Fundbox is a financial services company that offers loans and lines of credit to small businesses. Based in San Francisco, California, the lending corporation was founded in 2013 by Eyal Shinar, Yuval Ariav and Tomer Michaeli and has raised over $100 million in capital from investors.
Fundbox offers two types of products: invoice financing and lines of credit.
With Fundbox’s invoice financing, businesses can eliminate cash flow gaps by instantly clearing invoices. To get started, businesses connect their bank account or accounting software to Fundbox, which performs a business health assessment to determine what invoice-based cash advances can be made available. Fundbox supports a variety of accounting software including Clio, Ebility, FreshBooks, Harvest, InvoiceASAP, Jobber, Kashoo, QuickBooks Desktop, QuickBooks Online, Sage One, Xero and Zoho.
With Fundbox’s lines of credit, businesses only have to provide a bank connection to get a credit decision. Businesses can then immediately draw funds up to their limit or wait until a later date when more capital is needed. Fundbox supports most national, regional and local banks as well as credit unions.
Funding decisions are typically made within hours and businesses can receive funds as soon as the next business day. However, to receive funds as soon as the next business day, funds must be drawn before noon Pacific Standard Time on Monday through Thursday. Otherwise, the transaction will be processed on the next business day, which means borrowers may not receive the funds for a few extra days.
The APR equivalent for the fees charged by Fundbox can range from 15% APR to 59% APR. Borrowers choose a repayment plan of 12 or 24 weeks and then make weekly repayments, which include a fee. Fees may vary for each customer based on creditworthiness and the loan's characteristics, but an example charge is $60 in fees over the course of 12 weeks on a cash advance of $1,000. Fundbox divides the total fees you owe evenly across the repayment period and doesn’t charge prepayment penalties so borrowers can save by paying early.
Fundbox offers lines of credit ranging from $100 to $100,000.
Fundbox currently operates in all 50 states.
Fundbox requires borrowers to create an online account and link either their business bank account or accounting software to their Fundbox account. Fundbox then performs a business health assessment to determine if a business can be approved for a loan and, if so, what credit limit that business will be subject to. Businesses are typically notified within hours of the decision.
Fundbox enables small businesses to borrow funds and solve short-term cash flow gaps. There is no minimum FICO score requirement and Fundbox typically makes a credit limit decision within hours of receiving an application. Although the rates are higher than those offered through some alternative types of business loans, Fundbox’s rates are competitive for similar short-term loans. Fundbox doesn't charge prepayment penalty fees so borrowers can save by paying off their loans early.