Nearly one-quarter of small business founders rely on friends and family for capital. With Fundid Capital, there’s an easier (and less awkward) way to access growth capital to help your business grow faster. Let’s talk about what Fundid Capital offers and how to apply.
What is Fundid Capital
Fundid Capital is our lending product that provides business owners with a streamlined way to get growth capital: you can access multiple lenders with just one application. After you apply, a variety of lenders will determine what you’re qualified for and share their offers – then, you can choose which lending offer works best for you. You decide whether to move forward or not. What does your business need to flourish? Whether it’s cash flow, new equipment, an investment in marketing, or new employees - we can help!
Check out our 19+ different capital options here.
Who is Fundid Capital for and what are the qualifications?
Has your business outgrown your current capital? Fundid Capital is for existing businesses looking to take the next big step. Here are the four qualifications business owners need to meet:
- Have been in business for at least six months (this is based on the date of your incorporation)
- Generate at least $4,000 in monthly revenue
- Use a business bank account (if you don’t have a dedicated business bank account, your application may be denied)
- Have at least a 550 FICO personal credit score
What if I don’t meet the qualifications?
If you don’t meet the qualifications for Fundid Capital, we can still help you get there! Here are some resources to help you keep growing.
Join our Grant Match Program
If finding new grant opportunities is on your to-do list, let us tackle it. Each week we do the hard work for you and populate our Grant Marketplace with new business grants. When you join our Grant Match Program, we send you a personalized list of grants that could be a fit for your business. Best of all, we keep an eye out for new grant opportunities that match your profile and send them your way! Get your custom grant list here.
Business Guides for Growth
We have everything you need from resources to make your business lendable, tips to build your business, and how to incorporate your business.
- Steps to Make Your Business Lendable
- 10 Ways to Grow Your Business
- Incorporate Your Business: LLC vs. Sole Proprietorship
Need a Business Bank Account?
Are you still using your personal bank account for your business expenses? Follow these ten steps to separate your business expenses from your personal bank account.
A dedicated business bank account means applying for capital is easier, filing your taxes is a breeze, and you reduce your personal liability risk. Try NorthOne and get your first month of business banking on us!
Understand Your Credit Scores
Most of us are familiar with our personal credit scores, but did you know that your business can have a credit score as well? While Fundid Capital looks at your personal FICO credit score, it is important to understand the difference between your personal and business credit.
If your personal credit needs a boost, get started with these steps:
- Review your credit report annually (request your free report here)
- Pay your bills on time
- Keep your credit balances low (try to only use 30% of your credit limit!)
- Avoid opening new lines of credit
- Start paying off any debts you have in collections
How is Fundid Capital different from other lenders?
We understand that many businesses are underserved by traditional lenders, and we want to change that. Many business owners feel underserved and overwhelmed by traditional lenders. That’s why we’re here.
We know that time is one of the most valuable assets for business owners - so we made the application process to get growth capital easy and quick. With one application, Fundid Capital can provide you with various capital options that best meet your business needs. Our advisors utilize phone, text, and email to help tailor their communication to what works best for you.
What is the application process for Fundid Capital?
You can complete your application in under 15 minutes! Just tell us the amount of capital you need to start the process. Don’t worry - the application won’t affect your credit.
Information needed to complete the application:
- Information about the business owner
- Contact information
- Business Information
- Time in business
- Monthly Revenue
- Entity type
- Last three months of business bank statements
- You can make a connection to your bank through Plaid (not all banks connect to Plaid)
- Or you can manually upload your last three months of business bank statements
Once your application is complete, a Fundid Capital Advisor will reach out to you within 72 business hours to better understand your business needs and continue the application process.
The next steps will include:
- Understanding what type of growth capital you are looking for and how soon you need it
- Any additional document requests, depending on the type of growth capital you need
- Negotiating with lenders on your behalf to get you an offer that meets your business needs
Ready to get started? Explore your options today without impacting your credit!
What types of growth capital does Fundid offer?
Fundid Capital has two types of receivables purchase options: accounts receivable line of credit and purchase of receivables.
Accounts receivable financing, also known as invoice financing, allows you to obtain funding through your company’s unpaid invoices to get the money you need for working capital.
Accounts receivable financing is best for companies with limited working capital whose customers are other businesses. It’s a commonly used type of financing in specific industries with long billing cycles. Stop waiting on your customers for your cash flow - get the working capital you need now and keep your business running smoothly.
How it works:
Imagine your company has $10,000 in outstanding customer invoices due within 30 days. You work with an accounts receivable lender who agrees to provide you with a loan for 70% of the value of your receivables, or $7,000.
You can use that money for working capital, and you pay the money back to the lender as you receive collections from your customers.
Purchase of Receivables
Purchase of receivables is when a lender buys your future revenue from sales at a discount, and you pay them back over a fixed period of time with fixed daily or weekly payments. In most cases, the payments can fluctuate with your revenue, so decreased sales mean lower payments.
The purchase of receivables is best for business owners who need working capital for various reasons and want the flexibility to lower payments if their revenue decreases.
How it works:
Let’s say you want $10,000 in working capital for your business. You can apply for a purchase of receivables loan, knowing that with your future sales, your business will earn that money back and then some. Once approved, you will get a lump sum of capital to continue growing your business in exchange for a percentage of those future sales.
An equipment finance loan is specifically designed to help you obtain the machinery, equipment, or technological tools you need to run your business. Depending on the type of equipment your business is looking to purchase, there are different types of equipment financing available.
Fundid Capital has three equipment financing options: heavy equipment financing, vehicle-backed financing, and equipment financing.
How it works:
Whether you are looking for heavy equipment financing or general equipment financing, lenders will use the equipment as collateral. You can receive an equipment finance loan for up to 100% of the value of the machinery you purchase and repay the loan according to the terms and interest rates set by your lender.
In some cases, you can obtain commercial equipment financing for up to 125% of the value of the equipment, which means you’ll use the excess to cover the cost of delivery, installation, warranties, assembly, or any other upfront costs relating to your equipment.
Line of Credit
A line of credit offers more flexibility than ordinary loans because business owners can borrow as much capital as they need up to their limit. Instead of getting a lump sum of capital, you receive a revolving line of credit that you can use, repay, and use again over a specified period. Fundid Capital offers both business lines of credit and bank lines of credit.
Business Line of Credit
With a business line of credit, you can borrow up to a maximum credit limit and only pay interest on the funds you draw from your credit line every month. Business lines of credit are best for business owners with ongoing financing needs or fluctuating revenue who want a way to access varying amounts of capital when needed.
Bank Line of Credit
A bank line of credit is essentially the same as a standard line of credit that allows the business to draw from their pre-determined limit when they need it and only pay interest on that amount until it’s paid back. Bank lines of credit are best for business owners who meet the requirements for a bank loan but want the flexibility of a line of credit to only access funds when they need them from month to month.
How it works:
For example, Pailor Flower Co has a revolving line of credit with their lender of $300,000. If Pailor Flower Co borrows $120,000, they have $180,000 before maxing out their credit limit. However, Pailor Flower Co decides to pay back $40,000. Now they have $220,000 to borrow.
A line of credit can be used to finance short-term working capital tasks such as:
- Purchasing inventory
- Assets for a marketing campaign
- Repairing business equipment
- Bridging seasonal cash flow gaps
Like a traditional bank loan, a business term loan is a lump sum amount lent to the business. You then pay the sum back over a set period of time through regularly scheduled payments determined by your credit profile.
Business term loans are best used for established businesses that need to make a specific, one-off investment in their business. Through Fundid Capital, you can access a business term loan or a short-term business loan.
How it works:
With a business term loan, a lender sends you a lump sum of capital that you pay back with interest and fees over a set period of time. Although the exact payment schedule depends on the type of business term loan and the lender, you’ll make equal payments throughout the entire duration of the term loan. Business term loans offer more flexibility than equipment financing or accounts receivable since you decide how to use the money.
Invoice factoring lets you sell your outstanding invoices to a lender who will pay you a portion upfront (usually around 80-90%). The remaining percentage is held until your customer pays the invoice and a fee is deducted.
If your clients are slow to pay their invoices or have long net payment terms, but you still need cash flow to operate your business, invoice factoring is a great option.
How it works:
Invoice factoring involves a company selling its open invoices to a business factoring company. In exchange for the right to collect payment from the original company’s customers, the factoring company gives the business an upfront amount that it can use for its working capital.
Once the customer has fully paid their invoice, the factoring company will subtract a service fee from the value of the invoice that was not included in the upfront payment, then return the rest of the invoice’s value to the company.
What happens after I get an offer through Fundid Capital?
The funds can hit your bank account as soon as 24 hours after you accept your offer! Then you’ll be off and running - ready to buy new equipment, invest in marketing, or hire that new employee.