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Our Verdict
Our Verdict
Fundbox is an AI-based alternative lender that offers small business owners short-term lines of credit and loans to help with operating costs. The lender has a low minimum credit requirement and doesn’t charge borrowers application fees, origination fees or prepayment penalties. Still, annual percentage rates (APRs) on lines of credit extend up to around 80%, which makes the lender an expensive option for most borrowers.
Pros
- Applicants may receive a decision in as few as three minutes
- Low minimum credit score requirements
- Funding as soon as the next day
Cons
- Line of credit APRs up to around 80%
On Fundbox's Website
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Loan amounts
$1,000 to $150,000
Time in business
3 months
Minimum credit score
600
Table of Contents
- Who Fundbox Is Best For
- Who Fundbox Isn’t Right For
- What Fundbox Offers
- Fundbox Business Loan Details
- How to Qualify for a Fundbox Business Loan
- How to Apply for a Fundbox Business Loan
- Customer Reviews
- Methodology
Show more
Who Fundbox Is Best For
Fundbox may be a good fit for:
- Applicants with a low credit score. Fundbox only requires borrowers to have a minimum personal FICO score of 600 to qualify for a line of credit. This makes the alternative lender an accessible option for business owners with fair credit.
- Borrowers who only need a small amount of cash. Because Fundbox only offers lines of credit up to $150,000, it may not be a good fit for borrowers who need to access a large sum of cash. However, it can help business owners access funds to cover lower cost purchases and operating expenses.
- Businesses with sufficient revenue to repay draws quickly. Fundbox’s short repayment terms and weekly payment schedule can translate into large payment amounts. For that reason, the lender is best for businesses that have enough revenue to comfortably cover those payments.
Featured Partner Offers
1
OnDeck
Loan amounts
$5,000 to $250,000
APR
Not disclosed
Minimum credit score
625
2
American Express Business Blueprint™
Loan amounts
$2,000 to $250,000
Monthly fees
Varies by loan term
Minimum credit score
All businesses are unique and are subject to approval and review. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
of at least 660 FICO at the time of application
2
American Express Business Blueprint™
3
National Funding
Loan amounts
$10,000 to $500,000
APR
Buy rates start at 1.11%
Minimum credit score
600
Who Fundbox Isn’t Right For
Fundbox may not be right for:
- Well-qualified borrowers. Business owners who can qualify for financing through a traditional bank or online lender will benefit from longer repayment terms and more competitive interest rates.
- Business owners who need to make large purchases. Fundbox’s financing options are only available up to $150,000, and repayment terms are extremely abbreviated. For that reason, the lender is not a good option for large purchases—especially when the borrower can qualify for a lower interest rate elsewhere.
What Fundbox Offers
Fundbox only offers business lines of credit. Borrowers can qualify for a line of credit between $1,000 and $150,000 based on information from their business checking accounts, accounting software and credit reports. Payments follow a weekly cadence, and borrowers can choose from 12- or 24-week repayment terms.
Fundbox Business Loan Details
Fundbox’s business line of credit is the lender’s only offering, with borrowers able to access between $1,000 and $150,000, depending on creditworthiness and business finances. Customers can request a draw as soon as they are approved, and may be offered 12- or 24-week repayment terms. Interest rates start at 4.66% for 12-week terms and 8.99% for 24-week terms.
The application process can be completed entirely online and funding can be received as soon as the next business day.
| Details | ||
|---|---|---|
| Loan amount | $1,000 to $150,000 | |
| APR |
| |
| Terms | 12 or 24 weeks | |
| Repayment schedule | Weekly | |
| Fees | No application fees, origination fees or prepayment penalties | |
| Availability | 50 states, plus Guam, American Samoa, Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands | |
| Funding speed | As soon as the next business day | |
How to Qualify for a Fundbox Business Loan
At a minimum, businesses must be based in the U.S. and have a business checking account to qualify for a line of credit through Fundbox.
However, Business loan applications are approved or declined based on a number of factors. All lenders have their own unique underwriting requirements, but these typically include information from an applicant’s credit profile and other factors that demonstrate the ability to repay the loan, such as business revenue. Meeting the requirements below won’t guarantee approval, but they can help you decide if a business loan is the right fit for you.
Personal Credit Score
Borrowers must have a minimum personal FICO Score of 600 to qualify for a Fundbox line of credit. This is lower than required by other short-term lenders like Kabbage and means that financing is accessible to business owners with fair credit.
Time in Business
Ideally, a business should be in business for at least three months before applying for a line of credit through Fundbox.
Annual Revenue
Prospective borrowers must demonstrate at least $30,000 in annual revenue to qualify for a line of credit through Fundbox. To demonstrate this, applicants must provide at least three months of transaction history in a business checking account or two months of approved accounting software records.
How to Apply for a Fundbox Business Loan
Prospective borrowers can apply for a line of credit through the Fundbox website. Follow these steps to get started:
- Create an account. To start an application, navigate to “Apply” on the Fundbox website. Then, create an account by providing information like the day the business was established and its average monthly revenue over the past three months.
- Connect business accounts. Next, follow the application wizard to connect your business accounts, including checking accounts, accounting software or other tools that provide insight into the business’ financials.
- Await approval. The approval process is generally quick and may be completed in as few as three minutes. Fundbox conducts a soft credit pull when evaluating borrower applications. For that reason, applying for a line of credit won’t impact your credit score.
- Draw funds. Once you’re approved for a line of credit, log in to your Fundbox account and request a draw through the user dashboard. At this point, Fundbox conducts a hard credit inquiry that will be reflected on your credit report. Funds are typically deposited within two business days after requesting the draw.
Related:Best Small Business Loans
Customer Reviews
As of Nov. 15, 2022, Fundbox has an A+ rating from the Better Business Bureau (BBB) and has earned 4.74 stars based on 408 customer reviews. Similarly, customers give Fundbox a 4.8-star rating on Trustpilot based on 3,223 reviews.
Positive reviews report that the lender’s application process is streamlined and that funds are received quickly. Other customers share that it’s easy to draw against the line of credit and that automatic payments simplify borrowing. Negative reviews are less common, but some borrowers report issues with an unresponsive customer support team and limited online resources.
Methodology
We reviewed Fundbox based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated Fundbox based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 25%
- Customer experience: 20%
- Eligibility and accessibility: 10%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated Fundbox’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our .
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