Fundation Review

Fundation Review [Small Business Loans 2022]

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Fundation Review

Fundation is an online business lending service that was founded in 2011 and has been serving in the sector ever since. Over the last nine or so years, Fundation has created a lot of traction in the market by offering installment loans and business lines of credit to eligible businesses. 

The Fundation eligibility requirements are a bit on the higher side, including costs, but this slightly higher market positioning is complimented by the fast and reliable service provided to customers who qualify for the loans.

In nine years the company doesn’t have many negative reviews, which is a testament to the quality of service provided by Fundation. 

Onto our Fundation review!

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Services Offered

  • Installment loans
  • Lines of Credit

Fundation Requirements and Eligibility

How to qualify for a small business loan from Fundation?

Minimum criteria for loans between $20,000 – $100,000:

  • Time In Business: 1 year
  • Personal Credit Score: 660
  • Business Revenue: $100,000 per year
  • Number Of Employees: At least 3 full-time employees

Minimum criteria for loans between $101,000 – $200,000:

  • Time In Business: 2 years
  • Personal Credit Score: 680
  • Business Revenue: $200,000 per year
  • Number Of Employees: At least 3 full-time employees

Criteria for loans above $200,000:

  • Time In Business: 5 year
  • Personal Credit Score: 720
  • Business Revenue: $500,000 per year
  • Number Of Employees: At least 3 full-time employees

It must be noted that Fundation doesn’t provide services in Nevada. Also, Fundation doesn’t do business with the following industries: 

  • Insurance carriers
  • Banks
  • Car Dealers (New or used)
  • Banks and lending institutions
  • Mortgage brokers or money service businesses
  • Pornography
  • Nonprofit organizations
  • Government organizations
  • Casinos

Fundation Rates and Terms

The rates offered by Fundation may vary from business to business. A business with good financial fundamentals may be eligible to receive low rates, whereas a business that barely fulfills the minimum eligibility criteria for any tier may receive higher rates. The rates offered are therefore risk-based, so if Fundation determines the risk from an applicant’s business to be high, they will be charged a higher rate, whereas an applicant with a low-risk business will be offered a lower rate.

Fundation does not publicly disclose its rates.

RELATED: BlueVine Business Loans Review.

Fundation Business Loans

The next sections discuss the details about Fundation loans and lines of credit.

Fundation Installment Loan

Borrowing Limits:

  • $20,000 – $100,000
  • $101,000 – $200,000
  • Above $200,000

Term Length:

  • 1 – 3 years
  • 1 – 4 years
  • Up to 4 years

Origination Fee:

  • Up to 5%


  • 7.99% – 29.99%


  • UCC-1 blanket lien
  • Personal guarantee

Although Fundation loans start at $20,000 and go up to $500,000 as stated above, not every business will be eligible for the larger loans. Instead, the loans are divided into a tier system that depends on businesses meeting certain eligibility criteria (as discussed above).

The rate offered by Fundation is a fixed interest rate, which means the rate won’t vary as the market interest rates change. Furthermore, there is no early payment penalty giving borrowers an incentive to pay early and save on interest costs.

Fundation loans are repaid fortnightly through ACH transfers (direct debit from your business bank account). Apart from the origination fee which is charged by adding it onto the borrowed amount, there are no hidden fees. However, late payment penalties may apply.

Fundation Line Of Credit

  • Borrowing Limits: $20,000 – $150,000
  • Term Length: 18 months
  • Additional Fees: $500 closing fee; 2% draw fee
  • APR: 7.99% – 29.99%
  • Collateral: UCC-1 blanket lien, Personal guarantee

Like installment loans, the maximum amount of the line of credit available to a business will depend on the financial strength of the business. There is a withdrawal fee of 2% on each withdrawal, with a repayment term of 18 months. The line of credit has to be repaid every month.

Fundation Application Process

The Fundation application process is simple and convenient. Applicants will need to log in to the site to fill in an application form that takes around ten to fifteen minutes to complete. This is a preliminary assessment and any additional detailed or specific data will be required at a later stage. 

The data will include details about the business, bank statements, business financials, and tax id, etc. Once the online application is completed, based on the data provided, an estimated quote will be sent. 

A customer relationship manager will get in touch with applicants seeking funding that is greater than $100,000. In addition to this, within 24 to 36 hours a representative of Fundation will get in contact with the applicant to make sure they understand the process before continuing with the application. 

Once the additional data has been provided and the applicant has thoroughly understood the process, the application will be processed for underwriting. After accepting and signing the final loan offer, the funds will be transferred into the applicant’s business bank account. 

From the moment the application begins to the receiving of funds, the whole process may take up to 7 days, which is very slow compared to other lending platforms, but the additional time is used to thoroughly check the applicant’s background and make sure they understand the terms and conditions. This is perhaps one of the reasons there are no negative reviews in nine years of business, as Fundation clearly take their time to vet their customers.

RELATED: What Is LendingClub?

Fundation Customer Service

Fundation can be contacted through:

  • Phone
  • Email

In addition to this, customers will be given a dedicated representative who will guide them throughout the process. This is seen by many customers as a great way to make them feel heard and understood, as it creates the feeling that Fundation is going the extra mile to accommodate its customers.

Fundation Reviews

Fundation Reviews & Complaints

As mentioned above, in nine years Fundation hasn’t received many negative reviews on Better Business Review (BBB), and other sites like Trust Pilot also have overwhelmingly positive reviews. Customers seem happy with the type and quality of the service provided by Fundation, however, some customers think the higher rates and eligibility requirements are a little excessive.

Additionally, some customers are dissatisfied with the bi-weekly repayment plans because the frequency of payments can be an issue for businesses with little working capital in the bank and unpredictable revenues.

Fundation Pros and Cons


  • Fundation Works to Understand The Borrower: Rather than simply obtaining a perspective on the borrower based on data obtained in submitted documents, Fundation engages in a conversation with the borrower to learn why the loan is required and how the money will be used. This is performed during the due diligence process.
  • Excellent Customer Service Track Record: Fundation is well-known for providing excellent customer service. From the application stage, the lender assigns representatives to clients, ensuring that services obtained are tailored to the clients’ preferences. Furthermore, Fundation ensures that borrowers are assisted by representatives throughout the application process, ensuring that the process runs smoothly. Customer relationship managers provide assistance through phone calls and emails, responding to questions in order to best satisfy your curiosity. He or she will also help you prepare for your meeting with a Fundation underwriter.
  • Loan Terms are Flexible: Borrowers, particularly small businesses, benefit from Fundation provisions for flexible term lengths. With terms ranging from one to four years, businesses can choose to obtain short-term cash for payroll or inventory, resulting in a lower total interest rate, or longer-term financing for larger projects with a longer repayment period for more convenient repayments.
  • Loan Refinancing: Fundation allows borrowers with good credit to refinance and borrow more. This is possible after nine months, or six months if you borrow for a year, assuming timely payments have been made.


  • Not Suitable for all Small Businesses: Funding requires your company to have at least three employees. As a result, it is only appropriate for businesses with a sufficient number of employees, which excludes many small businesses. If you are the sole proprietor of your company, you will need to either look elsewhere or hire workers in order to qualify for a Fundation loan. Additionally, aside from having some employees, the business must be active for two years and have $200,000 in annual revenue to qualify for Fundation loans.
  • Repayments Made on a Regular Basis: One unfavorable aspect of Fundation is that loan repayments are automatically deducted from your bank account twice a month. In contrast, banks and other lenders are more concerned with the frequency of repayment required of lenders. For people with irregular cash flow, having to pay twice in a calendar month may result in default, with severe consequences.
  • Rates are Relatively High: Fundation’s rates, while not exorbitant, are relatively high compared to many alternative loan programs out there.
  • Long Qualification Process: It takes a long time to get the loan from the time it is applied for. You will need to speak with a lender representative, as well as go through several other steps that will undoubtedly take time.

Fundation Competitors

Some Fundation alternatives are:

Frequently Asked Questions (Faq)

Is Fundation legit?

Fundation is a legitimate lending platform that provides invoice factoring, lines of credit, and term loans to small, medium, and large-scale US businesses, depending on their loan needs. According to the lender’s online reviews, the lender has a reputation for providing excellent financing options. Furthermore, its dependable customer service representatives demonstrate the company’s commitment to meeting the needs of its clients.

What documentation do I need to provide in order to be approved for a Fundation loan?

Funding typically requires borrowers to submit certain documents to confirm their identity as the business’s owner as well as the capacity of the business to repay its debts. Documents such as your company’s Tax ID number, bank information, and your social security number are required for most of Fundation’s services.

Is my personal information secure when I apply online?

Fundation is a registered financial company and thus regulated. Its online loan application is highly secure and impervious to data breaches. Fundation does not sell any information obtained from customers.

How long will it take for funds to be deposited into my account?

In general, applying for and receiving funds is quick, but not as quick as with some other lenders. You will receive your money within three days, barring any unforeseen circumstances.

How do I qualify for a Fundation business loan?

The Fundation business loan requirements are:

  • 2 or more years in business
  • Personal credit score of 660 or more
  • 3 or more employees
  • $100k or more in annual revenue
  • Personal guarantee
  • Lien on business assets

Fundation Review: Parting Thoughts

Fundation has a solid product offering but its high rates and eligibility requirements position it for businesses that are quite stable financially. It is ideal for established businesses that do not want to get caught in up lengthy paperwork through bank and SBA loans. Small businesses with struggling financials may not find themselves eligible or may be offered rates that may not be viable for their business model.

Apply For Fundation Business Loans Below

Lines of credit and installment loans


Thanks for reading our Fundation review.

You may also be interested in our Lendio Review.

Check out our US Business Funding Review.

Take a peek at our BlueVine Review.

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