|Variety of loan types||0.5|
Cost of borrowing
The rate you pay for a Fundbox Line of Credit depends on your credit score. Like other lenders, Fundbox charges fees on its loans. Unlike its competitors, however, it is very cost transparent.
A $ 1,500 Fundbox Line of Credit at 4.66% interest rate will cost you $ 130.83 per week until you have paid off the loan. The fee is $ 13.11 per week for the first four weeks and $ 2.18 per week for the remainder of the term. The funds are replenished as you pay off your loan.
Apply for a loan
To start the process, you complete the Fundbox online application. There you provide information about your business and are prompted to connect your accounting software and bank account to Fundbox. This allows Fundbox to give you an approval decision in minutes rather than hours.
To get approved for a Fundbox Line of Credit, you must have been in business for six months or more and have annual sales of at least $ 100,000, from business customers that generate more than $ 300,000 in annual sales if you are a B2B business, a professional bank account, three months of banking transactions, and a credit score over 600. Fundbox reports that the median credit score for customers with a line of credit is 680. If you have a lower credit rating than this, SBG Funding also offers lines of credit and has more flexible qualification criteria.
Applying for a Fundbox loan does not affect your credit score, and the company does not store username or password for your bank account or accounting software. He uses this information only to secure the loan.
If you get approved for a line of credit, the money can be in your account the next day. One thing we love about Fundbox is its transparency in presenting its borrowing costs. It breaks down the charges for you before you withdraw from the line of credit. Fundbox’s transparency as to the cost of a direct debit before taking action is a remarkable feature of this lender, allowing you to weigh the costs against what you have to spend the money on. It is also not that common in the lending industry. Noble Funding, our best choice for customer service, offers a line of credit but doesn’t break down fees the same way. [Related Content: Business Loan Application Mistakes to Avoid]
Did you know? Lines of credit are a popular choice among small business owners for good reason. They give you access to cash when you need it, and you only pay interest on what you use.
When you use your Fundbox Line of Credit, your payments are automatically withdrawn from your business bank account. This ensures that you don’t miss any payments.
Lines of credit at Fundbox are short term, lasting 12 or 24 weeks. Other lenders we reviewed have longer terms on their lines of credit, which may be more attractive depending on your situation. A line of credit is for working capital, not for financing a large piece of equipment. Because it is renewable, the short terms ensure you don’t incur unnecessary debt.
Loans with Fundbox are unsecured, which means you won’t have to put any assets as collateral. Fundbox may, however, require a personal guarantee. In this case, you are responsible for the loan if your business does not honor it.
Fundbox doesn’t require a lot of documentation, which is what we really like about this lender. It connects to your business bank account and accounting software, allowing it to take out the loan quickly. You will need to provide basic business information, so it is a good idea to have your financial documents nearby.
Functions of the fund
|Transparent pricing||Fundbox pricing is extremely transparent. You know exactly how much it will cost you before you borrow.|
|Easy application||This lender doesn’t have a long application process or require a lot of documentation.|
|Quick financing||Fundbox can approve your line of credit in minutes and deposit funds into your account the next day.|
Fundbox ticks a lot of our boxes for a line of credit, which is why it’s our top pick for this use case. We particularly like its transparent prices. You’ll know exactly how much it will cost you to withdraw a specific amount, allowing you to weigh the costs against the benefits. This is not always so clear with other line of credit lenders. [Related Content: What is a Revolving Line of Credit?]
You can also appreciate that the payments are automatically withdrawn each week at a fixed amount. There are no end-of-month guesswork or surprises where you have to find a lump sum to cover a loan repayment.
Easy to apply
Fundbox makes it easy to apply for a line of credit, which we also really like. Small business owners are often pressed for time; you don’t want to spend hours applying for a loan and downloading documents. You can complete your Fundbox application quickly and the lender makes an approval decision almost instantly. Knowing how fast the whole process is should be extremely appealing to small business owners.
Fundbox can quickly take out the loan by consulting your business bank account and accounting software. This allows him to quickly approve lines of credit and fund loans the next day. When small business owners need capital, time is usually of the essence. The ability to apply for a loan and get the money you need the next day is what makes Fundbox such an attractive alternative lender.
To remember : Fundbox is distinguished by the speed at which it can get funds into your account. We also like that it breaks down the costs so you know exactly how much the costs will be. Few lenders offer so much transparency.
Fundbox provides customer service by email and phone Monday through Friday, 8 a.m. to 8 p.m. EST. Plus, it offers a ton of valuable online lending resources including blog, guides, podcasts, case studies, videos, and eBooks.
Fundbox has been providing financing to small businesses since 2013. During that time, it has loaned more than $ 2 billion to more than 275,000 small businesses. Fundbox is an accredited member of the Better Business Bureau with an A + rating. It also has a wide range of positive customer reviews, having received 4.7 out of 5 stars on Trustpilot based on 2,683 reviews.
Small business owner’s appreciation for Fundbox is also evident in its rate of return: over 70% of its customers have used Fundbox for financing three or more times.
There’s a lot to like about Fundbox as a line of credit lender, but its product won’t be right for every business owner. You must have $ 100,000 in annual sales and your business customers must have median annual sales of $ 300,000, which may be too high for startups and other small businesses.
Another factor to consider is the terms. At 12 and 24 weeks, Fundbox does not offer the longest repayment terms on the market. If you want to pay off your line of credit over a longer period of time, this lender is not for you. Weekly payments may not appeal to all business owners either; automatic weekly withdrawal could impact short-term cash flow.
Fundbox sets itself apart with its lines of credit due to its transparent pricing and quick funding.
We recommend this lender for:
- Small business owners who have a high credit score because it guarantees a low rate on a revolving line of credit
- Those who don’t have time for a long application process
- Borrowers who care how much it will cost them every time they withdraw money
We do not recommend this lender for:
- Borrowers who want repayment terms greater than 12 or 24 weeks
- Business owners who are just starting out and don’t have at least $ 100,000 in annual sales