Securing financing for small businesses can be a difficult endeavor in today’s highly volatile economy. While many financial institutions claim to offer reliable credit, they often fall short in their promises, setting astronomically high-interest rates, charging multiple fees, and proving to be inflexible in their loan repayment terms. Thankfully, Fund&Grow has set itself apart in the financing industry, proving to be one of the best available credit options for small businesses.
What is Fund&Grow?
Fund&Grow is a financial services company headquartered in Spring Hill, Florida that provides flexible and convenient business loans for small businesses of all types. Founded in 2007, it has provided more than $1.2 billion in funding for over 28,000 small business owners, entrepreneurs, and real estate investors throughout the United States. Fund & Grow is a rapidly growing company, currently averaging $20 million a month in financing for its clients.
Loan/Credit Specifications
Fund&Grow offers up to $250,000 in unsecured business credit and $100,000 in non-recourse corporate credit for small businesses, all in the form of high-limit credit cards. Unsecured business credit is attractive to small businesses because it doesn’t affect personal credit, risk the involvement of collateral, or give up equity in the business. The high limit credit cards, which are offered by most major national and regional banks, carry a 0% interest rate for the first 12-18 months of use. Fund&Grow handles all the details of the financing process, working directly with banks to obtain credit for their clients, allowing users to simply activate the card and access the funding. It is important to note that most banks will not allow one card to have a credit line of $250,000, so small businesses that need larger loans will have to open separate credit card accounts. Also, since there is a 0% introduction fee, interest rates for an unpaid balance after the interest-free period will be very high. On average, an unpaid balance of around $50,000 will result in an interest rate of 8%, with lower amounts resulting in higher rates.
Application and Loan Approval Process
First, prospective clients will need to contact Fund&Grow for an initial consultation to clarify their financial goals and current credit situation. Second, they will then need to fill out a membership client registration form and submit documentation including their credit profile. Third, they will then undergo counseling with a Fund&Grow financial specialist and sign a power of attorney (POA) form allowing the specialist to act on the client’s behalf. Fourth, Fund&Grow will apply for credit from a bank or financial institution to secure financing for the client in the form of credit cards. Finally, credit is usually available for most small businesses in about 4 to 6 weeks after the application process.
Fees
Fund&Grow offers two main pricing plans for its services, a 12-month membership plan and a performance-based membership plan. The 12-month membership plan requires no minimum FICO score and costs $3,997. While this plan does come with a 60-day money-back guarantee, the user will still have to pay a 4% credit card transaction fee of the flat rate, which comes to about $160. For clients with a FICO score of 730 or higher, a performance-based plan is available, requiring a cost of 9% of total financing plus a $1 sign-up fee. Other fees include expenses related to filing with the state to become an LLC, C-Corp, or S-Corp.
Additional Perks and Features
Clients of Fund&Grow will receive training on how to remove credit inquiries from their profiles, apply for SBA loans, and develop personal credit boosting strategies. Fund&Grow will also assist their clients in creating an Employer Identification Number (EIN) and becoming registered as an LLC, C-Corp, or S-Corp. Clients can choose to receive the company newsletter for $50 a month, which provides valuable financial education and free week-long vacation condos throughout the US.
Reviews/Ratings
Fund&Grow is a highly rated financial services company, possessing an impressive A+ rating with the Better Business Bureau (BBB) and receiving a 4.93/5 rating among 649 different reviews on the BBB website. 340 of 358 reviews on Trustpilot rated them as excellent, about 95% of the total, with only 2 reviews being listed as average or worse. The largest review source of Fund&Grow with 2,753 reviews, SoTellUS, gave an average rating of 4.9/5.
Pros and Cons
Pros
- Great customer service
- No FICO score required for 12-month membership plan
- No fees for first 12-18 months of financing
- Extensive training
- Quick credit approval time
- Unsecured business credit ideal for small businesses
Cons
- Fees for unpaid balances are very costly
- Performance-based membership plan only available with a 730 or better FICO score
- Application process can be extensive