Fundera Business Loan Types and Qualification Requirements

fundera logoFinding – and understanding – the best options for financing business operations can be an uphill battle. A quick online search of business loans returns far too many results to count, and each comes with a variety of credit requirements, loan limits, and repayment terms that may not be the strongest fit for your specific business needs. The online lending broker, Fundera, has set out to make the process of finding the right business loan easier to navigate by connecting prospective borrowers with non-traditional lenders that offer a slew of financing options for qualified businesses. Here are the types of loans Fundera provides and the qualification requirements for each.

SBA Loans: Most small business owners think of Small Business Administration (SBA) loans when they consider options for financing. An SBA loan is a low-interest, long-term loan for a business that is backed by the government. In order to qualify for an SBA loan, businesses must have at least two years in operation, a personal credit score of at least 640 for the business owner, and no less than $100,000 in annual revenue. Fundera partners with a number of lenders through its platform to offer SBA loans to qualified business owners.

Term Loans: A small business term loan is one of the most common types of financing available, as well as one of the most popular choices among business owners. With a fixed interest rate and steady repayment over time, a term loan provides clarity on how much financing will cost from the start. Business owners need a minimum credit score of 620, at least two years in operation, and $75,000 in annual revenue to qualify for a term loan through Fundera.

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Equipment Financing: Another option for funding through Fundera’s lending partners is equipment financing. Business owners may apply for a loan for the sole purpose of financing the purchase of equipment to be used in business operations. The equipment purchased is then used as collateral to offset any risk of loss the lender may be exposed to on the loan. Business owners need a credit score of at least 600 to qualify, as well as a minimum of $50,000 in annual revenue.

Business Line of Credit: Instead of receiving a lump sum through a term or equipment loan, small businesses may also qualify for a business line of credit which works similar to a credit card. Repayment of borrowed funds plus interest charges is due only when the line of credit is used, giving more flexibility to borrowers. Business owners need to be in business for at least six months and have annual revenue of at least $50,000.

Invoice Financing: For businesses that have been in business at least three months and have annual revenue of $50,000 or more, invoice financing may be an option through Funder’s partners. Invoice financing, also known as accounts receivable financing, offers a way to get paid for outstanding invoices immediately in exchange for a fee paid to the lender.

Short-term Loans: Similar to term loans, short-term loans are also available to qualified business owners. With a short-term loan through Fundera’s lending partners, businesses may borrow a lump sum to finance business needs and repay the principal and interest over a short period of time, typically three to 18 months. Business owners need a minimum credit score of 500 to qualify, as well as six months in business and annual revenue of at least $100,000.

Merchant Cash Advance: Similar to a personal credit card cash advance, a merchant cash advance is a lump sum of capital provided by a Fundera partner to help businesses pay a portion of daily credit card transactions. Businesses must be in operation at least five months, have $75,000 in annual revenue, and a personal credit score of at least 400 to qualify.

Startup Loans: Getting capital to cover start-up costs can be a challenge, but Fundera has a solution. Startup loans offered through its partners are available for nearly any startup business that has little to no history. The qualifications vary from lender to lender, as do the loan limits and repayment terms.

Personal Loans for Business: When businesses do not easily qualify for a business loan, a personal loan may be used to help financing operations, expansion, or other capital needs. Fundera offers access to cost-effective personal loans which can be used for business purposes, so long as the borrower has a personal credit score of at least 580.

In addition to these business financing options, Fundera also offers information on business credit cards available through its lending partners. Business owners have the benefit of working directly with Fundera’s loan consultants to ensure they understand which type of financing best meets their needs, and how repayment and the financing term affect the business cash flow moving forward. To learn more about Fundera, visit the company online.

Posted on May 17, 2017 by in Business Loans,

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