Minimum Time in Business
2-3 m, Invoice Financing - 6 m
Next day for invoice financing, 1-3 days for a line of credit
$1,000 to $100,000
Fundbox is a fintech company based in San Francisco and founded in 2013 by Eyal Shinar.
It offers two major products: revolving line of credit (divided into invoice financing and traditional line of credit) and net terms on business purchases. The funds are made available through the First Electronic Bank. The company has been accredited with the Better Business Bureau since 2014, and most of the Fundbox reviews are positive.
Fundbox offers a maximum business loan of $100,000 on easy 12-week/24-week terms with reasonable drawing fees. The APR of 10.1% to 79.8%, while apt for a fintech company, is high compared to other lenders. Its loan terms are very flexible, which allows it to work with a variety of borrowers.
It’s a great option for small businesses and startups that need cash quickly but don’t have collateral to borrow against or a guarantor that can step in.
Like most other reviews of the Fundbox loans service, in this one we will cover:
|Minimum time in business||2-3 months (6 months for invoice financing)|
|Credit score required||500|
|Annual revenue required||$50,000 (might qualify with a little less than that)|
|Borrowing amounts range||from $1,000 to $100,000|
|Borrowing fee (drawing fee)||4.66% for 12 weeks or 8.99% for 24 weeks|
|Origination fee (or any other fee)||None|
|Funding time||Next day for invoice financing
1-3 days for a line of credit
|Location requirements||United States, Guam, American Samoa, Northern Mariana Islands, Puerto Rico, and U.S. Virgin Islands|
|Eligible industries||All industries|
|Personal loan guarantee required||None|
|APR||10.1% to 79.8%|
Here is a quick guide to the application process for a line of credit with Fundbox:
To apply for a line of credit/business loan with Fundbox, you have to start by filling out their sign-up form. You can visit the link here to start the process. Alternatively, you can visit their website and click on the Apply button in the right corner of the screen, but it’s currently redirecting all potential borrowers to the SBA Paycheck Protection Program.
Next, you need to fill out your personal information and basic details about your business, i.e. how much revenue it generates and how long you’ve been in business.
Then you need to connect your Fundbox profile to your accounting software. It supports a decent range of popular software. But if the software you use isn’t supported, you can apply with your checking account instead.
Once you have selected the accounting software and/or your bank, you have to provide your credentials and allow your Fundbox account to sync up with the software/checking account to review your financial activities and outstanding invoices.
If your line of credit is approved, you will know right away. The process is automated, so you don’t have to wait long. In case the system needs more time to process your application, you will be notified.
If you draw upon your line of credit, the funds will be transferred to your bank account by the next business day.
Decide on your repayment schedule. Whether you choose the 12-week repayment schedule or the 24-week one, your weekly payment will be the same. There is also no prepayment penalty.
It’s important to understand that Fundbox offers two different kinds of loans/lines of credit. You can either choose Fundbox Credit or Fundbox Direct Draw. Here, Fundbox Credit is invoice financing, while the Direct Draw is a pure line of credit option. In order to be able to choose Fundbox Credit, you should have outstanding invoices, and you can only get access to funds that equal the sum of your outstanding finances. Direct Draw is a line of credit that allows you to draw any amount within your eligible limit.
Fundbox offers two basic products:
Lines of credit let you borrow an amount that’s within your approved limit for a period of either 12 weeks or 24 weeks. The net terms allow a business to fund purchases using Fundbox’s money and pay for them later.
There is also a transaction fee on any net term purchase, which depends on the duration of the net term (30 or 60 days).
The pricing model for a line of credit is also pretty straightforward. There are no fees for applying and getting approved for the loan. The charges start when you start using your line of credit.
You will see any fees that there are upfront. The rates start with 4.66% for a 12-week term and 8.99% for a 24-week term and may vary from borrower to borrower. You will be able to see your weekly payments and your interest rate beforehand.
There is no origination fee or prepayment penalty, so if you can pay before the schedule, you can save on interest. Whether you choose a 12-week or 24-week plan for repayment, you will pay off the bulk of your interest in the first half. In the latter half, you will mostly be paying off the principal amount.
The revolving line of credit also comes with two types of discounts: coupons and cashback. Both are applied automatically towards your account.
Repayment is broken down into weekly payments. Since your Fundbox account is connected directly to your bank account, it debits payment directly from there (every Wednesday).
There are two other fees you need to know about:
NSF (Non-Sufficient Funds) Fee: If you don’t have sufficient funds on your account, your credit will bounce, and you will have to pay a returned payment fee to Fundbox and your bank.
Late Payment Fee: Missed/late payments are shifted over to the end. In the end, you will have to pay the principal and the interest of the missed week’s payment plus another week’s interest (calculated on average interest). This makes up the late payment penalty.
The process is very fast and efficient, and you don't have to wait long for funds
Minimum credit score requirements
No guarantor or collateral needed for a revolving line of credit
Annual revenue and business activity requirements are moderate
No prepayment penalties
The maximum loan amount is low
The interest rate and APR are higher than in banks
The repayment duration is fixed
Upon application, you have to give Fundbox access to your books and business account (it's safe, but not everyone would be happy to do so)
The bulk of Fundbox business loan reviews are positive. It has a pretty high Trustpilot rating of 4.7/5 based on 1,957 reviews. Another platform, GetApp, rated Fundbox 4.6/5 based on 64 reviews. Fundbox BBB reviews by customers give it a lower rating of 3/5. Still, Fundbox has been proactive in replying to the reviews.
While most of the reviews and comments are positive, some complaints include unresponsive customer support. There are some other worrying issues as well. For one customer, Fundbox pulled their funding because they didn’t draw from their available credit limit. That’s something against the company’s lending model, but they explained it was due to a surge of requests due to COVID-19. Other most frequent complaints include:
But the negative comments are few when compared to the plethora of positive reviews. Fundbox PPP loans reviews are something to behold. For many businesses struck by COVID-19, it actually was a lifesaver. What people love most about Fundbox is how fast and easy their application processing and funding are.
If we look for Fundbox line of credit reviews, two of the competitors that immediately pop up are BlueVine and Kabbage.
Compared to Fundbox, BlueVine has more strict requirements for their line of credit. You need a FICO score of 600 or more, 6 months or more in business, and $100,000 in annual revenues, to apply for the 6-month line of credit. They are even more restrictive when it comes to their 12-month loans, but the credit score limit is lower. On the other hand, the loan amount is much higher ($250,000), and you have more time to pay back the loan.
Kabbage is a costlier alternative to Fundbox that furnishes loans up to $250,000. It requires monthly payments, and the repayment duration can be as long as 18 months. The minimum revenue limit for both is the same, but they need a business to be in existence for at least a year and to have a FICO score of 560. Funbox’s approval and loan processing speed is a bit faster.
Based on most of the Fundbox reviews and our own assessment, we believe that it’s an amazing service, especially for small businesses that require quick funding and don’t wish to jump through too many prequalifying hoops. One area where Fundbox is found wanting is its low-capped line of credit. But for businesses that require funds under $100,000 and need fast approval, Fundbox can be a great choice.
No. You cannot get a loan with Fundbox if you have an active bankruptcy, and you may also not qualify for SBA's PPP loan.
Fundbox doesn’t specify any industry that it caters to or excludes from its loans. We haven't found reviews or information regarding a loan being rejected due to belonging to a specific industry.
Customer service is available via phone Monday-Friday from 8 a.m. to 8 p.m. EST. Or you can send them an email.
No. While checking for eligibility, Fundbox only performs a soft pull, which doesn't impact your credit score.
According to Fundbox reviews, it is best suited for new businesses that require a line of credit under $100,000.
Fundbox is BBB accredited since 2014. Its BBB rating is A+ and its customer review rating is 3/5.
No. It doesn’t report to credit bureaus, so borrowers might not see a boost to their credit scores by making timely payments.
There are no professional service fees.