Buy Side’s take on Fundbox business loans
Fundbox received 4.5 stars in Buy Side’s rating of business lenders. While it offers only lines of credit and has relatively low funding amounts, its ease of qualification and fast funding might appeal to new businesses.
What’s appealing
Fundbox stands out for its fast funding times, with some applications approved within minutes. Funds can be deposited into your bank account within two business days of approval. There are no prepayment penalties if you pay before the due date.
Qualifying with Fundbox might be easier than doing so with competitors. Its minimum personal credit score is 600, and it requires three months in business with $30,000 in annual revenue.
Fundbox runs a soft inquiry, which won’t affect your credit, when you apply. However, if you are approved, it performs a hard inquiry with your first draw, which might have a temporary and small impact on your credit.
What’s concerning
Fundbox offers only business lines of credit, while some competitors offer several loan types. Its line of credit might be insufficient for businesses seeking larger funding amounts.
It also charges weekly interest, which might be expensive and could make estimating borrowing costs difficult. Business term loans typically have set repayment terms and fixed payments, making their costs more predictable.
Fundbox also requires a personal guarantee, which holds you personally liable if the business fails to make its payments. If you are unable to pay, the lender can sue you for your personal assets.
How to apply for a Fundbox business loan
Fundbox has a streamlined online application, which it says you can complete in three minutes or less.
- Verify your eligibility: Ensure you meet the business requirements and the minimum personal credit score of 600.
- Gather documentation: You might need to provide details such as your business tax ID, Social Security number, personal and business tax returns and bank statements.
- Fill out the online application: You can complete the online application in a few minutes and typically receive an approval decision within 24 hours.
- Once approved, sign the loan agreement: After receiving approval, review and sign the loan agreement. Promptly respond to any requests for additional information to avoid delays.
- Provide account information for funding: You can access your funds by providing the appropriate account information. Funds might be deposited into your bank account within two business days.
