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Fundbox Business Loans: 2023 Review
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Pros and cons of Fundbox business loans
| Pros | Cons |
|---|---|
Convenient and fast access to funding, as soon as next day availability No early prepayment fees Startup business friendly, with only 3-6 months in operation needed Potential business loan option for borrowers with bad credit | $150,000 credit limit Automatic weekly payment debited from connected bank account for a standard business line of credit Short repayment terms of 12 or 24 weeks for a standard business line of credit |
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Fundbox small business line of credit review
Fundbox is an online lender that offers business lines of credit of up to $150,000. Unlike term business loans, a line of credit allows you to draw funds as needed. Repayment terms with Fundbox are short, though, from 12 or 24 weeks each time you draw.
Who is Fundbox for?
- Businesses need fast access to funds. Fundbox can approve you in as little as three minutes, and once approved, you could get funding by the next business day. This is considered on the faster side than many conventional business loans.
- Businesses looking for ongoing financing. Business lines of credit allow you to pay off and draw funds as needed, allowing for ongoing financing instead of giving you a single lump sum.
- Those looking for flexible repayment terms. Fundbox doesn’t have any early prepayment penalties, and you can choose 12– or 24-week repayment periods for their standard line of credit.
Fundbox small business financing at a glance
| Product | Loan amounts | Repayment term | Starting interest rates | Fees |
|---|---|---|---|---|
| Fundbox business line of credit | Up to $150,000 | 3 months or 6 months | Starts at 4.66% for 3 months or 8.99% for 6 months | $6 late payment fees Non-sufficient funds fees |
| Fundbox Plus | Up to $150,000 | 52 weeks | Starts at 4.66% for 3 months or 8.99% for 6 months | $99 annual fee 20% discount on weekly fees |
Business of credit
Fundbox’s standard business line of credit is up to $150,000, with rates starting at 4.66% for 12-week repayment plans or 8.99% for 24-week repayment plans. Each time you draw funds, you can choose which repayment plan is right for you; there are no early prepayment penalties if you choose to pay it off early. You can continually pay off and redraw from the business line of credit as funds are available, allowing you to have ongoing financing support. The other fees to be aware of are late payment fees or non-sufficient fund fees, if applicable.
Fundbox Plus
Fundbox Plus is a new monthly account upgrade that allows borrowers to access additional benefits through Fundbox on their business line of credit. The financing limits and eligibility requirements are the same, but you can get the following perks:
- 20% discount on all new draws’ fees
- 52-week repayment plans, in addition to 12– and 24-week options
- Option for payments every four weeks instead of every week
- Option to wait 28 days before first repayment is due
- Priority support
Fundbox Plus costs $99 per month. It’s currently in beta testing and is not yet available to all borrowers, but it could be worth considering if it is available to you.
Fundbox borrower requirements
| Minimum annual revenue | $100,000 |
| Minimum time in business | 3 months, but 6 months recommended |
| Minimum credit score | 600+ personal FICO Score |
Fundbox is an online lender, so its eligibility requirements may be a bit less stringent than the brick-and-mortar bank on the corner. Fundbox prefers if your business is in operation for at least six months, though businesses with three months of transactions in a business account will be considered. Your business needs to be making at least $100,000 in annual revenue, and it must have its own dedicated business checking account. You’ll also need to have a personal FICO credit score higher than 600.
A Fundbox line of credit is available to businesses in all 50 U.S. states, plus businesses located in American Samoa, Puerto Rico, U.S. Virgin Islands, North Mariana Islands and Guam.
Businesses in the following industries are prohibited from receiving a Fundbox lines of credit:
- Nonprofit organizations
- Adult entertainment or adult services
- Online gaming and gambling, which includes contests, sweepstakes or sports forecasting
- Sale of ammunition or firearms
- Direct marijuana-related businesses, including those that manufacture, distribute, or dispense marijuana; this includes state-licensed businesses
- Financial institutions and money services businesses (MSBs), including lenders, venture capitalists, insurance companies and law firms collecting funds for any purpose other than to pay fees owed to the firm for services rendered.
Required documents
Fundbox has a convenient online application, promises a fast approval process that can take as little as three minutes, and once approved you can receive funding quickly — sometimes as soon as the next business day.
While applying for a Fundbox line of credit, you may be asked to submit the following required documents:
- At least three months of bank statements from your business checking account
- The previous year’s tax returns, if applicable
- A scan of your driver’s license or passport
- Financial documents, potentially including a profit and loss report
Alternatives to Fundbox
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| Fundbox | Bluevine | OnDeck | |
|---|---|---|---|
| Minimum credit score | 600 | 625 | 625 |
| Loan products offered | Business line of credit | Business line of credit | Business line of credit Short-term loan |
| Time to funding | Soon as next business day | Same day, or 1-3 business days | As soon as same day |
| Starting rates | 4.66% | Not disclosed | 29.90% APR |
| Maximum loan size | $150,000 | $250,000 | $100,000 for a line of credit $250,000 for a short-term loan |
| Minimum annual revenue | $100,000 | $120,000 | $100,000 |
Fundbox vs. Bluevine
If you’re looking for a business line of credit, Bluevine is another good choice. They offer higher credit lines, up to $250,000, with longer repayment terms of either 6 or 12 months. Bluevine does have slightly higher minimum eligibility requirements with a minimum credit score of 625 and minimum annual revenue of $120,000. Like Fundbox, Bluevine has a potentially fast approval process (which can be as quick as five minutes), and funding can be delivered within a few hours if you’re using a wire transfer and within two to three days with ACH.
Fundbox vs. OnDeck
OnDeck is another alternative online lender offering business lines of credit, as well as offering short term loans. For both products, OnDeck’s starting APR is 29.90%, and you may be approved for up to $100,000 for the business line of credit for $250,000 for the short-term loan. The higher interest rates are a downside to consider. OnDeck does not lend to businesses in North Dakota, South Dakota or Nevada.