Group Me Founders, Jared Hecht and Steve Martocci, have launched a new alternative lending platform for small businesses called Fundera.
The Challenge of Financing a Small Business
It’s a problem that all start-ups, entrepreneurs, and small businesses face – capital. Whether you have a great idea and you are trying to build the proof of concept, or have a wildly successful business that needs to expand, the capital required to keep a business running or cross the threshold to the next level can be daunting. In fact, according to an article in Fortune, 75% of small business loan applications are denied.
In the early stages, many entrepreneurs finance their business themselves, with savings or credit cards. As the business begins to get on its feet, friends, families, and fools often contribute to the seed capital. Although there are many programs to help small businesses, it is really only when the business is very well established that a traditional bank loan becomes a realistic option. With the lending market for small businesses being so tight, however, some entrepreneurs are looking for alternative models.
Fundera’s Solution to Increase Access to Capital
Fundera is an online marketplace for small business loans aimed at increasing access to alternative forms of capital. Fundera has vetted a group of lenders specialized in small business loans that have experience with business-to-business (B2B) lending. Their products include term loans, equipment loans, SBA loans, merchant cash advances, invoice factoring, and lines of credit.
Fundera promises no hidden fees, confusion, or unsolicited phone calls. The common application only takes a few minutes to complete. While I do not know if Fundera is the best option for your business, this site does one thing right – it encourages entrepreneurs to think about a variety of financing options to help their business succeed.
Be sure to check in with your lawyer, first, as you will want to make sure that your company applying for the loan is set up and ready to pursue financing.Businesses interested in applying for a loan through Fundera can submit a common loan application through www.fundera.com. Fundera will then match the company with potential lenders.
Allen & Gooch is providing this legal update for informational purposes only. This article should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. You should consult your own attorney concerning your particular situation and any specific legal questions you may have.