App version: 0.1.0

Fundera Small Business Loans: 2023 Review

Check Your Rate
Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Susan Guillory
Susan GuilloryUpdated January 12, 2023

Overview of Fundera

Fundera, a subsidiary of NerdWallet, is a financial services marketplace that matches small businesses to funders. While Fundera doesn’t fund loans directly, it works with a network of trusted partners who offer a range of loan types, including term loans, business lines of credit, invoice financing, equipment financing, and Small Business Administration (SBA) loans. The company’s network includes both alternative, online lenders, as well as some traditional funders. It also offers dedicated lending specialists to help applicants through the process of choosing the best financing option for their needs.The Takeaway: If you are overwhelmed by all the business financing options out there, Fundera can be a good place to start. You’ll be able to see which products you may be eligible for just by making an account. Fundera’s technology can then help you get and compare offers from some of top funders. Keep in mind, however, that Fundera works with relatively few lenders, so it is not an exhaustive search of the marketplace.

Pros and Cons of Fundera

Types of Small Business Loans Offered by Fundera 

Fundera connects borrowers to lenders offering a wide range of business loans. Here’s a look at some of the loan products you can find through their network of lenders.

SBA Loans

SBA loans are loans partially backed by the U.S. Small Business Administration and issued by participating lenders, often banks. Though qualification requirements can be strict, SBA loans tend to come with flexible terms and low interest rates, making them one of the best ways to fund a small business

Business Line of Credit

Rather than provide a lump sum of capital all at once, a business line of credit gives your company access to a certain amount of cash that you can borrow as needed. You only pay interest on the amount you borrow and, once you repay what you’ve used, those funds become available again.

Business Term Loan

A business term loan provides a lump sum of capital upfront. You then pay that amount back (plus interest) in installments, typically monthly, over time. The funds can be used for almost any purpose, such as purchasing inventory or equipment or renovating office space. This type of financing is a great choice for making long-term investments to grow your business.

Equipment Loans

Equipment financing gives businesses the funding needed to purchase big-ticket business equipment. Because the asset you purchase acts as collateral for the loan, equipment financing is generally easier to qualify for and may offer lower interest rates than other types of business financing. 

Invoice Financing

Invoice financing is a cash advance of your company’s outstanding customer invoices. The lender (called a factoring company) typically gives you most of what the invoice is worth, then takes over the process of collecting payment from your customers. Once the full amount is paid, you’ll receive the remaining invoice balance, minus a factoring fee that is paid to the company. Fundera is a digital product available to eligible businesses based in the United States. A business owner must be either a U.S citizen or permanent resident (green card holder) in order to apply for a business loan at Fundera.

Fundera Small Business Loan Terms, Rates, and Fees

SBA Loan

Loan amounts: $5,000 - $5 MillionAPR range: Prime rate + 2.25%–4.75% for SBA 7(a) loansLoan terms: Typically 10–25 yearsRepayment schedule: MonthlyFees: Guarantee fee of 0.25%-3.5% for 7(a); 3% for 504Minimum credit score: 680Time to funding: 30–90 days

Business Line of Credit

Loan amounts: $10,000 - $1 Million+APR range: 7%-25%Loan terms: 3 - 18 monthsRepayment schedule: MonthlyFees: Vary by lenderMinimum credit score: 630Time to funding: As fast as 1 day

Term Loan

Loan amounts: Up to $600,000APR range: 7%-30%Loan terms: 1-5 yearsRepayment schedule: MonthlyFees: Vary by lenderMinimum credit score: 680Time to funding: As fast as 1 day

Equipment Loan

Loan amounts: $3,000 - $1 millionAPR range: 4% - 40%Loan terms: 5-6 yearsRepayment schedule: MonthlyFees: Vary by lenderMinimum credit score: 600Time to funding: As fast as 2 days

Invoice financing

Loan amounts: Up to 100% of invoice valueAPR range: N/A (see fees)Loan terms: When invoice is paidRepayment schedule: Until the customer pays the invoiceFees: Approx. 3% processing fee, plus factor fee (~1%) each week until invoice is paidMinimum credit score: 600Time to funding: As fast as 1 dayInformation accurate as of Jan. 12, 2023.

Who May a Fundera Small Business Loan Be Right For?

Fundera may be best for a business owner who:
  • Isn’t sure what type of financing they need. One application with Fundera produces multiple offers for different types of loans. A loan specialist can assist in choosing the right one.
  • Owns a young business. Banks are notorious for not lending to startups with less than two years in business, but Fundera has partners who do.
  • Wants to work with a reputable lender. Lendio is a well-rated platform and only works with reputable lending partners.

Who Fundera May Not Be Right For

Fundera may not be a good lending solution for a business owner who:
  • Already has an established relationship with a lender. It may be simpler to work directly with a lender you already know and with whom you have established trust.
  • Wants an exhaustive search of business lenders. Fudera doesn’t have as many lenders in its network as some other loan matching sites.
  • Needs funding immediately. A matchmaking platform can add a few days to the process.

Fundera Loan Fee Structure

Fundera is a marketplace, not a lender. You will not have to pay a fee to Fundera directly at any point. The company receives a commission from the lender once a loan is funded. Lenders, however, may charge an origination fee, application fee, and/or other fees on top of interest.

Fundera Loan Repayment

The frequency/method of repayment on the loan will depend on the lender and type of loan you choose. Your business history and credit may also impact your repayment terms. Generally, the stronger your business and credit, the less frequently you’ll have to make loan payments, and the more payment processing options you’ll be able to choose from.

Fundera Funding Eligibility Requirements

Because Fundera works with several different funders, it does not have any specific eligibility requirements. Each lender Fundera partners with has its own criteria for borrowers, including:
  • Credit score
  • Time in business 
  • Revenue 
Funder does offer some guidelines on qualifications for different types of business loans based on past Fundera customers. For example:Qualifications for a business term loan: Annual revenue: Over $300KCredit score: 680Time in business: Over 3 Years Qualifications for a business line of credit:Annual revenue: Over $180,000Credit score: 630Time in business: Over 1 year

Applying for a Fundera Small Business Loan

Here’s the process for getting a business loan through Fundera.

Step 1: Create an Account and Submit an Application

Fundera’s application is short and simple. You’ll be asked questions such as:
  • How much you want to borrow
  • When your business was formed
  • Your credit score range
  • What you plan to use the funds for
  • Your industry
  • Contact information

Step 2: Connect with a Funding Advisor

Once your application has been reviewed, a funding advisor will reach out to you to explain your lending options and educate you on products.

Step 3: Fundera Looks for Matches

After you connect with your funding advisor, Fundera’s technology will match you with the products that you qualify for. Your advisor works on your behalf to find your best options.

Step 4: Compare Your Offers

Your funding advisor will walk you through the details of your offers and help you crunch the numbers and determine which makes the most sense for your needs and budget. If you decide to move forward with one of your loan offers, you will then need to submit additional information and documentation directly to the lender. 

Step 5: Receive Funding

When you have chosen the best offer for your business and filled out the necessary paperwork, your loan will be funded.

Fundera Alternatives to Consider

Other lenders that offer access to different types of business loans include OnDeck, Lendio, Biz2Credit. Here’s how they compare to Lendio.
  • OnDeck: OnDeck doesn't offer access to as many lending products as Fundera, but is a well-respected online lender that offers business lines of credit and business term loans. Term loan amounts go as high as $250,000, while a line of credit can go up to $100,000. OnDeck also rewards loyal borrowers, with eligible repeat borrowers able to earn access to higher credit limits and lower fees.
  • Lendio: Like Fundera, Lendio is a lending marketplace that allows you to access a wide variety of different types of business loans through a single application. Both Lendio and Fundera list alternative and traditional lenders as their partners, but Lendio has significantly more lending partners than Fundera. It also offers commercial real estate loans, which Fundera doesn’t.
  • Biz2Credit: Biz2Credit isn’t a marketplace but a direct online lender offering term loans, commercial real estate-secured loans, and working capital loans (which function like merchant cash advances) to small businesses. The company is known for offering high borrowing amounts and delivering funds fast.
  • Lantern by SoFi: Lantern is a robust financial platform that provides small business loan options from some of the biggest lenders. A single application gives you access to multiple small business loan options, including term loans, short-term loans, business lines of credit, invoice financing, and commercial real estate loans. Loans up to $2 million are available to help you grow your enterprise.
 Let Lantern by SoFi connect you with the right lender for your small business financing needs.

Frequently Asked Questions

Is Fundera a lender?
What is the minimum credit score needed for a small business loan?
Can a SBA loan mess up your credit?
Can I get a business loan with my EIN number?

About the Author

Susan Guillory
Susan GuillorySu Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
Brand namesNo brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.