Fundbox Business Loan Review
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Pros and cons of
Pros
- Low annual revenue and time-in-business requirements
- Next-day funding available
- No hidden fees or prepayment penalties
- Available in all U.S. states and major U.S. territories
Cons
- Only one product available
- Max credit line is somewhat low compared to other lines of credit
- Relatively short repayment terms
small business loans review
Established in 2013, is an online lender providing flexible working capital for all types of businesses, from early-stage startups to well-established companies. Funds can be used for a range of startup business costs and ongoing expenses like equipment, payroll, supplies, inventory, marketing or covering unexpected gaps in your cash flow.
could be a good option for your business if you have fair or better credit, as it accepts personal credit scores as low as . Plus, the company’s low starting interest rates can make it an attractive option for borrowers with great credit – not everyone will qualify for the lowest rates, but for those who do, is pretty competitive.
In addition, the turnaround time is on par with other alternative lenders — typically approving and funding your loan as quickly as next business day.
However, if you want access to more small business financing options or need more funds, you might want to consider another lender — only offers a business line of credit with a max limit of .
- Early-stage businesses with limited revenue. only requires three months in business and in annual revenue to qualify. This is lower than average — even for online lenders — making this a viable option for startup companies.
- Business owners with lower borrowing needs. ’s business line of credit only goes up to . But if you’re just looking to cover short-term expenses like payroll services or inventory, it may fit the bill.
- Businesses that need fast funding. provides fast business loans, with approval taking only minutes and funds available as soon as the next day.
small business financing at a glance
| Product | Loan amounts | Repayment term | Starting interest rate | Fees |
|---|---|---|---|---|
| 12 to 52 weeks | Starting at for 12-week terms Starting at for 52-week terms | Late fee equal to average weekly interest $6 nonsufficient funds fee No prepayment penalties |
Business line of credit
If you qualify for a business line of credit, you can borrow up to on an as-needed basis. Once you make a withdrawal, you’ll have 12 to 52 weeks to repay the debt, with the first payment due in 14 days. Weekly fees start at for 12-week terms — but you only pay fees on the withdrawn amounts, not your total credit limit.
Your weekly fees are amortized — this means that in week one, you’ll pay more in business loan interest and less toward the principal balance compared to the last week of your repayment term, when you’ll pay less interest and more principal. Regardless of the sliding scale of fees versus principal, your weekly payment will remain the same throughout the repayment term.
It’s hard to rack up late fees on a line of credit because payments are automatically debited from your business checking account. But if your payment doesn’t go through on time, the late fee will equal your average weekly fee as if it weren’t amortized.
So, if you were paying a total of $600 in weekly fees over a 12-week term, you could expect your late fee to be $50 for each weekly payment missed. Plus, if your payment didn’t go through due to nonsufficient funds in your checking account, you’d pay an additional $6 fee.
borrower requirements
| Minimum annual revenue | |
| Minimum time in business | |
| Minimum credit score |
If you want to apply for business financing with , your business must be based in the U.S. and you must have a personal credit score of at least . can be a great option for startup financing as long as your business has been in operation for at least three months with an annual revenue of or more.
Note that will only do a soft credit check during the approval process, but it will run a hard credit check when you make your first draw. The application process is quick and easy, with a funding decision typically made within three minutes. Once approved, you can get funding as soon as the next business day.
lines of credit are available in all 50 states and the major U.S. territories: Guam, Puerto Rico, American Samoa, the U.S. Virgin Islands and the Northern Mariana Islands. However, the following industries are prohibited:
- Adult entertainment and services
- Firearms or ammunition sales
- Online gaming and gambling
- Any marijuana-related businesses where you directly touch the plant
- Money service businesses
- Financial institutions
- Nonprofits
Required documents
When you apply for a line of credit, you’ll be asked for some basic information about your business, such as how long you’ve been operating and how much your company earns each year. You may also be asked to connect your checking account and accounting software for underwriting purposes. The data found in these accounts will help assess your creditworthiness.
Other business loan requirements may include providing past bank statements or business tax returns.
Alternatives to
| Minimum credit score | |||
| Loan products offered | Lines of credit |
| Lines of credit |
| Time to funding | As soon as next business day | Same day to 3 business days | Same day to 3 business days |
| Starting rate |
| ||
| Maximum loan size |
| ||
| Minimum annual revenue | |||
| Minimum time in business |
vs.
If you prefer getting a one-time lump sum with fixed payments, ’s business term loan could be a better choice — it offers up to $100,000. However, you may end up paying more interest: ’s shortest repayment term is 12 months, compared to ’s short three-month term. And while opting for a shorter term can help reduce your overall interest charges, your monthly bill will likely be higher. Further, if you prefer a line of credit, actually offers higher amounts than .
With higher annual revenue and time in business requirements, may be less accessible for early-stage startups. The minimum credit score requirement is also slightly higher — versus ’s requirement of .
Still, since both and are online lenders utilizing the latest streamlined software to make fast lending decisions, you can expect to receive your funds within a similar time frame of one to three business days.
At the same time, comparing interest rates in advance is tricky because has significantly shorter terms. But if both lenders sound appealing to you, it’s worth applying to both and seeing which lender offers you more favorable terms.
vs.
One advantage of picking over Fundbox is the ability to streamline multiple business solutions to make your business finances easier to manage. In addition to a business line of credit, offers business credit cards, business checking accounts and a bill management system that can easily sync with QuickBooks Online. You can also explore more funding options with ’s network of partner lenders.
While you can borrow $100,000 more from , you’ll also need to earn more to qualify — per year versus the annual revenue requirement at . Plus, you’ll need at least two years of business history under your belt to qualify at , with a minimum credit score of .
In contrast, works with business owners after just three months in operation and only requires a minimum credit score of . But while has a slightly lower starting rate than ’s longer term option, you won’t know your final rate until you submit an official application.
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