A fintech company founded in 2015, Fundomate brings a new level of automation to the alternative lending sphere. With a direct portal to top lenders, Fundomate partners with ISOs and merchant level salespeople (MLSs) to provide short-term capital to small and midsize merchant customers who typically cannot qualify for traditional bank loans quickly enough to meet their needs.
Fundomate's automated underwriting solution pre-qualifies customers based on their payment processing history through an API installed on the POS system. To pre-qualify for Fundomate's revenue-based funding, customers need to demonstrate $10,000 in gross monthly income for three months. Fundomate provides flexible funding of up to $500,000, with terms lasting 18 months and interest rates as low as 3.5 percent.
Fundomate offers a FLEX business financing product that, unlike a traditional bank loan, doesn't lock in a fixed term or costs. Customers who take advantage of an early payoff option pay only for the capital they are using as the amount decreases, not the full amount initially loaned. To pre-qualify for FLEX financing customers need to have been in business for 18 months with gross income of $10,000 per month.
Fundomate's premier line of credit product provides funding of up to $500, 000, with rates as low as 2 percent, funds available the next day and no restrictions on how the money is used. Customers can make payments on the principal for the entire term. To pre-qualify, customers need to have been in business for 18 months and demonstrate revenue of $50,000 a month.
Sam Schapiro, founder and CEO of Fundomate, said it's easy for ISOs and MLSs to start earning new revenue from their existing customer base using Funodmate's low cost, white glove platform. He also stated that 50 percent of businesses that apply for funding through Fundomate haven't been approved by other lenders, which indicates that working with Fundomate presents an attractive opportunity for agents seeking to gain new customers – and at a far lower cost than is typical for customer acquisition.
Also, profits are split 50/50, but ISOs and MLSs retain full control over client relationships. "We're not asking you to refer your customers to us," Schapiro said. "You can scale the automated online funding platform to your customers while keeping your data anonymous. Customers get funded with the click of a button using transactional data. For every thousand merchants you have, you can create over a $100,000 in revenue a year by funding a handful of customers every month."
Fundomate reported that it has underwritten $60 million in loans and partners with over 100 accredited investors. With major players such as Square, PayPal and Stripe encroaching on the payment processing space, Fundomate's in-house capital department helps ISOs and MLSs respond competitively by providing value-added services to customers beyond just payment processing.
Fundomate's customer support also helps walk clients through the process of determining which type of funding works best for them. And its automated platform eliminates the middle man between the merchant and lender, thereby saving energy and time usually spent on paperwork, which greatly accelerate the process, according to the company.
Schapiro emphasized that Fundomate provides a complete, turnkey solution. "We give you the automation, scalability, collateral, marketing and tools to be able to deploy money straight to your merchants," he said. "We bring the customer service within the brand; we will bring the marketing; we will give you the tools and the instructions of how to leverage your data and how to scale it. Then you can step in and start funding your customers with our technology to be able to get returns and give good programs that work for your merchants and work for you. By not funding your business customers, you risk leaving money on the table."
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