Fundbox Business Loan Review
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Pros and cons of Fundbox
Pros
- Low minimum credit score requirement
- Short time-in-business requirement
- Next-day funding available
- No prepayment penalties or hidden fees
- Available in all U.S. states and many territories
Cons
- Max credit line is relatively low compared to other lines of credit
- Only one product available
- Relatively short repayment terms
- Some industries are off-limits
Fundbox small business loans review
Established in 2013, Fundbox is an online lender providing flexible working capital for all types of businesses, from early-stage startups to well-established companies. Funds can be used for a range of startup business costs and ongoing expenses like equipment, payroll, supplies, inventory, marketing or covering unexpected gaps in your cash flow.
Fundbox could be a good option for your business if you have bad credit because it accepts personal credit scores as low as 600. In addition, the turnaround time is on par with other alternative lenders — typically approving and funding your loan within one to three business days.
However, if you want access to more small business financing options or need more funds, you might want to consider another lender since Fundbox only offers a business line of credit with a max limit of $150,000. And even though Fundbox works with low credit scores, you typically need a good to excellent credit score to secure Fundbox’s lowest rates.
- Business owners with lower borrowing needs. Fundbox’s business line of credit only goes up to $150,000. But if you’re just looking to cover short-term expenses like payroll services or inventory, it may fit the bill.
- Business owners with less-than-perfect credit. Minimum credit score requirements are only 600. However, Fundbox will do a deep dive into your banking statements and accounting software data to determine if you can handle the repayments.
- Businesses that need fast funding. Fundbox provides fast business loans, with approval taking only minutes and funds available as soon as the next day.
Fundbox small business financing at a glance
| Product | Loan amounts | Repayment term | Starting interest rate | Fees |
|---|---|---|---|---|
| Fundbox business line of credit | Up to $150,000 | 3 or 6 months | Starting at 4.66% for 3-month terms Starting at 8.99% for 6-month terms | Late fee equal to average weekly interest $6 non-sufficient funds fee No prepayment penalties |
| Fundbox Plus | Up to $150,000 | 3, 6 or 12 months | 20% discount on fees for new draws | $99 monthly fee |
Business line of credit
If you qualify for a Fundbox business line of credit, you can borrow up to $150,000 on an as-needed basis. Once you make a withdrawal, you’ll have 12 or 24 weeks to repay the debt, with the first payment due in 14 days. Weekly fees start at 4.66% for 12-week terms or 8.99% for 24-week terms — but you only pay fees on the withdrawn amounts, not your total credit limit.
Your weekly fees are amortized. That means in week one, you’ll pay more in business loan interest and less toward the principal balance compared to the last week of your repayment term, when you’ll pay less interest and more principal. Regardless of the sliding scale of fees versus principal, your weekly payment will remain the same throughout the repayment term.
It’s hard to rack up late fees on a Fundbox line of credit because payments are automatically debited from your business checking account. But, if your payment doesn’t go through on time, the late fee will equal your average weekly fee as if it weren’t amortized. So if you were paying a total of $600 in weekly fees over a 12-week term, you could expect your late fee to be $50 for each weekly payment missed. Plus, if your payment didn’t go through due to non-sufficient funds in your checking account, you’ll pay an additional $6 fee.
Fundbox Plus line of credit
The Fundbox Plus line of credit is less of a separate product and more of a membership discount. You can borrow the same max of $150,000, but will need to pay $99 per month to enjoy the additional benefits that come with Fundbox Plus, such as extended repayment terms and a 20% discount on fees.
You can still have a 12– or 24-week term if you so choose, or lengthen your payments to a 52-week term. You can also choose between weekly or monthly payments, an option not available with Fundbox’s basic line of credit. In addition, you have 28 days after making a draw to start payments. Another major bonus of upgrading to Fundbox Plus is the 20% discount on your weekly fees, which could make the $99 monthly fee worth it if borrowing a significant amount.
While Fundbox Plus mentions access to exclusive events and offers, specific details about these perks aren’t listed on Fundbox’s website. Furthermore, Fundbox Plus has been in its beta stage for a while now. It’s only available to select existing Fundbox borrowers, so you’ll need to contact Fundbox directly to see if you’re eligible.
Fundbox borrower requirements
| Minimum annual revenue | $100,000 |
| Minimum time in business | 6 months |
| Minimum credit score | 600 |
If you want to apply for business financing with Fundbox, your business must be based in the U.S. and you must have a personal credit score of at least 600. Fundbox can be a great option for startup financing as long as your business has been in operation for at least six months with an annual revenue of $100,000 or more.
While Fundbox will only do a soft credit check during the approval process, it will run a hard credit check when you make your first draw. The application process is quick and easy, with a funding decision typically made within three minutes. Once approved, you can get funding as soon as the next business day.
Fundbox lines of credit are available in all 50 states, plus Guam, Puerto Rico, American Samoa, the U.S. Virgin Islands and the Northern Mariana Islands. However, the following industries are prohibited:
- Adult entertainment and services
- Firearms or ammunition sales
- Online gaming and gambling
- Any marijuana-related businesses where you directly touch the plant
- Money service businesses
- Financial institutions
- Nonprofits
Required documents
When you apply for a Fundbox line of credit, you’ll be asked for some basic information about your business, such as how long you’ve been operating and how much your company earns each year. You may also be asked to connect your checking account and accounting software for underwriting purposes. The data found in these accounts will help Fundbox assess your creditworthiness.
Other business loan requirements may include providing the past bank statements or business tax returns.
Alternatives to Fundbox
| Fundbox | OnDeck | Bluevine | |
|---|---|---|---|
| Minimum credit score | 600 | 625 | 625 |
| Loan products offered | Lines of credit |
| Lines of credit |
| Time to funding | 1 to 3 business days | Same day to 3 business days | Same day to 3 business days |
| Starting interest |
|
| 7.80% simple interest |
| Maximum loan size | $150,000 |
| $250,000 |
| Minimum annual revenue | $100,000 | $100,000 | $120,000 |
| Minimum time in business | 6 months | 12 months | 12 months |
* OnDeck rate is the minimum APR offered to at least 5% of customers (not the lowest rate offered).
Fundbox vs. OnDeck
If you prefer getting a one-time lump sum with fixed payments, OnDeck’s business term loan could be a better choice. It offers up to $100,000 more than Fundbox’s line of credit, plus there’s the option to switch to OnDeck’s line of credit down the road if you want more flexibility. Just note that you may end up paying more interest since OnDeck’s shortest repayment term is 12 months, compared to Fundbox’s short three-month term. While opting for a shorter term can help reduce your overall interest charges, your monthly bill will likely be higher.
The annual revenue requirements are identical for both lenders, but you’ll need an entire year of business history to qualify with OnDeck, making it less accessible for early-stage startups. The minimum credit score requirement is also 25 points higher with OnDeck — 625 versus Fundbox’s requirement of 600.
Since both Fundbox and OnDeck are online lenders utilizing the latest streamlined software to make fast lending decisions, you can expect to receive your funds within a similar timeframe of one to three business days. Comparing interest rates in advance is tricky since Fundbox has significantly shorter terms. If both lenders sound appealing to you, it’s worth applying to both and seeing which lender offers you a better interest rate.
Fundbox vs. Bluevine
One advantage of picking Bluevine over Fundbox is the ability to streamline multiple business solutions to make your business finances easier to manage. In addition to a business line of credit, Bluevine offers business credit cards, business checking accounts and a bill management system that can easily sync with QuickBooks Online. You can also explore more funding options with Bluevine’s network of partner lenders.
While you can borrow $100,000 more from Bluevine, you’ll also need to earn slightly more to qualify — $120,000 per year versus the $100,000 annual revenue requirement at Fundbox. Plus, you’ll need at 12 months of business history under your belt to qualify at Bluevine, with a minimum credit score of 625.
In contrast, Fundbox works with business owners after just six months in operation and only requires a minimum credit score of 600. While Bluevine has a slightly lower starting rate than Fundbox’s longer term option, you won’t know your final rate until you submit an official application.
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