Fundrr business loans are provided by Fundrr , a growing fintech start-up. Fundrr developed an automated credit model that analyses close to 100 data points to provide a complete picture of growth possibilities. This enabled the fintech company to produce a funder score.
Small South African businesses from all industries are able to apply for the Fundrr loan. They offer loans ranging from R20 000 to R500 000 which can be accessed within 24 hours upon approval.
- Only businesses registered and trading in South Africa
- Annual turnover of more than R1 000 000
- More than 12 months trading history
You can complete an application form on Fundrr website in less than 7 minutes, without having to provide piles of paperwork. Fundrr will then request your business bank statements, business information and personal information for assessment. The assessment will determine your eligibility.
You can also apply over a call.
Should you prefer applying over a phone, you can call (010) 141-4213 and a consultant will walk you through their application process.
Upon approval, Fundrr deposits your funds within 24 hours.
How do they determine the Fundrr score?
As a financial technology company Fundrr uses algorithms to assess businesses as a whole. Not only do they assess the business’s financial data, Fundrr takes into account other nontraditional data to determine your score.
On non-traditional financial data, Fundrr considers the aspects like; customer sentiment ratings, influencer opinions in blogs and forums, company news and even its location.
What are the terms of repayment?
An agreement is set up on repayments compatible with your business’s cash flow. This is to state whether you will be able to pay every day, weekly or monthly.
Fundrr offers 3 to 12 months term business loans depending on their analysis of your business.
Fees and instalments
The interest fee charged is determined by the duration of the loan and the Fundrr score produced by their analysis. On average, a R100 000 loan amount paid back in 6 months may attract 17% interest. Meaning, you will be charged R17 000 interest fee, therefore, paying back R117 000.
The sum of R117 000 will then be paid back in instalments that best suits your business.
There are no hidden fees, no administration fees, no origination fees and no extra added costs. You only pay the interest you sign up for.
Competitive Advantages of Fundrr Business Loan
Nontraditional data is also considered
One challenge small businesses incur is access to funds. Statistics state that 60% of South African businesses close in just 3 years. Businesses that run well on low capital and cash flow are also considered.
Fundrr considers nontraditional data of their business. Businesses that have a good customer base, are well located and have a good reputation usually have a better Fundrr score.
Faster application process
The Fundrr score’s decision-making algorithm speeds up the application process. Businesses are able to get their answers the same day they apply and can access their funds in 24 hours when approved.
Whereas banks and other traditional lenders may go on for days before accepting or rejecting your application.
The only interest fee paid is the one agreed on upon approval of the application.
Also, Fundrr will does not charge you a penalty of settling your business loan early, otherwise when you settle your loan early you save on interest charged.
Competitive Disadvantages of Fundrr Business Loan
Short loan terms
Fundrr is a short term business loan provider. This means it won’t be suitable if you looking for a long term loan. Some businesses would prefer a long term loan because of their relatively low instalments. Also, some companies may prefer long-term loans because of the tax deduction on interest payments.
Requiring more than R1 million annual turnovers from a small business is a turnoff as most small business are not making that much.