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For fairly new business owners who may not have strong credit scores, Fundbox is a financing option worth looking into. Specifically, its line of credit provides businesses with working capital to cover everyday business expenses. Though the cost of borrowing might be higher than with traditional lenders, Fundbox has less stringent requirements and a fast approval and funding process—perfect for small businesses that just need some cash to stay competitive.
- Pros and Cons
- Key Takeaways
- Company Overview
Minimum qualifications less rigid than some lenders
No hard credit pull when you apply
Quick turnaround on funds
Only one type of lending available to most borrowers
Repayment is weekly
Cost to borrow may be higher than other lenders
Does not report to business credit bureaus
- Fundbox is an AI-powered small business lender offering loans and lines of credit up to $150,000.
- Approved Fundbox borrowers can access funding within one business day in most cases.
- For business owners with fair creditt, Fundbox can be a good option if they need working capital in a hurry.
- Fundbox has no origination fees, but the APR costs can be high depending on your creditworthiness and other factors.
Fundbox was founded in 2013 in San Francisco as a financial platform for small businesses. It’s powered by AI, and has made over $3 billion in capital available to 500,000 businesses since its inception. Its primary product is a business line of credit, though it does offer some customers term loans as well.
Fundbox is available to businesses in all 50 U.S. states, as well as territories including Guam, American Samoa, North Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
- APR Range Starts at 4.66% for a 12-week repayment plan (or an APR of 18.90%)
- Loan Amount Up to $150,000
- Loan Terms 12 or 24 week repayment plan for line of credit; 24 or 52 week plans for term loan
- Recommended Minimum Credit Score 600
- Origination Fee None
- Late Fee Varies; added to end of your term
- Easy application: Fundbox’s application can be completed in a few minutes online. You provide access to your business bank account or accounting software, so there isn’t a lot of documentation you need to upload or underwriting you need to go through.
- Minimum qualifications are less rigid than some lenders: You just need to be in business six months, have a minimum credit score of 600, and earn $100,000 in annual revenue to qualify, although Fundbox doesn’t guarantee approval based just on those factors. Still, considering that some lenders want two years in business, 650+ scores, and higher revenue to qualify for small business loans, Fundbox doesn’t expect as much.
- No hard credit pull when you apply: Fundbox will do a soft credit inquiry to see your credit report, but it won’t impact your credit. The hard pull doesn’t come until you make your first withdrawal. That means there is no downside to applying.
- Quick turnaround on funds: Fundbox will make funds available the next business day after your application is approved in most cases.
- Only one type of lending available for most borrowers: Fundbox offers short-term business loans, with its main product its line of credit (and a term loan, which may be offered by Fundbox to some customers). If you want a wider selection of loan options like SBA loans, equipment loans, and invoice factoring, you will have to seek out a different lender.
- Repayment is weekly: It might be challenging for a business that may have slower periods of cash flow to handle weekly payments. Payments are also automatic from your bank account every Wednesday at 10 a.m. PT, so it’s important to make sure you have funds to cover the payment.
- Cost to borrow may be higher than other lenders: Though Fundbox does not disclose the high end of its APR range, especially with the weekly payments, you will likely pay more than with a traditional lender.
- Does not report to business credit bureaus: If your aim is to build your business credit, paying back this line of credit will not help you.
Types of Business Loans Offered by Fundbox
Fundbox’s main product is its small business line of credit. A Fundbox line of credit is revolving, like a credit card, meaning you can draw from it as you need it. Repayment is done weekly, either for a 12- or 24-week term. This type of financing is handy when you need access to working capital or a quick infusion of cash.
Fundbox also offers term loans, but they may not be available to all customers. After applying, if you are offered a term loan option, you get a one-time lump sum of cash that you repay over 24 or 52 weeks. Because it’s a longer period of time, a term loan might be best used to purchase equipment.
An interesting feature of Fundbox’s term loans is that when you reach the 50% mark of your loan repayment, you may be eligible for additional financing. And for some customers, a term loan is sometimes converted to a line of credit.
Fundbox repayment is structured so that you’re paying more fees and less principal during the beginning part of the term—it’s amortized, just like a mortgage. Keep this in mind if you are planning to pay off your debt early.
Time to Receive Funds
Fundbox has a speedy application and funding process compared to many traditional lenders. When you apply online, you’ll usually have a decision in a few minutes. If all goes well, you may get funding by the next business day.
- $100,000 in annual revenue
- 6 months or more in business
- 600 personal credit score
- Must have a business checking account
Fundbox Business Loan Features
- Choice of repayment: When you withdraw from your line of credit, you decide which weekly repayment plan is best for you. You’ll have predictable payments so you can plan ahead.
- Flex Pay: Though this feature is currently in beta, it’s one worth exploring. Flex Pay allows you to use your line of credit to pay business expenses and vendors directly, giving you more wiggle room to pay back Fundbox over time.
- Fundbox insights tool: This tool looks at your business account activity to make predictions about your future cash flow. It can help you make business decisions and envision the impact of potential expenses and income.
Can You Refinance a Business Loan With Fundbox?
As of now, there is no option to refinance a Fundbox loan.
Fundbox customer service is available via phone or email. You can email firstname.lastname@example.org anytime. By phone, you can call 855-572-7707, Monday through Friday from 8 a.m. to 7 p.m. ET.
Fundbox has pretty strong customer reviews on Trustpilot, earning an average of 4.6 out 5 stars. It also has an A+ rating with the Better Business Bureau, and is accredited.
Applying for a Fundbox Business Loan
Applying for a Fundbox business loan or line of credit is simple.
- Provide info online. Start by filling out basic business information online or in the Fundbox app.
- Approve account access. You’ll have to grant permission for Fundbox to see data from your business checking account or accounting software.
- Get a decision. Within just a few minutes, Fundbox will decide if you are approved for financing. The amount of your credit limit is based on information like monthly revenue and transaction volume, and how long you’ve been in business. Information comes from your business checking account, your accounting software, bank statements, credit report (which is done with a soft pull).
- Sign documents and finalize terms. Once approved, you may be asked to electronically sign a personal guarantee before making your first fund withdrawal. At that time, a hard inquiry will be made on your credit report. You will also select your repayment term, and be told exactly how much you’ll be paying each week.
If you are not approved by Fundbox, the company recommends waiting 90 days before trying again.
A business loan with a personal guarantee means that you are agreeing to take care of the debt with your personal assets if the business is unable to meet its obligation.
Alternative Business Loan Lenders
|LOC Amount||Up to $250,000||Up to $250,000||Up to $250,000|
|Loan Terms||3-18 months||Up to 24 months||6-12 months|
|Recommended Minimum Credit Score||650||625||625|
Fundbox may not have the best rates (the maximum of which are not disclosed), but it is one of the easier lenders to qualify for if you’re a fairly new business or don’t have the best credit. With its line of credit, you’ll only pay interest on the amount you draw, and you don’t have to reapply to make additional withdrawals.
For business owners in need of a cash infusion, whether it’s just for working capital to make an equipment repair or technology upgrade, Fundbox has high ratings among its many customers.
Are Fundbox Loans Unsecured?
Fundbox offers unsecured business loans, which means you don’t have to put up any specific collateral or leave a deposit. However, you do have to sign a personal guarantee.
What Credit Score is Needed for Fundbox?
Fundbox requires at least a 600 credit score, which is considered to be in the “fair credit” range, but bordering on bad credit. This is a lower credit threshold than some other lenders look for in their business borrowers.
What is the Credit Limit for Fundbox?
Fundbox lines of credit max out at $150,000.
Do You Have to Pay Back Fundbox Weekly?
Fundbox repayment is done on a weekly basis. There is some choice as to the number of weeks. Longer terms will mean a lower payment, but will cost you more over the life of the loan.
Fundbox. "Who is Eligible for Fundbox Financing?"
Fundbox. “Missed Payment Policy.”
Fundbox. “What Is the Difference Between a Fundbox Term Loan and a Fundbox Line of Credit?"
Fundbox. "How Do Fees Work?"
Fundbox. “Get a Business Line of Credit Up to $150K"
Fundbox. "What Is Flex Pay?"
Fundbox. "What Is Fundbox Insights?"
Better Business Bureau. "Fundbox."
Fundbox. "How are Credit Limits Determined?"