Fundo Review: Fast & Easy Biz Financing, but You’ll Pay for It

Is Fundo legit?

Fundo LLC is a legitimate financial services company that was founded in 2019 and is headquartered in North Miami, Florida. It protects your information by using 256-bit encryption, scans its site daily for malware and maintains high standards of cybersecurity. It has a clear and detailed privacy policy explaining how it uses and shares your information, which can be viewed on its website. Fundo is accredited by the Better Business Bureau (BBB) with a B rating.

What makes Fundo shine?

Compared to other companies that offer MCAs, Fundo has much more lenient requirements. For example, some lenders in this space require $10,000 or more in monthly revenue, while Fundo only asks that you bring in at least $1,500 a month. Plus, you only need to be in business for three months.

Fundo offers a fair amount of payment flexibility, too, which is handy if you have a slow week. It allows you to move your payment date up to six days from your scheduled installment as often as needed. You can also reduce your installment amount up to three times during your advance term without a financial review — more than that and it’ll require a review. You may also be able to skip one or more payments until the end of your advance, pending a financial review.

It’s also nice that Fundo considers advances to freelancers, gig workers and contract workers in addition to small businesses. It can be difficult to qualify for financing when you have inconsistent income, so Fundo opens up another option for the self-employed.

Where Fundo falls short

The main drawback to Fundo is that it’s a very expensive form of financing. It charges factor rates instead of interest, and rates range from 1.7 to 3.5, which is high compared to similar merchant cash advance lenders that typically have factor rates from 1.1 to 1.5.

To put this in perspective, if you borrowed $5,000 at a rate of 1.7 for 10 weeks, you would have to pay back $8,500. Using the same example, with a factor rate of 3.5 and a 30-week term, you would owe $17,500.

Fundo offers discounts for early repayment, but it’s still pretty expensive. A Fundo agent explained to us how these discounts work — with a disclaimer that amounts are subject to change, and this is just an example. If you borrow $5,000 for a 10-week term, weekly repayments would be $850. If you pay it off after only four weeks, your balance will be $3,855, which means the loan will cost you $7,255 in total. You’d save around $1,200 for paying it off early, but the loan still costs you $2,200.

It’s best to consider some alternatives before resorting to such high-cost funding.

Fundo loan details

Fundo contact info

How to qualify for Fundo

Fundo has minimal requirements to qualify.

• Three months in business
• Average monthly revenue of at least $1,500
• Bank account that connects to Plaid or Decision Logic
• No open bankruptcies

How to apply

Applying for a Fundo MCA should be fast and easy.

1. Fill out the online application.
2. Complete a bank verification.
3. Wait for Fundo to verify your transaction history.
4. Receive your funds if approved, which may arrive the same day.

In some cases, Fundo says you may be able to obtain approval without speaking to a customer service rep. However, it may require a verification interview pending final approval, which can delay funding.

How Fundo compares to other lenders

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Product USFBL	Finder Score	Min. Amount	Max. Amount	APR	Requirements
Fundera business loans	Finder score 8.6 Great	$2,500	$5,000,000	Varies based on lenders	$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months	Get connected with short-term funding, SBA loans, lines of credit and more.	Go to siteMore Info Compare	loading Fetching your data...
Lendio business loans	Finder score 9.6 Excellent	$1,000	$5,000,000	Varies by lender	Operate business in US for 6 months or more, have a business bank account, minimum 580 personal credit score, at least $8,000 in monthly revenue.	Submit one simple application to potentially get offers from a network of over 75 legit business lenders.	Go to siteMore Info Compare	loading Fetching your data...
Lendzi	Finder score 9.5 Excellent	$5,000	$20,000,000	Varies by lender	Minimum credit score of 500, minimum annual revenue of $120,000, preferably one to two years in business	Compare lending options and get funded fast.	Go to siteMore Info Compare	loading Fetching your data...
National Funding business loans	Finder score 9.6 Excellent	$5,000	$500,000	Undisclosed	In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.	Working capital loans and equipment financing, some high-risk industries may be eligible.	Go to siteMore Info Compare	loading Fetching your data...

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Fundo reviews and complaints

Fundo has mixed reviews on its BBB page, with some customers saying the process was fast and easy and customer service was friendly and professional. But it has a lot of poor reviews, too, including complaints about high rates, taking unauthorized payments and feeling rushed into signing the agreement.

It has a higher volume of positive reviews on Trustpilot, with customers praising the excellent customer service and expressing gratitude for being approved after other lenders denied their applications. But customers also complain of APRs in the triple digits, high processing fees and additional fees to receive the funds quickly.

Alternatives to Fundo MCAs

If you decide Fundo cash advances are too expensive or want to explore your options, consider these alternatives.

• Business credit cards. Business credit cards are typically easier to qualify for than other types of financing — even if you’re self-employed — and rates are much better than Fundo’s, but access to cash is limited.
• Personal loans. Using a personal loan to finance your business is very common and offers higher loan amounts than Fundo, but you’ll need a good credit score to qualify for the best rates.
• Cash advance apps. For self-employed and gig workers, cash advance apps can provide small advances between deposits, but they’re not suitable if you need more than about $500.
• Payment processor financing. If you receive payments through platforms like PayPal or Square, you may be able to access funding based on your sales, although revenue requirements are higher than Fundo.

Frequently asked questions

What is a Fundo cash advance?

It’s an advance payment based on your future business revenue. Fundo evaluates your incoming funds and decides how big of an advance you qualify for based on how much you bring in each month. Technically, the advance is not a loan — it’s considered a purchase of your future revenue.

What credit score do you need for Fundo?

Fundo doesn’t check your credit, so your credit score isn’t a factor in determining approval. Instead, it analyzes your business finances to see if you can afford an advance.