To learn more about Fundation and decide if it’s right for your needs, please continue reading:
Small businesses often seek financing for expansion, equipment, and capital improvements. Fundation is known for its innovative approach to providing financial solutions. The company has a solid ability to work on innovative solutions for clients, creating products that cater to specific needs. For instance, they have developed unique financial services tailored to small businesses.
Fundation’s team of experts in the financial services industry has been able to develop innovative products and services that address the specific requirements of their clients. They have a solid background in understanding the challenges small businesses face and have designed their offerings accordingly.
This review covers the benefits, drawbacks, and application process to help you decide if Fundation is right for your business. Specifically, we’ll answer these questions and more:
Fundation is a Virginia-based online business lender that offers various small business loans. Their lending rates are similar to those provided by community banks, making them an attractive option for small businesses needing financial assistance. Fundation combines AI and machine learning with a human-centered approach to lending.
With a robust background in the financial sector, Fundation has established itself as a reliable player in providing financial solutions. Their profile showcases extensive experience and expertise in catering to the diverse needs of companies seeking funding options.
The folks at Fundation are known for their commitment to delivering top-notch services that align with their client’s goals. Despite no longer offering business loans, when active, they were recognized for developing cutting-edge financing options that stood out in the market.
Fundation offers small business loans ranging from $20,000 to $500,000. These financial services are designed to cater to the needs of various small business owners, helping them manage their cash flow, make investment decisions, and grow their operations. Interest rates for Fundation loans range from 8% to 30%. Fundation utilizes advanced technology and analytics to revolutionize the business credit process.
Here are the primary financing options through Fundation.
Fundation term loans are a flexible financing option for small businesses, offering loan amounts ranging from $10,000 to $500,000 with repayment terms of 1 to 4 years. These loans are designed to help businesses with various needs, such as expansion, equipment purchases, or working capital. Fundation offers competitive interest rates and a streamlined application process, making it easier for businesses to access the funding they need to grow and thrive.
Fundation offers business lines of credit that provide flexible access to funds for various business needs. With credit limits up to $150,000, businesses can draw funds as needed and only pay interest on the amount borrowed.
Fundation’s lines of credit are designed to help businesses manage cash flow, cover unexpected expenses, or take advantage of growth opportunities. The application process is streamlined, and companies can receive funding in as little as one business day.
In addition to its business financing products, Fundation offers the following services:
Private Label Financing: Fundation partners with businesses and financial institutions to offer custom-branded loan programs. This allows companies to provide financing options under their own brand while Fundation handles underwriting, compliance, and risk management. It’s an ideal solution for businesses looking to offer credit without managing the complexities of lending.
Purchase Financing: Designed for businesses selling high-ticket items, Fundation’s purchase financing solutions help customers spread out payments over time. This increases affordability for buyers and boosts sales for merchants. By offering structured financing at the point of sale, businesses can attract more customers and improve conversion rates.
Embedded Credit: Fundation enables businesses to integrate flexible credit options directly into their platforms, whether in B2B transactions or e-commerce. This embedded credit model makes it easier for customers to access financing at checkout, improving cash flow for both buyers and sellers. It also enhances the overall purchasing experience by removing barriers to large purchases.
When applying for a Fundation business loan, the qualifications depend on your credit profile and financial needs. Here’s what the lender requires for each product type.
Fundation Term Loan:
Fundation Line of Credit:
In addition to the above requirements, applicants must have a business bank account with an average minimum balance of $2,000. Businesses must also have a minimum of three employees (can include the business owner). The lender doesn’t work with business owners who’ve filed for bankruptcy in the previous three years. Fundation requires a personal guarantee and a lien on business assets as part of the loan qualification process.
Fundation requires individuals to understand their capital and credit history well. This means knowing how much money they have available for investment or borrowing and being aware of their credit score and financial history. Without this knowledge, it can be challenging to determine the best financing options that Fundation offers.
The company’s eligibility criteria often include specific requirements related to the capital and creditworthiness of potential borrowers. For instance, individuals with a higher credit score may qualify for lower interest rates or more significant loan amounts.
On the other hand, those with limited capital or weaker credit profiles might need to explore alternative solutions or work on improving their financial standing before approaching Fundation. To qualify for a Fundation loan, a borrower must have a personal credit score of 660 or higher. Borrowers may need to provide some form of collateral when seeking loans from alternative lenders.
Fundation restricts specific industries, including:
In addition, Fundation is unavailable in the following states:
The lender charges a 5% origination fee on business loans. Late payments may incur an additional fee. Borrowers are required to sign a personal guarantee, and Fundation places a UCC blanket lien on business assets.
It’s unclear if Fundation had a business loan affiliate program. However, as it no longer offers funding, ISOs and business loan brokers must partner with other lenders or lending marketplaces.
The process starts with submitting an online application. Clients are kept informed about the progress of their loan application throughout the online and paperless journey.
The process starts with submitting an online application. Completing the application only takes a few minutes. At this point, Fundation performs a soft credit pull, which won’t affect your credit. Fundation provides personalized support through a customer relationship manager during the loan process.
If your application passes the initial screening, Fundation will move on to underwriting. You may have to submit additional documentation, including three months of business bank statements. If applying for more than $100k, you must provide:
Your documents get sent to the Fundation’s underwriting team to finish the process, which can take up to 24 hours. The lender will conduct a hard credit pull at this time, which could impact your credit score. Fundation’s underwriting process includes a conversation with an underwriter to provide a broader view of the borrower.
You’ll receive a finalized offer once your application passes underwriting. Fundation will call you to review the loan details if you apply for over $100k. Otherwise, you’ll receive an email that the loan is finalized.
Once you accept an offer, the funds will appear in your business bank account within 24 hours. The entire process, from the initial application to funding, can be completed in 2-3 business days but might take up to 30 business days.
Fundation term loans have two payments due per month, while the line of credit has a monthly payment. All payments are automatically debited from your business bank account. Borrowers at Fundation can refinance and borrow more after 6 to 9 months if they have been paying on time.
Repayments for Fundation’s loans are collected bi-monthly, which may not suit all businesses. Payment schedules are either on the 1st and 16th or the 8th and 23rd of the month. Borrowers get access to an online portal to track the loan status, including how much is left to pay and the due date(s). In addition, approved business owners are paired with a customer success manager to assist with the repayment process and can contact them for any support or advice needed.
There are no prepayment penalties, and the lender charges an APR, so you can potentially save on interest by paying the loan off early. You may become eligible for renewal nine months after applying and have five days to accept any renewal offers.
Fundation offers a streamlined online application process, allowing businesses to apply for a loan in minutes and receive a decision within hours. The lender has competitive interest rates, making their business loans more affordable for small and medium-sized businesses.
It provides flexible loan terms, allowing businesses to choose the best repayment schedule for their cash flow and financial situation. Fundation prides itself on providing personalized customer service, with dedicated loan specialists available to guide businesses through the lending process and answer any questions.
Small businesses can use the company’s line of credit and term loan products for a wide range of purposes. There are no prepayment penalties, so borrowers can save on interest costs with early payment.
While Fundation business lending has its advantages, it also has disadvantages. Some drawbacks of using Fundation for business lending include higher interest rates compared to traditional bank loans, shorter repayment terms, and stricter eligibility criteria.
Some businesses may find the application process more complex and time-consuming than anticipated. Fundation’s loan amounts may not always meet the needs of larger businesses, limiting their options for financing. It’s important for business owners to carefully weigh these disadvantages against the benefits before pursuing a loan from Fundation.
Pros:
Cons:
Yes, Fundation is a legitimate company. It’s Better Business Bureau (BBB) accredited with an A+ rating. The company focuses on embedded credit solutions and delivery technology, enabling banks, non-bank originators, and B2B clients to better serve their clients with verticalized software platforms. It has also merged with Camino Financial to form a business lender for small and medium-sized businesses (SMBs).
Fundation is just one of many business loan options available to small businesses. Here’s how it compares to other popular options:
Fundation has a 2.6 rating on four Trustpilot reviews and no BBB reviews. The lender has mixed customer experience reviews on other sites as well.
Positive reviews for Fundation business loans often focus on the quick and efficient application process, competitive interest rates, and excellent customer service. Many customers appreciate the flexibility of the loan terms and the transparency throughout the borrowing process.
Fundation’s willingness to work with small businesses and their dedication to helping them grow is often highlighted in positive reviews. Customers frequently praise Fundation for their reliable and trustworthy business loan options.
Negative reviews for Fundation business loans often focus on high interest rates, hidden fees, and poor customer service. Customers have reported feeling misled by the terms of the loan and frustrated with the lack of transparency. Fundation’s website is not considered intuitive by some users, making the application process more difficult.
Many have also expressed dissatisfaction with the application process, citing long wait times and cumbersome paperwork requirements. Negative reviews tend to highlight issues with the cost and overall experience of obtaining a business loan from Fundation.
There are many lenders available to service the financing needs of businesses if Fundation doesn’t work for you. Many offer business term loans, as they are one of the most common forms of business funding. There are many options for business lines of credit as well.
You may also be interested in the following small business loans:
Fundation offers solutions for businesses looking for quick access to capital. The application process is streamlined, providing a faster return on investment.
On the downside, some users have reported limited options in terms of business loans, as Fundation primarily offers term loans and lines of credit. Furthermore, there may be stricter eligibility criteria compared to other lenders.
We rate Fundation as a 3 out of 5 based on its available options and reviews.
Disclaimer: The Fundation trademark is owned by Fundation Group, LLC., and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Fundation Group, LLC.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
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