SMALL BUSINESS LOANS REVIEWS
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Funderial Small Business Loans: 2024 Review

Written by
Sarah George
Edited by
Robert Thorpe

Updated Jan 10, 2024

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At a glance

3.8
Bankrate Score
Caret Down
Accessibility
Affordability
Customer experience
Transparency
Flexibility
How Bankrate Scores work Arrow Down

Overview

Founded in 2010, Funderial (previously known as Imperial Advance) offers business loans as a direct lender or through its marketplace of 40 partners. It focuses on short-term loans to borrowers of all credit types, and it has one of the lowest minimum credit scores among online lenders.

Lender Details

  • Moneybag

    Loan amount

    $3,000-$5 million

  • Rates

    Interest rate

    0.90% Simple interest | 1.19 Factor rate

  • Clock Wait

    Term lengths

    3 months-5 years

  • Dollar

    Min. annual revenue

    $100,000

  • Business

    Min. time in business

    2 months

Who Funderial is best for

Businesses with subprime credit can consider Funderial an option. The lender approves those with personal credit scores starting at 500, one of the lowest minimum credit score requirements we’ve seen. 

Funderial also works well if you’re a startup with at least two months in business and $100,000 in annual revenue. These requirements are low compared to many lenders that edge out brand new startups by requiring one to two years in business and $200,000 in revenue.

Funderial’s website doesn’t offer much information that can help small business owners make quick decisions. If you decide to apply here, make sure to compare multiple offers with other lenders to make sure you’re getting the best option.

Who Funderial may not be best for

Businesses with strong credit will likely find better terms elsewhere since Funderial may charge high fees. For example, some loans charge a factor rate of 1.19 to 1.45. Factor rates are typically reserved for high-risk loans open to borrowers with bad credit and are known for translating into a high interest rate.

Funderial: in the details

Loan amount
$3,000-$5 million
Interest rate
0.90% Simple interest | 1.19 Factor rate
Term lengths
3 months-5 years
Fastest funding
24 hours
Min. annual revenue
$100,000
Min. time in business
2 months
Personal credit score
500

Funderial pros and cons

Pros

  • Checkmark

    High loan amounts

  • Checkmark

    Bad credit and startups welcome

  • Checkmark

    Available in all 50 states, Puerto Rico and Canada

Cons

  • Potentially high rates and fees

  • Excessive funding amounts

  • Limited website information

Business loan types offered

Funderial lists multiple types of business loans on its website, including term loans, business lines of credit and merchant cash advances. But it doesn’t offer any details to explain the features for each loan. 

The website states that it’s possible to get loans up to $5 million with terms up to 10 years.

Overall, Funderial provides mixed information about the loan sizes and repayment terms you can get. It’s difficult to find information about its loans in one place on the website. And representatives may give different answers for loan details than the few details found online. You’ll need to verify what your business specifically qualifies for with this lender before making a decision. 

Loan quick facts

  • Amounts: $10,000 to $5 million
  • Terms: 6 months to 5+ years
  • Factor rate: 1.19 to 1.45

Funderial term loan overview

Businesses need a minimum of one year to qualify for the term loan, which is common for lenders. Its website states that it funds up to $5 million with terms as up to five years or more.

While a high loan amount gives your business extra capital to work with, you want to make sure that you can handle the monthly payments. Since Funderial focuses on short-term loans, you’ll have to compare other lenders if you need longer terms.

 

Loan quick facts

  • Amounts: Up to $2 million
  • Terms: 18 to 24 months
  • Interest rates: Not stated

Funderial revenue-based financing overview

Revenue-based financing is a cash advance using your business’s accounts receivables to secure funding. While Funderial’s website states that you can get funding up to $5 million, a spokesperson stated that its highest loan size is $2 million. 

It also doesn’t state whether you can get factoring options. For example, invoice factoring sells unpaid invoices to a factoring company that then advances you cash and collects payments directly from customers.

Loan quick facts

  • Amounts: $5,000 to $500,000
  • Terms: 12 months
  • Factor rates: 1.19 to 1.45

Funderial merchant cash advance overview

Your business can qualify for a merchant cash advance with as little as six months in business and a personal credit score of 500. The merchant cash advance forwards money based on the amount of sales you get from credit or debit card purchases or other sales. 

Funderial offers flexible repayments either as a fixed payment or percentage of sales. But fees tend to be high for MCAs, so it should be used as a last resort.

Loan quick facts

  • Amounts: $10,000 to $250,000
  • Terms: 6 months to 2 years
  • Simple interest: 0.90% to 15.00%

Funderial business line of credit overview

Businesses can add a line of credit to their loan portfolio when they secure other funding through Funderial. According to a spokesperson, the lender offers credit limits up to $250,000, standard borrowing amounts compared to other business lines of credit. But the website states you can get a line of credit up to $100,000, which is a low limit. 

You need a minimum personal credit score of 550 and one year in business to qualify, slightly higher than its other loans but still a low requirement.    

Its starting interest rates are competitive, but Funderial doesn’t disclose the annual percentage rates (APRs) which would give you a picture of interest plus loan fees.

Imperial Advance states it offers many different loan options specialized to different businesses and purposes. Those include:

  • Bridge loans
  • SBA loans
  • Working capital loan
  • Purchase order financing
  • Inventory loans
  • Equipment financing
  • Business expansion or acquisition loans
Lightbulb

Bankrate Insight

To get a rough idea of your payments when dealing with a loan that has factor rates, you’ll have to first convert the factor rate to an annualized interest rate. Then, use a business loan calculator to calculate your monthly payments. Your exact payment will look different because factor rates don’t include fees like an annual percentage rate (APR) does.

Do you qualify? 

Funderial is one of the most accessible lenders available. It accepts bad credit businesses and startups and serves all 50 states and all industries. Most lenders require minimum credit scores in the 600s and may exclude certain states or industries like gambling. 

Its loan requirements include:

  • Minimum personal credit score of 500 
  • Minimum annual revenue of $100,000
  • Must have at least 51 percent ownership 
  • Minimum time in business of 2 months to a year

What we like and what we don’t like

Funderial could be a stomping ground for nearly any business, but it charges potentially high fees and comes with other disadvantages.

What we like

  • High loan amounts. Its business term loan reaches up to $5 million as long as you qualify. 
  • Multiple business loan options. Funderial caters to a variety of businesses and purposes. It includes options like accounts receivable financing that not every lender offers.
  • Bad credit and startup businesses welcome. With a minimum credit score of 500 and time in business of six months to a year, not many businesses won’t qualify. 
  • Available in all 50 states, Puerto Rico and Canada. Unlike many lenders that exclude some states, Funderial reaches across the entire U.S and then some.

What we don’t like

  • Potentially high rates and fees. Some of its loans charge a factor rate, which doesn’t give a full picture of loan fees and typically translates to high interest. 
  • Some loans offer excessive funding. Businesses can borrow up to 250 percent of monthly revenue with term loans. Borrowing more than your business can comfortably manage could lead to financial strain or a default later. 
  • Mixed loan information. There are discrepancies across the website on its exact loan sizes and repayment terms. And you have to call to get details not provided there.

How Funderial compares to other lenders

Funderial is one of the most accepting lenders available, approving loans for many credit types and industries. You can compare its loan options and features with similar online lenders.

3.8

Bankrate Score

  • Loan amount

    $3,000-$5 million

  • Interest rate

    0.90% Simple interest | 1.19 Factor rate

  • Term lengths

    3 months-5 years

  • Min. time in business

    2 months

  • Min. business annual revenue

    $100,000

4.6

Bankrate Score

  • Loan amount

    $1,000-$10 million

  • Interest rate

    4.63%-60.00%

  • Term lengths

    3 months-25 years

  • Min. time in business

    6 months

  • Min. business annual revenue

    $50,000

Read our review Arrow Right

on Bankrate

4.4

Bankrate Score

  • Loan amount

    $10,000-$10 million

  • Interest rate

    5.25% APR

  • Term lengths

    6 months-25 years

  • Min. time in business

    6 months

  • Min. business annual revenue

    $100,000

Read our review

on Bankrate

Funderial vs. Lendio

Like Funderial, Lendio is a lender marketplace, but with 75+ lenders instead of Funderial’s 40 partners. Both accept risky borrowers and startups, though bad credit borrowers won’t qualify for Lendio’s term or equipment loans. 

Lendio requires a lower annual revenue of just $50,000, and its interest rates are lower than Funderial's fees. Funderial funds a tad more quickly with 24- to 48-hour turnarounds, while Lendio can take 48 to 72 hours.

Funderial vs. SMB Compass

Both Funderial and SMB Compass offer conventional and alternative financing. Funderial caters to borrowers with lower credit scores than SMB Compass. Funderial accepts scores as low as 500, while SMB Compass starts at 600 (though a spokesperson said it can go as low as 550). 

SMB Compass offers higher loan amounts in the millions of dollars for each loan type. But not every business will meet its revenue standards for some loans. For example, its term loan requires $500,000 in annual revenue, while its business line of credit requires $100,000. Funderial requires just $100,000 across the board.

How to apply for a loan with Funderial 

You can apply for a loan online with a minimal amount of information, or call a specialist at 1-888-633-2083, Monday to Friday from 9 a.m. to 6 p.m. Funderial doesn’t require you to document how you use loan funds. 

The basic information you need to apply includes:

  • Business name
  • Business phone number
  • Desired funding amount
  • Financial statements, such as bank statements and balance sheet

Funderial Frequently asked questions

How Bankrate rates Funderial

Overall Score 3.8
Accessibility 4.9 Funderial accepts businesses with a risky credit history from any industry.
Affordability 3.5 Some loans charge factor rates that can easily equal high interest rates of 50 percent or more.
Transparency 2.8 It doesn’t provide many loan details online.
Customer experience 3.9 The lender doesn’t offer an online account or app to manage your loans.
Flexibility 3.7 While Funderial offers a variety of loans, some have short repayment terms from six months to two years.

Methodology

Clock Wait
47
years in business
Credit Card Search
30+
lenders reviewed
Loan
22
loan features weighed
Rates
770+
data points collected

To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 30 lenders and gave each a rating, which consists of five categories:

  • Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
  • Affordability: This section measures interest or factor rates and fees.
  • Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
  • Customer experience: Customer service hours, online applications and app availability are considered in this category.
  • Flexibility: This category considers factors like the number of loan products and ability to change payment due date.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

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