Fundbox Small Business Lines Of Credit Review

Pros

• Few extra fees
• Discounts for repaying early
• Funds are disbursed quickly

Cons

• Rates can be expensive
• Repayments are required frequently

What Is Fundbox?

Fundbox is an embedded working capital platform specializing in lines of credit that can help you optimize your cash flow and manage expenses. It’s also a great, versatile option for business loans for bad credit.

Services Offered By Fundbox

Fundbox provides revolving lines of credit that can be repaid over 12 or 24 weeks. Lines of credit are similar to a credit card. You can make multiple draws up to the amount of credit set by the lender. When you draw from the line of credit to receive cash, only then will you start to pay interest on the amount borrowed.

Fundbox also offers business demand deposit accounts, a bank-like service. This can be paired with a Fundbox line of credit to pay business expenses.

While the quality of Fundbox’s services is quite good overall, it offers very limited options for borrowers, with relatively low borrowing amounts. For convenience, Fundbox offers both an online portal and mobile app for customers to interface with their loans. Overall, we rate Fundbox 3.5/5 in the area of services.

Fundbox Borrower Qualifications

Fundbox’s borrower qualifications are quite lenient, which we’ve rated at 4.5/5. While these requirements should be easy for most businesses to meet, simply meeting these minimum requirements does not guarantee you’ll be approved for funding.

Additionally, Fundbox requires that you’ll need to be based in the US and have a business checking account. If Fundbox isn’t quite the right fit for your business, there are other options for small businesses, including startup loans for businesses with bad credit.

Fundbox Rates & Fees

The following rates and fees apply to Fundbox’s lines of credit:

The amount you are eligible for will depend on your business’s financial strength, and Fundbox may increase your credit line in time.

Borrowers can request funds from their line at any time. The funds will be deposited in their business bank account as soon as the next business day (depending on the time of day you request the funds). Fundbox does not charge any draw fees or money transfer fees when you request funds. This is a revolving line of credit, meaning that your credit line replenishes as you repay borrowed money.

Repayments are made in equal installments over 12 or 24 weeks. Borrowing fees vary by term length. There is no prepayment penalty. Our short-term loan calculator can help you get an idea of what to expect with a Fundbox line of credit.

Fundbox has also recently started offering a paid option for its LOCs called Fundbox Plus. Fundbox Plus costs $99/month but saves you 20% on fees, gives you the option to repay your Fundbox line of credit over the more extended period of 52 weeks, and lets you make payments every four weeks instead of each week.

While the advertised prices are reasonable, Fundbox doesn’t disclose an upper range for its fees, which hurts its overall pricing transparency.  We give Fundbox a 3.1/5 for rates and fees.

Fundbox’s Application Process

Fundbox application involves a soft pull on your credit. Once you’re approved, Fundbox may perform a hard pull on your credit if you decide to proceed with the application.

Fundbox’s application is fully automated. You should be prepared to submit documents verifying your identity and that you own the business you’re claiming, which may include personal ID and tax documents. You will also be asked to submit up to three months of bank account statements and accounting software activity to apply.

Most borrowers will receive a funding decision in as little as three minutes. If approved and you like the rates you’ve received, you can begin requesting funds immediately. Funds generally hit your bank account as soon as the next business day, depending on the time of day you make the request. We give Fundbox a 4.5/5 for its speedy and relatively painless application process.

Sales & Advertising Transparency

Fundbox maintains a presence on major social media platforms. Fundbox still provides a fair amount of information on its website, but information on rates will prove elusive outside of the provided example rates. Overall, we find Fundbox slightly lacking in transparency, which is reflected in its 3.8/5 ranking in this category.

Fundbox Customer Service & Technical Support

Most customers cite positive experiences with Fundbox’s customer support. In my experience, phone wait times were short, and representatives were helpful. Self-service options, while available, are fairly limited.

User Reviews

Overall, Fundbox has an excellent online reputation. The company is accredited by the Better Business Bureau (BBB) and has an A+ rating. There are 25 complaints on file in the past three years, all of which appear to be addressed by the company. The 300+ customer reviews on the site are overwhelmingly positive, with an average rating of 4.71/5.

Negative Fundbox Reviews & Complaints

While there are a few negative reviews, the majority of customers are pleased with the company’s service. However, there are still a few recurring complaints from customers:

• Credit Limit Too Small: The most common complaint about Fundbox is that the borrowing amount is too low. Fundbox periodically reviews your account and increases credit limits for customers with a good financial history. However, some customers have complained that the credit increases don’t come fast enough, and they don’t know when their accounts will get reviewed again.
• Too Expensive: Other customers have voiced concerns about the expensive capital. While Fundbox’s fees can be a little high, they are competitive with similar lenders. Before settling on Fundbox, you might want to see if you qualify for other lines of credit that are less expensive (but might be more difficult to qualify for).
• Communication Issues: Some of the gripes revolved around how (and how quickly) Fundbox addressed complaints, typically regarding repayment accommodations. Additional issues involved Fundbox’s policies regarding reporting customer payment information to credit bureaus.
• Account Freezes: Some customers complained that their lines of credit were frozen without warning.

Positive Fundbox Reviews & Testimonials

Despite the few complaints above, customer reviews of Fundbox are overwhelmingly positive. It also rates a 4.7/5 on Trustpilot, with 3,900+ reviews. Here is what customers like about Fundbox’s service:

• Fast & Easy Application Process: Users appreciate how easy and quick the Fundbox application is and how fast it is to receive funds.
• Few Additional Fees: Fundbox doesn’t pile on the miscellaneous fees. You won’t even pay an origination fee.
• Good Customer Support: A large handful of users also praise Fundbox’s level of customer support.

Overall, Fundbox is generally well-received by customers. We give Fundbox 4.4 out 5 stars for user reviews.

Is Fundbox Financing Right For Your Small Business?

Fundbox’s small number of service offerings make it somewhat of a niche product, but merchants with fair credit who need a small but flexible credit line to draw on in a pinch should find Fundbox to be up to the task. That said, Fundbox could benefit from more flexible terms and transparency. Overall, Fundbox earns 3.8 out of 5 stars.

Looking to borrow more than $150,000? Start your research with the best small business loans to find the Fundbox alternative that’s right for you.

Business Loan & Funding Products Review Methodology

Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business loans and funding products.

When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.

The Merchant Maverick Seal of Approval 🏆

Fundbox	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Fundbox for yourself.

The Merchant Maverick Seal of Approval 🏆

Fundbox	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Fundbox for yourself.