Fundbox is an online lender for small business owners looking for a short-term loan or business line of credit. Alternative lenders like Fundbox can offer financing for businesses that might not meet the high qualifications of banks. This makes Fundbox ideal for newer businesses or businesses working on repairing their credit. Below, we’ll cover a full Fundbox review of everything you need to know about borrowing from the lender.
Fundbox loans come in two forms: short-term and line of credit.
|Fundbox financing at a glance|
|Amount||Terms||Starting interest rate||Fees||Min. credit score|
|Short-term business loans||$2,000 to $150,000||Repay over 24 or 52 weeks||8.33% for 24 weeks and 18.00% for 52 weeks||No prepayment penalty, no origination fee||600 FICO|
|Business lines of credit||$1,000 to $150,000||Repay over 12 weeks or 24 weeks||4.66% for 12 weeks and 8.99% for 24 weeks||No origination fee, but charges a late fee||600 FICO|
A short-term business loan is a lump-sum loan given to small businesses with a set repayment plan over a predetermined number of weeks. With Fundbox, that repayment period is either 24 or 52 weeks and the interest rates start at 8.33% for 24 weeks and 18.00% for 52 weeks.
The minimum loan amount is $2,000 and the maximum loan amount for the Fundbox short-term loans is $150,000. If Fundbox approves your loan and you don’t want to use the entire amount, you have to take the higher of 25% of the approved amount or $2,000. You’ll make weekly automatic payments from your business banking account to repay your loan.
After applying and giving Fundbox access to your account software or bank statements it can take just minutes for them to process your Fundbox application and you can have the funds the next business day if you’re approved. If you want to take some time to consider the offer and the associated fees, you have 30 days to decide on your offer.
Fees vary by customer but there is no origination fee, no prepayment penalty fee and no application fee. There are late payment fees and nonsufficient fund (NSF) fees if you miss a payment, though.
A business line of credit is ideal for businesses that need ongoing access to working capital for general business expenses. Typically, you’re offered access to a set amount of money and you can “draw” that money when necessary to cover supplies, payroll, rent or other business expenses. When you pull from your Fundbox line of credit your credit line decreases, but when you pay back what you borrowed, your credit line increases back to its original amount.
The maximum amount of money Fundbox offers for a line of credit is $150,000 and repayment can happen over 12 or 24 weeks on a weekly automatic debit basis. Interest rates for the Fundbox line of credit start at 4.66% for 12 weeks and 8.99% for 24 weeks.
There’s no origination fee or prepayment penalty for Fundbox lines of credit and your credit limit replenishes itself as you pay it back. Similar to the short-term loan, approval can happen in minutes and funds could be available the next day, if approved.
Businesses looking for a line of credit or a short-term loan from Fundbox must earn at least $100,000 annually. Plus, you’ll need to provide at least two months of activity from an approved accounting software or three months of activity from a business banking account. Meeting Fundbox’s requirements doesn’t guarantee approval, but it does better your chances as a business:
In addition to the requirements above, Fundbox lends to businesses in the 50 states, the District of Columbia, Guam, American Samoa, Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands.
There are certain prohibited industries Fundbox won’t lend to, including:
Fundbox wants to see at least two months of activity in accounting software or three months of transactions in a business bank account, as well as the following information:
Fundbox’s rates are only vaguely mentioned on its website, which is a drawback for business owners who focus on rates when deciding which lender is best. Additionally, Fundbox has shorter repayment periods than some other lenders, so the lender may not be a good fit if your cash flow can’t handle the higher payments that would result from a short repayment period.
On the upside, they do have eligibility requirements that are better for new businesses with annual revenue below $100,000. Plus, you could get approved with a slightly lower credit score than some other lenders might accept.
If Fundbox’s short repayment terms or limited types of funding are a dealbreaker for you, other lenders may be able to accommodate you.
BlueVine is another online lender that also offers short-term loans and lines of credit, but it also offers its customers invoice factoring. If you’re specifically looking for invoice factoring, BlueVine business financing could be a good option for you, especially if you have a lower credit score (the minimum required score is 530). BlueVine also offers higher loan and line-of-credit limits than Fundbox does, offering up to $250,000, but these funding options require a higher credit score (600+).
Headway Capital offers lines of credit of $5,000 to $100,000. It provides repayment plans of 12, 18 or 24 months, giving customers a much longer repayment period than Fundbox’s 12 or 24 weeks. There’s also an option to make payments to Headway Capital on a weekly or monthly basis. Headway Capital only requires that your business has $50,000 in annual revenue, but they also want to see at least one full year of business history from borrowers.
Another online lender offering term loans and lines of credit is OnDeck. The lender’s lines of credit range from $6,000 to $100,000 and have 12-month repayment plans you pay back in weekly installments. OnDeck’s term loan product offers up to $250,000 in funding and a slightly longer repayment of 24 months. This loan can be paid back with automatic daily or weekly debits to your bank account.