.
Hooking people up with a provider who can deliver the appropriate type of loan is a large part of Fundera's business, but that is not all they have to offer. If necessary, Fundera can find providers who give cash advances, invoice factoring funding, and business lines of credit. In many cases, Fundera will provide several options, giving you the power to do what's best for you and your business.
While many factors go into determining interest rates, Fundera guarantees the lowest rates available with comparable services. Fundera also works with a smaller group of funders who promise transparent pricing and terms. Other companies might have more lenders available; however, Fundera prides itself on partnering with only lenders who meet their customer service expectations.
The qualifications and limits for funding vary because Fundera utilizes so many lenders. Each lender does business a little differently, and you will not know the specifics until they are presented.
Fundera’s website is also a wealth of information regarding qualifications and limits. It gives a comprehensive list of the types of loans available and specific details surrounding each one. For example, an SBA is a small business loan guaranteed by the Small Business Administration. Fundera provides information such as a maximum amount available, loan terms, interest rates, speed of acquiring, and a list of “pros” and “cons” to assist you.
The website information available is not just specific to the types of loans. There is also information on credit cards, banking, legal services, and more. This information explains and compares options available even before taking the step to apply to Fundera's services. You also have access to information about topics such as business insurance, small business taxes, managing finances, and building credit through Fundera's website without sending them a single piece of personal information. Even if you read all of this information and do not think Fundera can help, you have nothing to lose by applying. Remember, their service is free, and by applying, you gain access to a multitude of entities that could help you. If you don't like the options Fundera provides, you can try a traditional bank or another aggregate loan service.
How to Apply for Funding Through Fundera
All interaction with Fundera is done online, making this process exceptionally convenient. Here are the necessary steps to accessing your business funding options through Fundera.
Enter the basic personal information requested.
Provide information requested concerning your annual business review
Provide your business credit score (if applicable)
Provide your personal credit score
At this point, a Fundera representative will contact you to chat online about the next steps. These steps include providing additional information, such as the following:
Profit and loss statements
Credit card statements
Rental space verification (if applicable)
After all of this information is collected, Fundera will begin reaching out to its network of lenders and financial providers to match your needs with their services. Soon, usually within a few days, you will receive a list of offers to consider. Reminder, you have spent zero dollars to get all of this information. Fundera will be compensated for its part when you act on an offer from a lender. The lender pays Fundera for gaining your business.
Alternatives to Fundera
Fundera is not the only game in town when it comes to aggregate loan services. The following is a list of similar options compared to Fundera:
Lendio -- Like Fundera, Lendio has a free online application. The main difference between Fundera and Lendio is the number of lenders. While Fundera prides itself on a small "quality vs. quantity" family of lenders, Lendio has a much more extensive network. If you are unhappy with the offers you receive from Fundera, give Lendio a try. They might have access to the lender who fits your needs, whereas Fundera did not.
BlueVine -- BlueVine is considered a direct provider, not a loan-matching service like Fundera. As a direct provider of funds, BlueVine can offer fast-cash in higher amounts, such as $250,000 and up to a 5 million dollar line of credit for invoice factoring.
Rapid Advance -- Rapid Advance specializes in cash advances of up to $500,000 and short term loans of up to 1 million dollars for those who qualify. Rapid Advance has an easy online application and can have funding in your hands in as little as three days.
While Fundera has proven itself as a respectable company with an easy process, here are a few things to consider before jumping in.
The lenders associated with Fundera and similar companies invest in your company when they provide financial assistance. Therefore, they want to make sure you deliver your end of the deal by paying them back. This insurance often comes in the way of high interest rates and extra fees. Make sure you thoroughly examine the details provided and be confident you can play by their rules before committing.
Fundera and similar companies only give you access to online lenders. Make sure you shop around with banks as well. The bottom line -- you might be paying for Fundera’s convenience with interest rates and fees that are not attached to bank loans.
Fundera’s website offers an enormous amount of information for any small business owner. You can access this information whether you want their services or not.
The information your receive from Fundera is free. You can go through the entire process and have offers to choose from and decide not to take any of them, and you are not charged a penny.
Fundera can offer a variety of loans and other financial services you might not have considered or even known about.
Fundera does the work of reaching out to its network of multiple providers and matches you with qualifying services.
Your business with Fundera is done online at your convenience. All of the information needed is self-reported.
A soft-pull on your credit is not accessed until you have applied to a specific lender.
Fundera, founded in 2013, is a legitimate business with an outstanding reputation in the field. It received accreditation in 2017 and has a BBB rating of A+.
Fundera is known for its transparent services and excellent customer service.
If you are a small business owner who needs to explore some funding options, you have nothing to lose with Fundera. It is a legitimate, established business with an excellent reputation, and even better, it is free. Fundera is a convenient and practical way to make sure you are getting the best option when funding your small business.