Today’s business owners who seek funding have a plethora of options. Because of the convenience, among the most popular choices are online lenders. Before you start submitting applications all willy nilly, you should always know what you’re getting into.
Since most people don’t blindly trust endorsements from finance gurus (Grant Cardone, for example), I want to help you sort through existing Fundwise Capital reviews and get to the truth.
Here’s what you’ll discover:
- What is Fundwise Capital?
- What is the Fundwise Partner Program?
- Final Takeaway
Now, let’s get to it…
What is Fundwise Capital?
Founded in 2013 and based in Provo, Utah, Fundwise Capital is an online lender that offers lines of credit and term loans to their clients.
Unsecured lines of credit and credit cards from $15K up to $200K with 0% interest for the first 9-15 months with “competitive rates” after the introductory period. They also help business owners access unsecured term loans, but they don’t describe the terms and conditions on their website.
This is Fundwise Capital in a Nutshell
Who owns Fundwise Capital?
Fundwise was founded by Utah-based entrepreneur Leo Kanell who also founded 7 Figures Funding, Identity Insured, and 7 Figures University.
What are the fees for Fundwise Capital?
Fundwise fees are $500 upfront plus 9% of the final approval amount.
How does Fundwise Capital Work?
Fundwise representatives know some of the best banks to apply for business loans and credit cards with, based on unique qualifications. They help businesses take the proper steps to obtain funding through external lenders.
Are Fundwise Crowdfunding and Fundwise Capital Related?
You might come across an Estonian crowdfunding company with the name Fundwise — the two companies are not related.
Now, Who is Fundwise Capital For?
Fundwise is geared toward businesses that need funding. To qualify, you must have a credit score of 650 or higher. If your credit score falls below this number, you can use a credit partner (co-signer) such as a business partner, family member, or friend with a qualifying score.
Fundwise Capital’s financial services are designed for:
- Small business owners
- Real estate flippers
- Restaurant owners
- Salon owners
- Franchise investors
While the above list outlines Fundwise’s target clients, there aren’t restrictions on how the money can be spent. So, the offer could essentially be leveraged by anyone who meets the credit qualifications.
To “apply,” you’ll enter the usual information including personal credit score, business income, and first and last name into a form. After that, a Fundwise representative will contact you the following day to discuss your options.
Keep in mind that this isn’t an actual funding application, so it won’t affect your credit score. Instead, this is a way for Fundwise reps to collect new lead information and pre-screen you for the appropriate products.
And, How Much Does Fundwise Capital Cost?
While the credit cards and term loans you obtain may come with 0% APR, you will pay a fee. The cost to leverage these services will be $500 upfront and an additional 9% of your total funding obtained as an “approval fee.”
So, at this rate, here’s what you can expect to pay:
- $15K in funding = $1,850 to Fundwise
- $25K in funding = $2,750 to Fundwise
- $100K in funding = $9,500 to Fundwise
- $200K in funding = $18,500 to Fundwise
Theoretically, if you spend and pay off your funding during a 0% APR introductory period, you might pay less with this offer than you would on a credit card with an APR around 20%.
Now, there is something else to watch out for: You could unknowingly get upsold on credit monitoring software or credit counseling, so brace for that. The credit monitoring software Fundwise promotes is from seeyourscore.com (located at the same street address in Provo, Utah as Fundwise Capital). Monitoring through the platform costs $29.99 per month and some users have had a hard time canceling their subscriptions.
In addition to credit building and monitoring bonus offers, Fundwise Capital has another product worth looking into (for satisfied clients, anyway): Fundwise Partners.
What is the Fundwise Partner Program?
Fundwise Partners is a program designed for affiliates to earn a commission for referring other business owners to the core offer.
Affiliates or “partners” get a unique landing page through which to send leads to the platform. They are also provided with a dashboard to track leads referred, funded accounts, and conversion rates.
This is a two-tier affiliate system, which means that you can also refer affiliates to the platform for a commission. Some affiliates primarily focus on promoting this platform to business coaches and entrepreneurs with a large network of other owners. Allegedly, some affiliates earn hundreds of thousands per year. But, there’s a catch…
…the partner program costs $29.99 per month.
Frankly, the Fundwise Partner program sounds more like an MLM business than a typical affiliate program. And, if that’s your thing, there could be a full-time opportunity here.
Final Takeaway: Should You Apply for Business Funding Through Fundwise?
As we wrap up, there are a couple of things I don’t love about Fundwise Capital:
- Their website is a little wonky and missing information about pricing, fees, and other important details. This lack of transparency makes the company seem potentially unreliable.
- Business owners who don’t qualify for funding seem to be rolled into paid offers with the promise to help clients improve their odds of getting funded. Unfortuanately, these offers don’t seem to provide a ton of value compared to other products in the marketplace.
And, there are some aspects I can appreciate about their business funding offer:
- Fundwise Capital seems to rely on soft-pulls, which have no negative impact on credit scores — unusual and refreshing.
- Credit cards, lines of credit, and term loans are my favorite type of funding for small businesses because they allow owners to maintain the highest level of control over cash flow.
So, like all business funding options, Fundwise has its benefits and its drawbacks. They’ve helped enough companies obtain funding to earn their star in the hall of business funding fame. Now you should know enough about the offer to determine whether it’s right for you at this time or not. If you want to learn how to get $100K in business funding in as little as a month, enroll in Business Credit Workshop today.