Fundbox business financing review
Fundbox offers lines of credit and invoice financing with flat rates based on your business’s financial health.
finder.com’s rating: 3.14 / 5.0
Aliyyah Camp is a writer and personal finance blogger who helps readers compare personal, student, car and business loans. Aliyyah earned a BA in communication from the University of Pennsylvania and is based in New York, where she enjoys movies and running outdoors.
Fundbox offers three types of financing to small businesses that may not qualify for larger loans from banks. This makes it a good choice if your business needs access to working capital or doesn’t have the funds to make an important purchase. And it’s open to relatively new startups. As long as you have three or so months of banking history and meet its annual revenue requirements, your business may qualify.
But the speed and loose eligibility criteria come at a cost: Fundbox charges high rates for all of its services. You also won’t be able to borrow much, which doesn’t make it an ideal choice for growth.
See our table for more lenders that offer similar services.
What types of financing does Fundbox offer?
Fundbox offers three borrowing options: Lines of credit, net terms on business purchases and invoice financing.
Line of credit
When you sign up with Fundbox, you’re taking out an unsecured line of credit. That credit line has a maximum draw limit of $100,000 and a minimum rate of 4.66%.
As you draw from your line, you pay the amount back over 12 or 24 weeks. Fundbox automatically debits the weekly repayments from your connected account. When a payment hits, the amount of the principal you paid back becomes available to draw from again.
Fundbox offers interest-free financing when you make a business purchase from one of its vendors. This allows you to postpone payment for a 30- or 60-day net term. If you repay during your net term, you won’t owe money. But once this period is over, you will pay a fee every week your loan is outstanding — up to 52 weeks.
Fundbox also allows you to sign up to offer net terms to your customers. You can accept payments from your customers without having to wait for them to pay your invoice, but you will need to pay a transaction fee for the privilege.
Exact terms and criteria depend on your business, so contact Fundbox for more information to get started.
What accounts can I link to Fundbox?
Fundbox doesn’t require paperwork. Instead, you’ll link your accounting software to demonstrate your eligibility and financing needs.
Supported bookkeeping software includes:
- QuickBooks Desktop
- QuickBooks Online
- Zoho Books
To make automatic repayments on the amount borrowed, you’ll need to link a business account. Fundbox can connect to over 12,000 financial institutions including national, regional and local banks and credit unions.
How much will this loan cost my business?
The cost of borrowing from Fundbox depends on the type of funding your business uses.
- Line of credit. Interest rates start at 4.99% for a 12-week term or 8.99% for a 24-week term. You will be able to review the rates and terms for a draw before confirming it. However, these can change from one draw to the next — and Fundbox doesn’t list a maximum rate.
- Net terms. If you use Fundbox to make a business purchase from a vendor, there's no fee if you pay the total amount due before the end of the net-30 or net-60 term. However, there's also a 52-week plan with a 19.42% fee rate if you extend your terms.
- Invoice financing. Fundbox charges a 1.75% transaction fee for a net-30 term and a 2.9% transaction fee for a net-60 term. Longer net terms will have higher rates, so check your loan agreements for more details.
How it works
Fundbox won’t necessarily use your personal credit score to determine eligibility and fees. Instead, it has base fees for each type of financing it offers. When you apply, it checks your business finances and recent banking history to determine your rates.
What do I need to qualify?
Fundbox requires your business to meet a few basic criteria:
- Registered in the US
- Active invoice history for at least the past three months
- Partnered bookkeeping software or supported business checking account
- Annual revenue around $25,000 for net terms or $50,000 for line of credit
What information do I need to apply?
The information you need to provide depends on the type of funding you need, but expect to provide tax returns, recent bank statements and other proof of business income when you apply with Fundbox.
Pros and cons
- Deals directly with you, not your customer
- No prepayment penalty
- Flat percentage fee
- Low personal credit accepted
- Low maximum credit limit of $100,000
- Doesn’t support all bookkeeping software
- Credit limit and fees may change
- Automatic weekly repayments
See other top business loan options
Is Fundbox legit?
Yes. Fundbox 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.
Fundbox reviews and complaints
|BBB customer reviews||4.59 out of 5 stars, based on 93 customer reviews|
|BBB customer complaints||11 customer complaints|
|Trustpilot Score||4.7 out of 5 stars, based on 2,532 customer reviews|
|Customer reviews verified as of||13 October 2019|
Fundbox earns good reviews overall, but some customers report problems with its service. There are multiple complaints about the high fees and weekly repayment schedule, and some customers cite issues with customer service. However, most say that Fundbox provided a quick, simple solution for their temporary cash flow problems.
How do I apply?
You can apply for a line of credit or invoice financing by following these simple steps:
- Click the Check eligibility button to be redirected to Fundbox’s website.
- Enter your full name, email address and phone number. Create a password and select your business’s estimated annual revenue. Then click See how much you qualify for.
- Authorize your account through your accounting software or business checking account. You will need to log in to your account through Fundbox’s secure portal.
- Verify your personal and business information, then submit your application.
Funbox may take a few hours to fully process your information and give you an approval decision.
What happens after I apply?
Requests made before 12 p.m. PT Monday through Thursday will be funded as soon as the next business day and deposited into your business checking account. It may take multiple business days to fund requests made outside this window.
How do repayments work with Fundbox?
Fundbox debits payments automatically from your linked business checking account. If you’re able to fully repay the total amount, the remaining fees are waived and there’s no early repayment penalty.
Keep at least the weekly repayment amount available in your connected business account. Late fees are steep. Not only will you owe the missed principal and the weekly fee, but there is an additional weekly fee stacked on top.
And if you don’t have enough in your account, Fundbox also charges a $6 NSF fee on top of its late fee. If you won’t be able to make a payment, contact Fundbox as soon as possible to discuss your alternative options.
Frequently asked questions
Business loan ratings
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