In a Nutshell
- Access to loans in as little as one day
- Fast application process
- Relatively high loan rates
- Minimal information on approval process
Fundbox ID Card
Loan types: Invoice financing, line of credit
Loan amount: Up to $100,000
Minimum monthly revenue: $4,166
Age of business: 6+ months
Repayment terms: 3 to 6 months
Time until funding: As soon as the next business day
Direct lender or marketplace: Direct lender
Fundbox at a Glance
Fundbox was founded in 2012 in San Francisco, California, as a fast financing platform for small businesses. The company provides an easy solution for small businesses and freelancers who need quick access to operating capital. With a simple application, Fundbox delivers invoice financing for up to $100,000 to customers in as little as one business day. The company assesses clients’ overall business health generating a credit decision within a few hours. The company has access only to the applicant’s business account, ignoring the client’s personal creditworthiness.
Innovative approach to invoice financing
Many small businesses find short-term credit under $100,000 difficult to obtain from a traditional bank, particularly if they have less than stellar credit. Fundbox provides flexible small business invoice financing or lines of credit for such clients up to $100,000 quickly and efficiently. Applying and registering for Fundbox is straightforward.
Instead of conducting a credit check to begin the process, Fundbox first syncs to your company’s accounting software or business bank account. A credit decision follows within hours. If approved, customers can receive their funds as soon as the next business day to continue their business operations. Fees and repayment terms are based on short terms helping businesses alleviate any funding crisis arising from unpaid invoices. Fundbox will waive any outstanding fees should customers repay their financing early.
Highlights for Fundbox:
- Rapid and convenient registration
- Analyzes finances by syncing with an applicant’s business accounting software or bank account
- Funds receive funds as soon as the next business day
- Loans repaid in 12-week installments
- Borrowers maintain control of customer invoice relationships for invoice financing
- Transparent payments and interest rates
Fundbox Application Process
Fundbox’s application process is quick and painless. New users must first create an account with their email address and phone number. Next, prospective borrowers can connect to Fundbox via their preferred accounting software or business bank account so that the lender can accurately evaluate the applicant’s available financial information. The company accepts most major accounting suites, but it is not compatible with Excel spreadsheets.
Businesses whose financial software is not compatible with Fundbox’s platform can link their bank accounts for analysis. Once synced with Fundbox, the company’s unique system analyzes a borrower’s finances and assesses their business’s health. If approved, users can request funding, which is often available as soon as the next day. The whole process is incredibly intuitive, and companies can be reassured by quick access to required capital if approved
Loan Terms – Short-Term Capital with Fewer Fees
Unlike many of its competitors, Fundbox focuses exclusively on short-term lending. The company’s invoice financing and lines of credit offer swift funding turnaround and repayment term of less than six months. For many smaller businesses, this short-term solution is an ideal way to cover gaps in operating capital that can be detrimental to their growth or raise costs elsewhere.
Thanks to an emphasis on shorter repayment periods, Fundbox’s interest rates are slightly higher than the industry average. This balances out, however, as companies can usually repay these loans once their invoices are covered. Fundbox does not charge any fees for prepayment and will waive any remaining fees if loans are repaid early.
Fundbox offers two services, a revolving line of credit and net terms on business purchases.
When you draw funds, each weekly payment will include fees. Rates start at 4.66% for a 12-week repayment plan. If you make business purchases from vendors on Fundbox, there is no interest or fees if you pay before the end of net terms. If you do not pay before net terms end, and continue into extended terms, each weekly payment will include fees. Each vendor on Fundbox offers either net-30 or net-60 terms. The fee rate after the end of net terms is 19.42%, for a 52-week plan, although this varies by state.
If you accept payment with Fundbox for business purchases, each payment includes a transaction fee depending on the net terms offered. The transaction fee rate for net-30 terms is 1.75%. The transaction fee rate for net-60 terms is 2.9%.
The rates are often higher than competitors, but the short repayment terms mean that customers will not necessarily have to pay an exorbitant amount in interest. The company charges flat fees that are spread out over the life of the loan, instead of front-loading them, meaning that customers can avoid any outstanding fees if they repay their financing before the term expires.
The company only offers two repayment terms—12 and 24-weeks. It would be nice to see a wider variety of repayment terms, but the company’s financing solutions are structured to help customers repay financing before the periods expire. Moreover, customers can take advantage of Fundbox’s early repayment fee waiver to lower the total cost of their loans. To help customers better understand their potential loans, Fundbox hosts a pricing calculator based on their rates, making it easy for a potential customer to review their weekly costs.
Fundbox does not charge origination fees, maintenance fees, draw fees, or bank wire fees, but it does charge a fee for late payments. The company uses automated payments directly connected to customers’ bank accounts, but insufficient funds may lead to charges that are triple the weekly fee.
How Safe Is It?
Help & Support
Fundbox’s support center features an FAQ page addressing commonly occurring issues to rarer problems. Additionally, customers can email the company, which usually responds within 24 to 48 hours. Fundbox also offers a toll-free line that is available on weekdays between 8:00 AM and 8:00 PM. The company’s support representatives are all well-trained and capable of answering queries promptly.
Fundbox has created a unique platform through which small businesses can access financing. The company’s underwriting system creates a more accurate picture of a companies’ financial health and simplifies the credit decision process. Automated invoice forwarding is ideal for small businesses and freelancers looking for quick financial relief while maintaining their relationships with clients. For businesses that may struggle to access financing due to personal creditworthiness, Fundbox’s offer of small loans under $100,000 without a standard credit check may prove particularly attractive.
Furthermore, straightforward repayment schedules that are automatically debited from the business’s bank account mean that business owners have one less thing to worry about. Small business owners will find Fundbox to be a source of fast and effective financing.
300 Montgomery St, Suite 900
San Francisco, CA