Fundbox is good for newer businesses, business owners with lower credit scores and businesses that need money quickly. You can either apply for invoice financing or a line of credit through Fundbox, with APRs from 13% to 60%. Qualifying at Fundbox is based primarily on your time in business, revenue and use of online accounting and banking services.
- Review: Should You Apply?
- Eligibility Criteria
- Invoice Financing and Line of Credit Features
- Application Process
- How Does Fundbox Compare to Other Online Lenders?
Fundbox Review: Should You Apply?
We recommend Fundbox for newer businesses, business owners with thin or lower credit scores and business owners that need funds quickly. Fundbox offers both invoice financing and lines of credit up to $100,000 for small businesses.
|Good for...||Bad for...|
The Pros of Fundbox
Fundbox has fairly lenient criteria to qualify for both of its products, so we think it’s a good choice for businesses that may not be able to access traditional capital sources. There are no hard credit score requirements to qualify for either invoice financing or a line of credit. There are time in business requirements for both products, but these range from three to six months, and there is a minimal revenue requirement for the line of credit product. Additionally, Fundbox requires businesses not have any bankruptcies in last two years for both products, and there are some accounting and bank account requirements depending on which product you choose.
Given the less stringent qualifying criteria, the APRs offered are reasonable, ranging from 13% to 60% for invoice financing and 15% to 59% for the line of credit. Other lenders and companies with similar eligibility requirements may have APRs as high as 80% to 190%. If you think you may only qualify for a higher rate at another lender, you should consider getting invoice financing or a line of credit from Fundbox instead. And because Fundbox products come with relatively short terms, we suggest borrowers consider the total cost of borrowing, which is how much you will repay in total. Sometimes, for short-term loans, a loan may have a high APR, but the actual payback amount is equitable.
The Cons of Fundbox
There are two main downsides to Fundbox: relatively low loan amounts and compressed repayment schedules. With either product, you can only borrow up to $100,000. For large businesses, this may not be an adequate amount. Additionally, terms on Fundbox products range from 12 to 24 weeks for invoice financing and 12 weeks for the line of credit. Both products require weekly repayment. Some business owners might find this repayment schedule disruptive to their business’s cash flow cycle. Before you apply at Fundbox, think about what you can realistically afford to repay on a weekly basis.
You may also be required to submit additional documentation to the lender if you want a higher credit limit beyond what you’re initially approved for. This may include two years of tax returns and three months of bank statements. Moreover, for invoice financing, you need to demonstrate some revenue if you want a credit limit higher than $30,000.
We think Fundbox is a good choice for businesses that are underserved by traditional lenders -- that is to say, newer businesses, businesses with lower annual revenues or owners with lower credit scores. Like many other online lenders, Fundbox is also quick to fund. Businesses can receive funding in as fast as the next business day, and Fundbox is available to businesses in all 50 states. The two major drawbacks to Fundbox are the fact that you can only borrow up to $100,00 and you’ll be required to make weekly repayment over 12 or 24 weeks (depending on which product you use).
To qualify for Fundbox invoice financing or a line of credit, your business must meet the following criteria:
|Minimum Requirements||Ideal Borrower|
|Minimum Age of Business||9 months|
|Other Requirements||For Invoice Financing:|
To improve your chances of qualifying, we suggest borrowers fit or exceed the ideal borrower profile. Eligible accounting software includes QuickBooks Online and Desktop, Clio, Ebility, FreshBooks, Harvest, InvoiceASAP, Jobber, Kashoo, PayPal, Xero and Zoho.
Fundbox Invoice Financing and Line of Credit Features
Fundbox offers both invoice financing and lines of credit up to $100,000. Instead of using APRs, the company quotes its prices as a weekly fee of the total invoice amount or the draw amount. These fees range from 0.5% to 0.8% for invoice financing and 0.5% to 0.7% for the line of credit. For example, on a $1,000 invoice, you could potentially pay about $60 in total fees. This means that you will pay $5 a week for twelve weeks, which translates to a 0.5% weekly fee (5 ÷ 1,000 = 0.5%).
Fundbox Invoice Financing
Fundbox invoice financing works differently than traditional invoice factoring. Instead of receiving a partial advance amount, Fundbox will give you a 100% advance on the invoice. And unlike traditional factoring, Fundbox requires borrowers to make weekly repayment over 12 or 24 weeks. For traditional factoring, the borrower’s customers often repay the invoice directly to the factoring company.
|Invoice Financing Range||$1,000 - $100,000|
|APR Range||13% - 60%|
|Invoice Financing Terms||3 - 6 months|
Fundbox Line of Credit Features
Fundbox also offers a line of credit product with line amounts up to $100,000. Similar to the invoice financing product, the cost is quoted as a weekly fee between 0.5% to 0.7% of the draw amount.
|Line Range||$1,000 - $100,000|
|APR Range||15% - 59%|
|Line of Credit Terms||3 months|
Fundbox Application Process
To apply at Fundbox, you’ll need to make an online account with the company. You’ll then need to connect your accounting software or bank account to allow Fundbox to analyze your business financials. You won’t need to fill out extensive paperwork or submit to a hard pull on your personal credit. Once you link your eligible accounts, Fundbox can give you an approval decision in as fast as a couple of hours.
If approved, you’ll be approved for an initial credit limit. To get a higher credit limit, you may be required to submit additional documentation to the lender, such as tax returns and bank account statements. Once your account is fully set up, you can draw funds as needed and receive that money as fast as the next business day.
How Does Fundbox Compare to Other Online Lenders?
If you’re in the market for a small business loan, we suggest you comparison shop before applying. We take a look at some of Fundbox’s top competitors below.
Fundbox vs. BlueVine
We recommend BlueVine over Fundbox if you have a high volume or dollar-amount of invoices, as BlueVine offers invoice factoring up to several million dollars. Compared to Fundbox, BlueVine is more similar to traditional invoice factoring. BlueVine only offers 85% of the invoice upfront and provides the remainder once the customer repays the invoice. And similar to traditional factoring, your customer will repay the invoice to your BlueVine account (BlueVine requires an extra step to set up a separate account for customers to repay the invoice). To qualify for BlueVine invoice factoring, you’ll need to be in business at least three months with $10,000 in monthly revenue, and you’ll need a personal credit score of 530 or higher. BlueVine also offers a line of credit product comparable to the one at Fundbox.
Fundbox vs. Kabbage
Kabbage and Fundbox both have similar line of credit products; however, Kabbage offers higher loan amounts and longer terms. At Kabbage, you can take out a line of credit for six- or 12-month terms with monthly repayment. With these higher terms come higher eligibility requirements. To qualify for up to $100,000, you’ll need to be in business at least one year with $50,000 in annual revenue. If you want more than $100,000, you’ll need to be in business three years with $500,000 or more in annual revenue. Neither Fundbox nor Kabbage has hard minimum credit score requirements, so either company can be a good choice for borrowers with thin or lower credit scores.
Fundbox vs. Lending Club
If you need to borrow more than $100,000, LendingClub is a better option than Fundbox. Lending Club provides business loans and lines of credit up to several hundred thousand dollars. LendingClub has stricter eligibility requirements than Fundbox as it requires businesses to be at least 2 years old and have annual revenue of $75,000. Business owners must also have fair or better personal credit, which is usually any credit score of 620 or higher, and all borrowers who own 20% or more of the business must personally guarantee that the loan or line of credit will be repaid. However, APRs are lower and loan terms are longer at Lending Club.