Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
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Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
NerdWallet's content is
fact-checked for accuracy, timeliness, and relevance by humans.
It undergoes a thorough review process involving writers and editors to ensure
the information is as clear and complete as possible. Learn more by checking
our
Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Advertiser disclosure
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
or services. Here is a list of our partners .
Fundation - Line of credit
Overview
The bottom line:
Fundation stands out by offering business loans to companies with lower annual revenue than many competitors require, making it a good option for newer businesses still finding their footing. The ability to repay early without penalties is another plus, as it can help business owners save on interest. But, potential borrowers should weigh these benefits against Fundation’s relatively high credit score requirements and upfront origination fees. Business owners with strong credit may find more affordable options elsewhere.
Loan details
Min. Loan Amount
$10,000
Min. Term Length
12 months
Min. APR
20%
Max Loan Amount
$150,000
Max Term Length
24 months
Qualifications
Min. credit score
680
Min. Time in Business
12 months
Min. Annual Revenue
$50,000
Pros & Cons
Pros
Low revenue requirements compared with other online lenders.
No prepayment penalties.
Can be used to build business credit.
Cons
Higher credit score requirements than some other online lenders.
Charges origination fees, and a line of credit inactivity fee.
Not available in Hawaii, Massachusetts, Michigan, North Dakota, New Jersey, Nevada, New York, Ohio, Pennsylvania or Tennessee.
Fundation is an online lender that offers term loans and lines of credit for small-business owners seeking working capital. These small-business loans can be used to buy equipment, refinance existing debt, expand your business and more.
Its business line of credit provides up to $150000, repayable over a maximum of 24 months; while its term loan offers up to $500000 with a repayment period of up to 48 months.
Fundation is a subsidiary of Quantum Lending Solutions, a Virginia-based fintech company.
Fundation is best for borrowers who:
Want repayment flexibility: You can make payments on your loan either semimonthly or monthly, depending on the type of loan. Plus, there’s no prepayment penalty if you decide to pay off your debt early.
Have a fair credit score or better. To qualify for a Fundation term loan, you’ll need a credit score of at least 660, while a line of credit requires a minimum score of 680.
Don’t generate a ton in sales. Fundation lends money to business owners who bring in at least $50000 in annual revenue and have been in business for at least a year.
...
Fundation loan requirements
To qualify for a loan from Fundation, you’ll need to meet the following minimum requirements:
Credit score: 660 for a term loan; 680 for a line of credit.
Time in business: 12 months.
Annual revenue: $500000.
Fundation loan features
Fundation offers a business term loan and a business line of credit. Here’s what you can expect from Fundation's financing, based on loan type.
Fundation term loan
Loan amount
$10000 to $500000.
Estimated APR
Starting at 17.73%; average of 27.7%.
Fees
Origination fee of 5%.
No prepayment penalties.
Terms
12 to 48 months.
Repayment schedule
Semimonthly.
Funding speed
Pre-approval within three business days and processing in three to five business days.
Fundation line of credit
Loan amount
$10000 to $150000.
Estimated APR
Starting at 20.21%; average of 32.09%.
Fees
Origination fee of 3%.
No prepayment penalties.
$99 inactivity fee if no draws or payments are made in 12 months.
Terms
12 to 24 months.
Repayment schedule
Monthly.
Funding speed
Pre-approval within three business days and processing in three to five business days.
Your business must make at least $500000 in annual revenue in order for you to qualify for a term loan or business line of credit from Fundation. This minimum revenue requirement is lower than many other online lenders, some of which require $100,000 or more. This lower threshold can be especially helpful for newer businesses still working to establish a customer base.
Flexible repayment schedules
Fundation's term loan requires borrowers to repay their loan twice a month, while its line of credit offers the convenience of monthly payments. These repayment schedules provide greater flexibility compared with many other online lenders, which require weekly or even daily repayments.
Ability to pay debt early
With a Fundation term loan or line of credit, small-business owners can repay their debt early without incurring a prepayment penalty — something not all lenders allow. This can help lower borrowing costs, especially after a particularly strong month or quarter.
💬 From our Nerds: Repayment flexibility gives business owners breathing room
“The ability to make semimonthly or monthly payments gives small-business owners breathing room to manage their cash flow without the constant pressure of daily or weekly withdrawals. This flexibility can be very helpful for businesses with fluctuating revenue, making it a more manageable option than lenders that demand frequent payments.”
Ryan Brady, lead writer, Small Business
Where Fundation falls short
Limited availability
Businesses located in Hawaii, Massachusetts, Michigan, North Dakota, New Jersey, Nevada, New York, Ohio, Pennsylvania or Tennessee are ineligible for financing from Fundation. The company also doesn’t lend money to business owners operating within certain industries, such as car dealerships or some financial services. You can find the full list on its website.
High credit score requirement
Compared with other online lenders, Fundation’s minimum credit score requirements are a bit high. For its term loan, Fundation requires a credit score of 660 or higher, while borrowers seeking a line of credit must have a credit score of at least 680.
Upfront costs
Fundation charges a 5% origination fee for its term loan and a 3% origination fee for its line of credit. Business loan origination fees are upfront costs borrowers pay to cover the expense of processing a loan, but not all lenders require them. These fees add to the overall cost of a loan. Fundation says the average APR charged to applicants of its term loans is 27.7%, while the average for its line of credit is 32.09%.
Alternatives to Fundation
OnDeck
OnDeck is another online lender offering both term loans and lines of credit for general working capital. But unlike Fundation, it may accept borrowers with bad credit. OnDeck requires a minimum credit score of just 625, while Fundation requires at least 660 or 680, depending on the type of loan.
This makes it a good alternative for borrowers with slightly lower credit scores, however, you’ll also need at least $100000 in annual business revenue to qualify for financing from OnDeck.
Fundbox
Similar to Fundation, Fundbox also offers an online business line of credit up to $250000 for general working capital. Fundbox funds faster than Fundation and only requires $30000 in annual revenue and three months in business, but you’ll have to make weekly payments and probably pay a higher APR.