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Table of Contents
- About Fundbox
- Lender Review
- Product Review
- Why Work with Fundbox?
- The Pros
- The Cons
- Fundbox vs. Kabbage
- Final Verdict
Fundbox is an online lender that provides fast and easy access to funding for small businesses. They offer invoice financing that functions like a revolving line of credit, so you can quickly fill a cash flow gap and have extra working capital on hand.
Since 2013, Fundbox has been making great strides in changing the way businesses access capital. Their specialty is speed, which is evident at every stage of the application and funding process. It takes only a few seconds to sign up on the platform and requires minimal paperwork to apply for a Fundbox advance.
They have some of the fastest approval processes compared to most Fundbox loan alternatives, enabling you to get a credit decision in as little as 3 minutes. Within just 6 years, Fundbox has worked with over 100,000 small businesses that require funding.
Consider Fundbox if you:
Need cash fast. Fundbox can issue capital as fast as the next business day.
Have unpaid invoices. You can borrow up to $100,000 and get a 100% advance on open invoices.
Have a limited business history.
The Fundbox Lending Experience
If you have pending invoices disrupting your cash flow, Fundbox provides quick and easy invoice financing that allows you to borrow funds against unpaid invoices. Once you connect your accounting software with Fundbox, you can continuously draw against your accounts receivable balance, much like a revolving line of credit. With the ability to tap into unpaid invoices, you’ll always have the capital on hand to keep your business running and growing.
Their product is designed for B2B businesses that invoice their customers. Their underwriting process is among the simplest and fastest in the lending and loans industry.
Typically, your personal credit score and time in business matter when you apply for small business loans. Not so with Fundbox. The company will, however, analyze your business transactions and conduct a business health assessment before approving you for funding. Besides that, Fundbox doesn’t require collateral or a personal guarantee, unlike many competitors in the small business loans space.
Fundbox Product Review
Fundbox interest rates are slightly on the higher side, but it’s a great option for businesses that cannot access more affordable funding options.
- Pay off your debt over 12 or 24 weeks
- Fundbox fees start at 4.66% of the draw amount
- Fundbox advances are paid back with equal weekly installments over the term
Why Get a Loan from Fundbox?
- Their entire funding process is fast and straightforward, taking only seconds to sign up and just a few minutes to apply.
- The application process requires minimal paperwork. You just need to link your bank account or accounting software to begin the process.
- They have an equally quick approval process, sometimes taking as little as 3-minutes to make a decision.
- An A+ Fundbox Better Business Bureau (BBB) rating proves the company’s credibility and the quality of their services.
The Pros of Fundbox Loans
- Fundbox requirements are incredibly flexible as they don’t factor in personal credit scores or time in business. This makes Fundbox capital available even to business owners that are just starting, or who have less than perfect credit.
- They have some of the fastest application and approval processes compared to most Fundbox business loan alternatives. Approval takes minutes, and you can get funding as fast as the next business day.
- Fundbox is one of the only lenders that will provide a 100% advance of the invoice value.
- Aside from the weekly fees, there are no additional Fundbox fees.
- The company doesn’t charge a prepayment penalty for paying your balance off early.
The Cons of Fundbox Loans
- Fundbox only works with B2B businesses that invoice their customers.
- If you don’t use accounting software, the process to apply for Fundbox invoice financing may be a bit complicated.
- Their advances have a short repayment term (12 weeks or 24 weeks), so they may not be a good option if you want a longer repayment period.
- Fundbox interest rates are on the higher side. If you can qualify for more affordable loan products, you might want to shop around for other options.
- Their maximum credit limit is $100,000. So if you have larger funding goals, consider Fundbox competitors.
Time in Business
What You Need to Apply
- A business checking account
- At least 2 months of activity in Fundbox-supported accounting software OR 3 months of transactions in your business bank account
Fundbox vs. Kabbage: Which Is Better?
Kabbage is one of the biggest Fundbox competitors, as both companies specialize in fast funding. They also have a few similarities, such as flexible requirements and no hidden fees. So if you’re trying to do a Fundbox vs. Kabbage comparison to see which is better for you, check out this simplified comparison:
Fundbox is a better fit if you:
- Have a B2B business model
- Have outstanding customer invoices
- Can repay your loan within 12-24 weeks
- Don’t have a substantial funding goal
- Haven’t been in business very long
- Have bad credit
Kabbage is a better fit if you:
- Have a B2C business model
- Have a larger funding goal
- Need to borrow more than your outstanding invoice value
- Need a longer repayment term
- Don’t invoice your customers
Fundbox Financing: The Bottom Line
Fundbox is an excellent option for businesses that are just starting and/or require fast funding to maintain consistent cash flow. You can read Fundbox BBB reviews to understand the funding experience of other business owners.
Their fees, however, are slightly on the higher end.