Fundbox offers lines of credit with faster funding, more flexible requirements and a simpler application than you'll find at most banks. But the total cost can be higher than a credit card.
Best for: Business-facing companies in frequent need of quick funding to fill cash flow gaps.
- No paperwork
- Low 600 credit score minimum
- Only requires 6 months in business
- No credit limits over $150,000
- Front-loaded fees
- High total cost, compared to bank line of credit
- Not transparent about how pricing works
4.66% for 12-week terms and 8.99% for 24-week terms
What makes Fundbox shine
A Fundbox line of credit could be a good option for small businesses that can’t qualify for a bank loan — or just don’t have the time to apply. It has a simple online application that makes it easy to consistently access funds.
You can receive a decision in as little as three minutes and funding as soon as the next business day. And once you’re approved, you can borrow continuously against the same line of credit without needing to complete an application every time.
It’s also one of the few online providers that truly asks for no paperwork by connecting to your accounting software. Plus, it accepts businesses that have been around for as little as six months.
Many other lenders require companies to have a minimum credit score of 670 or higher, but Fundbox accepts scores as low as 600 – making it more accessible to those with fair credit.
Where Fundbox falls short
Fundbox uses a flat fee instead of interest on its lines of credit, which makes it difficult to tell exactly how the cost compares to a bank loan or credit card, which often advertises costs with an APR. When we did the math, we found that most borrowers can expect to pay the equivalent of around 35% APR or higher. For comparison, Bluevine’s business lines of credit start at around 6.2% APR.
It also front-loads the fees during the first half of the repayment term. This means that even without prepayment penalties, you can’t save much by paying it off early.
Before the pandemic, Fundbox offered a term loan in addition to its line of credit, but that product has since been discontinued. This leaves businesses without any other funding options. Plus, its line of credit is capped at $150,000. If you frequently need more cash flow than that, you’ll need to explore your options elsewhere.
Fundbox business loans
Fundbox currently offers just one product: a business line of credit to help with expenses like buying inventory, purchasing materials, equipment maintenance and more.
Fundbox line of credit
Fundbox doesn’t charge interest on its lines of credit. Instead, it charges a fixed weekly fee, which you pay on each withdrawal. Here’s how it works:
- Each withdrawal turns into a short-term loan with a 12- or 24-week term.
- Fees start at 4.66% per week for the 12-week term and 8.99% per week for a 24-week term.
- Borrowers pay the majority of the cost during the first third of the loan term.
There are no origination fees, draw fees or prepayment penalties. But the front-loaded fees mean you likely won’t save much by repaying your loan early. That is, unless you make extra payments within the first four weeks of a 12-week term or eight weeks of a 24-week term.
|Minimum credit score/credit range
|Up to $150,000
|12 or 24 weeks
|Typically 1-2 business days; funding in 2 business days.
- Financing fee of 4.66% per week for the 12-week term
- Financing fee of 8.99% per week for a 24-week term
|All 50 states, Guam, American Samoa, North Mariana Islands, Puerto Rico and US Virgin Islands.
To see how much your business might pay every month, use our business loan calculator.
You can expect to pay back
Based on your loan terms
How to qualify for a Fundbox business loan
You and your business must meet the following criteria to qualify for a Fundbox line of credit — at a minimum.
- Personal credit score of 600 or higher
- At least $100,000 in annual revenue
- At least three months of transaction history in a business checking account, but preferably at least 6 months in business
Just meeting these requirements might not be enough to get approved. “Our solutions are purpose-built to meet the unique needs and pain points of business to business (B2B) businesses, like waiting to get paid, covering payroll and investing in growth. Our customers are typically B2B small businesses with 20 employees or fewer, with annual revenues of up to $1 million,” Fundbox COO Cetin Duransoy told Finder in an interview.
Generally, Fundbox prefers to work with borrowers with at least a 650 credit score and $250,000 in annual revenue. The lowest rates typically go to business owners with a credit score of 700 and companies with at least $500,000 in annual revenue.
What accounts can I link to Fundbox?
Fundbox works with the following types of accounting software:
- FreshBooks Classic
- FreshBooks New
- QuickBooks Desktop
- QuickBooks Online
You don’t necessarily need to use eligible software to qualify. Fundbox can connect with bank accounts from over 12,000 financial institutions including national, regional and local banks and credit unions instead.
How to apply for a Fundbox loan
Follow these steps to apply for a loan from Fundbox:
- Visit the Fundbox website and register for an account.
- Provide basic information about your business.
- Connect your bank account and accounting software.
- Submit your application.
After you submit the application, Fundbox processes the information and gives you an offer, if approved. Fundbox only runs a soft credit check when you first apply for a line of credit. But it runs a hard credit check when you make your first withdrawal.
While you’ll need your login credentials to connect accounts, Fundbox doesn’t store that information. It also uses Norton to make sure the site isn’t compromised and your information is protected.
How Fundbox compares to other lenders
Fundbox lines of credit work a lot like those available through OnDeck and Bluevine, but there are a few small differences.
OnDeck offers higher credit limits and instant funding on its credit lines, meaning you could receive your withdrawal within minutes. But it may be more difficult to qualify, and it’s not completely paperwork-free.
Bluevine offers higher credit limits and has a lower APR than Fundbox. But it has higher credit score, time in business and revenue requirements.
Fundbox reviews and complaints
|BBB customer reviews
4.8 out of 5 stars, based on 425 customer reviews
|BBB customer complaints
14 customer complaints
4.4 out of 5 stars, based on 3,634 customer reviews
|Customer reviews verified as of
21 March 2023
Fundbox earns good reviews overall. Most customers compliment the helpful service and speedy funding. A few even mention their customer service rep by name and claim that Fundbox approved them after other lenders had denied funding. But some complaints report receiving spam and unsolicited contact from Fundbox after turning down a loan offer.
Is Fundbox legit?
Yes, Fundbox is a legitimate lender. It has served over 500,000 small businesses and funded more than $3 billion in working capital since it opened in 2013. It uses encryption technology and strict security protocols to keep your information safe. It has multiple FAQ pages outlining how its privacy and security policies work.