Fundation Review of Unsecured Lines of Credit Loans

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Fundation is an enterprise lender, which provides business unsecured lines of credit and term loans/installment loans to borrowers who meet the requirements.

Fundation was established in 2011, and for some good reasons, the company has rapidly risen to be among the top lenders in alternative lending industry.

Some of the reasons includes almost the best terms and conditions which you can only find in a credit union or bank, as well as quick funding.

The application process time inclusive of funding is less by weeks or months that of the banks. In addition, Fundation has no negative reviews across the web, offers excellent customer service, and its advertising is clear.

Basically, Fundation might be the best alternative, if you do meet the requirements of a bank loan, or when you are not ready to take all the time applying for a bank loan.

Nevertheless, startups might not meet the requirements of the lender, because you should be running your business for a minimum of one year, have a credit score of not less than 650, earn at least $100,000 annually, and have not less than 3 employees who are employed full-time.

If the requirements disqualify you, that should not be a concern because there exist alternative reputable lenders. But, if you are close to achieving all the requirements, you can go ahead and apply, because Fundation will advice you what to do to achieve the requirements, as well as assist you in comparing alternative lenders.

Financial products provided by Fundation include:

  • Business lines of credit.
  • Installment loans.

Requirements for Borrowing

For a line of credit or installment loan from Fundation, here are the minimum requirements:

  • Age of business: 12months
  • Credit Score: 660
  • Revenue: $100,000 annually

Also, your business should have not less than 3 full-time employees, inclusive of yourself.

According to Fundation website, here are the conditions and fees for Installment loans:

  • Amount to Borrow: $20,000- $500,000
  • Condition Duration: 1-4 years
  • Origination Fee: a max of 5%
  • APR: 7.99%- 29.99%
  • Collateral: UCC-1 blanket lien, personal guarantee

Installment loans from Fundation have a fixed rate. Therefore, the assigned interest rate remains in your entire loan life. ACH withdrawals are used to repay the loans, twice in a week.

Unsecured Lines of Credit

  • Amount to Borrow: $20,000- $100,000
  • Condition Duration: 18months
  • Additional Fees: 2% draw fee, and $500 closing fee
  • APR: 7.99%- 29.99%
  • Collateral: UCC-1 blanket lien, personal guarantee

Fundation offers a max of $100,000 for line of credit. However, business’s strength determines the amount you get. A 2% fee is charged on every draw, while the repayment period is 18 months. As opposed to installment loans, unsecured line of credit draws gets repaid monthly.

The process of applying

When making a loan application to the company, the starting point is visiting their website or that of their affiliates to fill the application form.

You are required to provide information regarding yourself, possible loan, business. The information is basic, such as the type of business you run, how many employees, and annual revenue among others.

However, to know how powerful your business, you will be asked to submit the tax returns of the business for the past two years, bank statements for past three months and the tax ID of your business. With your permission, Fundation can get the information without your assistance.

Depending on the information gathered by the system as per your application, you are likely to get an estimated quote after your online application.

However, each person must with a customer relationship manager from Fundation prior to receiving an ideal loan offer. The representative gets in touch within 24 hours after you are done with the application. You will talk more about your business and application as well as process of lending and repaying.

Before you get a final loan offer, your application will passed via underwriting, but it is after you have talked with a rep and submitted all required documents.

The money will then be deposited in your bank account after you have accepted and signed the agreement. Fundation takes 2-7 days to make a funding, inclusive of the application.

All information you should know prior to making an application for a loan is available on Fundation’s website. Therefore, qualified borrowers will not face surprises when applying and getting funded.

Fundation’s support staff can be reached through an email or phone call. You will be assigned a committed account representative who gets in touch with you throughout the loan life after making an application.

Customer support have impressed merchants. According to them, the representatives are helpful and informative. The Better Business Bureau have accredited the service, and there no complaints. However, there are minimal complaints on other sites like TrustPilot. These includes:

  • Qualifications for borrowing: failure to achieving one requirement disqualifies you to access a loan.
  • Interest rates are high: the APRs can rise up to 29.99% which is way above what people are willing to pay. But, Fundation’s rates are similar to those of competitors, and they are way less expensive compared to those of other short-term funding products.

There are some testimonials on Fundation’s website and customer reviews on the internet. Furthermore, several mainstream publications like PYMNTS.com, Bloomberg, American Banker and Wall Street Journal have covered Fundation. Here are things that impresses people:

  • Low interest rates: Most people have been impressed by the interest rates, irrespective of some people claiming its high.
  • No prepayment charges: you will not be charged for repaying earlier.
  • Swift funding: it takes a week or less to be funded, as opposed to SBA or bank loans which takes months.
  • Customer service: the customer service is friendly, interactive and informs about the entire process.

Fundation is the best option if your business is established, but you are not ready to undertake a long application process. Also, Fundation has an informative customer service, and their rates and fees are friendly compared to those of other lenders in the industry.

However, you can only know your rates on business unsecured lines of credit after applying. Thus, it is advisable to make a comparison of lenders before make any decision, for an ideal offer.