Arora Loans: FAQ
Who is Fundation and what is Arora's relationship with them?
We wanted to find the best funding partner available that would help us enhance the lives of Women Business Owners through a lending process that eliminated all of the traditional barriers keeping some of them from getting this loans. Fundation is an award winning lending company who was more than willing to help Arora change the lending landscape and conquer the gender lending gap. Arora and Fundation work very closely to ensure applicants and borrowers receive fair rates, generous repayment periods and impeccable customer service.
Why wouldn't I just go to a bank?
Your experience with Arora loans will be very different than if you were to apply for a loan with a bank. Our risk tolerance is greater than a typical bank so we are far more likely to say yes to your application when a bank is more likely to say no. In addition, we only ask for a subset of the information that banks ask for and if approved, our customers are typically funded in as little as three days.
Is my Information safe when applying online?
Our online loan application is highly secure. We do not sell any of your information and we take great care in protecting our customers' information.
How much money can I borrow?
You can borrow up to $500,000. Of course, only those borrowers Fundation determines to be at lowest risk are eligible to borrow for larger amounts. In specific cases, we can lend up to $1 million, but this will require a more thorough review of the applicant's use of proceeds.
Does my credit score get affected when applying for a loan?
One inquiry will not affect your credit as long as it is not tied to a number of inquiries within a short time span (which indicates credit seeking behavior). Any deduction essentially gets corrected after your next payment cycle.
What are the basic Terms of an Arora Financing Loan?
Loans are available in one to four year repayment periods. Long-term loans are designed for borrowers who are looking to make long-term investments in their business like products or service expansion, hiring new employees, and capital improvements. These loans are available up to $500,000 with repayment periods of two to four year terms. We also offer our customers a shorter-term loan designed to help business owners with everyday operating costs of their businesses. These loans offer amounts up to $150,000 and repayment periods of one to two years. Both loan products have fixed interest rates starting as low as 7.99% with payments automatically debited from the customer’s account twice a month. There are no penalties for paying your loan back early.
What information will I need to provide?
The application will ask you to provide information about you and your business, including your Social Security Number, your business’s Tax ID number, and some additional disclosures. Before final approval, the application will ask you to also provide three months of bank statements and two years of business tax returns as well as conduct a short phone conversation to discuss your application with one of our credit specialists. Fundation can gather your business tax returns and bank data electronically or you can send it to them.
What other information are you collecting and how do you collect it?
Fundation’s system allows them to collect your personal credit report, your business credit reports, and supplemental data including public records and personal and business verification information. We use this material along with your self-reported information to get a comprehensive view of your application and give you a preliminary decision within minutes.
Can I reference my loan?
For business expansion loans, Fundation generally requires good payment history for nine months before they allow customers to refinance. For one year loans, Fundation generally requires good payment history for six months before allowing customers to refinance. All customers are free to submit a request prior to that time and Fundations credit review committee will evaluate your request.
If I am approved for a loan, when will I receive the money?
Generally we can move as fast as our customers. You will receive the money in your account as quickly as three days after submitting your loan application and within one day of executing your loan documents.
If you are not a bank, how are you funded?
Unlike banks, our loan funding does not come from customer deposits. Private investment firms invested a significant amount of money in Fundation to permit us to fund and hold every loan with Fundation’s own capital.
What are your rates?
Fundation’s rates start at 7.99%, however, your specific rate will depend on a variety of factors including the industry you are in, your personal credit history, and your business payment history. Each customer is different so the only way for you to know the rate we would give you is to apply.
Is there any paperwork?
Generally Fundation require three months of bank statements and two years of business tax returns. However, with your permission, their system can retrieve these documents directly from the IRS and your bank. This enables the entire process to be paperless. If you would rather send these documents to Fundation yourself, that’s fine too. If you are approved for a loan, you will sign your
How do I make payments?
Payments are automatically debited from your business checking account twice a month. Electronic payments help to ensure you are not incurring late fees and allow us to provide you with an interest rate discount that will be reflected in your loan offer.
What happens if I prepay my loan?
Fundation does not assess any fees for loans paid ahead of time. If you pre-pay loan principal, the term of your loan will be reduced and more of your future payments will be applied to principal as opposed to interest resulting in reduced number of payments.
Do you require any ongoing paperwork or reporting from borrowers?
No. We know what a hassle it can be to send your lender periodic financial statements and annual business and personal tax returns. If you are paying your loan on time why should we bother you? Fundation requires electronic payments twice a month and that is it!