Fundbox Review
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- Date Established
- 2013
- Location
- San Francisco, CA
Pros
- Borrower qualifications lower than with banks
- The application process is fast and easy
- Low credit score requirements
- Multiple avenues of customer support
Cons
- Rates can be expensive
- Repayments are required frequently
Fundbox Overview
Fundbox is a business lender that specializes in offering financial products to small businesses. Founded in 2013 when a co-founder’s mother couldn’t get a loan for her small business, the company initially provided an invoice financing product for small businesses called Fundbox Credit. In 2017, Fundbox introduced a revolving line of credit product.
While Fundbox is not the only service to offer invoice financing and lines of credit, this company stands out because it is super easy to qualify for its products. Fundbox does not require a specific time in business. Fundbox’s low borrower requirements make its services useful for many B2B and B2C businesses, including small businesses and even freelancers. Merchants with poor credit might also find Fundbox’s products useful.
On the other hand, businesses that are well established might want to look at some alternatives. Fundbox’s rates can be a little high in comparison to lenders that service established businesses. Additionally, with a maximum credit line of $150,000, larger businesses will find that Fundbox might not offer as much money as they need.
However, if you’re looking for invoice financing or a line of credit, and you don’t yet qualify for financing from another source, Fundbox is certainly worth investigating. Its application process is easy, requesting funds is fast and hassle-free, and borrowers report that the company has great customer service.
Final Verdict: Fundbox is an easy and convenient source of financing for new and small businesses. However, readers should know that Fundbox’s rates can be expensive. Additionally, because Fundbox only offers a maximum of $150,000, larger businesses might want to look elsewhere for financing.
Are you interested in learning more? Read on for the details!
Table of Contents
Services Offered By Fundbox
Fundbox offers these services:
- Fundbox Credit: Lines of credit are similar to a credit card; you have a set amount of credit that you can use, and when you draw from the line of credit to receive cash, only then will you start to pay interest on the amount borrowed. Fundbox provides revolving credit with a 12- or 24-week repayment.
- Fundbox Net Terms: With Fundbox’s Net Terms service, B2B (business to business) transactions can receive a trade credit. Fundbox pays the business directly and collects the customer’s payment later, and this agreement enables companies to purchase materials needed without having the cash on hand.
- PPP Loans: Fundbox’s applications for 2021 Paycheck Protection loans are open. Fundbox is not a direct lender for PPP loans, but rather they connect applicants with PPP funds through a partnership with Cross River Bank.
Fundbox Borrower Requirements
Fundbox does not have any specific requirements regarding your time in business. Borrowers must have a personal credit score of 500 or above to qualify for funding. You must also be based in the US or one of these US territories: Guam, American Samoa, Northern Mariana Islands, Puerto Rico, or the US Virgin Islands.
Fundbox also requires that you must have been using a compatible accounting or invoicing software for at least two months before applying or have three months of transactions in a business bank account. Here is a list of the software compatible with Fundbox:
- Clio
- eBillity
- FreshBooks Classic
- FreshBooks New
- Harvest
- InvoiceASAP
- Jobber
- Kashoo
- QuickBooks Desktop
- QuickBooks Online
- SageOne
- Xero
- Zoho
For Fundbox Net Terms, you must have been using a compatible bank account for at least three months before applying. Fundbox works with over 12,000 banking institutions across the country. If you have both a business bank account and accounting software, Fundbox says:
We assess the health of your business based on your accounting or bank account data. You can choose either, but you should select the one where we can see the best, most complete picture of your business.
Fundbox Interest Rates & Fees
Apart from PPP loans, Fundbox offers two financing products: Fundbox Credit (line of credit) and Fundbox Net Terms (a B2B trade credit). While both services have similar terms and fees, they operate in a slightly different way. Here’s what to expect from each Fundbox service:
Fundbox Credit
Fundbox’s line of credit will work well for B2C businesses that are looking for a line of credit, even those with a low credit score. Any business that has been using a compatible business bank account for at least three months is eligible to apply.
Here are the rates:
| Borrowing Amount: | $1,000-$150,000 |
| Term Length: | 12-24 weeks |
| Borrowing Fee: | Starts at 4.66% |
| Draw Fee: | None |
The amount you are eligible for will depend on the strength of your business’s financials, and Fundbox may increase your credit line in time.
Borrowers can request funds from their line at any time. The funds will be deposited in their business bank account within one to two business days (depending on the time of day the funds were requested). Fundbox does not charge any draw fees or money transfer fees when you request funds. This is a revolving line of credit, which means that your credit line replenishes as you repay borrowed money.
Repayments are made in equal installments over 12 weeks or 24 weeks. The borrowing fee begins at 4.66% for 12-week terms and 8.99% for 24-week terms. There is no prepayment penalty — meaning if you pay your loan off before the 12 or 24 weeks are up, you can save on fees.
Use this short-term loan calculator to get an idea of what to expect with Fundbox Credit.
Net Terms
Fundbox’s Net Terms financing is a trade credit/vendor credit system offered for B2B businesses. It’s a type of invoice financing provided to businesses. Businesses get paid right away, and Fundbox assumes the role of collecting payment from the customer.
This service is similar to invoice factoring but is not technically a sale of unpaid invoices. In practice, the most significant difference between invoice factoring and net terms financing is that this loan product must be repaid weekly, not when your customer pays their invoice.
Fundbox offers credit lines up to $150,000. Some businesses may not have access to that much when they first start. However, Fundbox regularly evaluates your account and may increase your credit limit. These are Fundbox’s invoice financing terms and fees:
| Credit Facility Size: | Up to $150,000 |
| Advance Rate: | 100% |
| Advance Fee: | Starts at 4.66% |
| Term Length: | 12-24 weeks |
| Additional Fees: | None |
| Contract Length: | N/A |
| Monthly Minimums: | No |
| Factor All Invoices: | No |
| Recourse Or Non-Recourse: | Recourse |
| Notification Or Non-Notification: | Non-notification |
Borrowers have the option of 12- or 24-week term lengths. Each Wednesday (after you’ve had the funds for a week), Fundbox will withdraw the weekly payment plus a fee.
Fundbox advertises that its rates start at 4.66% of the value of the invoice. There is no prepayment fee, so if you pay your outstanding balance back early, you can save some money on fees. Aside from the weekly fees, the only other fees you might run into are late fees. However, Fundbox does not charge origination fees, maintenance fees, or termination fees.
Application Process
Fundbox has a speedy application process.
Potential borrowers simply need to create an account (which includes entering basic information, such as your name, email, and phone number) and hook up their accounting or invoicing software or their business bank account.
The account you hook up will determine which product you’re applying for. If you hook up your accounting or invoicing software, Fundbox will evaluate your candidacy.
To determine if it can extend credit to your business, Fundbox evaluates the activity on the software or account that you hooked up. Fundbox might also check your credit score during the application process, but it will be a soft pull, which will not affect your credit. If you are approved and request funds from your line, Fundbox might perform a hard pull, which will have a small effect on your score.
Fundbox’s application is fully automated. Most borrowers will receive a funding decision within a few minutes. If you are approved, and you like the rates you’ve received, you can begin requesting funds immediately. Funds generally hit your bank account the next business day, depending on the time of day you make the request (although, a couple of users report that it sometimes takes up to three days for Fundbox to process invoice financing draws).
For PPP loans, you can start a brief application with Fundbox, and Fundbox will then direct you to its partner Cross River Bank to continue with a more detailed application. Fundbox will continue to provide support regarding your PPP application throughout the process.
Sales & Advertising Transparency
While the way Fundbox markets its products can be confusing initially, Fundbox provides a large amount of information on its website. The website fully explains the information that potential borrowers will need to know before signing up for this service and is transparent about terms and fees. You may have to do a bit of scrolling and clicking to find the information you’re looking for.
Customer Service & Support
Fundbox has several support options, including phone, email, and a support center. The support center is basically a well-developed FAQ that explains everything you need to know about Fundbox, including troubleshooting. There is also a more general FAQ section on the Fundbox website that covers basic information (such as borrower requirements and fees). Most customers cite positive experiences with Fundbox’s customer support. In my experience, phone wait times were short, and representatives were helpful.
Fundbox Reviews, Complaints, & Testimonials
Negative Reviews & Complaints
Overall, Fundbox has an excellent online reputation. The company is accredited with the BBB and has an A+ rating. There are 12 complaints on file, all of which appear to be addressed by the company. The 104 customer reviews on the site are overwhelmingly positive, with an average rating of 4.55/5. While there are a few negative reviews, the majority of customers are pleased with the company’s service. However, there are still a few recurring complaints from customers:
- Credit Limit Too Small: The most common complaint about Fundbox is that the borrowing amount is too low. Fundbox does periodically review your account and increases credit limits for customers that have a good financial history. However, some customers have complained that the credit increases don’t come fast enough, and they don’t know when their account is going to get reviewed again.
- Too Expensive: Other customers have voiced concerns about the expensive capital. While Fundbox’s fees can be a little high, they are competitive with similar lenders. Before settling on Fundbox, you might want to see if you qualify for other lines of credit that are less expensive (but might be more difficult to qualify for).
- Communication Issues: Some of the gripes revolved around how (and how quickly) Fundbox addressed their complaints.
Positive Reviews & Testimonials
Despite the few complaints above, customer reviews of Fundbox are overwhelmingly positive. The company receives 4.67/5 stars on GetApp (based on 60+ ratings). It also rates a 4.7/5 on Trustpilot. Here is what customers like about Fundbox’s service:
- Fast & Easy Application Process: Users appreciate how easy and quick the Fundbox application is and how fast it is to receive funds.
- Low Borrower Requirements: Fundbox users appreciate the low borrower requirements, including no time in business requirements and a minimum credit score of 500.
- Great Cash Flow Solution: Many businesses praise Fundbox for being a great cash flow solution. Instead of waiting for customers to pay their invoices, businesses can have immediate cash to continue functioning and avoid the waiting game.
- Good Customer Support: A large handful of users also praise Fundbox’s level of customer support.
Additionally, Fundbox Credit is a little bit different from other invoice financing products because the company funds 100% of the invoice. (Most will only advance 80%-90% and hold the rest on reserve until the invoice is paid.) Some customers like this because you get access to that much more money.
Final Verdict
Customers have predominantly positive things to say about Fundbox, and it’s easy to see why. Fundbox provides two useful financial products that are suitable for many small B2B and B2C businesses, whether they’re suffering from cash flow problems, want a credit line for emergencies, or some other reason. Fundbox is also a participant in the PPP program for small business COVID-19 relief but does not originate those loans.
Larger businesses will find that other companies offer invoice financing or lines of credit with lower fees and higher borrowing amounts. But if you don’t qualify for those options, Fundbox is a good bet.
Interested in your other options? Check out our line of credit comparison chart or our invoice financing comparison chart. You might also be interested in our compilation of online lenders offering second-round PPP loans in 2021.
Erica Seppala
Erica is a writer based in Greenville, South Carolina. She is a graduate of Limestone College. Initially determined to be an accountant, she put away the calculator and picked up a laptop to pursue her dream of being a writer. Erica has spent the past 10 years writing blogs and articles for hundreds of private clients, and she loves sharing her love of research and the written word with everyone around her.
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The Merchant Maverick Seal of Approval 🏆
Fundbox  |
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Fundbox for yourself.
The Merchant Maverick Seal of Approval 🏆
Fundbox |
|---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Fundbox for yourself.
Read Next
I read Fundbox terms. It states that they are in your finances consistently meaning they have access to your bank account and financial records. Who in their right mind want a “lender” inside their entire business operation whenever they feel like it or download all of your transactions. That’s crazy that money is not worth them have that type of access or control you are better of just using credit cards.
This comment refers to an earlier version of this review and may be outdated.
Organization Name: 2111532-001
They are a bait & switch scam. Received e-mails hailing they could do PPP loans and after taking out much time to submit all the documents get an instantaneous rejection for the loan without any reason why. Under the Equal Credit Opportunity Act (ECOA) a party who is turned down for credit should get a response as to the wherefore which these cads totally disregard.
This comment refers to an earlier version of this review and may be outdated.
Organization Name: C R Market Surveys Inc
I work mostly with government agencies which are known for their slow pay. This service has been an absolute godsend for my company. The interest amount is negligible as long as you pay off the loan early. My only complaint is that they don’t allow you to draw less than the pending invoice amount. For instance, if you have a pending invoice for $20k but you only need $10k, you will need to borrow the entire $20k if your available credit covers this amount.
This comment refers to an earlier version of this review and may be outdated.
hi cherlyn
i’m trying to startup a business but my credit is low , how good was you credit. TY
This comment refers to an earlier version of this review and may be outdated.
I’ve only made 1 payment and can’t change the terms from 12 weeks to 24 weeks. I was unaware that I wouldn’t be able to change it and then I was told that if I changed it I wouldn’t be able to use Fundbox again. It’s a scam. The program defaulted to 12 weeks and then they said it was impossible to change it. What a load of BS!
This comment refers to an earlier version of this review and may be outdated.
where are the negative reviews about fundbox? where can I see them?
This comment refers to an earlier version of this review and may be outdated.
Hi Nizam,
Customer reviews of Fundbox can be found on the Better Business Bureau, TrustPilot, and many of the app centers for Fundbox’s accounting/invoicing partners (QuickBook’s center appears to have the most reviews). As you can see, customers have very few complaints about this service.
This comment refers to an earlier version of this review and may be outdated.
Organization Name: GFS
This is a nasty trap! The fees will wipe you out. Weekly payments keep you locked in. It’s filthy! Stay away
This comment refers to an earlier version of this review and may be outdated.