Fundera by NerdWallet: 2024 Review

Fundera is a business loan aggregator that was created by notable financial resource, Nerdwallet. Fundera partners directly with lenders to create functioning business relationships and ensure that the borrowers who apply through them are connected with the best possible business loan offers. There are many different types of business loans within Fundera’s larger database so business owners can find loans for a variety of circumstances.

At a Glance:

• Loans between $2,500 to $5 million depending on loan type
• Fundera is a business loan aggregator by Nerdwallet
• Multiple types of business loans offered
• Fundera partners with up to 20 different lenders to bring borrowers the best possible rates for their business loans

Fundera Pros and Cons

PROS

• Flexible requirements
• Easy-to-use website provides educational information
• Multiple loan offers and options with one single application
• No hidden fees

CONS

• Limited number of partners within Fundera's network
• Some loan options will require high interest rates and fees

Fundera Business Loan Rates and Fees

	4.5/5 Compare Loans
APR:	Varies depending on borrower
Loan term:	Varies
Loan amounts:	$2,500 to $5 million depending on loan type
Hidden fees:	None
Minimum credit score required	550
Extra perks:	Helpful financial resources and flexible loan options
Fund availability	Depends on the type of loan

What type of business loans does Fundera offer?

SBA Loans: SBA Loans are business loans that are partially guaranteed by the U.S. Small Business Administration which allows you to borrow money for almost any business-related purpose. These loans are generally desirable thanks to their low interest rates and long repayment terms but can be a less sought after option because the application process can be lengthy and funding will likely not be quick. Those who qualify for an SBA Loan through Fundera typically have an annual revenue over $180k, a credit score of 680, and have been in business for over four years. Best for those seeking low interest rates and longer repayment terms

Business Term Loan: The most traditional type of business loan is a Business Term Loan which is a lump sum that you back at a fixed rate. Those who qualify for a Business Term Loan through Fundera typically have an annual revenue over $300k, a credit score of 680, and have been in business for over three years. Best for business owners who are looking to fund a specific project or investment.

Business Line of Credit: A business line of credit is an amount of money that businesses can utilize on an as-needed basis. Borrowers will only pay interest on what they use. Those who qualify for a Business Line of Credit through Fundera typically have an annual revenue over $180k, a credit score of 630, and have been in business for at least one year. Best for businesses who do not have a consistent cash flow and want to be prepared for emergencies, last minute opportunities, and gaps in revenue.

Short-Term Business Loans: Short-term business loans are quite literally business loans designed for short term uses as they include fast financing and short repayment term lengths. Those who qualify for Short-Term Business Loans through Fundera typically have an annual revenue over $150k, a credit score of 600, and have been in business for at least two year. Best for emergency situations.

Equipment Financing: Equipment financing allows business owners to receive a lump sum that they are to use to pay for any equipment they may need. If the borrower defaults on this type of loan, the equipment purchased would be repossessed as it is considered the collateral for the loan. Those who qualify for Equipment Financing through Fundera typically have an annual revenue over $130k, a credit score of 600, and have been in business for at least two years. Best for business owners who need new equipment or machinery.

Invoice Financing: Invoice financing is a type of loan in which a business receives a cash advance in return for unpaid invoices. Those who qualify for Invoice Financing Loans through Fundera typically have an annual revenue over $130k, a credit score of 600, and have been in business for at least one year. Best for those who may not qualify for traditional small business loans.

Start-up Business Loans: Start-up Loans are designed for those with a limited credit history who are starting up their business. Best for those starting a new business in a reliable industry who can also offer some kind of collateral - borrowers should also have an excellent personal credit history.

Merchant Cash Advances: A Merchant Cash Advance is a type of small business loan where you receive a lump sum that you pay back over time when a percentage of your daily sales is deducted. You will often also have to pay a fee on top of the amount you are paying back. Those who qualify for Invoice Financing Loans through Fundera typically have an annual revenue over $180k, a credit score of 550, and have been in business for at least two years. Best for those facing emergency situations as these loans typically include high interest rates.

What are some of the benefits of using Fundera’s Services?

You can receive multiple loan offers when you submit a single application.

The best thing about using a loan aggregator is you get to see multiple loan offers after submitting a single application. This saves you significant time as you will be able to focus on those offers you are most likely to qualify for and ignore those that are not a good fit.

Fundera offers a robust website with educational materials.

One of the biggest positives about Fundera’s services is the wealth of financial information shared on the website. You can learn everything you’ve ever wanted to know about business loans whether or not you are a customer which makes Fundera a great educational resource.

The requirements to qualify are flexible in some cases.

Fundera can connect most business owners to a suitable loan, even those with lower credit scores. The minimum credit score to qualify is 500, although most lenders require a score of at least 550.