Fundbox Business Loans Review

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Fundbox is a San Francisco-based financial services platform that uses predictive modeling and its knowledge of analytics, statistics, and engineering to provide lending and payment solutions to small businesses. Fundbox aims to help small business owners by maximizing their cash flow and providing them with the tools they need to grow their businesses.

In addition to simply lending money, Fundbox also offers a variety of other services, such as:

  • Predictive analytics: Fundbox uses predictive analytics to assess the creditworthiness of small businesses and to determine how much money they can borrow.
  • Payment solutions: Fundbox offers a variety of payment solutions, such as invoice financing and merchant cash advances. These solutions can help small businesses to improve their cash flow and to cover unexpected expenses.
  • Expertise: Fundbox has a team of experts who can help small businesses with their financial planning and operations. These experts can help businesses to identify areas where they can save money and to improve their overall financial health.

At a Glance:

  • Loans from $2,500 to $150,000
  • Fast funding especially when compared to similar business lenders
  • No early payment fees
  • High interest rates and personal guarantee can make it a risky option for some
  • Those with lower credit may still be able to qualify

Fundbox pros and cons

Pros:

  • Fast funding: Fundbox can fund loans in as little as 24 hours, which can be helpful for businesses that need cash quickly.
  • Lower requirements: Fundbox has lower requirements than some other business lenders, which makes it more accessible to businesses with less-than-perfect credit.
  • No fees for early payments: Businesses can save money by paying off their loans early, and Fundbox does not charge any fees for doing so.

Cons:

  • Maximum loan amount: The maximum loan amount from Fundbox is $150,000, which may be too low for some businesses.
  • Personal guarantee and business lien needed: To get a loan from Fundbox, businesses will need to provide a personal guarantee and a business lien. This means that if the business defaults on the loan, the lender can take the business owner's personal assets or the business's assets.

Fundbox rates and fees

APR:

Varies depending on borrower

Loan term:

12-24 months

Loan amounts:

$2,500 to $150,000

Hidden fees:

None

Minimum credit score required

600

Extra perks:

Mobile app, interest calculator on website

Fund availability

As fast as one business day

What type of business loans does Fundbox offer?

Fundbox offers two types of business loans: invoice financing and merchant cash advances.

  • Invoice financing: Invoice financing is a type of short-term loan that is secured by unpaid invoices. This means that the lender will lend you money based on the value of your unpaid invoices. Once you collect payment from your customers, you will repay the loan.
  • Merchant cash advance: A merchant cash advance is a type of short-term loan that is secured by your future credit card sales. This means that the lender will lend you money based on the amount of credit card sales you expect to make in the future. Once you make credit card sales, you will repay the loan plus a fee.
Feature Invoice Financing Merchant Cash Advance
Type of loan Short-term Short-term
Secured by Unpaid invoices Future credit card sales
Repayment terms Repay the loan once you collect payment from your customers Repay the loan plus a fee as you make credit card sales
Interest rate Typically lower than merchant cash advances Typically higher than invoice financing
Fees Typically no fees Typically high fees

Both invoice financing and merchant cash advances can be a good option for businesses that need fast funding. However, it is important to understand the terms and conditions of these loans before you apply.

What are the top benefits of using Fundbox?

Here are some of the benefits of using Fundbox’s services:

  • Quick funding: Fundbox can fund loans in as little as 24 hours, which can be helpful for businesses that need cash quickly.
  • Flexible lending criteria: Fundbox has flexible lending criteria, so even businesses with lower credit scores or other challenges may be eligible for a loan.
  • No early repayment penalties: Fundbox doesn't charge early repayment penalties, so you can save money by paying off your loan early.
  • Transparent pricing: Fundbox's pricing is transparent, so you know exactly what you're getting into before you apply for a loan.
  • Easy to use: The Fundbox application process is easy to follow, and you can get started online in just a few minutes.
  • Customer support: Fundbox offers excellent customer support, so you can get help if you have any questions or problems.

Are there any downsides to Fundbox business loans?

Yes, there are some downsides to be aware of.

  • High interest rates: Fundbox's interest rates are typically higher than those of traditional lenders. This is because Fundbox targets businesses with lower credit scores or other challenges.
  • Short repayment terms: Fundbox's loans typically have short repayment terms, which can make it difficult for businesses to repay the loan if they experience financial difficulties.
  • Personal guarantee: In order to qualify for a loan from Fundbox, businesses may be required to provide a personal guarantee. This means that if the business defaults on the loan, the lender can collect the debt from the business owner's personal assets.

Overall, Fundbox business loans can be a good option for businesses that need fast funding and have flexible credit requirements. However, businesses should be aware of the high interest rates and short repayment terms before they apply.

FundBox Business Loans

Borrow $2,500 - $150,000

Funding as fast as next business day

Loan term: up to 12-24 months

Mobile app, interest calculator on website

Minimum credit score: 600

Need help finding the right loan?

No worries, we've got you covered! Compare personalized loan options in just minutes without impact on your credit score.

Do I need a credit check to take out a business loan with Fundbox?

The prequalification process with Fundbox does not require a hard credit check. A hard credit check is only performed when you accept a loan offer and receive funds. However, if you use your credit score as one of your references during the application process, a soft credit check will be pulled. A soft credit check does not affect your credit score, and it is often used by lenders to assess your creditworthiness without impacting your score.

Once you accept a loan offer, a hard credit check will be performed. This is a more thorough credit check that lenders use to make final decisions about loan approvals. A hard credit check can temporarily lower your credit score, but the impact is usually small and short-lived.

Fundbox may also conduct soft credit checks periodically to reassess your status and possibly offer you more available funds. Soft credit checks do not affect your credit score, so you can feel confident that your credit will be protected while you work with Fundbox.

Are there any hidden costs and fees associated with Fundbox business loans?

While Fundbox does not charge any upfront fees for its business loans, the interest rates can be high. The APR (annual percentage rate) on a Fundbox loan can range from 15% to 78%, depending on your credit score and business cash flow. This means that you could end up paying a lot of money in interest over the life of the loan.

However, one advantage of Fundbox loans is that you can pay them off early without facing prepayment penalties. This means that you could save money by paying off the loan sooner, rather than waiting until the end of the term.

Ultimately, whether or not a Fundbox loan is a good option for you will depend on your individual circumstances. If you have a high credit score and strong business cash flow, you may be able to get a loan with a low APR. However, if your credit score is not as good, or if you have a lot of debt, you may end up paying a lot of money in interest.

How is Fundbox’s customer service and support?

Fundbox customer service and support are highly rated by customers. The company has a 4.5/5 star rating on Trustpilot, based on over 1,000 reviews. Customers praise Fundbox's customer service representatives for being knowledgeable, helpful, and responsive.

How to qualify for a Business Loan through Fundbox

To be eligible for a Fundbox business loan, you must meet the following requirements:

  • Personal credit score of at least 600: Fundbox considers your personal credit score when evaluating your loan application. A higher credit score will make you more likely to be approved for a loan and to receive a lower interest rate.
  • Be located within the United States: Fundbox only offers loans to businesses that are located in the United States.
  • $100,000+ in annual revenue: Fundbox prefers to lend to businesses that have a minimum annual revenue of $100,000. However, there may be exceptions to this rule, depending on the individual circumstances of the business.
  • Been in business for at least six months: Fundbox prefers to lend to businesses that have been in operation for at least six months. However, there may be exceptions to this rule, depending on the individual circumstances of the business.
  • Business financial history including business specific checking accounts: Fundbox will review your business financial history to assess your creditworthiness. This includes reviewing your business checking account statements to see how you manage your cash flow.

How to apply for a loan with Fundbox

The application process for business loans through Fundbox is quick and efficient. Here's how it works:

  1. Visit Fundbox's website and submit a brief online application. This application will ask for your basic information as well as basic information about your business.
  2. Fundbox will review your application and get back to you within 24 hours. In most cases, you'll receive a response within seconds.
  3. If your application is approved, Fundbox will send you the money within one business day. The specific amount of time depends on your bank's policies and procedures.

Here are some additional details about the application process:

  • You may need to submit additional information, such as your personal credit history, business cash flow, and business bank account statements.
  • If your application requires further review, Fundbox will notify you immediately and send you an email when a decision is made.

Overall, the application process for Fundbox business loans is quick and easy. If you need fast funding for your business, Fundbox is a good option to consider.

Is Fundbox legit and trustworthy?

Fundbox is a legitimate financial services company that strives to keep your information secure. They use the highest industry standards and protocols to protect your data, and they are transparent about their security measures.

During the application process, you will need to log into your bank account. Fundbox does not store your bank account information, and they only use it to verify your identity and assess your creditworthiness.

Fundbox has been an accredited business with the Better Business Bureau since 2014. They currently hold an A+ rating, and they have had only 13 complaints in the past three years. All of these complaints have been resolved, and only one was submitted in the past year.

Here are some of the security measures that Fundbox uses to protect your information:

  • Encryption: Fundbox uses industry-standard encryption to protect your data both in transit and at rest.
  • Firewalls: Fundbox has multiple firewalls in place to protect their systems from unauthorized access.
  • Intrusion detection: Fundbox uses intrusion detection systems to monitor their systems for suspicious activity.
  • Data backup: Fundbox regularly backs up their data to protect against data loss.
  • Employee training: Fundbox employees are trained on security best practices to help protect your information.

Closing thoughts

Fundbox is a trustworthy lender who can get you funds quickly. However, it is important to be aware of the high interest rates and aggressive payment schedules before you apply for a loan. If you are able to find another loan with better rates, you may be better off going with that option.

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