This review of Funda will help you to better understand the Australian SME lender, Funda business loans. We look into the history of Funda, including when Funda launched and the growth it has enjoyed. We delve into the different lending solutions offered by Funda and we understand what’s required for businesses to be eligible for a Funda business loan. Read on for the full Funda review and learn if they’re a good fit for your financing requirements.
|📝 ABN:||14 161 568 994|
|📝 Credit License:||437240|
|💰 Loan Amount||$5,000 – $250,000|
|⏲️ Loan Term||3 months – 5 years|
|💸 Unsecured Loans?||Unsecured Loans are Available|
|⌚ Lender Requirements|
|📃 Required:||Driving License Number|
Your ABN Business Number
|⏱️ Response Time:||Loan assessed in under 12h or receive no interest on your first month borrowing.|
|🌝 Easy to Apply:||Yes, fully online (expedited applcation here)|
|💌 Online Reviews:||None found online|
|🏆 Awards and Recognition:||None to date|
|💳 Minimal Interest Rates:||Starting at 2% per month, Funda believes this is up to 50% cheaper than other non-bank lenders|
|⚖️ Compare Funda||Compare Funda with 20+ Australian Lenders on Lend.com|
|Review Table of Contents|
Overall Rating: ⭐⭐⭐⭐
Company Story & Credibility
Funda Business Loans (originally called Fund Finance Partners) has a bold vision for small and medium sized businesses in Australia. Funda aims for a future where SME’s can take back control from lenders feasting on their assets. Where business owners are free to focus on growing their business and spend less time on raising capital. Funda is acutely aware that if someone starts their own business, it’s because they love their trade, not because they love dealing with complex financing arrangements.
Operating out of Newcastle, Funda is a finance company that’s only focused on small business. Operating nationally, the firm has been around since 2013 offering small business loans and helping clients cover their outstanding invoices.
Funda sets out to be a finance partner, not just a lender. By offering faster access to loans with fairer terms (including borrowing for up to five years) Funda has policies and practices that stem from their core values – to help businesses reach their potential.
Funda was co-founded by Nathan Wright and Mark Owen. Nathan Wright is the CEO of Funda. As a leading finance partner in Australian business lending, Nathan is responsible for Funda’s innovation, strategy and investor relations. An experienced company director, with a background in finance, Nathan understands the needs that small businesses have for faster and fairer funding options.
In July 2020, Funda rebranded from “Funda Finance Partners” to “Funda Business Loans”. As an organisation that likes to get straight to the point, Funda felt the change of name would provide more clarity as to what Funda does and the reason they exist – and we agree!
Credibility Score: ⭐⭐⭐⭐
What Finance Options Do Funda Offer?
Considering Funda is a small business in itself, Funda offers an impressive five different types of business lending solutions. This includes:
Business Loans ranging from $5,000 – $250,000. Funda is faster and more personal than a bank and provides fairer and more manageable interest rates than most other non-bank lenders (starting at 2% per month). Crucially, Funda offers one of the market’s leading repayment terms of up to five years, instead of the typical 12/24 months, which can make a huge difference to a businesses cash flow.
Up to $20,000. Specifically designed for speed, lightning loans involve less paperwork and require less supporting evidence. Great for when funds are required urgently – such as an unexpected tax bill or faulty machinery.
Line of Credit
Funda’s line of credit provides flexible access to funds – accessible when you need it most. Monthly interest rates start from 2% on the outstanding balance and interest only accumulates once the funds are drawn down and only on the portion drawn. Redraws are unlimited up to the account limit.
Funda can provide finance for a wide range of assets. Funda’s business asset loans carry an interest rate starting at 8% per annum, with balloon payments acceptable. If you’re financing vehicles, these can be more than 15 years old at the end of term. Funda will also offer discounted rates subject to credit and are happy to compare the total cost of funds against any other quotes you have.
Better Cashflow / Invoice Finance
Funda’s invoice finance solution is called ‘Better Cashflow’. Funda will pay you 95% of all approved invoices straight away. You then simply leave the balance for Funda to follow up. If your client pays their invoice by the due date, Funda will pay you an extra 3%, meaning the total cost to the service is 2%.
Regardless of the product you choose, Funda gives borrowers a 30-day guarantee. Simply return your loan in full within this period and pay no interest on the funds.
Product Score: ⭐⭐⭐⭐
Funda Client Reviews
- TrustPilot Australia: 0 reviews
- Facebook: 5 reviews – 5/5
There are no Funda reviews that can be found on any of the major review platforms. You can hear testimonials from Funda’s customers on their website but as you would expect these are resoundingly positive.
We still feel you can get a good feel for working with Funda and what the process would be like.
There are some reviews that we’ve been able to take from Funda’s facebook page:
“Solid team with great communication, and most importantly, getting the right results!”
“Nathan and Mark have created an outstanding company that offers not only financial solutions but business guidance. They are 100% devoted to ensuring their clients are supported and that they fully understand their individual needs. We truly thank you both for all of your support during both our successes and our not so successful times. I would recommend them to all.”
Analysis of Client Reviews:
Funda has some interesting content that can be found online, including interviews and business tips with some big voices in the Australian lending scene, so it comes as a bit of surprise that Funda has not prioritised partnering with a review platform to collect customer experiences.
We obviously can’t say with any certainty that the Facebook reviews on Funda’s page are genuine as anyone is able to leave a Facebook review. That being said, the content in the reviews is detailed and Funda has made the effort to respond to each review, and when applicable, linking to the reviewers business page on Facebook. We get the feeling they are genuine but we suggest you to have a look and make your own call.
Reviewers speak of being a small business in tough circumstances and are appreciative of the commitment and dedication that Funda has put into ensuring a successful outcome and funding these small businesses when it’s needed most. Funda’s service seems to be as much about financial advice as it is offering finance options.
Client Reviews Score:
Funda’s Online Platform
Funda’s website is a little clunky but there are numerous resources which would be helpful to prospective borrowers.
Funda’s product capabilities are detailed, the eligibility criteria is clearly displayed and there’s even a business loan calculator where you can check both your eligibility for a Funda loan and get an indication on your weekly repayments.
In addition to this, there’s engaging content where you can hear from some of Funda’s past clients and a business tips section where you can hear from business leaders in the Australian lending sector. The Funda blog is updated semi-regularly and provides tips for handling all topical events including COVID-19 and the bush fires.
Funda Loan Compatibility
- Startup: Funda asks that you’ve been registered for 12 months and trading for 6.
- Bad credit: Funda will consider applications with bad credit providing you meet their other criteria.
- Sole trader: Yes, Funda can work with sole traders.
- Established business: Funda certainly accepts established businesses.
- Turnover: Funda asks for a minimum turnover of $10,000 per month.
Funda’s requirement for 6 months of trading is one of the most reasonable in the Australian business lending market and the five year repayment schedule deserves a mention here too. Providing much more flexibility in repayment terms than even some of Australia’s best online business lenders. The minimum turnover of $10,000 a month, which equals to $120,000 per year is a little high. Businesses with a minimum turnover of $50,000 per year can apply with Lumi.
Compatibility Score: ⭐⭐⭐
Funda Pricing & Rates
We like the fact that Funda provides an indication of the interest rates available. This transparency is not seen across many Australian business lenders so it certainly helps to differentiate Funda and show they have nothing to hide.
- Unsecured business loans are available from 2% per month.
- Asset Finance loans are available from 8% per annum.
- Invoice Finance sees Funda charge 2% of the value of the invoice.
The invoice financing charges are kept simple and easy-to-understand. As is the interest rates for unsecured and secured loans. Funda is also keen to point out that their business loans can give you an interest rate up to 50% lower than what other non-bank lenders can offer you. Judging by the ‘starting at’ rates we would say they are better than some but probably on par with Australia’s best business loan providers.
The 30-day guarantee which will see you pay no interest if you are unhappy with Funda’s service and return the loan in full is also unique. We haven’t seen anything like this from any other business lender in Australia.
Pricing Score: ⭐⭐⭐⭐
Funda Business Loan Summary
- Credibility - 61%61%
- Ease of Registration - 95%95%
- Website - 84%84%
- Compatibility - 85%85%
Funda is a small business in its own right that understands the demands and pressures that a small business will inevitably face. The variety of products is impressive and so is Funda’s general approach to lending. They’re transparent, honest and informative.
The lack of verified online reviews is a concern but it’s Funda’s decision whether or not to work with a review platform. Clearly from their testimonials, Funda have had a number of happy clients who they were able to successfully find a financing solution for.
From the general feel of the company and the quick 5-minute online application, we determine they’re certainly worth giving a go. There’s no obligation and your credit score will not be impacted in the early stages of the process when simply filling out your basic contact details online.
We hope this Funda review has boosted your understanding of the business lending specialist that is Funda. For more information or if you have any questions about this Funda review please contact us.