Fundbox Review - Business Loans
Application & Approval Process
Customer Support & Benefits
Fundbox is a financial lending company from San Francisco, California, founded in 2013. They offer business loans to small and medium-sized businesses. Initially, they provided the invoice financing option known as Fundbox Credit. However in 2017, they added a new service of a line of credit to their business loan options.
Fundbox stands out from other competitors because it is super easy for the businesses to qualify for their loans. They do not require a borrower to be in business for a long time. This feasibility makes Fundbox’s business loans useful for companies operating on both B2B and B2C models.
Both small businesses and freelancers can apply for loans with this lender. So, if a merchant has a poor credit score or is unable to get loans from traditional lenders because they are new in the industry, Fundbox can be the helping hand they need. Their loan process is relatively simple with fast funds transfer; plus, they offer a hassle-free and proactive customer service.
All business loans by Fundbox are unsecured, which means a borrower does not require any collateral or guarantees whatsoever. Additionally, any business from mainland US or other US territories such as Guam, Northern Mariana Islands, American Samoa, US Virgin Islands, and Puerto Rico can also apply.
- Funding in 1 to 3 days
- Low minimum credit score requirement
- One-form application
- Multiple options for customer support
- Higher rates
- Repayments are required regularly
- Offers two different business loans: Fundbox Net Terms and Fundbox Credit. Available for both small businesses and freelancers.
- Trusted by 100,000+ businesses, including Trustpilot, Prime Industries, and Gumball Poodle.
- Utilizes industry best practice security protocols, including Norton Secured, McAfee Secure, and it is BBB-accredited.
- Requires applicants to use compatible accounting or invoicing software when applying, such as Xero, Quickbooks (Desktop and Online), SageOne, and FreshBooks (Classic and New).
- Extensive customer support including many different contact methods and a detailed FAQ section.
Application & Approval Process
Fundbox’s business loan application process is speedy and relatively simple. To begin, the potential borrower must sign up to create an account and fill in a sign-up form, which will ask for general information such as the borrower’s name, email, and phone number. The borrower then links their invoicing or accounting software or business bank account to their profile. Fundbox determines which business loan option the applicant is applying by evaluating the type of software the borrowing company has linked to their account.
Moreover, Fundbox will analyze the activity of the account or software that the borrowing business uses, which will help them to decide if they can extend credit to the applicant. Fundbox may also check the credit score of the company during the application process; however, it is a soft pull, meaning it will not affect the credit history.
If the loan application is approved and the business requests funding from their line of credit, Fundbox may perform a hard pull causing a small impact on the credit score. Apart from that, the application process is fully automated. Once the loan application is approved and the borrower agrees to the terms and conditions and the rates offered, they can begin claiming their funds straightaway.
Generally, it takes 24 hours for the money to transfer to the borrower’s account. However, it depends on the time of the day business requests the funds, such as if the borrower submits a request at the end of the day, they may not get the funds within 24 hours. The early the submission, the better it is.
Rates & Fees
Fundbox offers two types of services, which are Fundbox Credit or line of credit and Fundbox Net term. Both have different rates and fees which are:
For the Fundbox Credit, the consumer can borrow an amount from $1,000 to $100,000 with a borrowing fee starting at 4.66%. There is no draw or origination fee. The estimated APRs for the line of credit is 10.10% to 79.80%.
For Fundbox Net term loans, companies can borrow up to $100,000 with a 100% advance rate. The advance fee starts at 4.66%, and there are no additional fees or charges. Plus, if a business pays the due amount before the net term, there is no fee or interest at all. However, if they do not pay before the net term and continue extending terms, each week’s payment will include fees.
The payment terms for Fundbox for all their business loans are between 12 and 24 weeks. Plus, Fundbox extends the facility to all its borrowers to repay their line of credit via early repayments. This will help the businesses save money on fees, and there are no prepayment penalties as well.
Fundbox offers two types of business loans. Although both services offer similar fees and terms, they function with a slight difference.
It is also known as a line of credit in standard financing terms. This service is similar to a credit card facility as the borrowing business gets a fixed amount of credit limit that they can use. Once the company withdraws funds from the line of credit and receive cash, they will start paying interest on the borrowed amount.
Fundbox Net Terms
This business loan option is for B2B transactions to receive a trade credit. Fundbox pays the money to the borrowing business directly and collects the outstanding amounts from business customers when the invoices become due. It is an excellent option for companies looking to purchase their inventory and other materials without having any access to cash in hand.
Customer Support & Benefits
Fundbox customer support has several options, including email, phone, and an online support center. The latter is their well-developed FAQ section, which explains everything a borrower may need to know about Fundbox i.e. their services, eligibility criteria, how to work their payments, troubleshooting, etc.
There is also a more generic FAQ section, which includes necessary information such as requirements, borrower’s fees and terms, etc. Their customer service is prompt and readily available over the phone. Plus, the representatives are very helpful and friendly. The customer service is open from 8 AM to 8 PM (EST) Monday to Friday. The company also has two main offices in America, one in California and the other in Texas.
Additionally, there is a full business funding guide available on their website for the business owners to understand everything they need to know about business loans and financing services in general.
Address: 300 Montgomery St. STE 900, San Francisco, CA 94104
Address: 6900 Dallas Parkway, STE 700, Plano, TX 75024
Email: [email protected]