Fundwise Capital Review
Fundwise Capital helps startups and small business owners secure the best funding they can qualify for, guaranteed. Receive better rates and higher funding amounts than you can anywhere else with our competitive loan marketplace.
As Seen On:
Terms and Fees | Excellent
Application Process | Good
Products | Excellent
Sales and Advertising | Good
Customer Support | Excellent
Reviews and Testimonials | Excellent
Fundwise Capital At A Glance
Fundwise Capital is a financial service company based in Utah. Fundwise does not lend directly to businesses; they specialize in assisting new and established companies to find funding. Fundwise connects qualified customers, such as startup businesses, real estate investors and established business owners with third-party lenders by using their Lender Matching Platform. The platform assists customers in finding the best financing for their business.
Fundwise is known as an alternative financing company. They work with third-party lenders who issue business loans and funding beyond the conventional forms and look past standard measurements of success. Alternative business financing makes it simple for a growing business to acquire the working capital they need.
How does Fundwise make money? They make their money from fees charged to clients, Fundwise partners, and their credit counseling program.
Table of Contents
Financing Solutions: Terms and Fees
Term Loans (Installment Loans)
Borrowing Amount: $25,000 - $300,000
Term Length: 3 - 7 years
Interest Rate: 0% - 15% on first 9 -15 months
Other Fees: $500 + 9% approval fee
APR: 6% - 23%
Term loans provide a lump sum of cash. To repay it, a borrower agrees to make consistent, regular installment payments for the contracted period until the loan obligation, plus interest is complete. These kinds of loans are ideal for businesses that are looking to make major purchases. Term loans are often a company’s choice if it requires equipment for a specific business or if a building needs renovating.
Fundwise can connect you with term loans that range from 3-7 years, accrue interest over time, and the borrower pays monthly. Fundwise will also negotiate with lenders on behalf of their startup clients to get them to offer them an initial lower interest rate for potentially up to two years. On top of the savings a business will earn from a lowered interest rate, Fundwise’s term loans are unsecured. So a business owner does not need collateral to apply for these types of loans.
Merchant Cash Advance (MCA)
A merchant cash advance is ‘technically’ not a loan. Merchant cash advances are business funding options that require a business to settle an advance loan with a portion of daily credit card transactions. This business financing option provides a thriving business the capital it needs to keep the business growing.
Business Line of Credit
Credit Limit: $25,000 - $300,000
Term Length: 6 - 18 months
Interest Rate: 0% for 9 - 15 months, 1% - 2%/month after
Other Fees: $500 + 9% approval fee
APR: 0% for 12 months
In terms of business lines of credit, a company will receive a specific amount of money available to them as often as they pay it back. Small businesses acquire this type of funding when they want help with their cash flow. A business line of credit is also an excellent financing option when a company needs to pay vendors or staff. It will also provide them with an opportunity to increase their credit score while receiving funding. In terms of interest, you usually only pay interest on the amount borrowed.
With Fundwise, you have the option of acquiring a line of credit for personal or business. Your choice will depend on whether you have an existing business or your company has been around long enough to have the correct and updated business records.
A line of credit is an arrangement by a lender to grant a business or person a fixed amount of money, also known as the credit limit. What separates a line of credit from other loan types is that you will not receive the money in a lump sum. Rather, as long as what you borrow does not go beyond your credit limit, you’ll be able to withdraw capital at your discretion and at whatever amount you need. One benefit is, you are only required to pay back the money that you use. Fundwise provides companies with the options of revolving and non-revolving lines of credit. A revolving line of credit is much like a credit card in that the payments you make on the line of credit balance frees up that portion for you to use again.
A Fundwise line of credit offers new business owners several attractive benefits, such as 0% interest for a year or more. Another advantage is that the lines of credit are unsecured, meaning no collateral is required when applying. And finally, there’s no restriction on how you utilize the capital.
Business Credit Cards
Fundwise can assist in getting your business set up with a business credit card. Using credit cards to pay off early business expenses is not a good idea, especially if you allow a balance to remain on your card. A balance on a credit card can cause fees to accumulate on you. This type of funding is better suited to finance short-term expenses that can be paid off quickly and the interest eliminated.
Understanding a business credit card’s grace period is essential because most grace periods are at least 21 days. In other words, if you pay off your credit card balance within that 21-day time frame, then you will not have to pay any finance charges. Grace periods will not apply to cash advances.
You’ll need to remember that business credit cards have annual fees, be sure to factor that into your calculations. Some banks will often waive the first year’s fees when you open a new card account. Most cards have an APR of 15% to 26%. The business credit cards Fundwise offers have 0% introductory annual percent rates on purchases and balance transfers.
Funding Options Offered by Fundwise Capital
Alternative Business Financing
A small business loan is a wise investment for the future of your business. The best business loans ignite growth for your company without the hassle so that you can have fiscal flexibility for your everyday operations. The right funding source will cover business expenses to keep your business operating… Learn More…
Business Startup Capital
Fundwise’s Lender Matching Platform gets you the best startup funding. If you operate or are planning to operate a startup, you might need financing, either to get up and running or for growth. But because you’re a startup and not an established business, your chances of qualifying… Learn more…
Heavy Equipment Lending
Your business will not succeed without the right equipment. From heavy equipment like excavators to large medical hardware and restaurant equipment such as ovens, having the right equipment you need is a vital part of your business success. Learn more…
Medical Practice Funding
As a medical practitioner, your patients are a top priority. Having updated medical equipment, appealing office space, and trained medical staff is vital to providing your patients with exceptional care. These elements for operating a thriving medical practice require a considerable investment. Learn more…
Application Process: How To Apply For Funding
The application process for Fundwise starts online, similar to other business funding programs. You will fill out an application and provide information about your business and other pertinent information necessary to receive funding. One difference with Fundwise is that they require you to open a credit monitoring account and ask for your credit inquiry results. Your credit history is vital in this instance, and doing this is better than doing a hard pull on your credit. Depending on the type of funding you’re applying for, you may also be required to show proof of income. Once approved for funding, the waiting time to receive the money is between 7 and 14 days.
Ready To Apply? It’s fast, easy, and only takes a few minutes. There’s no obligation.
Sales, Marketing and Advertising Transparency
There isn’t too much information on the Fundwise website beyond their services and a little basic “About Us” information. It would be better if they would delve more into their services and how everything works. However, their website provides enough information for potential clients to get a general idea of the funding products that Fundwise offers.
The reason why there is not a lot of information listed on Fundwise’s corporate website is because they work with affiliate partners across the nation. This website (MicrowaveVentures.com) is owned and operated by a Fundwise affiliate. This allows Fundwise Capital to get their message out to the masses faster, acquire more reputable lenders, and most important, this allows them to focus on what they do best, getting business owners, like you, the best funding possible.
Fundwise Capital Customer Support
You can engage with Fundwise by email, phone, or through their social media accounts. Fundwise does not end their relationship with you after you receive funding, like other lenders or traditional banks. Once you receive your funding from Fundwise, they will work with you to provide financial tips and solutions to help you best utilize the capital you received.
Fundwise offers its own paid credit counseling service called “Fundwise Optimize” to help businesses qualify for more funding. The reviews of their customer service are mainly positive.
Fundwise Capital Reviews and Testimonials
Although Fundwise Capital is not an accredited business with the Better Business Bureau (BBB), they have an A+ rating with the BBB. With the BBB, Fundwise has 46 customer reviews, 13 complaints and holds a rating of 4.87 out of 5. You can read some of the negative reviews below:
- Advertising Concerns: Many of the complaints are from customers who believed or had an understanding that they would qualify for more financing than they were.
- Complex Qualifying Standards: Because of Fundwise’s credit requirements, many potential customers may not qualify to receive funding.
- Marketing/Communication Issues: Some customers were not excited about how Fundwise markets their Optimize program. They believe Fundwise entices customers with the promise of receiving funding only to be pressured into joining Optimize. The Fundwise Optimize program helps increase a customer’s chance of getting the capital they need for their business.
On Trustpilot, 241 customers have written reviews for Fundwise Capital. They have an Excellent rating, 4.7 out of 5, with most of those reviews (82%) being positive. Below you’ll find some customer experiences:
- No Affect On Credit: Applying for Financing through Fundwise Capital does not affect your credit score, they avoid hard pulls, and there’s no obligation for you to accept the capital.
- Fast Turnaround: Unlike the traditional lending resources such as banks, Fundwise Capital is quick and efficient and works hard to connect its customers to a lender who fits them.
- Excellent Customer Support: Customers feel that the Fundwise staff’s guidance throughout the funding process was helpful. They were available when they had questions, even after they received funding.
What Fundwise Capital Customers Are Saying
Fundwise Capital has several benefits, and it also has some drawbacks. They have been an alternative lending resource to many companies, and several would not have been able to get funding from a traditional lending resource. The review I presented above should have provided you with enough information to help you determine whether applying for financing through Fundwise Capital is the right decision for your business or not.
One thing I admire about Fundwise Capital is its funding option for business startups. Not many traditional business lenders will work with a startup because of the risk of the business not being established. Fundwise was once a startup and understands what it’s like not getting approved for financing from banks. It’s also great that they have this flexibility with their small business lending partners to offer this service.
I will say, though, that the 7-14 day funding time is slow, but it’s still a good turnaround for funding a startup company.
I like that Fundwise offers business credit cards, lines of credit, and installment loans to business owners; those options allow owners to have better control over their cash flow. One benefit for business owners who do not have many assets is that the funding offered through Fundwise is unsecured.
There are some aspects of Fundwise that I will suggest you do your due diligence. Prepare yourself for the fees. The financing fees are not anything new; any funding you receive approval for even outside of Fundwise will have loan fees. Lastly, the credit monitoring/counseling can only benefit you, but if it’s not for you, do not participate because Fundwise will try to upsell you on those services.