Fundation Business Loan Review 2025
Full Review
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.Â
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
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.
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 |
|
|
Estimated APR |
Starting at 17.73%; average of 27.7%. |
|
Fees |
|
|
Terms |
|
|
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 |
|
|
Estimated APR |
Starting at 20.21%; average of 32.09%. |
|
Fees |
|
|
Terms |
|
|
Repayment schedule |
Monthly. |
|
Funding speed |
Pre-approval within three business days and processing in three to five business days. |
Where Fundation stands out
Low annual revenue requirements
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
đź’¬ 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
660
or higher, while borrowers seeking a line of credit must have a credit score of at least
680
.
Upfront costs
Alternatives to Fundation
OnDeck
OnDeck – Line of credit
625
, while Fundation requires at least
660
or
680
, depending on the type of loan.
100000
in annual business revenue to qualify for financing from OnDeck.
Fundbox
Fundbox – Line of credit
150000
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.
link
