Fundbox Small Business Loans: 2021 Review

Q: How much can Fundbox lend?

With Fundbox’s line of credit, you can borrow up to $100,000, depending on your qualifications. The same limit applies to its net terms program.

Q: Does Fundbox run your credit?

There is a soft inquiry during the application process if you provide credit data, but a hard inquiry once you take out funds from your line of credit if you are approved.

Q: How much does Fundbox cost?

For a line of credit, Fundbox charges 4.66%+ APR if you repay in 12 weeks and 8.99%+ APR if you opt for 24 weeks. Once net terms end, there is a fee rate of 9.42%, for a 52-week plan, in most U.S. states. For net terms, there may be up to 90 days interest-free, but after the initial net terms period ends, the fee APR is 19.42% for a 52-week repayment plan.

Q: Is Fundbox a legitimate lender?

Yes. Fundbox has helped more than 100,000 small businesses find financing and has well-known investors like Synchrony, Bezos Expeditions, and Allianz, among others.

Check Your Rate

Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

Susan Guillory

Updated February 11, 2022

Overview of Fundbox

What is Fundbox? Fundbox provides short-term financing for small businesses through a network of credits and payments. The company offers both lines of credit and net terms for vendors.

Pros and cons

Pros

Net terms allow you to get paid faster
Line of credit funds available as soon as the next business day (pending credit approval)
Low credit score to qualify
No penalty for early repayment

Cons

Payments on funds are required weekly
Lines of credit must be repaid in either 12 or 24 weeks

Fundbox Small Business Loan Terms, Rates, and Fees

Loan amounts: up to $150,000 (Updated as of 2/11/2022.)APR range: 4.66% for 12-week line of credit; 8.99% for 24-week line of credit; 8.33% for 24-week term loans; and 18.00% for 52-week term loans. (Updated as of 6/21/2021.)Origination fee: noneMinimum credit score: 600 (Updated as of 2/11/2022.)Time to funding: 1 business dayCo-borrower needed: no

Other Lenders

Always look at multiple lenders when seeking financing to ensure you find the best rates and offers for your business’ needs. Below you’ll find other lenders to consider.

StreetShares

OnDeck

SmartBiz

What Types of Loans Does Fundbox Offer?

If you’re wondering, “how does Fundbox work,” understand that it’s not your traditional bank loan business. The online company has two types of products.The first is its line of credit. If approved, you can receive between $1,000 and $150,000 as a line of credit you can draw against at any time. You pay back what you’ve borrowed over either 12 or 24 weeks, and your available credit replenishes as you pay it back.The other service is net terms. If you are a vendor who struggles to get clients to pay on time, this feature should allow you to get paid faster. The way this works is you offer clients net terms, and once you invoice, Fundbox pays you the order amount (up to $150,0000) minus fees. The Fundbox term loan offering is currently in beta and is not available to all applicants as of Feb. 11, 2022.One draw to Fundbox is that it has a lower credit requirement for approved applications and no limit on how long you must have been in business to qualify. So if you have a credit score of at least 600 and have been in business just a few months, you may qualify.

Important to Keep in Mind

Contrary to other online lenders, Fundbox fees are pretty much non-existent. However there is a weekly repayment fee, which you are notified of when you get your offer. As of this writing, there are late fees, but no origination or service fees, and there is no penalty for early repayment.When it comes to how much can Fundbox lend, it will depend on your qualifications, but the max it’s possible to borrow with either the line of credit or net terms option is $100,000. Eligible borrowers may be given a credit increase over time as the company reviews their account and qualifications.

Applying for a Fundbox Small Business Loan

One of the biggest perks of applying for financing through Fundbox is how simple and fast the application process is. It takes just minutes, doesn’t require a ton of information, and you should get your decision quickly and funds within a business day, typically.

Applying for Fundbox Line of Credit or Net Terms

To apply for a line of credit or net terms, you provide a few business details and information for your credit assessment. You may be asked for data from your accounting software, business checking account, credit report, or other sources. To accept Fundbox credit as a payment option, you will need to provide details on your business and upload a recent bank statement or voided check. If approved, you can start accepting payments with Fundbox.

Fundbox Requirements

Fundbox requirements appear to be pretty easy to meet:

Credit score of 600+
In business a minimum of 2-3 months
Revenues of $50,000 for line of credit (if not, you may still qualify)
Revenues of $25,000 for net terms (if not, you may still qualify)

Is Your Credit Score Impacted?

Fundbox states clearly that your credit score will not be impacted during the application process, but will be when you use your credit. Fundbox does a soft credit pull when they evaluate an application. If you are approved, you can review and approve the terms of the line of credit, then expect to see funds deposited into your bank account in as little as one day. Fundbox will perform a hard credit check when the account is used for the first time. This hard credit inquiry may impact your credit score.

The Bottom Line

If you haven’t qualified for other loans for small business, either because your business hasn’t been in operation long enough or your credit scores aren’t up to snuff, Fundbox’s line of credit could be a source of working capital for you, especially if you are okay with repaying the loan quickly over 12 or 24 weeks.And if you’ve struggled to get clients to pay on time, resulting in difficulty paying your own bills, its net terms option might also be something to consider.Not everyone qualifies for the great rates of, say, SBA loans, so be aware that repaying a Fundbox line of credit may cost you more than other options. While rates start at 4.66% or 8.99%, depending on the payment period, not everyone qualifies for these low rates. It’s up to you to determine whether paying extra for the privilege of having access to cash to keep cash flowing or grow your business is worthwhile in the long run.

Frequently Asked Questions

How much can Fundbox lend?

Does Fundbox run your credit?

How much does Fundbox cost?

Is Fundbox a legitimate lender?

About the Author

Susan Guillory

Susan Guillory is the President of Egg Marketing, a content marketing firm based in San Diego. She’s written several business books, and has been published on sites including Forbes, AllBusiness, and Cision. She enjoys writing about business and personal credit, financial strategies, loans, and credit cards. Follow her on Twitter @eggmarketing.

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