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Small businesses are regarded as the lifeblood of the US economy and have historically been underserved financially. One of the many reasons so many small businesses struggle, and even fail, is the lack of access to capital. Recognizing that gap, Fundbox has moved in to fill it and help small companies succeed.
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. By developing a simple online application and providing efficient customer service, the financial service provider has efficiently provided funding for business owners to get their businesses back on track.
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.
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Which Services Does Fundbox Offer?
Fundbox funding includes:
- Fundbox Credit (Lines of Credit)
- Fundbox Net Terms (Invoice Financing)
What Are the Eligibility Requirements?
Fundbox requirements include:
- 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
Below are some of theFundbox rates, terms, and fees for the Fundbox line of credit:
Fundbox business line of 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.
Fundbox rates, terms, and fees include:
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 cash flow. 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:
- 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.
Fundbox phone number: (855) 572-7707
Companies like Fundbox:
Some Fundbox Alternatives are:
- LendingTree: Lending Tree is a lending firm available in all 50 states in the United States. This lender offers a variety of loan options, including personal loans. This gives borrowers the ability to navigate the various loan options and select the ones that meet their needs.
- Excel Capital Management: Excel Capital Management is a loan provider that also provides other financial services. It is located in New York City and offers a wide range of loan amounts, giving its borrowers a competitive advantage in terms of available options. The lending institution also has an online community where various financial products are stocked for pre-purchase analysis.
- BlueVine: BlueVine is an excellent alternative to Fundbox. This lending agency is based in the United States and provides a wide range of financial products to its clients. It primarily targets small-scale entrepreneurs and offers competitive interest rates on its various loan options, as well as other services such as invoicing and lines of credit.
- Fundation: The payment terms of Fundation are flexible, which is a plus. The cash provided by the financial service provider is appropriate for businesses looking for low interest rates and quick disbursement. However, the organization requires businesses to meet certain criteria, one of which is that they have at least two employees. Other requirements include a minimum credit score of 660 and an annual income of $100,000 or more.
- SmartBiz: A great alternative to Fundbox, SmartBiz offers a convenient lending facility primarily for debt refinancing and capital. To obtain a loan from this lender, businesses must demonstrate their creditworthiness by having a high credit score as well as a yearly income of $50,000. SmartBiz, unlike other lenders, assists customers who are qualified to obtain loans complete a thorough application. The disadvantage of the lender is that it charges fees such as a prepayment penalty.
Fundbox Reviews & Complaints
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.
On Trustpilot, Fundbox has a rating of 4.7 stars with over 2870 reviews, which is an excellent score. Fundbox received an excellent rating from 90 percent of reviewers, with only 4 percent rating the company’s services as poor or bad. The platform has also been accredited by the Better Business Bureau and currently has a “A+” rating with the BBB.
Fundbox Pros and Cons
Below are some of the Fundbox pros and cons you should consider.
- Low Eligibility Requirements: Borrower requirements with Fundbox are less stringent than those imposed by the majority of banks. Businesses with a credit score of at least 600, a minimum of 6 months in business, and an annual income of at least $100,000 have a good chance of qualifying.
- Convenience: The Fundbox website is widely accessible to a wide range of people due to its user-friendly interface. Furthermore, if all prerequisites are met, the loan application to loan payout process is simple.
- Straightforward Rates and Services: Fundbox is honest and transparent about its rates and carefully explains them all to prospective borrowers.
- Quick Application Process: Fundbox’s application process is quick because it is fully automated. The majority of borrowers will receive a funding decision in a matter of minutes. If they are approved, they can begin requesting funds right away.
- High Interest Rates: Loans from Fundbox are slightly more expensive than those from other lenders. The majority of the financial services company’s short-term loans have a borrowing fee that starts around 4.66 percent. However, while these average rates are high, they may be significantly lower for individuals and businesses with a better credit history and score.
- Requires Weekly Repayments For Some Products: Repayment occurs on a weekly basis, which could be too demanding for some businesses. However, you may be eligible for additional funding once you have repaid 50% of your loan.
Frequently Asked Questions (Faq)
We answer the most common questions with our Fundbox review below.
Are there platforms similar to Fundbox?
Some Fundbox competitors and alternatives include:
Will loan officers be able to view my documents?
The majority of personal loans are unsecured, which means you do not have to use any of your assets as collateral, such as your home, car, or bank account. While your loan specialist may obtain some information about your available liquid resources, such as assets in your bank and investment accounts, they will rarely examine all of them.
Will Using Fundbox Affect My Credit Score?
Fundbox will do a soft credit pull on prospective borrowers. Claiming an offer through a formal application with the lender, on the other hand, will result in a hard credit inquiry, which will have an impact on your credit score.
How long does it take for Fundbox loans to be approved?
The rate at which loans are disbursed after successful application and approval determines a lender’s efficacy. Most lenders release loans within a week of approval, whereas Fundbox claims to endorse and disburse loans in less than 48 hours.
Is it possible to pay off a loan early?
Yes, you can pay off your entire outstanding balance early with no additional fees after using your Fundbox credit and starting your weekly payment plan. Furthermore, if you repay before the end of your payment plan, the remaining fees will be waived.
What type of Funbox business loans does the platform offer?
Funbox small business loans include lines of credit and invoice factoring to businesses in the United States.
Who is the Fundbox CFO?
The Chief Financial Officer at Fundbox is Marten Abrahamsen.
Fundbox Review: Parting Thoughts
Is Fundbox legit? 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.
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