Fundbox

About Fundbox

From its website:

The Fundbox was founded in 2013 when a co-founder’s mother couldn’t get a loan to help grow her small business. Several eventful years later, Fundbox has two products for small businesses: our award-winning invoice financing offering and a line of credit that requires only a bank connection to get a credit decision. For both products, with a single click funds show up in a customer’s bank account as soon as the next business day. Fundbox has raised over $100 million in capital from leading Silicon Valley investors such as Khosla Ventures, General Catalyst Partners, and Spark Capital. Fundbox is also proud to partner with industry influencers and trusted leading products including Intuit QuickBooks, Freshbooks, Xero, Harvest, and Zoho.

Loan Programs

Fundbox offers two distinct financing products, a business line of credit (LOC) and invoice financing.

Fundbox delivers financing from $1,000 to $100,000 to small businesses. The firm’s application process is fully automated (no paperwork) and takes only minutes to complete (it’s referenced on the website that it’s as short as 3 minutes). There is one simple weekly fee from 0.4% to 0.9%, Fundbox charges no application fees, no origination fees, no out-of-pocket fees and no junk fees; just one low weekly interest charge. If approved after the short automated application process, funds are available as quickly as the next business day. Fundbox’s financing can be paid down or off at any time without penalty, and funds can be drawn down on a continual basis. Financing is available to most businesses located in all 50 States, Washington D.C., Puerto Rico, U.S. Virgin Islands, Guam, American Samoa and Northern Mariana Islands.

LOC Program Highlights / Guidelines

  • $1,000 to $100,000 available via a line of credit or invoice financing (up to 100% of invoice value)
  • 12 or 24 week repayment term options
  • You only pay fees on funds drawn
  • No credit score minimum
  • No liens filed on your business
  • No personal guarantee required in most cases
  • No collateral required
  • Only an active business bank account or accounting software is required
  • $5,000 in minimum monthly sales
  • 3 months minimum time in business
  • No bankruptcies in the last 5 years
  • No more than 3 other alternative loans open
  • 3 minimum monthly deposits and no more than 3 NSFs
  • Over 12,000 banks and most accounting software accepted
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The Loan Process

Fundbox is very transparent about its application and loan process and it’s promoted as one of the company’s greatest competitive advantages. LendVer went through the Fundbox application process and it was simple and easy.

The Application

The first step is to access the signup page here and register which takes just a few seconds. Type in your full name, business name, email address, phone number, a password of your choosing, select your business’s annual revenue from the drop-down menu and click “Get Started”.

Connect Your Bank or Accounting Software

The next step in the process is to choose whether you would like an LOC or invoice financing, and once selected you will be prompted to connect your bank account or accounting software. Fundbox accepts over 12,000 banks and financial institutions and all the major accounting software presently available. Fundbox has bank-level security encryption and has served over 100,000 small businesses so there shouldn’t be a concern about linking your bank account or accounting software. Fundbox was also the first ever third-party to be embedded inside of QuickBooks and has a 5-star rating on the Intuit app center.

Business and Personal Verification

The last step in the process is to verify a few bits of business and personal information including business name and address, EIN #, business owner name, personal address, date of birth and the last four digits of your social security number. Upon the completion of this step, and if your criteria is sufficient for approval, you will receive notification of your approval and be directed to your funding dashboard.

Getting Funded

Your Fundbox funding dashboard is very user friendly and will show you how much you have been approved for, any balance remaining, the terms that you were approved for and give you the options to draw your funds or pay down your line. The dashboard can be accessed 24/7, similar to the online banking you may have with your bank. Also, there is contact information for Fundbox on your dashboard and you can reach out for assistance any time.

Pros

  • Very low cost of borrowing, as little as 0.4% per week (only $4 on a $1,000 borrowed). This is the least expensive business credit line we could find and it is less expensive than a credit card, a bank working capital loan and certainly a merchant cash advance.
  • Fundbox has provided over $1 billion of funding to over 100,000 small businesses and it has a 9.7 out 10 rating on TrustPilot.
  • The loan process is super fast and easy, it really took us about 3 minutes, and there was no paperwork to print out and sign or waiting for a credit decision.
  • Fundbox’s financing has no prepayment penalty so you can pay it off at any time.
  • Fundbox periodically and automatically reviews your account for financing increases.
  • Fundbox’s platform is very secure, no sensitive information or documentation is required to be sent via email because everything takes place in its encrypted system.

Cons

  • The financing approval amounts Fundbox offers are relatively small from $1,000 to $100,000, and to be eligible for $30,000 to $100,000 you need a minimum monthly revenue of $50,000 or greater.
  • Even though Fundbox can connect with over 12,000 banks and financial intuitions, if you use a very small local or regional bank you may not be able to obtain financing.
  • If you don’t have a business bank account or accounting software you are not eligible for financing.
  • Businesses operating less than 3 months are not eligible for financing.

Why Fundbox is the Best

We evaluated many business credit line and invoice financing providers and Fundbox possessed the easiest, fastest and most secure application process. Fundbox is also the least expensive business financing option we were able to locate, it does not charge any fees other than the weekly 0.4% to 0.9% financing fee, and it does not penalize you for early repayment. With no credit score minimum, no collateral requirement, few business type restrictions and a funding footprint that includes the entire US and its territories; Fundbox is by far the most flexible credit line and invoice financing option available.

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