Fundbox summary
Pros
- Get money in as little as 1 business day
- Fully online application process
- Low annual revenue requirement
Cons
- Users can’t borrow more than the value of unpaid invoices
- Requires a personal guarantee
Editorial score
Online experience
Has learning resources, access to rates, mobile app
Customer services and support
Limited ways of reaching lender
Variety of loan types
Niche lender
Loan amount range
Loan amount up to $200K
Eligibility
Loans available to most credit types, revenue levels, and businesses
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Overview
Fundbox offers a revolving line of credit from $1K-$150K for growing small businesses. The credit is designed to provide cash flow while you’re waiting for invoices to be paid, and you can withdraw up to 100% of the value of your pending invoices at any time.
Fundbox offers repayment terms of 12 or 24 weeks and there’s no prepayment penalty if you pay back your loan early.
Why Fundbox Is Good For Your Business
Fundbox differs from other lenders in that it works with many young businesses. To qualify for a loan, you only need to have $50,000 in annual revenue and a business history going back just 3 months. In addition, Fundbox only requires a minimum credit score of 500.
Because Fundbox lends to businesses with less solid financial backgrounds, Fundbox’s interest rates can be high, especially for businesses that are just passing the minimum requirements. Interest rates start at 4.66% for 12-week loans or 8.99% for 24-week loans, but they can be upwards of 20% for struggling businesses.
In addition, Fundbox requires a blanket lien on your business assets and a personal guarantee when you take out a loan.
Loan Features
Fundbox offers a line of credit ranging from $1K-$150K. You can borrow up to the amount you have outstanding in pending invoices at any time. Funds are available in your bank account as soon as the next business day.
With Fundbox, you only pay interest on the amount you actually borrow, not your total credit line. In addition, there’s no prepayment penalty, so you can limit your interest payments by paying back your loan early.
- Line of credit ranging from $1K-$150K
- Borrow up to 100% of pending invoices
- No prepayment penalty
- 12- or 24-week terms
- Get funds by the next business day
Application Process
Fundbox’s application process is entirely online. To start the application process, enter information about yourself and your business such as your credit score, your annual revenue, and how much you expect to borrow. Next, connect Fundbox to your bank account or accounting software to give the company a look inside your books.
The company’s software is compatible with most major banks and most software, including Quickbooks and FreshBooks.
Fundbox can make a funding decision within a few minutes and never runs a hard credit check. You can request funds as soon as you’re approved and have them transferred to your bank account as soon as the next day.
How Much Can You Borrow?
Fundbox can pre-approve your business for funding from $1K-$150K in credit. However, the amount you can borrow at any time is linked to how much money you have outstanding in invoices that haven’t yet been paid. You cannot borrow more money with Fundbox than you have in unpaid invoices.
- Get approved for $1K-$150K in credit
- Borrow up to 100% of your invoice value
Repayment Terms
Fundbox offers 12- or 24-week loans. Interest rates for 12-week loans start at 4.66%, while they start at 8.99% for 24-week loans. There is no prepayment penalty if you repay your loan early.
Privacy and Security
Although you integrate Fundbox with your banking and accounting software during the application process, the company never stores your login credentials. In addition, your application is encrypted with SSL.
Help & Support
Fundbox offers customer support by phone and email from 8:00am to 8:00pm ET, Monday to Friday. The company’s website also has a detailed FAQs page to guide you through the application process.
Phone: 1-(855) 572-7707
Email: support@fundbox.com
Physical Address
6900 Dallas Parkway,
STE 700, Plano, TX 75024
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Summary
Fundbox offers lines of credit from $1K-$150K for growing small businesses to make cash flow easier. The company stands out for its relatively lenient requirements for which businesses can apply. Fundbox has a fully online application, next-day funding and doesn’t charge prepayment penalties if you pay off your loan early.
Michael Graw is a Bellingham, Washington-based writer focusing on finance, tech, and science. His work has been featured in print magazines and high-impact websites. He writes for BestMoney and enjoys helping readers make sense of the options on the market.
