Fundbox 2020 Review
Fundbox Review - Pros, Cons and Testimonials
Are you looking for quick business funding with full transparency and no hidden fees? Fundbox provides exactly that. Learn more about how much Fundbox costs, how the loans work and what past borrowers have to say.
Many entrepreneurs have come across the need for some financial assistance, at one point or another during their journeys. Whether you need a business loan or a vendor credit, sometimes investing a little extra money is all you need to increase your profits.
Fundbox is changing the way that small business owners and lenders carry-out their transactions by providing net terms and lines of credit through an easy-to-use online platform.
This Fundbox review has everything you need to know about taking out a line of credit or a vendor credit—which is also known as a “net term”—for your business.
Fundbox: What You Need to Know
The fintech industry is ever growing. It is giving business owners the ability to do so much more with their businesses. As a small business owner, you can find a program online to fit all of your financial needs.
Fundbox is one of the top business lenders that is providing financial flexibility and convenience to business owners like yourself.
More traditional financial institutions make it hard to get small business loans when they need them the most. Many banks and large lenders have actually made it hard for small businesses to get funding at all. Fundbox came into the game to change that. Whether you want to finance growth opportunities, hire new employees, purchase inventory, or fund marketing efforts, Fundbox can help.
Fundbox started their operations in 2012 out of San Francisco. They provide vendor credits and lines of credit to small businesses who need money fast.
Small businesses can borrow money from Fundbox without having to make trips to a physical office to sign the deal. All you’ve got to do is create a Fundbox account, submit an application and withdraw the amount you need upon approval.
The lines of credit have very short terms, so they do not accrue a ton of interest. Each week you pay a set fee, and your line of credit is paid back in either three or six months, depending on what you need.
Fundbox is backed by several well-known investors and integrates with many popular bookkeeping apps which means borrowing from them is both safe and easy.
There is so much to learn about this innovative online lender, so let’s get down to the nitty gritty!
How Does Fundbox Work?
Fundbox offers two financing options for small business owners: lines of credit and vendor credits. Lines of credit are the main service provided by Fundbox.
The entire process is very simple. You fill out the application right on the Fundbox website. You let them know how much you need, and they tell you how much they can help you out with. Fundbox will authorize a soft credit check during the application process.
At this time, Fundbox only provides loans to business owners for amounts between $1500 and $100,000.
Before you confirm and submit your application, you get a report of the total cost (principal, plus the interest). This number is then divided by either 12 or 24, depending on whether you choose a 12 or 24 week payment plan.
Each week, you pay the same amount. This means that at first you pay more interest and less towards the principal. By the end of the term, you’ll be paying more towards principal than interest.
If you decide to apply for a vendor credit rather than a line of credit, the process is very similar. It is just scaled down to a smaller dollar amount and time frame.
Where Is Fundbox Available?
The Fundbox HQ is located in San Francisco, but they service small businesses in all 50 states. They also serve clients in Guam, American Samoa, Northern Mariana Islands, Puerto Rico and the US Virgin Islands.
At this time, funding is not available outside of the United States.
How Much Does Fundbox Cost?
Borrowing from Fundbox comes confusion-free because all conditions and fees are clearly stated from the get-go.
However, your fees and rates are determined by the amount of money you’re looking to borrow, the length you need the money and how high your credit score is.
You will be able to view the total cost of your loan—including a breakdown of interest and monthly payments—before you submit your application for your loan.
Weekly repayments are made over 12 or 24 weeks each Wednesday via ACH.
There is a flat weekly fee ranging from 0.4% - 0.9% of the draw amount.
There are no application fees, origination fees, or prepayment penalties.
Fundbox is compatible with over 12,000 domestic financial institutions and credit unions.
What Does Fundbox Offer?
Fundbox’s business financing options are very straightforward. At this time, they only offer lines of credit and net terms.
Let’s discuss the two financing options that Fundbox has to offer!
Lines of Credit
Fundbox offers lines of credit to small businesses valued at between $1500 and $100,000.
They can be accessed quickly after application. The time between submitting your application and receiving your funds is typically less than one business day, but depending on the circumstances, it can take up to two business days.
A payment plan is set up so that the payments are automatically withdrawn from your account each month. The idea is that Fundbox pays you, and your customers pay them back.
The typical repayment plan for Fundbox lines of credit is either 12 or 24 weeks long.
Typically, when you get a line of credit, you only pay for what you use. But when you get a “line of credit” from Fundbox, it is more like a short term business loan. This is what allows them to remain transparent and upfront about their pricing. You know exactly what you’re paying for from the get-go.
Vendor credits are a business financing option that’s pretty similar to a line of credit. Fundbox calls these vendor credits “net terms.”
Net terms are typically much cheaper than lines of credit and other types of business loans since they have much less time to accrue interest.
This type of financing is great for immediate or unexpected expenses such as taxes, broken equipment, outstanding balances with a contractor and other similar costs.
Fundbox Line of Credit Features:
- Lines of credit for business owners
- Total transparency regarding fees and costs
- Backed by many reputable corporations such as Bezos Expeditions, Spark Capital and Khosla Ventures
- Partnered with software companies like FreshBooks, Wix and Magneto
- Easy fund retrieval from Fundbox account
- Quick and easy way to get funding for your business
- Easy application process
- Totally online from application to receiving funds to paying off the credit
Pros and Cons of Fundbox Lines of Credit
Borrowing money to advance your business is a major move, so deciding on a lender is equally major.
Let’s talk about some of the pros and cons to borrowing from Fundbox.
- No hidden fees
- Easy to understand payment plans
- No hassle borrowing
- No games or gimmicks
- Backed by trustworthy investors
- No credit check required
- Smooth application process
- Convenient access to funds through online portal
- Excellent customer service
- Available in all 50 states + some US territories
- Compatible with bookkeeping apps and a variety of other business tools
- Limited financing options
- Must have a business checking account
- Relatively short repayment periods
- Not available outside of the United States
- Elevated interest rates on some lines of credit
- Not suitable for large businesses
- Unclear income requirements for application
Fundbox Customer Reviews
Here at Insurance Ranked, we are strong believers that the best way to determine the legitimacy and value of any company is through the words of past customers. This is especially the case when it comes to financial institutions, since a lot of sensitive information is exchanged.
We did a little research to see what Fundbox’s customers had to say, and we were quite pleased with the results.
Over 1700 happy borrowers left reviews on Trustpilot, leaving Fundbox with a 5 star average.
Here’s what one happy customer had to say about borrowing from Fundbox:
“Great company to work with. They don't make it too difficult to get the short term financing that I required, and I like the fact that I do not have to reapply to use the credit amount in my account. I would recommend Fundbox to anyone looking for a short term solution.”
This Cold Stone Creamery operator was just one of many who gushed about their experiences. Here’s what others had to say:
“Doing business with FUNDBOX is a process that is simple and straightforward. There are no twists and turns that cause heartaches and disappointment. Just follow FUNDBOX'S rules and procedures and as a borrower. You will never be disappointed.” - Mike M. of Western Way Custom Meats
“The entire process from getting started to getting the money for our business has been very easy. I’m really glad that there are companies out there that will help smaller businesses get capital when banks make you jump through hoops. My business will definitely continue to use Fundbox for future projects.” - Kyesia Green
How to Apply for Fundbox Lines of Credit
Applying for Fundbox’s vendor credits is easy. It’s all done online in minutes!
Here’s what you’ve got to do to apply for your net term from Fundbox:
- Go to Fundbox's site.
- Click the black button at the top right of the screen that says “APPLY”
- Sign up for an account by entering your name, contact info and details about your business
- Submit information about your business’s financial history
- Enter how much funding you need
- Review terms, conditions and costs associated with borrowing from Fundbox
- Submit your application
If you want to apply for a net term rather than a line of credit, click the link that says “Sign up for net terms” beside the sign up portal that Step 2 directs you to and proceed as normal.
How to Contact Fundbox
Address: 300 Montgomery Street San Francisco, CA United States Customer Service: (855) 572-7707 Website: www.Fundbox.com Email Support: [email protected] Facebook: https://www.facebook.com/Fundbox/ Twitter: @Fundbox LinkedIn: Fundbox YouTube: Fundbox Instagram: @Fundbox
Does Fundbox Offer Other Loans?
Fundbox only offers lines of credit and net terms for business owners at this time.
If you are looking for quick financial assistance for your small business, Fundbox is the way to go. Whether one of your clients is late on an invoice or you had a mishap with a piece of equipment, a little extra cash from a line of credit will certainly come in handy.
This online lender has proven to be 100% trustworthy. Fundbox has served thousands and thousands of clients over the past eight years and have maintained near perfect reviews on a variety of fintech review platforms.
Fundbox is backed by some major investors including Bezos Expeditions (founder of Amazon), Spark Capital, Synchrony, Recruit, SEB and more. It is also accredited by the Better Business Bureau and secured by Norton and McAfee.
In addition to the credibility of Fundbox, the convenience it provides is unmatched. You can apply for funds and have access to them as soon as the next day.
Fundbox was truly designed to help small business owners who are either in a time of need or who are ready to expand. If you fall into either of these categories, give Fundbox a call at (855) 572-7707 to see how they can help you.
Frequently Asked Questions
Why would I need a line of credit from Fundbox?
Many businesses, especially new ones, find themselves in need of a little extra financial support at some point or another.
Whether you need to pay your employees while you’re waiting for a client’s late payment to come in or you need some extra support in order to scale, a line of credit or net term can really come in handy.
Fundbox notes that sometimes a line of credit makes the difference between going out of business and continuing operations for years to come. If you’re experiencing a financial rough patch, taking out the line of credit and paying the small amount of interest is totally worth it in order to save the business that you’ve put so much time and effort into.
What is the difference between a vendor credit and line of credit?
A line of credit can be looked at as a credit card of sorts for a business. You only use what you need and only pay interest on what you use.
A vendor credit is more like a loan. It is usually issued for a specific vendor for you to use as credit to use on their products or services. Think of it as a gift certificate that you have to pay back after the fact.
What are the requirements for getting a line of credit from Fundbox?
At Fundbox, all you need to apply for a line of credit is a business checking account, proof that the entity operates in the United States and some financial history of your business.
When you apply for a line of credit, lenders are looking at your assets, how long your business has been up and running, profit and revenue and what sort of guarantee you can provide.
Even though you're short on cash at the moment, lenders want to be confident that you’ll make enough money going forward to pay them back.
Is the Fundbox service secure?
Absolutely! Fundbox is protected by top-of-the-line cyber security software, so your sensitive information is totally safe and secure.
Their website and database are protected by Norton, a well-known and reliable cyber security system.
Does Fundbox give loans to businesses outside of the United States?
At this time, Fundbox only serves clients in the United States and a few US territories. The territories included are Guam, Puerto Rico, American Samoa, Northern Mariana Islands and the US Virgin Islands.
Does borrowing from Fundbox hurt your credit score?
Applying to borrow from Fundbox does not hurt your credit score. Fundbox does not file applications with the credit bureaus.
When you borrow and pay everything back on time, everything will be A-OK. However, if you borrow and and miss your payments, it will be reflected on your credit report. Missed payments also come with missed payment fees, which is not factored into the original monthly fee that you’re quoted for.
Does Fundbox provide invoice factoring?
The very nature of Fundbox’s lines of credit may seem very similar to invoice factoring. However, it is not. Invoice factoring is basically when a company buys your invoices off of you then badgers your clients to pay them back with incessant collections calls.
With Fundbox, the value of the invoice is deposited into your account, but you are still responsible for making sure your clients pay. This allows you to maintain professional relationships with your clients.
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