Fundbox Review

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Date Established
San Francisco, CA


  • Relaxed borrower qualifications
  • No additional fees
  • Short application process


  • Potentially high terms and fees
  • Unsuited for large businesses


Fundbox is a business lender that specializes in offering financial products to small businesses. Founded in 2013, the company originally offered an invoice financing product (a product similar to invoice factoring). More recently, Fundbox has introduced a line of credit product in addition to their earlier service.

While Fundbox is not the only service to offer invoice financing and lines of credit, this company stands out because it is very easy to qualify for their products. Fundbox does not require a specific amount of revenue or a specific credit score. Fundbox’s low borrower requirements make their 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 other options. Fundbox’s rates can be a little high in comparison to lenders that service established businesses. Additionally, with a maximum credit line of $100,000, larger businesses will find that Fundbox doesn’t 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. Their application process is easy, requesting funds is fast and hassle-free, and borrowers report that the customer service is responsive and helpful.

Interested in learning more? Read on for the details!

Visit Fundbox

Services Offered

Fundbox offers these services:

Borrower Qualifications

These are the requirements for both of Fundbox’s services:

Time in business:N/A
Credit score:N/A

Fundbox does not have any specific requirements regarding your time in business or revenue. While they don’t require a specific credit score, Fundbox might perform a soft pull on your credit during the application process (which will not have an affect on your score).

The only specific requirement is that you have been using compatible accounting or invoicing software for at least three months, or a compatible bank account for at least six. Currently, Fundbox works with over 24,000 banks and credit unions across the country and is compatible with the following accounting/invoicing services:

Terms & Fees

Fundbox offers two financial products: Fundbox Credit (invoice financing) and Direct Draw (line of credit). Both products are similar, but they function a little differently in some respects.

Fundbox Credit

This is Fundbox’s invoice financing product. B2B businesses, and any other businesses that process invoices, can apply for this product if they’ve been using compatible accounting or invoicing software for at least three months.

Fundbox Credit is a service similar to invoice factoring, but is not technically a sale of unpaid invoices. In practice, the biggest difference between invoice factoring and Fundbox Credit is that this loan product must be repaid on a weekly basis, not when your customer pays their invoice.

Fundbox offers credit lines up to $100,000, though some might not have access to that much when they start using the service. These are Fundbox’s terms and fees:

Credit facility size:Up to $100K
Advance rate:100%
Advance fee:0.4% – 0.7% per week
Term length:12 or 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

Once you have redeemed an unpaid invoice, the funds are deposited into a bank account of your choosing. Your customers will not be notified of the advance. You are still responsible for ensuring that your customer pays their debt.

Fundbox’s model is a little different from other invoice financing services in that repayments are made weekly, instead of in one lump sum when the customer pays the invoice. 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.

The fees range from 0.4% to 0.7% per week. In other words, for a $10,000 invoice, you’re looking at fees between $40 to $70 per week. You only have to pay the fees every week you have funds outstanding; if you repay before your term is up, you don’t have to pay the fees for the remaining weeks. For example, if you pay 0.4% in fees and have a term length of 12 weeks, but you repay after three (perhaps because your customer paid their invoice early), you would only have to pay $120 in fees.

Aside from the weekly fees, the only fees you might run into are late fees. However, Fundbox does not charge origination fees, maintenance fees, or termination fees.

Direct Draw

Fundbox’s line of credit, Direct Draw, is not dependent on a business’s unpaid invoices. This product will work well for B2C businesses, but any business that has been using a compatible business bank account for at least six months is eligible to apply.

Here are the rates for Direct Draw:

Borrowing Amount:$1,000 – $100,000
Term Length:12 weeks
Borrowing Fee:0.5% – 0.7% per week
Draw Fee:None
Effective APR:12% – 54%

Like Fundbox Credit, Direct Draw maxes out at $100,000, but the amount you are eligible for will depend on the strength of your business’s financials.

Borrowers can request funds from their line at any time, and 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. Direct Draw 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. The borrowing fee is between 0.5% to 0.7% per week. For example, if you are borrowing $10,000, the fee will be between $50 and $70 per week, for a total of $600 to $840 (if you make all 12 payments). If you repay early, you do not have to pay the fees for remaining weeks. For example, if you repay after 6 weeks, you will only have to pay $300 to $420 in fees.

Overall, the borrowing fees add up to an effective APR of about 12% to 54%. While certainly higher than you might be able to get from a bank, these rates are comparable to similar lenders.

Visit Fundbox

Application Process

Fundbox has a very fast application process.

Potential borrowers simply need to make 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 for Fundbox Credit. If you hook up your bank account, you are applying for Direct Draw.

To determine if they 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 affect on your score.

Fundbox’s application is fully automated. Most borrowers will receive a funding decision a few minutes. If you are approved, and like the rates you received, you can being requesting funds immediately.

Sales & Advertising Transparency

Fundbox provides a fair amount of information on their website. The website fully explains information that potential borrowers will need to know before signing up for their service.

Customer Service & Technical Support

Fundbox has a general FAQ, as well as a more detailed and technical FAQ. These resources provide the answers to most basic questions, whether you’re wondering how the credit line works, troubleshooting software problems, or looking for answers to other questions.

If you need more specific help, customer service is available via phone (hours are here) and email. Most customers cite positive experience with Fundbox’s customer support.

Negative Reviews & Complaints

Fundbox has quite a few reviews across the web. The company is accredited by the Better Business Bureau with an A+ rating (and only one complaint). Additionally, Fundbox has a number of reviews on TrustPilot, the QuickBooks App Center, and some other places.

Overall, Fundbox has an excellent online reputation. While there are a few negative reviews, the majority of customers are very happy with the company’s service.

That said, some customers claim that their credit limit is too small. Fundbox does periodically re-review your account and increase credit limit for customers who 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 be reviewed again.

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 more difficult to qualify for.

Positive Reviews & Testimonials

Despite the few complaints above, customer reviews of Fundbox are overwhelmingly positive. On TrustPilot, 96% of their 500+ reviews are rated 5-stars, and the rest are rated 4-stars. On the QuickBooks app center, 92% of their 500+ reviews are rated 5-stars, and the rest are 3- or 4-stars. Here is what customers like about Fundbox’s service:

  • Fast and easy application process
  • No credit check
  • Fast and easy access to funds
  • Helpful customer service
  • Products solve cash flow problems

Additionally, Fundbox Credit is a little bit different from other invoice financing products because the company funds 100% of the invoice. 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.

As stated above, 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, Fundbox is a good bet.

Interested in your other options? Check out our line of credit comparison chart or our invoice financing comparison chart.

Visit Fundbox

Chelsea Krause

Chelsea Krause

Head Accounting and Invoicing Writer
Chelsea Krause is a writer who has specialized in accounting for two years. She has a BA in English & Creative Writing from George Fox University and studied at the University of Oxford as well. She has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business.
Chelsea Krause
Chelsea Krause

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Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Ryan Shaffer

    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!

      nizam khatib

      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.

        Bianca Crouse

        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.

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