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Fundbox is a financial solution provider for small businesses. It has been around since 2013 and has grown in popularity over the years. Onto our Fundbox review!
Fundbox has funded over 50,000 small businesses, resulting in over $2 billion in loans. Fundbox provides two main financial products, lines of credit, and invoice financing.
Through its easy application process and simple qualification requirements, Fundbox is able to differentiate itself from competitors with similar products and services.
Eligibility requirements are low, which is a benefit to small businesses, freelancers, and startups. Let us now review the services and products that Fundbox has to offer.
Which Services Does Fundbox Offer?
- Fundbox Credit (Lines of Credit)
- Fundbox Net Terms (Invoice Financing)
What Are the Eligibility Requirements?
- Time in Business: None.
- Personal Credit Score: Minimum 500 FICO score.
- Location: For US-based businesses.
Fundbox does not have any specific eligibility requirements based on how long the borrower has been in business. To be eligible to apply for a line of credit or invoice financing, you must have a personal FICO credit score of 500 at a minimum and the business must be based in the USA or any of the US territories. These are very lenient terms, which makes Fundbox particularly attractive for startups, freelancers, and small businesses.
Fundbox does however require their borrowers to use any of the following accounting programs for at least two months before applying for financial products.
- FreshBooks Classic
- FreshBooks New
- QuickBooks Desktop
- QuickBooks Online
For Fundbox Net Pay, you must have a Fundbox approved bank account. Fundbox works with over 12,000 banking institutions in America. Therefore, before you apply for Fundbox’s credit products, make sure you have the correct accounting software and bank account.
Terms & Fees for Fundbox Credit
Borrowing limit: $1,000 to $100,000
Term Length: 12 to 24 weeks
Borrowing Fee: Starting at 4.66%
Draw Fee: Not Applicable
The strength of your business financials and your creditworthiness determines the amount Fundbox is willing to lend to you. The loan conditions have a clause where your line of credit may increase or decrease as your business performance worsens or improves. Funds can be taken out from the line of credit at any time, at no additional cost of withdrawal. This is a revolving line of credit, so it will replenish as you pay down the credit line.
There is no early payment penalty, meaning that borrowers can take advantage of this and pay back their credit line early to save on interest. Interestingly, Fundbox provides access to both secured and unsecured lines of credit and for lines of credit under $50,000, you will not need collateral.
Fundbox Net Terms
Fundbox Net Terms is an invoice financing service. It’s different from an invoice factoring service where a business sells its invoices to a debt collection agency for a certain rate and then the financing company collects money from the debtor.
In the case of the Fundbox Net Terms service, the business receives payment for the outstanding invoices, but the risk does not pass onto Fundbox. Instead, the business must repay Fundbox every week, instead of the payment being due when the customer pays you back. This is known as an invoice financing service. The credit limit Fundbox can offer you depends on your business fundamentals, so the better your income, assets, and creditworthiness are, the higher the chances of you receiving a higher credit limit.
Credit Facility: Up to $100,000
Advance Rate: 100%
Advance Fee: Starts at 4.66%
Term Length: 12 to 24 weeks
Additional Fees: Not Applicable
Contract Length: Not Applicable
Monthly Minimums: Not Applicable
Factor All Invoices: Not Applicable
Recourse or Non-Recourse: Recourse
Notification or Non-Notification: Non-notification
Businesses can decide to keep their repayment period at either 12 or 24 weeks depending on their business cashflow. Fundbox will automatically withdraw the set weekly payment with a fee each Wednesday after the first week of receiving the loan. This feature has no early payment penalty so businesses can decide to pay early to save on interest and fee payments. Past due payments will incur a penalty but apart from this, there are no other hidden fees.
The Fundbox Application Process
The application process is fast and convenient. To apply, you must set up your Fundbox account and submit relevant loan application details. This will include bank account information, the type of accounting software you use, and more.
Fundbox allows you to connect either your personal bank accounts or your business accounts. However, in order to maximize your chances of getting approved, you should connect whichever bank account has the most available funds.
Fundbox uses an algorithm to assess the eligibility of applicants, which makes the application process fast, smooth, and unbiased. Once the application is approved, you will receive your business financing terms. If the terms and conditions seem fair, then you can proceed with your loan or invoicing product. The funds are usually transferred within two business days.
Fundbox will carry out both a soft and hard credit check. The soft credit check occurs during the application stage and doesn’t impact your credit score. Once your loan or invoice financing request is approved, Fundbox will perform a hard credit check that will impact your credit score.
Fundbox Customer Service
It’s easy to contact Fundbox. You can do it one of three ways, via:
- Email, or the
- Support Center
There aren’t any significant negative complaints against Fundbox’s customer service. Response time is good and the customer service team is generally supportive. Customers should however look through the support center FAQs first to check for answers before calling customer support.
Some Fundbox Alternatives are:
The user reviews are generally positive, as people enjoy the fast and convenient loan application and management processes. The biggest complaints against Fundbox are that the credit limits are too small and that the service is too expensive.
- Low eligibility requirements
- Straightforward rates and services
- Quick application process
- Applying for Fundbox credit does not affect your credit score
- High interest rates
- Requires weekly repayments for some products
Fundbox Review: Parting Thoughts
Fundbox is a good lending service for small businesses and startups, however, it is on the more expensive side, and established businesses should ideally look for better deals that offer larger amounts of funding. With that said, Fundbox is a good option for businesses that have recently been established, or when the owner has a low credit score.
Businesses that don’t meet the financing requirements at other financial institutions may easily receive the funding they need from Fundbox at a higher rate. Even though the cost of borrowing money from Fundbox can be more than other lenders in the space, the service and transparency may make up for this.
Get Credit From Fundbox
Access some extra working capital
Enjoy our Fundbox review?
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