Fundbox: OverviewFundbox is a financial services organization based in San Francisco, offering loan products to small businesses. The company has an interesting history and was founded when a business owner was unable to acquire funding for her business. Her son saw an opportunity here and went on the found Fundbox, conceived in 2013 under the name, Fundbox Credit. It kicked off by offering invoice financing to startup owners. Eventually, the company also introduced a revolving line of credit loan products in 2017.
Qualifying for Fundbox Loan Products – Who Can Apply?Qualifying for Fundbox is typically easy since the company is designed to support small businesses.
Here are the essential criteria:
- You need a personal credit score of 500 and above.
- You should be based in the US or territories like the US Virgin Islands, Puerto Rico, Northern Mariana Islands, American Samoa, and Guam.
- Applicants need to show that they have been using a compatible accounting or invoicing software for a minimum of three months before applying.
- Alternatively, they must have proof of three months’ worth of transactions in a business bank account. Fundbox is connected with more than 12,000 banking organizations countrywide.
- If you have a banking account and compatible accounting software, you’ll submit details of the option that showcases a more comprehensive overview of your business health.
Check this list for some of the software the Fundbox approves of:
- FreshBooks Classic
- QuickBooks Desktop
- FreshBooks New
- QuickBooks Online
- Acquiring loans at Fundbox is easier than banks since their lending criteria are not stringent;
businesses with low credit scores can also access funding.
- Application procedures are quick, and you can get access to the funds right away or within one
or two business days.
- Fundbox has an efficient customer support system to respond to queries and issues.
- Fundbox loans are a great source of finance for B2B and B2C companies, small startups and
businesses, and even freelancers.
- Even if your credit scores are as low as 500, you can expect to get loan approvals.
- Small businesses and startups need not wait for customers to pay their invoices to use the
funds for paying vendors and suppliers. They can get credit on the amounts receivable and
have a better cash flow.
- Interest rates are typically higher than other sources of financing. If yours is an established
business, you could consider more economical loan products.
- You’ll repay the loans in installments paid each week for Fundbox Term Loans. Fundbox Credit
is repayable every 12 to 24 weeks, both of which may not be suitable if you need a long-term
source of cash.
- Maximum loans amounts stand at $150,000. If you need more funds, Fundbox may not be
suitable for you. However, your business’s financial health will be reviewed regularly, and the
company could raise your loan amounts.
- Fundbox net terms are recourse loans and require collateral that the company can acquire if
you default on your loans. Further, Fundbox may collect the collateral without informing you
Application Process for a Fundbox Loan Product
Fundbox has an excellent application approval process enabling you to get funding within a short time. Here’s what you can expect.
- You’ll create an account at Fundbox entering details such as your name, email, and phone number.
- You’ll connect your business bank account or invoicing software with Fundbox.
- Fundbox evaluates your application based on the account you’ve connected and determines the loan product you can get. The activity on the account or software influences your approval.
- Fundbox conducts a soft credit inquiry, which is not likely to affect your credit score. If you get approved for the loan, the company conducts a hard inquiry that can affect your credit score in a small way.
- Since the approval process is entirely digitized, approvals are typically confirmed within a few short minutes.
- If the interest rates are viable, you can request a funds transfer right away. Although transfers are conducted within one or two business days, you might have to wait for up to three days for invoice financing loans.
- If you’ve applied for a Paycheck Protection Program (PPP) loan, Fundbox will connect you with its partnering company, Cross River Bank. That’s where you’ll provide more details, though Fundbox will monitor and assist your loan application process.
Fundbox Loan Products You Can Consider
Here are some of the financing services provided by Fundbox.
- Fundbox Net Terms – This loan product is suitable for businesses that need cash to purchase materials and cover other manufacturing costs. You can avail of tax credits on B2B or Business to Business transactions. Fundbox covers your expenses and collects payments received from customers.
- Fundbox Credit – This loan product provides you a fixed limit on the credit made available to you – much like a credit card. Business owners can withdraw cash and pay interest only the total sum they borrowed, availing of a revolving credit facility with a 12- or 24-week repayment system.
- Paycheck Protection Program (PPP) Loans – If you wish to apply for PPP loans, you can do that using the Fundbox platform. Although Fundbox does not directly provide PPP loans, the company will facilitate funding thanks to its partnership with Cross River Bank.
Understanding Expected Interest Rates on Your Loans
When you start doing your research, you’ll find that Fundbox Net Terms and Fundbox Credit have
similar terms and fees, but with a few key differences. Check out this comparative analysis that you’ll
Fundbox Net Terms
Revolving Line of Credit
Up to $150,000
$1000 to $150,000
12 to 24 weeks initially with the possibility of extending credit limits over time
12 to 24 weeks initially with the possibility of extending the credit line.
4.66% and above
4.66% for 12-week terms and 8.99% for 24-week terms
Money Transfer Fee
Payments collected from customers, weekly installments withdrawn each Wednesday along with a fee
In equal installments over 12 weeks or 24 weeks
Access to Funds Time
One or two business days
B2B and B2C businesses
Strength of a business’s financials, also available for low credit scores
Frequently Asked Questions About Fundbox
The Fundbox website has detailed information you need. You should read up all the info before choosing the right loan products for your business. Fundbox believes in clarity and transparency without the risk of hidden surprises.
Fundbox has an efficient customer service and support service to answer your queries and resolve issues. You can contact them using the phone line and expect to speak to an associate with short waiting times. Emailing the support center can also get you quick responses.
Fundbox provides you loan products to the dollar value of the invoices you’re committing or 100% of the value.