Fundation Fundation
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4.5 5stars

Fundation Review

Bottom Line:
Loans up to $500,000 for short-term or long-term growth; fixed rates with low APRs; seamless online application process; ideal for established businesses

Full Review:
Fundation is a direct lender that aims to provide fast loans with flexible payment options to businesses that banks are unwilling or unable to lend to. It offers competitive rates and collects as much information about you and your business as it can to try and find the best loan option to suit your needs.

Types of Loans Available

Fundation offers direct loans to small businesses, split into two categories: Term Loans and Lines of Credit. Term Loans are meant to be used for expansion, equipment and capital improvements, and can be taken for amounts of $20,000 to $500,000 with terms of 12 to 48 months. Lines of Credit are designed for working capital and short-term cash flow issues. These loans can be taken for $20,000 to $100,000, with the balance paid off in equal installments over 18 months. Fundation charges a 2% fee with each draw, and a $500 closing fee when the line is first opened. In special cases, Fundation can provide loans up to $1,000,000, but that requires a very thorough review and strict requirements.

The APRs for both types of loans can range from 7.99% to 29.99% and your rate will depend on your qualifications. Rates are fixed and no specific collateral is required, although a personal guarantee will be required and a "blanket" lien will be filed by Fundation on your assets. If you use your loan proceeds to purchase specific goods, a lien may be taken on only those goods instead. Fundation indicates on its website that it serves many industries, from child care and auto repair to insurance agencies and law firms. If you are concerned that your specific industry might not be accepted, you should contact Fundation.


In order to qualify for a loan from Fundation, your business must be at least one year old and earn a baseline of $100,000 in revenue a year. The business owner must also have a minimum personal credit score of 700. Fundation will require a mixture of personal and business information, including your business tax ID, your social security number, three months of business bank statements and two years of business tax returns. These documents can be submitted yourself, or you can allow Fundation's system to retrieve them directly from the IRS and your bank by providing the necessary authorization for it to do so.

Fundation looks at your personal and business credit reports, as well as supplemental data like public records to get a comprehensive picture of who you and your business are and whether you qualify for a loan from the service. Additionally, it's important to note that Fundation cannot lend to businesses in North Dakota, South Dakota or Nevada at this time.

Application Process

Fundation's online application is secured by Symantec, the company which produces Norton online security software. The initial application takes less than 10 minutes and will provide you with a preliminary decision — depending on how much information is provided initially, you may also be presented with real-time loan pricing. Fundation will review the information you submit, and within 24 hours a representative will reach out to request any additional necessary information and arrange a phone call with one of the company's lending experts.

Once your information has been reviewed and you have spoken with a lending expert, a decision will be made and you will be informed whether or not you've been approved for a loan. You can keep track of the process through your online portal, which is accessible 24/7. If approved, you will sign your documents online and receive your funds. The typical loan application and funding process takes between three and five days, depending on how quickly required information is submitted and documents are signed.

Repayment and Fees

Loan terms range from one to four years (12 to 48 months), depending on the type of loan and amount you borrow. Payments are made by automatic electronic transfer from your bank account twice per month for the duration of your term. Customers are encouraged to apply for a new loan or to refinance their current loan if necessary. One-year loans can be refinanced after six months of good payment history, while loans with longer terms can be refinanced after nine months.

Fundation takes an origination fee of up to 5% of your total loan proceeds at the time of disbursement. There are no penalties to pay your loan off early. Additionally, if you are late on or miss a payment, you will be charged a fee of 5% of the total amount due or $35 — whichever is higher.

Customer Support and Trustworthiness

Customers and applicants can reach Fundation by phone or email, as well as live chat. Business hours are Monday through Friday from 9 a.m. to 7 p.m. ET. The website is also informative with a FAQ section and multiple infographics that explain how loans work and answer common questions. We found Fundation's representatives to be responsive and knowledgeable, returning our email within the same day and answering all of our questions thoroughly on both live chat and phone calls without pressuring us to take out a loan.

Fundation has been in operation since 2012, and it is backed by a $4 billion private equity firm which supplies the funding for its loans. It is accredited with the BBB, and it has an A+ rating with the organization, which is a plus.


Fundation offers clear terms and a quick, painless application process. Established small businesses which meet the annual revenue and personal credit criteria will probably benefit from applying for a loan from this service, as it is reputable and offers options tailored to each applicant's specific situation.

Compare to Other Small Business Loans

If you have a question or concern we haven't answered on our site, please let us know. Your question will be added to the NextAdvisor Forums so that we and other experts in our community can answer it. Due to volume, we aren't able to respond to every question, but we answer as many as we can.

Service Details

Minimum/Maximum Loan Amount:$20,000 - $500,000+
APR:7.99% - 29.99%
Terms Available:12 - 48 months
Origination Fee:Up to 5%
Minimum Business Age Required:1 year
Minimum Annual Revenue Required:$100,000
Owner's Credit Rating:700+

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