Fundbox

4.5/5 stars

FundBox offers a revolving line of credit with no penalty for early payments, perfect for managing short-term expenses.

Pros

Easy Qualification: Fundbox has low minimum requirements, making it accessible to businesses with low credit scores (starting at 600) and short operational histories (as little as 6 months).
Fast Funding: Approval decisions are made quickly, and funds can be transferred within 1-2 business days, making it ideal for businesses in need of immediate cash.
No Hidden Fees: Fundbox does not charge application, maintenance, or prepayment fees. This transparency is attractive to businesses looking for clear pricing.
Flexible Repayment: Borrowers can repay early with no penalties and reduce the cost of borrowing by paying off the balance ahead of schedule.

Cons

Short Repayment Terms: The repayment terms are short (12 or 24 weeks), which can be a disadvantage for businesses needing longer-term financing.
Higher Interest Rates: Compared to traditional bank loans, Fundbox’s rates can be higher, especially for businesses with lower credit scores.
Lower Loan Limits: With a maximum loan amount of $150,000, Fundbox may not be sufficient for businesses requiring larger funding.

The Bottom Line

FundBox is great for young businesses with steady revenue looking to cover short-term gaps.

This page may contain affiliate links. Our assessments are grounded solely in the product’s merits and performance.

Loan Types

Business Line of Credit

/

Loan Amounts: Ranges from $1,000 to $150,000.
Terms: Repayment terms are 12 or 24 weeks.
Interest Rates: Rates typically start around 10.1% APR, although the specific cost varies depending on the business’s financial health.

Pricing information is retrieved from publicly accessible pricing materials. The actual cost may vary based on specific plans chosen. Always check directly with the seller for the final quote.

Pricing information last updated March 7, 2024.

Qualifications

Credit Score: Minimum 600 FICO score
Time in Business: At least 6 months
Revenue: A business must generate at least $100,000 in annual revenue
Business Bank Account: Fundbox requires a business checking account and permission to link it to assess your financial health

Application Process

The application process is fully digital and takes just minutes to complete. Fundbox evaluates the business’s financial health by connecting directly to its bank account or accounting software (e.g., QuickBooks).

Make sure you have the following documents:

Business Tax ID (EIN)
Your Social Security number and personal details for verification
Be ready to connect to your business banking account

Most businesses receive approval within minutes, with funding available as soon as the next business day.

Pro Tip: Fundbox provides a helpful line of credit calculator that can give you an estimate of the fees associated and the repayment schedule!

Product Review

Fundbox is an online lender offering lines of credit to small businesses with flexible and easy-to-access financing options. Designed to help businesses manage cash flow and cover short-term expenses, Fundbox is a popular choice for companies that need fast, flexible funding without extensive qualification requirements.

Some of its key features include:

Credit Line Flexibility: Fundbox allows you to draw funds as needed from the approved line of credit, with no requirement to use the full amount at once. You only pay interest on what you borrow.
No Collateral Required: Unlike many traditional loans, Fundbox’s line of credit does not require any collateral.
Credit Score is Less Important: Fundbox focuses more on the health of your business’s cash flow than on your credit score, making it accessible to businesses with weaker credit profiles.

Best for: Younger Businesses and Startups

With lower revenue and credit score requirements, Fundbox is ideal for newer businesses or startups that may not have established credit profiles or long operational histories. Fundbox’s repayment flexibility and lack of prepayment penalties also allow businesses to borrow and repay according to their cash flow, reducing the overall cost if they can repay early.

However, Fundbox has shorter repayment terms that may be a barrier for some businesses. With repayment schedules set weekly, businesses with fluctuating cash flow may find it difficult to keep up with payments. The loan amounts are also capped at $150,000, which may not be sufficient for businesses that need substantial capital for expansion, large projects, or equipment purchases.

Overall, Fundbox is great for businesses that need short-term financing solutions but may not have the time or qualifications to apply for traditional loans.