Fundation Overview
Fundation is a direct online lender providing loans up to $500,000 to small and medium-sized businesses for operating costs. The company offers transparency on fees, including up to 5% origination fees on term loans. There are no prepayment penalties.
Understanding Business Loans
Choosing the right business loan is crucial for success. Consider unique needs and goals, research thoroughly, and consult experts. Various loan options are available, such as bank loans, SBA loans, online lenders, equipment financing, personal loans, and crowdfunding.
Loan Terms and Eligibility at Fundation
Fundation offers loans outside the SBA’s 7(a) program, with loan products tailored to credit criteria. The lender sets high borrower standards and provides medium- and long-term installment loans and lines of credit ranging from $20,000 to $500,000. Additional documentation is necessary for loans above $100,000.
Types of Fundation Loans
Fundation provides technology-driven small business loans, focusing on building relationships with borrowers. Loan options include short-term working capital loans, overdraft facilities against collateral, and loans for business purposes like equipment, leases, and improvements. Loan types determine interest rates and terms.
Self-Dealing and Loan Scenarios
Self-dealing in loans occurs when a disqualified person offers a below-market loan to a foundation. This can also happen when a third party assumes a foundation’s mortgage. Any unpaid amount is considered a loan to the disqualified person.
Understanding Funded Loans
Fundation’s loans support small businesses, offering transparent terms with no prepayment penalties. Loans are designed for covering operating costs, not large projects. The company was founded in 2011 to assist small businesses during challenging banking times.
Exploring Fundation’s Services
Fundation partners with leading banks to deliver loans. While customer reviews are limited and the website may need improvement, the company’s interest rates are considered reasonable for its versatile loan offerings. Complete Fundation’s pre-screen application to evaluate if their loan products align with your business needs.
Fundation’s Borrower Standards
Fundation maintains high borrower standards and requires thorough documentation for loans above $100,000. Loan amounts and terms are determined based on the borrower’s success and needs. Short-term working loans cater to daily business requirements, with an origination fee applicable.