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Fundation Review: Pros, Cons, and How to Apply

Note: Fundation paused business lending in October 2020. This review covers the services it offered before the pause.

Fundation is known for its innovative approach to providing financial solutions. The company has a solid ability to work on innovative solutions for clients, creating products that cater to specific needs. For instance, they have developed unique financial services tailored to small businesses.

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Fundation’s team of experts in the financial services industry has been able to develop innovative products and services that address the specific requirements of their clients. They have a solid background in understanding the challenges small businesses face and have designed their offerings accordingly.

This review covers the benefits, drawbacks, and application process to help you decide if Fundation is right for your business. Specifically, we’ll answer these questions and more:

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    What is Fundation?

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    Fundation is a Virginia-based online business lender that offers various small business loans. Their lending rates are similar to those provided by community banks, making them an attractive option for small businesses needing financial assistance. However, as of October 2020, Fundation paused its business lending operations.

    Fundation’s temporary halt on lending has impacted the financial services industry, leaving many small businesses searching for alternative funding sources. Prior to this pause, Fundation provided different types of business loans tailored to meet the diverse needs of small enterprises.

    Fundation’s decision to suspend its lending activities highlights the challenges both lenders and borrowers face within the small business lending landscape. Small businesses rely heavily on access to capital from lenders like Fundation, and any disruption in these services can have significant implications for their operations and growth prospects.

    With a robust background in the financial sector, Fundation has established itself as a reliable player in providing financial solutions. Their profile showcases extensive experience and expertise in catering to the diverse needs of companies seeking funding options.

    The folks at Fundation are known for their commitment to delivering top-notch services that align with their clients’ goals. Despite no longer offering business loans, when active, they were recognized for developing cutting-edge financing options that stood out in the market.

    How do Fundation business loans work?

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    Fundation is known for offering business term loans and a business line of credit. These financial services are designed to cater to the needs of various businesses, helping them manage their cash flow, make investment decisions, and grow their operations.

    Business Term Loan

    • Amount: $20k – $500k.
    • Terms: 1 – 4 years.
    • Interest Rates: 8% – 30% APR.

    Fundation term loans are a flexible financing option for small businesses, offering loan amounts ranging from $20,000 to $500,000 with repayment terms of 1 to 4 years. These loans are designed to help businesses with various needs, such as expansion, equipment purchases, or working capital. Fundation offers competitive interest rates and a streamlined application process, making it easier for businesses to access the funding they need to grow and thrive.

    Business Line of Credit

    • Amount: $20k – $150k.
    • Terms: Up to 18 months.
    • Interest Rates: 8% – 30% APR.

    Fundation offers business lines of credit that provide flexible access to funds for various business needs. With credit limits up to $150,000, businesses can draw funds as needed and only pay interest on the amount borrowed.

    Fundation’s lines of credit are designed to help businesses manage cash flow, cover unexpected expenses, or take advantage of growth opportunities. The application process is streamlined, and companies can receive funding in as little as one business day.

    What are the qualifications for Fundation?

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    When applying for a Fundation business loan, the qualifications depend on your credit profile and financial needs. Each product has different requirements.

    Fundation Term Loan:

    • Credit score: 600+.
    • Time in business: 2 years.
    • Minimum annual revenue: $100k.

    Fundation Line of Credit:

    • Credit score: 660+.
    • Time in business: 1 year.
    • Minimum annual revenue: $100k.

    In addition to the above requirements, applicants must have a business bank account with an average minimum balance of $2,000. Businesses must also have a minimum of three employees (can include the business owner). The lender doesn’t work with business owners who’ve filed for bankruptcy in the previous three years.

    For Fundation, You Need to Know That:

    Fundation requires individuals to understand their capital and credit information well. This means knowing how much money they have available for investment or borrowing and being aware of their credit score and financial history. Without this knowledge, it can be challenging to determine the best financing options that Fundation offers.

    The company’s eligibility criteria often include specific requirements related to the capital and creditworthiness of potential borrowers. For instance, individuals with a higher credit score may qualify for lower interest rates or more significant loan amounts. On the other hand, those with limited capital or weaker credit profiles might need to explore alternative solutions or work on improving their financial standing before approaching Fundation.

    Fundation restricts specific industries, including:

    In addition, Fundation is unavailable in the following states:

    • Nevada.
    • Vermont.
    • South Dakota.
    • North Dakota.

    The lender charges a 5% origination fee on business loans. Late payments may incur an additional fee. Borrowers are required to sign a personal guarantee, and Fundation places a UCC blanket lien on business assets.

    It’s unclear if Fundation had a business loan affiliate program. However, as it no longer offers funding, ISOs and business loan brokers must partner with other lenders or lending marketplaces.

    How to apply to Fundation:

    loan, agreement, signature

    As a reminder, Fundation has paused business lending. Here’s how the application process worked before the pause.

    Step 1: Submit an Application

    The process starts with submitting an online application. Completing the application only takes a few minutes. At this point, Fundation performs a soft credit pull, which won’t affect your credit.

    Step 2: Submit Documentation

    If your application passes the initial screening, Fundation will move on to underwriting. You may have to submit additional documentation, including three months of business bank statements. If applying for more than $100k, you must provide:

    • Six months of business bank statements.
    • Business tax returns for the previous two years.
    • Financial statements such as your profit and loss statement, balance sheet, and debt schedule.

    Step 3: Complete Underwriting

    Your documents get sent to the Fundation’s underwriting team to finish the process, which can take up to 24 hours. The lender will conduct a hard credit pull at this time, which could impact your credit score.

    Step 4: Finalize Your Offer

    You’ll receive a finalized offer once your application passes underwriting. Fundation will call you to review the loan details if you apply for more than $100k. Otherwise, you’ll receive an email that the loan is finalized.

    Step 5: Receive Funding

    Once you accept an offer, the funds will appear in your business bank account within 24 hours. The entire process, from the initial application to funding, can be completed in 2-3 business days but might take up to 30 business days.

    Fundation, Post Funding:

    cash, flow, cash flow

    Fundation term loans have two payments due per month, while the line of credit has a monthly payment. All payments are automatically debited from your business bank account.

    Payment schedules are either on the 1st and 16th or the 8th and 23rd of the month. Borrowers get access to an online portal to track the loan status, including how much is left to pay and the due date(s). In addition, approved business owners are paired with a customer success manager to assist with the repayment process.

    There are no prepayment penalties, and the lender charges an APR, so you can potentially save on interest by paying the loan off early. You may become eligible for renewal nine months after applying and have five days to accept any renewal offers.

    What are the advantages of Fundation?

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    Fundation offers a streamlined online application process, allowing businesses to apply for a loan in minutes and receive a decision within hours. The lender has competitive interest rates, making their business loans more affordable for small and medium-sized businesses.

    It provides flexible loan terms, allowing businesses to choose the best repayment schedule for their cash flow and financial situation. Fundation prides itself on providing personalized customer service, with dedicated loan specialists available to guide businesses through the lending process and answer any questions.

    Small businesses can use the company’s line of credit and term loan products for a wide range of purposes. There are no prepayment penalties, so borrowers can save on interest costs with early payment.

    What are the disadvantages of Fundation?

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    While Fundation business lending has its advantages, it also has disadvantages. Some drawbacks of using Fundation for business lending include higher interest rates compared to traditional bank loans, shorter repayment terms, and stricter eligibility criteria.

    Some businesses may find the application process more complex and time-consuming than anticipated. Fundation’s loan amounts may not always meet the needs of larger businesses, limiting their options for financing. It’s important for business owners to carefully weigh these disadvantages against the benefits before pursuing a loan from Fundation.

    Fundation Pros & Cons

    weigh up, plus, minus


    • Streamlined online application process.
    • Competitive interest rates.
    • Flexible loan terms.
    • Personalized customer service.
    • No prepayment penalties.


    • Higher interest rates compared to traditional bank loans.
    • Shorter repayment terms.
    • Stricter eligibility criteria.
    • Limited loan amounts for larger businesses.

    Apply for business funding through United Capital Source today.

    Fundation Frequently Asked Questions

    Is Fundation legit?

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    Yes, Fundation is a legitimate company. It’s Better Business Bureau (BBB) accredited with an A+ rating. While the company no longer offers direct business loans, it combined with ODX to form Linear Financial Technologies. The company focuses on embedded credit solutions and delivery technology, enabling banks, non-bank originators and B2B clients to better serve their clients with verticalized software platforms. It has also merged with Camino Financial to form a business lender for small and medium-sized businesses (SMBs).

    What do Fundation reviews typically focus on?

    feedback, group, communication

    Not many user reviews are available for Fundation, likely due to its pause on lending. It has a 2.6 rating on four Trustpilot reviews and no BBB reviews. The lender has mixed customer experience reviews on other sites as well.

    Positive reviews for Fundation business loans often focus on the quick and efficient application process, competitive interest rates, and excellent customer service. Many customers appreciate the flexibility of the loan terms and the transparency throughout the borrowing process.

    Fundation’s willingness to work with small businesses and their dedication to helping them grow is often highlighted in positive reviews. Customers frequently praise Fundation for their reliable and trustworthy business loan options.

    Negative reviews for Fundation business loans often focus on high interest rates, hidden fees, and poor customer service. Customers have reported feeling misled by the terms of the loan and frustrated with the lack of transparency.

    Many have also expressed dissatisfaction with the application process, citing long wait times and cumbersome paperwork requirements. Negative reviews tend to highlight issues with the cost and overall experience of obtaining a business loan from Fundation.

    What are my alternatives to Fundation?

    doors, choices, choose

    While Fundation has halted business lending, many lenders are available to service the financing needs of businesses. Many offer business term loans, as they are one of the most common forms of business funding. There are many options for business lines of credit as well.

    You may also be interested in the following small business loans:

    Making Your Decision

    path, feet, shoes

    Fundation offers solutions for businesses looking for quick access to capital. The application process is streamlined, providing a faster return on investment.

    On the downside, some users have reported limited options in terms of business loans, as Fundation primarily offers term loans and lines of credit. Furthermore, there may be stricter eligibility criteria compared to other lenders.

    Unfortunately, the company no longer offers business financing products. However, we rate Fundation as a 3 out of 5 based on its offerings before the pause.

    Disclaimer: The Fundation trademark is owned by Fundation Group, LLC., and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Fundation Group, LLC.

    Apply for business funding through United Capital Source today.

    Why Choose United Capital Source?

    Why businesses choose UCS:

    Quick funding options that won’t affect credit
    Access to 75+ lenders with multiple products to choose from
    Financing up to $5 million in as few as 3 days
    1500+ 5 star reviews from happy clients!

    Ready to grow your business? See how much you qualify for:

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        At UCS, we understand the value of your time and want to ensure that your application has a great chance of approval. Please take note of the following details before applying:
        • To be eligible, it’s necessary to have a business bank account with a well-established U.S. bank such as Chase, Wells Fargo, Bank of America, Citibank, or other major banks. Unfortunately, online-based bank accounts like PayPal, Chime, CashApp, etc., are not permitted.
        • When describing your current average monthly sales deposits to your business bank account, please provide accurate information. Our approval process is based on your current business performance, and it’s essential to provide accurate details about your current sales in the first question on the application form. We cannot approve applications based on projected revenues after receiving funding.
        We appreciate your understanding and cooperation in ensuring a smooth and successful application process.
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