Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

Fundbox review: Business lines of credit

Get a quote for a line of credit within minutes — but watch out for the high cost.

finder.com’s rating: 4.2 / 5.0

★★★★★

Bottom line: Fundbox offers lines of credit with faster funding, more flexible requirements and a simpler application than you’ll find at most banks. The total cost can be higher than a credit card — though it’s comparable to other similar products. Read our full review. or get our30-second take.

Details

Min. Amount$1,000
Max. Amount$150,000
Loan Term12 or 24 weeks
Min. Credit Score600
APRNot stated
Financing feeStarting at 4.66% per week
Requirements6 + months in business, $100,000+ in annual revenue, 600+ credit score
Go to site

Pros

  • No paperwork
  • Takes minutes to get approved
  • Accepts new businesses and fair credit
  • Low starting credit limit of $1,000

Cons

  • No credit limits over $150,000
  • Frontloaded fees
  • High total cost, compared to bank line of credit
  • Not transparent about how pricing works

Our take

An 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’s one of the few online providers that truly asks for no paperwork by connecting to your accounting software instead.

It’s very similar to other online lenders such as OnDeck and Kabbage — in both good and bad ways. Like Kabbage, its use of regular fees instead of interest makes it difficult to tell exactly how the cost compares to a bank loan or credit card, which often costs with an APR. And when I did the math, I found that most borrowers can expect to pay the equivalent of around 35% APR or higher — approximately what OnDeck charges.

It also frontloads the fees during the first half of the repayment term. This means that even without prepayment penalties, paying it off early won’t save you much. While it’s expensive compared to bank loans, the convenience and low credit requirements could be worth the cost for some small business owners.

Fundbox now offers term loans — but not invoice factoring

While Fundbox started out as an invoice factoring company, that product is no longer available. But, it’s currently rolling out a new short-term loan product in addition to its line of credit. But it’s only available to a limited number of users and doesn’t have much information available — yet. But you can sign up to learn more about this new product on Fundbox’s website.

Fundbox rates, fees and terms

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 8.66% 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.

You can get an estimate of the minimum weekly payments and minimum total cost of a withdrawal by using a calculator on Fundbox’s website. But keep in mind this is the minimum Fundbox charges.

How Fundbox compares with other lenders

Fundbox lines of credit work a lot like those available through OnDeck and Kabbage. But there are a few slight differences.

OnDeck offers higher credit limits and instant funding on its credit lines. This means that you can receive your withdrawal within minutes. But it may be more difficult to qualify and it’s not completely paperwork-free.

Kabbage offers the same credit limits with lower monthly fees and slightly longer terms. But it also may be more difficult to qualify than Fundbox and also runs a hard credit check when you apply.

★★★★★


Finder Rating: 4.2 / 5

Check eligibility

Loan amount

$1,000 to $150,000

APR

Not stated

Loan term

12 or 24 weeks

Requirements

6 + months in business, $100,000+ in annual revenue, 600+ credit score

★★★★★


Finder Rating: 4.6 / 5

Find out more

Loan amount

$5,000 to $250,000

APR

Starting at 35%

Loan term

3 to 18 months

Requirements

600+ personal credit score, 1 year in business, $100,000+ annual revenue

Fundbox reviews and complaints

BBB accredited Yes
BBB rating A+
BBB customer reviews 4.62 out of 5 stars, based on 133 customer reviews
BBB customer complaints 12 customer complaints
Trustpilot Score 4.7 out of 5 stars, based on 2,782 customer reviews
Customer reviews verified as of 24 June 2021

Fundbox earns good reviews overall, but some customers report problems with its service. There are also multiple complaints about the high fees and weekly repayment schedule. However, most say that Fundbox provided a quick, simple solution for their temporary cash flow problems.

How to qualify

You and your business must meet the following criteria to qualify for a Fundbox line of credit — at a minimum.

  • At least six months in business
  • Personal credit score of 600 or higher
  • At least $100,000 in annual revenue

Just meeting these requirements might not be enough to get approved. 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 busines 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:

  • Clio
  • Ebility
  • FreshBooks
  • Harvest
  • InvoiceASAP
  • Jobber
  • Kashoo
  • QuickBooks Desktop
  • QuickBooks Online
  • Xero
  • Zoho

Fundbox can connect with bank accounts from over 12,000 financial institutions including national, regional and local banks and credit unions.

How the application works

Fundbox’s application works by asking for basic information about your business before connecting with your bank account and accounting software. After you submit the application, it 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. This means applying for a Fundbox line of credit of won’t affect your credit score, but using one for the first time will.

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. 

What sets it apart

The lack of paperwork and relatively relaxed eligibility requirements set Fundbox apart — even from other online lenders. It’s one of the few providers that accepts businesses that have been around for as little as six months. 

But it also has relatively low credit limits and fees are high compared to a traditional credit line. You may also want to consider business credit cards if you’re considering a Fundbox line of credit — in addition to other, more traditional lenders.

Is Fundbox legit?

Yes, Fundbox is a legitimate lender. It's served close to 300,000 small businesses since it opened its doors 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.

However, the privacy policy on its website doesn’t state a way you can limit the way your information is shared. Read the full privacy policy and other documents carefully to ensure you agree with how Fundbox may use information about you and your business.

Fundbox is a short-term solution for businesses that have unpaid invoices. For other funding options, learn more about business loans and compare lenders like Fundbox.

Business loan ratings

★★★★★ Excellent
★★★★★ Good
★★★★★ Average
★★★★★ Subpar
★★★★★ Poor

We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.

Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.

Ask an expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our finder.com Terms of Use and Privacy and Cookies Policy.
Go to site