About Company
Fundbox loans provide small business owners with a valuable financial lifeline, offering a flexible business line of credit to individuals across all 50 states and U.S. territories. Established in 2013, Fundbox has become a go-to solution for entrepreneurs seeking access to quick and manageable credit. The lending platform caters to borrowers with fair credit scores, allowing them to secure working capital amounts ranging from $1,000 to $150,000. With a straightforward application process, Fundbox stands out for its minimal documentation requirements, making it an appealing option for those who prefer a streamlined lending experience.
The Fundbox business line of credit is particularly advantageous for small businesses with consistent revenue streams and a need for quick funding solutions. Borrowers can draw funds as needed through the Fundbox website or app, choosing repayment plans tailored to their company's financial situation.
Key Features
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Loan Amount. Borrowers can access working capital ranging from $1,000 to $150,000 through Fundbox business loans, providing flexibility for various business needs.
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Access to Funds. Borrowers can conveniently access funds through the Fundbox website or app, offering a user-friendly experience.
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Repayment Schedule. Repayments are structured on a weekly basis, providing a predictable and manageable schedule for borrowers.
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No Prepayment Penalties. Fundbox does not charge prepayment penalties, allowing borrowers to settle the outstanding balance before the term ends without incurring additional fees.
Pros and Cons
Pros
Cons
Reliability
In terms of reliability, Fundbox maintains accreditation with the Better Business Bureau (BBB), indicating a commitment to ethical business practices and customer satisfaction. Additionally, the platform boasts a favorable rating of 4.4 out of 3,719 total reviews on Trustpilot, reflecting a substantial volume of feedback from users. While these indicators suggest a positive track record in serving customers, individual experiences may vary, and potential borrowers should conduct thorough research and consider multiple factors when evaluating the reliability of Fundbox as a financial partner.
How to Apply for a Fundbox Loan?
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Create an Account. Begin by navigating to the Fundbox website and locating the "Apply" section. Here, you'll be prompted to create an account by providing basic information about your business, such as its establishment date and average monthly revenue over the past three months.
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Connect Business Accounts. Once your account is created, follow the application wizard to connect your business accounts. This typically includes linking your business checking account, accounting software, or any other financial tools that provide insights into your company's financial health.
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Await Approval. Fundbox's approval process is swift, often completed in as little as three minutes. During this stage, Fundbox conducts a soft credit pull to evaluate your application, allowing you to check your approval odds without impacting your credit score.
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Draw Funds. Upon approval, log in to your Fundbox account and request a draw through the user dashboard. At this point, Fundbox will conduct a hard credit inquiry, which will be reflected on your credit report. Once the draw request is made, funds are typically deposited within two business days.
Conditions and Requirements
Conditions
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Loan Amount. Fundbox offers working capital loans ranging from $1,000 to $150,000, providing flexibility to meet various business needs.
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Interest Rates. While specific interest rates are not disclosed, Fundbox operates on a weekly fee structure, starting at 4.66% for 12-week terms and 8.99% for 24-week terms.
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Term Lengths. Borrowers can choose between 12 or 24-week repayment terms, allowing them to select a timeframe that aligns with their business finances.
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Repayment Schedule. Repayments are structured every week, providing borrowers with a predictable and manageable payment schedule.
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Personal Guarantee. Borrowers must provide a personal guarantee, indicating their commitment to repay the loan even in the event of default.
Requirements
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U.S. Based Business. Borrowers must operate a business that is based in the United States.
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Time in Business. Fundbox typically requires that businesses have been established for at least six months before applying for a loan.
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Annual Revenue. Prospective borrowers must demonstrate a minimum annual revenue of $100,000 to qualify for a Fundbox loan. This requirement ensures that businesses have a certain level of financial stability.
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Credit Score. Fundbox sets a minimum personal FICO score requirement of 600 for loan eligibility, making it accessible to small business owners with fair credit.
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Business Checking Account. Borrowers are required to have an active business checking account with at least three months of transaction history. This account serves as a key factor in assessing the business's financial health.
Ways to Receive the Money
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Direct Deposit to Business Bank Account. Once a borrower's loan application is approved, Fundbox typically disburses the funds directly into the borrower's designated business bank account. This method provides a fast and secure way for borrowers to access the funds they need to manage their business finances.
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Transfer to Business Checking Account. Borrowers who have linked their business checking accounts during the application process can opt to receive the loan funds through a direct transfer to this account. This option streamlines the funding process, ensuring that the funds are deposited into the account that the borrower regularly uses for business transactions.
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Electronic Funds Transfer (EFT). Fundbox may utilize electronic funds transfer (EFT) to transfer the approved loan amount to the borrower's specified bank account. EFT is a secure and efficient method of transferring funds electronically, ensuring that borrowers receive their funds in a timely manner.
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ACH Transfer. Automated Clearing House (ACH) transfer is another common method used by Fundbox to disburse loan funds. Through ACH transfer, borrowers can receive the approved funds directly into their bank account, typically within one to two business days after the loan approval.
Products
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Business Line of Credit (up to $150,000). Fundbox Line of Credit provides small business owners with flexible access to working capital. Borrowers can draw funds as needed, up to their approved credit limit, and repay on a weekly basis.
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Term Loans (up to $150,000). Fundbox's term loans offer small business owners a lump sum of capital with fixed repayment terms. Borrowers receive the full loan amount upfront and repay it, along with any applicable fees, over a predetermined period.
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Equipment Financing. Fundbox provides financing specifically tailored for the purchase of business equipment. This product enables small business owners to acquire essential equipment while spreading the cost over time through manageable monthly payments.
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Invoice Financing (Flex Pay) (up to $150,000). Fundbox's Flex Pay allows businesses to leverage their outstanding invoices to access immediate cash flow. By advancing funds against unpaid invoices, small business owners can bridge gaps in their working capital and maintain business operations smoothly.
Other Loans
Reasons for Getting Rejected for a Fundbox Loan
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Insufficient Revenue. Fundbox typically requires a minimum annual revenue of $100,000 to qualify for a loan. If a business fails to meet this revenue threshold, its application may be rejected.
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Short Time in Business. Fundbox often requires that businesses have been established for at least six months before applying for a loan. If a business is relatively new and does not meet this requirement, its application may be denied.
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Low Credit Score. While Fundbox is known for being inclusive and catering to borrowers with fair credit scores, there is still a minimum personal FICO score requirement of 600. If an applicant's credit score falls below this threshold, they may be rejected.
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Inadequate Business Checking Account History. Fundbox typically requires applicants to have an active business checking account with at least three months of transaction history. If an applicant's business checking account does not meet this requirement, their application may be declined.
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Negative Business Activities. Fundbox does not fund companies in certain industries such as adult entertainment, online gaming, online gambling, marijuana, firearms, ammunition, nonprofit, or financial sectors. If a business operates in one of these industries, their application may be rejected.
How to Repay a Fundbox Loan?
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Automatic Payments. Fundbox typically sets up automatic payments for borrowers, deducting the agreed-upon repayment amount from the borrower's linked business bank account on a weekly basis. This automatic repayment system ensures that borrowers meet their repayment obligations consistently and on time.
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Weekly Payments. Borrowers are required to make weekly payments towards their Fundbox loan. These payments are structured based on the terms of the loan agreement, including the loan amount, repayment term, and applicable fees. Borrowers should ensure that they have sufficient funds in their business bank account to cover the weekly payment amount.
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User Dashboard. Borrowers can manage their loan and repayment schedule through the Fundbox user dashboard, which provides a centralized platform for accessing account information, making payments, and tracking repayment progress. Borrowers can log in to their Fundbox account to view their loan details and make payments as needed.
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Early Repayment. Borrowers have the option to repay their Fundbox loan early, either in part or in full, without incurring prepayment penalties. Early repayment allows borrowers to save on interest and fees by settling their outstanding balance ahead of schedule. Borrowers can log in to their Fundbox account to initiate an early repayment or contact Fundbox customer support for assistance.
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Customer Support. If borrowers encounter any issues or have questions regarding their loan repayment, they can reach out to Fundbox customer support for assistance. Fundbox's customer support team is available to help borrowers navigate the repayment process and address any concerns they may have.
Alternatives
The American Express® Business Line of Credit presents a compelling option for business proprietors seeking working capital access, particularly those with fair credit scores. With a maximum loan amount of $250,000 and a minimum credit score requirement of 660, this offering caters to a diverse range of business needs, providing flexibility and support for growth initiatives.
Wells Fargo's line of credit stands out for its competitive rates, making it an attractive choice for established businesses with a minimum credit score of 680 and at least two years of operation. With a maximum loan amount of $150,000 and an estimated APR ranging from 10.25% to 18.25%, this offering offers stability and reliability for businesses seeking financial support.
Bluevine's business line of credit is tailored to meet the needs of established businesses, offering loan amounts ranging from $5,000 to $250,000 with a minimum credit score requirement of 625. With a repayment term of 24 months, Bluevine provides businesses with the flexibility to manage their cash flow effectively and pursue growth opportunities.
OnDeck's short-term lines of credit offer quick access to funds for businesses with a minimum credit score of 625. With loan amounts ranging from $6,000 to $100,000 and a repayment term of 12 months, OnDeck provides businesses with the financial flexibility needed to navigate challenges and capitalize on opportunities in the market.
Loans like Fundbox
OnDeck
OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.
Funding Circle
Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.
Credibly
Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.
Fundbox
For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.
Editorial Opinion
Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Methodology
At Finanso, we've carried out a comprehensive analysis of over 50 business lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.
In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.
At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.
Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.
