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 accounting software, such as QuickBooks, Xero, FreshBooks or Wave, and analyzes a variety of data points to create a risk profile of each of its outstanding invoices. 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 50 seconds.
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 across 12 equal weekly payments, although business owners can pay early and save on fees without penalty.
Fundbox will fund invoices ranging from $1,000 to $15,000. To illustrate, a $15,000 loan will cost between $720 and $1,020 in fees: the equivalent of a 40% to 58% APR.
Fundbox currently operates in all 50..
Fundbox requires borrowers to open an online account, which takes less than a minute. However, opening an account requires businesses to link up their accounting software so Fundbox can get a close look at the payment history of your clients. Once your business is connected to Fundbox, invoices can be cleared 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. 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 penalty fees for early payment so you can save a lot on fees if you are able to 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, probably the best on invoice leveraged lines of credit of less than $20,000, and its flexibility in offering smaller lines of credit.
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