Fundbox provides loans to small business owners who are waiting for outstanding invoices and have short-term cash flow gaps. The Company was founded in 2013 by Eyal Shinar, Yuval Ariav, and Tomer Michaeli, and is based in San Francisco, California. Fundbox is a BBB accredited business with an A rating.
Fundbox connects to a Company's bank account (or accounting software, such as QuickBooks, Xero, FreshBooks or Wave) and analyzes a variety of data points to create a risk profile. Instead of having to wait 30 to 90 days to get paid, business owners can instantly clear the invoices that fall within Fundbox's risk parameters. Opening an account can take as little as 15 seconds, and Fundbox can crunch the numbers required to underwrite an invoice within minutes.
Fundbox charges transaction and advance fees on its loans. The advance fees are determined by the size of the loan and creditworthiness of the business and its clients. For example, clearing a $1,000 invoice will cost between $60 in fees over 12 weeks, an equivalent of approximately 24% APR. The principal and the fees are generally paid in 12 equal weekly payments, although business owners can pay early and save on fees without penalty.
The APR range for Fundbox's products is 9% to 59% APR.
Fundbox offers lines of credit ranging from $100 to $100,000
Fundbox currently operates in all 50.
Fundbox requires borrowers to open an online account and link their business account. Once your business is connected to Fundbox, you will get a response in a matter of minutes and funds are generally deposited by the next business day.
Fundbox provides small businesses a fast and easy way to solve short-term cash flow gaps. There is no minimum FICO score requirement. Although the interest rates are higher than the rates some prime business loan providers charge, they are still competitive when compared to similar short-term loans. Fundbox doesn't charge penalty fees for early payment so you can save a lot on fees if you repay the loan early. It also offers lower rates to return customers. This gives freelancers and small business owners a way to free up cash that is tied into unpaid invoices and could be invested in growing their businesses. Small businesses with sufficiently high-profit margins could even use this service to give clients longer to repay invoices, which could help attract more business.
The two main strengths of Fundbox are its competitive interest rates and its flexibility in offering smaller lines of credit to small business owners with poor credit.
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