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Fundbox Small Business Loans: 2023 Review

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Susan Guillory
Susan GuilloryUpdated January 14, 2023

Overview of Fundbox

Fundbox is an online lender that offers lines of credit up to $150,000 to qualified small businesses.Fundbox stands out for its flexible eligibility requirements and fast access to funding. You can qualify for a line of credit with Fundbox even if you’ve only been in business for six months and, in some cases, less. Many online lenders require at least one year in business, while banks generally require at least two years of business history.Fundbox’s online application process only takes a few minutes, and if approved, you can get access to a line of credit as soon as the next business day. The lender doesn’t charge application fees or prepayment penalties. However, annual percentage rates (APRs) can run high. Repayment terms are also relatively short — you need to make weekly repayments during a maximum loan term of just 24 weeks.The Takeaway: Though Fundbox’s business lines of credit can be expensive and have short repayment terms, they are easy to qualify for and fast to fund.

Pros and Cons of Fundbox

• Simple application with minimal documentation required• Funds available as soon as the next business day • Low credit score to qualify• Accepts borrowers with six months in business and sometimes less• No penalty for early repayment• Manage your funds through the Fundbox app• Rates can be high• Requires weekly payments• Short repayment terms — either 12 or 24 weeks• Relatively small credit limit• Can’t be used to build business credit (Fundbox doesn’t report to credit bureaus)• Fees may vary over time

Types of Small Business Loans Offered by Fundbox 

Business Line of Credit

A business line of credit is a revolving loan that gives you access to a fixed amount of capital that you can draw from when you need to. You only pay interest on the amount you borrow, not the full credit line. When you pull from your line of credit, your credit line decreases; when you pay back what you borrowed, it goes back to its original amount.A line of credit can be a good option if you need ongoing access to working capital for general business expenses, or you simply want to have a safety net to rely on in case of emergency. Fundbox offers credit lines up to $150,000. When you draw funds, you can choose either a 12- or 24-week repayment period. Eligible borrowers may be given a credit increase over time.Fee rates for the Fundbox line of credit start at 4.66% for 12 weeks and 8.99% for 24 weeks, which can translate into a relatively high APR. Fundbox, however, doesn’t list APRs on its site. APR includes any fees and interest rate charges that may apply and tells you the total cost of a loan per year.If you have a Fundbox line of credit, Fundbox will also give you a Flex Account you can use to pay vendors, payroll, or other business expenses.Fundbox is a digital product available to eligible businesses in all 50 U.S. states, the District of Columbia, and all U.S. territories.

Fundbox Small Business Line of Credit Terms, Rates, and Fees

Loan amounts Up to $150,000
Estimated APR range10% to 80%
Loan terms12 or 24 weeks
Repayment scheduleWeekly
Minimum credit score 600
Time to fundingAs fast as 24 hours
Fees  No application, account maintenance, inactivity, or origination fee; no prepayment penalties. Late payment and non-sufficient funds fees may apply. 
Information accurate as of Jan. 14, 2023.

Who May a Fundbox Small Business Loan Be Right For?

Fundbox may be best for a business owner who:
  • Needs access to capital quickly. With minimal documentation required, you can complete Fundbox’s online application and receive a decision the same day. Once your application is approved, funds are available as fast as the next business day.
  • Owns a startup. Many online lenders require that you have at least one year in business before you’re eligible for financing. With Fundbox, you may qualify for a line of credit with only six months in business, and depending on the strength of your business, you may qualify with just a few months of business history.
  • Has sufficient revenue to make weekly repayments. With a Fundbox line of credit, you will need to make weekly repayments over a 12- or 24-week term. This can result in large payment amounts, making Fundbox best for businesses that have enough revenue to comfortably cover those payments.

Who Fundbox May Not Be Right For

Fundbox may not be a good lending solution for a business owner who:
  • Is well-established. Business owners who can qualify for financing through a traditional bank or online lender with stricter qualification criteria will likely benefit from longer repayment terms and more competitive interest rates.
  • Has large upcoming expenses. Fundbox’s financing options are only available up to $150,000, and repayment terms are short. For that reason, the lender is not a good option if you are planning to make large business purchases.
  • Operates in certain industries. The following businesses or industries may not be eligible for Fundbox lines of credit: Adult entertainment and services; firearms and weapons; online gaming and gambling; drugs, dispensaries, and drug paraphernalia businesses; money services businesses; non-profit organizations. 

Fundbox Loan Fee Structure

When you draw funds, your repayment terms include amortized weekly borrowing fees, which is the interest the lender charges for the loan. Amortized means that, while the total amount of your weekly payments is the same each week, the breakdown between principal and fees changes. You’ll pay more of the fees and less of the principal early in the plan, and less of the fees and more of the principal later on. According to Fundbox, rates begin at 4.66% for 12-week terms and 8.99% for 24-week terms, but can change over time and vary from one applicant to the next. Borrowers are able to review the fee for each draw before they draw the funds. These fees represent the max you would pay over the term. If you repay early, the lender waives all remaining fees.Fundbox doesn’t charge any application, account maintenance, inactivity, or origination fees. Late payment and non-sufficient funds fees, however, may apply in certain cases based on information provided in your loan agreement.

Fundbox Loan Repayment

Repayments for Fundbox’s lines of credit are made in equal installments over 12 weeks or 24 weeks. When you draw funds, you are able to choose your repayment term. Payments will be higher for the 12-week term, but interest costs will be lower. The lender offers a handy calculator to help you determine the exact dollar figure you’ll pay each week, depending on the amount you borrow. You’ll also see how much interest you’ll pay for each draw.Weekly payments are debited automatically from the business checking account you provide. Your first repayment will be on Wednesday, no sooner than eight days after you drew the funds.There is no prepayment penalty — meaning if you pay your loan off before the 12 or 24 weeks are up, you can save on fees.

Fundbox Funding Eligibility Requirements

To qualify for a Fundbox line of credit, your business should meet the following requirements:
  • Based in the U.S.
  • $100,000+ in annual revenue
  • Ideally, 6+ months in business
  • 600+ personal FICO® score
  • Have a business checking account

Applying for a Fundbox Small Business Loan

You can apply online for a Fundbox business line credit quickly and with minimal documentation. According to Fundbox, applying online is safe and secure, and it will not impact your business credit score. (Once you’ve been approved for the loan, however, the lender will then do a hard credit check, which can cause a small, temporary drop in your score.)To apply, you will need to provide some basic information about yourself and your business, including your business name and address, business identification number (EIN), as well as information about the business owners, including the percentage of ownership you have in the business. Next, you will be asked to connect your business accounts, including checking accounts, accounting software, or other tools that provide insight into your business’s financials.Once you apply, you can get a decision in as little as a few minutes. If you’re approved, you could receive funds as soon as the next business day.

Fundbox Alternatives to Consider

Other lenders offer business lines of credit, including Bluevine, Kabbage, and Bank of America. Here’s how they compare to Fundbox:
  • Bluevine: Bluevine offers a larger credit line, with amounts up to $250,000. Like Fundbox, Bluevine is a good option for businesses that need quick access to capital, with same-day approval and funds available the next business day. Unlike Fundbox, Bluevine offers both weekly and monthly payments and terms of up to 12 months.
  • Kabbage: Kabbage offers business lines of credit of up to $250,000 to borrowers with a minimum credit score of 640 and at least one year in business. Unlike Fundbox, Kabbage only has a monthly repayment schedule, and offers terms of six, 12, or 18 months. Like Fundbox, Kabbage is a good option for quick access to working capital, typically offering funding within a few days.
  • Bank of America: If your business is well-established, you may want to look at a line of credit with Bank of America. Compared to Fundbox, qualification requirements are stricter and the application process, and time to funding, are generally slower. However, rates and terms will likely be more competitive.
  • Lantern by SoFi: Unlike Fundbox, Lantern by SoFi is a lending platform that connects borrowers to small business loans offered by a variety of trusted lenders. By filling out a single application, you get access to multiple loan options, including lines of credit, short-term loans, term loans, invoice financing, and commercial real estate loans. Loans up to $2 million are available to help you grow your enterprise.
Let Lantern by SoFi connect you with the right lender for your small business financing needs.

Frequently Asked Questions

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About the Author

Susan Guillory
Susan GuillorySu Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
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