Fundbox Review

Things to consider.

Quick delivery of funds.

Like many online lenders, Fundbox is known for its quick delivery of funds. Once your application is approved, you can get access to your funds within a business day. This is fairly standard for online lenders but fast compared to traditional bank loans that can take a week or more after getting approved.

Smaller line of credit range.

A line of credit from Fundbox gives you limited access to funds compared to some other lender options. The maximum amount you can access is $150,000. Some small business financing options offer qualified applicants as much as $2 million.

On the flip side, Fundbox has a low minimum line of credit threshold of just $2,000. So smaller companies that need just a small access to capital or that want to build their business credit can do so with this option.

No LOC maintenance fees.

One of the notable advantages of opting for a line of credit with Fundbox is the absence of maintenance fees. This means businesses won’t face additional charges just for having access to funds. Many lenders impose annual or monthly maintenance fees on lines of credit, which can increase the overall cost of borrowing. Eliminating these fees makes Fundbox’s financial products more accessible and cost-effective for small businesses, especially those monitoring their expenses closely.

Moderate approval requirements.

Fundbox’s moderate approval requirements make it an appealing option for small businesses that might not qualify for traditional bank loans. The platform requires a minimum credit score of 600, which is lower than many other lenders, allowing businesses with less-than-perfect credit histories to obtain financing. Additionally, Fundbox only requires six months in business to qualify, making it accessible for newer companies that need financial support to grow or manage cash flow challenges. 

However, Fundbox does need to see at least $100,000 in annual revenue. This comes to just over $8,300 a month. So if you are a new business, you still need to have consistent revenue in place to demonstrate your ability to repay the borrowed funds.

Weekly repayment plan.

Fundbox offers a unique weekly repayment plan for loans which can be helpful for businesses with steady weekly income. However, it may be challenging for businesses with fluctuating cash flows, especially during slower business periods. Fundbox offers two repayment terms: 12 weeks or 24 weeks.

Excellent third-party reviews.

Fundbox has an A+ rating with the Better Business Bureau. The lender’s reviews from happy borrowers are excellent on Trustpilot, with an average 4.3 out of 5 star rating. 88% of customers give Fundbox an “excellent” rating, with another 6% saying the company is “great.”

When looking at individual Fundbox loan reviews, customers often cite an easy user experience and fast funding times. Reviews also call out knowledgeable and helpful customer service representatives.

Evaluation

Fundbox is best for:

• Small businesses and freelancers who need quick access to funds. With fast approval times and funding available the next business day, Fundbox is ideal for those who need emergency cash flow or want to seize timely business opportunities.
• Businesses with relatively low credit scores. With a minimum credit score requirement of 600, Fundbox is accessible to businesses and freelancers who may not qualify for loans from traditional banks.
• Companies desiring flexible repayment terms. Offering 12-week and 24-week repayment terms, Fundbox provides some flexibility, allowing businesses to choose the option that best suits their cash flow.
• Entrepreneurs looking for low-entry financial products. The low minimum line of credit of $2,000 and the absence of maintenance fees make Fundbox a great option for smaller companies or those just starting to build their financial history.

Where Fundbox might fall short:

• For companies seeking larger amounts of capital. The maximum credit limit of $150,000 may not suffice for businesses looking to make significant investments or expansions.
• Businesses with irregular cash flow. The weekly repayment schedule could pose challenges for businesses that do not have consistent weekly revenue.
• Long-term financing needs. Fundbox’s maximum term of 24 weeks may not meet the needs of businesses seeking longer-term financing solutions.

How to apply for financing from Fundbox through Lendio.

Applying for financing through Fundbox via Lendio is a streamlined process designed to connect your business with the funding it needs with minimal hassle. Lendio is a small business loan marketplace with multiple lenders that will help match small businesses with loans that suit their unique needs. Here’s how you can get started:

1. Complete Lendio’s online application form: You will need to fill out a brief online application on Fundbox’s website. The form asks for basic information about your business, such as its name, how long it’s been in operation, your monthly revenue, and the amount you’re looking to borrow.
2. Documentation submission: Alongside your application, you will be asked to submit documents that verify your business’s financial standing. These could include recent bank statements, income statements, balance sheets, and tax returns. Having these documents ready in advance can speed up the process.
3. Review and acceptance: Once your application is submitted, Lendio will match you with potential lenders that fit your needs. If Fundbox is a good fit for your financing requirements, you will receive an offer outlining the terms of the loan. Review these terms carefully to ensure they align with your business goals and repayment capabilities.
4. Finalize the deal: If you decide to proceed with Fundbox, you will work directly with their team to finalize the loan details. This may involve additional verification steps or documents.

The bottom line.

Fundbox is a platform that stands out as a viable option for small businesses and freelancers who require fast and flexible financial solutions. Its streamlined application process, moderate eligibility requirements, and swift fund disbursement make it particularly appealing to those looking for quick cash injections to manage or expand their business. Although it might not be suitable for those who need larger loans or longer repayment terms, Fundbox’s lack of maintenance fees, coupled with its flexible repayment options, make it a great resource for many.

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