Fundation offers business loans of up to $500,000 with APRs from 7.99% to 24.99%. The qualification requirements are somewhat restrictive, requiring two years of business operations and annual revenues of at least $100,000. We compared Fundation to the top alternatives so you can choose the best financing option for your business.
Fundation & Top Alternatives
Best For | |
|---|---|
Fundation | Small businesses with at least two years of operations |
Smaller funding amounts with terms up to three years | |
Businesses with credit scores as low as 550 needing up to $500,000 | |
Businesses with small or recurring working capital needs | |
Lines of credit & invoice factoring with fast approvals | |
SBA loans under $350,000 in 30 days or less | |
Larger SBA loans over $350,000 with an online application process |
Fundation Business Loans: Best for Established Businesses
Fundation offers small business loans in amounts up to $500,000 with repayment terms ranging from one to four years. Expected APRs for these loans range from 7.99% to 24.99%. Eligible borrowers will have a personal credit score of at least 620, two years of business operations, and annual revenues of $100,000 or greater.
Fundation Rates & Fees
- Expected APR: 7.99% to 24.99%
- Origination fee: Up to 5%
- Prepayment penalty: None
Fundation offers the lowest expected APR range of any of the providers on our list (with the exception of SmartBiz and Celtic, which offer SBA loans). Kabbage, OnDeck, and BlueVine have maximum APR ranges that exceed 70%.
Fundation Loan Terms
- Loan amount: $20,000 to $500,000
- Repayment term: One to four years
- Repayment schedule: Every two weeks
- Collateral: Blanket UCC filing on business assets
- Personal guarantee: Required
- Time to funding: One to three business days
With a minimum loan amount of $20,000, Fundation will not be able to fund businesses needing smaller loan amounts. Borrowers who need smaller amounts of funding may want to consider OnDeck, LoanBuilder, or BlueVine, all of whom can offer short-term loans in amounts as low as $5,000.
Fundation Qualification Requirements
- Credit score: At least 620 for loans less than $75,000; at least 640 for loans greater than $75,000 (check your score for free)
- Minimum annual revenue: $100,000
- Time in business: At least two years
Requiring at least two years of business operations, Fundation has one of the longest time-in-business requirements of the lenders we reviewed. While both SBA lenders, SmartBiz and Celtic Bank, also require a minimum of two years of business operations, BlueVine only requires six months of business operations.
Fundation Other Products Offered
In addition to short-term loans, Fundation also offers a small business line of credit of up to $150,000 with an 18-month repayment term. To qualify for a line of credit, borrowers must have a credit score of at least 660, one year of business operations, and annual revenues of $100,000 or greater.
How to Apply for Fundation Business Loans
Fundation has an online application process that is completed in multiple steps. You will need to provide information regarding your business as well as your personal and business credit. After submitting the completed application, you will be contacted by a Fundation representative to verify the information provided. If approved, you can expect to receive loan funds within one to three days.
OnDeck Business Loans: Best for Businesses Needing Small Loans With Terms Up to 3 Years
OnDeck offers short-term loans in amounts up to $500,000 with repayment terms ranging from three to 36 months. The APR for an OnDeck loan can range from 10% to 100%. To be eligible, borrowers must have a credit score of at least 600, one year of business operations, and annual revenues of at least $100,000.
OnDeck Rates & Fees
The APRs associated with a short-term loan through OnDeck are similar to those offered by other lenders. However, Fundation has a much lower maximum APR of 24.99% compared to OnDeck’s maximum of 100%. Eligible borrowers may want to consider a loan through Fundation, or an SBA loan through SmartBiz or Celtic Bank, to receive lower interest rates.
OnDeck Loan Terms
The loan amounts offered by OnDeck are in line with the other lenders on our list; however, OnDeck can offer loans for much lower amounts than Fundation. While Fundation’s minimum loan amount is $20,000, OnDeck can offer loans for as little as $5,000.
OnDeck Qualification Requirements
While OnDeck has a shorter time in business requirement of one year compared to Fundation’s requirement of two years, there are other providers that are less restrictive. Kabbage only requires six months of business operations, a credit score of 550 or greater, and annual revenues of $50,000 to qualify.
OnDeck Other Products Offered
In addition to short-term small business loans, OnDeck also offers a small business line of credit of up to $100,000. Repayment terms on an OnDeck line of credit are either six or 12 months, and the qualification requirements are the same as an OnDeck short-term loan.
How to Apply for OnDeck Business Loans
You can apply for an OnDeck loan online in ten minutes or less, making them a very fast business loan option. During the application process, you will connect your business checking account to OnDeck, which will verify your income and approve you within hours. The entire process from application to funding can be completed within one day.
LoanBuilder Business Loans: Best for Business Owners With Low Credit Scores
LoanBuilder offers small business loans up to $500,000 with flexible terms. You can choose a repayment period between 13 and 52 weeks. To qualify, you need to have been in business for at least nine months, have a personal credit score of 550 or greater, and have at least $42,000 in annual revenue. If approved, you can receive funding within one business day.
LoanBuilder Rates & Fees
The expected APR for LoanBuilder is similar to the other lenders we reviewed, but this could be deceiving. LoanBuilder charges a total interest charge on the amount that you borrow, meaning that the entire amount of interest is accrued upfront and is payable regardless of when you repay the loan. Other lenders, like BlueVine, accrue interest over time, which allows you to save money by repaying the loan before its maturity date.
LoanBuilder Loan Terms
While the maximum loan amount offered by LoanBuilder is the same as that offered by OnDeck and Fundation, the repayment term is capped at 52 weeks. Business owners requiring a longer repayment period to reduce their monthly debt payment may want to consider OnDeck or Fundation, which offer maximum repayment terms of three and four years, respectively.
LoanBuilder Qualification Requirements
LoanBuilder has one of the lowest minimum credit score requirements of the providers we reviewed. With a minimum personal credit score requirement of 550, the only other lender on our list that accepts credit scores this low is Kabbage. However, Kabbage requires a full year of business operations, while LoanBuilder only requires nine months.
How to Apply for LoanBuilder Business Loans
You can apply online for a business loan up to $500,000 with LoanBuilder in minutes. If approved, your rates and terms can be customized to fit your business needs. You can expect to make weekly payments for 13 to 52 weeks, with interest rates of approximately 2.9% to 18.72%.
Kabbage Business Loans: Best for Businesses With Small or Recurring Capital Needs
Kabbage offers a $250,000 business line of credit to small businesses. Repayment terms can be either six, 12, or 18 months, and APRs range from 24% to 99%. To qualify, borrowers need to have a personal credit score of at least 550, one year of business operations, and annual revenues of $50,000 or greater.
Kabbage Rates & Fees
While the starting APR for a Kabbage line of credit is higher than all of the providers we reviewed, you only pay interest on the amount you have drawn because it’s a line of credit. Additionally, unlike OnDeck and LoanBuilder, you can save money by repaying the drawn amounts early.
Kabbage Loan Terms
The maximum loan amount of $250,000 offered by Kabbage is well below the amounts offered by other lenders on our list. However, because it’s a line of credit, you are able to borrow and repay the funds over and over without the need to reapply.
Kabbage Qualification Requirements
At 550, Kabbage has one of the lowest minimum credit score requirements of any of the providers on our list. However, Kabbage has a minimum time in business requirement of one year, while LoanBuilder only has a nine-month requirement and BlueVine only requires six months.
How to Apply for Kabbage Business Loans
Applying with Kabbage takes about 10 minutes with its easy online application. After providing basic personal and business information, you’ll give Kabbage a connection to your business checking account. Once connected, Kabbage will verify your business revenue. You could be approved for up to $250,000 and receive funding in as soon as 24 hours after applying.
BlueVine Business Loans: Best for Fast Funding & Monthly Payments
BlueVine offers small business loans in amounts up to $250,000 with repayment terms of six or 12 months. Interest rates range from 18.2% to 78% APR. To qualify, you must have a personal credit score of at least 600, six months of business operations, and at least $100,000 in annual revenues. If approved, you can receive funding as soon as the next business day.
BlueVine Rates & Fees
Interest rates on BlueVine business loans are in line with some of the providers listed, such as OnDeck, LoanBuilder, and Kabbage. However, unlike loans with OnDeck and LoanBuilder, you can save money by paying your loan off early.
BlueVine Loan Terms
BlueVine offers loan terms of six or 12 months, which may fit the needs of many small businesses. However, borrowers who are seeking longer repayment terms may want to consider a Fundation business loan that offers a repayment term of up to four years, or an OnDeck business loan with a repayment term of up to three years.
BlueVine Qualification Requirements
While the credit score and annual revenue requirements for a BlueVine loan and an OnDeck loan are the same, BlueVine only requires six months of business operations compared to OnDeck’s requirement of one year. The lower time in business requirement allows newer businesses to qualify for short-term loans through BlueVine.
BlueVine Other Products Offered
In addition to offering a short-term loan, BlueVine also offers a small business line of credit of up to $250,000 with the same qualification requirements as its loan product. Additionally, BlueVine also offers invoice factoring. With invoice factoring, you can receive advances of up to $5,000,000 at rates as low as 0.25% per week. If you need financing above the $250,000 offered in a BlueVine loan or line of credit, you can apply for invoice financing to increase your borrowing amount.
How to Apply for BlueVine Business Loans
BlueVine’s short-term loan of up to $250,000 is great for newer businesses that have only been in operation for six months. The online application can be completed in just a few minutes, and if approved you can receive funding as soon as the next business day.
SmartBiz Business Loans: Best for SBA Loans Under $350,000
SmartBiz is an SBA loan provider that offers an expedited loan process for SBA loans in amounts up to $350,000. Interest rates range from 7.5% to 11% with repayment terms of up to 10 years. If you have a personal credit score of at least 650 and at least two years of business operations, you may be eligible. If approved, you can receive funding in as little as 30 days.
SmartBiz Rates & Fees
The Small Business Administration (SBA) sets the maximum interest rates that banks can charge on 7(a) loans. The current estimated SBA rates range from 7.50% to 11.00%, depending on the size of the loan and the amount being borrowed, which is the lowest maximum rate on our list. SBA loan rates fluctuate regularly based on the prime rate.
SmartBiz Loan Terms
Because SBA loans are highly standardized, the loan terms available from SmartBiz are very similar to those offered by other SBA lenders, like Celtic Bank; however, Celtic Bank can provide loans in higher dollar amounts. The expedited loan process for SmartBiz SBA loans is limited to loans under $350,000.
SmartBiz Qualification Requirements
For the most part, SBA loan requirements are standard throughout SBA lenders, though there is some variation among lenders in terms of credit score and time in business requirements. The qualifications for SBA loans are often more stringent than the requirements of online lenders. However, the qualification requirements for Fundation business loans are very similar to the qualifications for an SBA loan through SmartBiz
SmartBiz Other Products Offered
In addition to SBA loans, SmartBiz also offers term loans from $30,000 to $200,000 for small businesses through its marketplace. These loans have repayment terms ranging from two to five years, with fixed interest rates ranging from 6.99% to 26.99%.
How to Apply for SmartBiz Business Loans
Applying for an SBA loan through SmartBiz begins with an online application and prequalification. After you have applied, SmartBiz will direct your application to an SBA lender from its marketplace that best suits your loan needs. With this streamlined process, SmartBiz can get your SBA loan funded in 30 days.
Celtic Bank Business Loans: Best for SBA loans Over $350,000
Celtic Bank is one of the top SBA lenders nationally, and offers SBA loans in amounts up to $5 million. Interest rates range from 7.5% to 11%, and repayment terms extend up to 10 years for working capital and 25 years for commercial real estate. You can apply online, and if approved, receive funding within 60 days.
Celtic Bank Rates & Fees
- Interest rate: 7.50% to 11.00%
- Estimated APR: 9.50% to 15.00%
- Loan packaging fee: $2,500
- SBA guarantee fee: 2% to 3.5%
As with SmartBiz, the maximum interest rates that Celtic Bank can charge on SBA 7(a) loans is set by the Small Business Administration. The current estimated SBA rates range from 7.50% to 11.00%, and vary based on the size of the loan and the amount being borrowed.
Celtic Bank Loan Terms
- Loan amounts: $30,000 to $5 million
- Repayment terms: Up to 10 years (25 years for commercial real estate)
- Payment schedule: Monthly
- Collateral: Blanket UCC filing on business assets
- Personal guarantee: Required
- Time to apply: 15 to 30 minutes
- Time to get approved: As soon as the next day
- Funding speed: Within 60 days of approval
Because SBA loans are highly standardized, the loan terms available from Celtic Bank are very similar to those offered by SmartBiz; the exception is that Celtic Bank can provide loans in higher dollar amounts. The expedited loan process for SmartBiz can only be used for loans under $350,000; loans above that amount are subject to standard loan process, which can take up to 90 days. Celtic Bank has a history of being able to provide SBA funding within 45 to 60 days.
Celtic Bank Qualification Requirements
- Personal credit score: At least 650
- Time in business: At least two years
- Annual revenue: Be a small business as determined by the SBA
- Additional requirements: All paperwork required by the SBA’s loan requirements
The minimum qualification requirements for an SBA loan through Celtic Bank are standard with most SBA lenders (as with SmartBiz). While these requirements are more stringent than many of the providers we reviewed, they are very similar to the requirements for a loan from Fundation.
Celtic Bank Other Products Offered
In addition to SBA loans, Celtic Bank also offers a number of other financing options for businesses. Some of the financing products offered include USDA Business and Industry (B&I) guaranteed loans, asset-based lines of credit, term loans, and equipment financing.
How to Apply for Celtic Bank Business Loans
With Celtic Bank, you can complete your SBA loan application online. You’ll specify the amount you want to borrow and the intended purpose of the loan, along with submitting basic information about your business, such as how long you’ve been operating and your estimated credit score. If approved, you can receive funding in as quickly as 45 to 60 days.
Bottom Line
Fundation and its top competitors all offer similar short-term loan products for small businesses. The right loan option for your small business will be the one for which you are best qualified and that best meets your financing needs.
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