Fundera Review [Is Fundera Legit? 2021]

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Fundera Review

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Fundera Review

Fundera was established as a platform where businesses and investors could meet each other and form partnerships. It was essentially a business funding matchmaker where investors find businesses worth investing in. Read on for our Fundera review!

Fundera doesn’t offer products like short-term loans or financial services. Instead, the investors that it matches business owners with offer a range of products such as:

  • Short-term loans
  • Lines of credit
  • Merchant cash advances
  • Medium-term loans
  • SBA loans
  • Invoice financing
  • Equipment loans
  • Personal loans

If you are unsure of which financial products are right for your business, then sign up with Fundera and see what you are eligible for. The service is easy to use and helps you find people that are willing to invest in your company. Although there are other business finance matchmaking platforms available, Fundera offers market competitive rates and is one of the best online. 

Onto our Fundera review!

Services Offered

  • Business funding matchmaker services

Eligibility Requirements

Since Fundera is a business funding matchmaker, it does not have any eligibility requirements of its own. Instead, it takes information about you and your business and matches your company with investors based on their eligibility requirements.

So, in this regard, Fundera will likely find peer-to-peer financing for you, regardless of your financial situation and creditworthiness. If you’re looking for a site that helps you find business funding then sign up on Fundera and see which investors you are matched with.

Terms, Rates, & Fees

Fundera doesn’t directly charge its applicants any fee. Instead, Fundera charges the investors on the platform a fee. Fundera essentially earns a commission for matching investors with eligible borrowers. The commission that Fundera charges its investors or funding partners is around 2% to 5% of the loan amount that the lender pays to the borrower. 

So, for example, if you find an investor and receive approval for a loan for $10,000 then 5% of this amount goes to Fundera as its commission and you will end up getting 95% of the loan amount. In a way, this is an indirect fee for using Fundera.

Fundera Competitors

Some Fundera alternatives are:

Which Services Does Fundera Offer?

Some of the services that borrowers can access through Fundera include:

Installment Loans

If eligible, borrowers can access “installment loans” offered by investors. With an installment loan, the loan amount is transferred to the borrower, then the borrower pays the loan back in installments. These are usually paid back by making monthly payments. 

Short-Term Loans

Borrowers can also find short-term loans through Fundera. Short-term loans are usually more expensive than installment loans. Short-term loans do not carry interest and instead incur a flat fee that changes depending on the fee rate. For instance, if the rate is 1.2x and you borrow $10,000, then the total cost to you will be $12,000. Payments on short-term loans are usually made every week and most investors directly deduct the payments from the borrower’s business account. 

Lines of Credit

Borrowers can also access lines of credit. Lines of credit are suitable for businesses that need access to revolving credit accounts. With lines of credit, the amount is not paid to the borrowers in a lump sum. Instead, an amount is approved and allocated to the borrower to be used when needed. Interest doesn’t accrue on the line of credit if it isn’t used. Lines of credit are usually revolving lines which means that they get replenished when they are paid back. 

Equipment Loans

As apparent from their name, equipment loans are given to businesses so that they can buy specific equipment. The equipment serves as collateral for the lender. This effectively turns equipment loans into a secured loan. Secured loans usually carry lower rates than unsecured loans.

Fundera Small Business Loans

SBA Loans

Certain lenders can receive Small Business Administration (SBA) approval, providing loans with easy terms to SBA eligible borrowers. The downside to SBA loans is the typically long SBA loan waiting list and extensive paperwork requirements. Although, this isn’t a particularly bad downside if you consider the advantage of getting loans on easy terms that are below market rates. 

Currently, borrowers can also get access to disaster relief packages through SBA loans, and these packages have been created especially to assist businesses facing the ongoing Covid-19 pandemic.

Application Process

The application process may appear a bit complex at first because Fundera needs to gather enough information to connect eligible users with lenders. However, there are six simple steps you’ll encounter while applying for a loan on Fundera. They include: 

  • Filling out an application
  • Connecting with a lending specialist
  • Sitting back while Fundera finds investors for you to connect with
  • Comparing multiple loan options
  • Choosing the best financial product available
  • And graduating to better financial products as your business grows

To initiate the process of finding a suitable lender, you must sign up for and create an account on the Fundera website. While establishing your account, you will submit details via a questionnaire so that Fundera can assess your eligibility for different lenders. 

Once you fill out and submit the form, the site will assess the questionnaire and match you with an investor. A list of lenders will be sent to you along with products you are eligible for. Finally, a representative of Fundera will get in touch with you to explain the options available and guide you through the acceptance process. 

If you like an offer and end up selecting it, then you can fill out a second application. This application will contain details of your business and require you to submit documents that’ll be used to verify this info. The applicant will be required to submit some of the following documents:

  • Bank statements
  • Tax returns
  • Business financial documents

Upon the completion of this process, you will be presented with additional offers you are eligible for, and a Fundera representative will be available to help if you require assistance.

Fundera Customer Service

Fundera provides transparent service. There is information on the site to help you understand the process and services the investors offer. Fundera has signed the Small Business Borrower’s Bill of Rights and has pledged to uphold standards of “transparency, fairness, and putting the rights of borrowers at the center of the lending process.”

Customers can contact Fundera via:

  • Phone
  • Email
  • And live chat on the website

Customer service is prompt and helpful and most customers leave positive feedback about Fundera’s customer service.

Fundera Reviews

Fundera has very few negative reviews. The most common complaints include Fundera having limited lenders, and other reviews discuss being denied by lenders after being approved by Fundera. However, users must understand that Fundera cannot influence the lenders and that the lenders have their own criteria. Fundera can try to match borrowers with lenders, but the lenders have the ultimate say when deciding who to provide loans to.

Fundera Pros and Cons


  • Narrows down funding options
  • Transparency
  • Convenience
  • Does not affect your credit score


  • A limited number of investors on the site
  • Lenders may have their own excessive costs and choose to do business elsewhere
  • Only available to US-based businesses

Fundera Review: Parting Thoughts

Is Fundera legit? Fundera is a good option for business owners that are unsure about which financial products they should be choosing. The lending market has a lot of competition and many business owners end up confused with the plethora of options available to them. Fundera can be of great help in these circumstances as it will assist with narrowing down the available options. 

However, this doesn’t mean that if a business does not find a suitable option through Fundera that they won’t find any lender at all. That’s because Fundera only works with a limited number of lenders, so a business may not find a suitable option through the platform but may still end up finding a suitable lender somewhere else. Businesses shouldn’t stop looking if they are unable to find an appropriate financial product through Fundera, as there are still many options out there.

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