Why wouldn't I just go to a bank?
Your experience with Fundation will be very different than if you were to apply for a loan with a bank. Our risk tolerance is greater than a typical bank so we are far more likely to say yes to your application when a bank is more likely to say no. In addition, we only ask for a subset of the information that banks ask for and if approved, our customers are typically funded in as little as three days.
Is my information safe when applying online?
Our online loan application is highly secure. We do not sell any of your information and we take great care in protecting our customers' information.
How much money can I borrow from Fundation?
You can borrow up to $500,000. Of course, only those customers we determine to be at lowest risk are eligible for our larger amounts. In specific cases, we can lend up to $1 million, but this will require a more thorough review of the applicants use of proceeds.
What are the basic terms of a Fundation loan?
Our loans are available in one to four year repayment periods. Long-term loans are designed for borrowers who are looking to make long-term investments in their business like products or service expansion, hiring new employees, and capital improvements. These loans are available up to $500,000 with repayment periods of two to four year terms. We also offer our customers a shorter-term loan designed to help business owners with everyday operating costs of their businesses. These loans offer amounts up to $150,000 and repayment periods of one to two years. Both loan products have fixed interest rates starting as low as 7.99% with payments automatically debited from the customers account twice a month. There are no penalties for paying your loan back early.
What information will I need to provide?
We will ask you to provide information about you and your business, including your Social Security Number, your business’s Tax ID number, and some additional disclosures. Before final approval, we will ask you to also provide us with three months of bank statements and two years of business tax returns as well as conduct a short phone conversation to discuss your application with one of our credit specialists. We can gather your business tax returns and bank data electronically or you can send them to us.
What other information are you collecting and how do you collect it?
Our system allows us to collect your personal credit report, your business credit reports, and supplemental data including public records and personal and business verification information. We use this material along with your self-reported information to get a comprehensive view of your application and give you a preliminary decision within minutes.
When will I find out if I’m approved for a Fundation loan?
You will be given a preliminary decision during your online application. If we can capture sufficient data on you and your business, we can also provide you with real-time loan pricing online. After your application, our team will conduct an offline review of your application. If you were not provided with pricing online, our team will deliver our decision and pricing options after our review.
Can I refinance my loan?
For business expansion loans, we generally require good payment history for nine months before we allow customers to refinance. For one year loans, we generally require good payment history for six months before allowing customers to refinance. All customers are free to submit a request prior to that time and our credit review committee will evaluate your request.
If I am approved for a loan, when will I receive the money?
Generally we can move as fast as our customers. You will receive the money in your account as quickly as three days after submitting your loan application and within one day of executing your loan documents.
What are your rates?
Our rates start at 7.99%, however, your specific rate will depend on a variety of factors including the industry you are in, your personal credit history, and your business payment history. Each customer is different so the only way for you to know the rate we would give you is to apply.
If you are not a bank, how are you funded?
Unlike banks, our loan funding does not come from customer deposits. Private investment firms invested a significant amount of money in our company to permit us to fund and hold every loan with our own capital.
Is there any paperwork?
Generally we require three months of bank statements and two years of business tax returns. However, with your permission, our system can retrieve these documents directly from the IRS and your bank. This enables the entire process to be paperless. If you would rather send these documents to us yourself, that’s fine too. If you are approved for a loan, you will sign your loan documents online.
How do I make payments?
Payments are automatically debited from your business checking account twice a month. Electronic payments help to ensure you are not incurring late fees and allow us to provide you with an interest rate discount that will be reflected in your loan offer.
What happens if I prepay my loan?
We do not assess any fees for loans paid ahead of time. If you pre-pay loan principal, the term of your loan will be reduced and more of your future payments will be applied to principal as opposed to interest resulting in reduced number of payments.
Do you require any ongoing paperwork or reporting from borrowers?
No. We know what a hassle it can be to send your lender periodic financial statements and annual business and personal tax returns. If you are paying your loan on time why should we bother you? We require electronic payments twice a month and that is it!