Fundbox Review - Borrow up to $100,000 Against the Value of Unpaid Invoices

Fundbox Review - Borrow up to $100,000 Against the Value of Unpaid Invoices
Rebecca Hosley
on March 23, 2020
Read in 4 min

The findings from this Fundbox review show that small business owners needing quick access to funds can use the value of their accounts receivable to borrow cash now.

They do this by providing what is known as an invoice financing loan.

Small businesses meeting all their qualifying criteria can borrow up to $100,000 against the full value of any outstanding customer invoices they have on their books.

Fundbox Review – Here’s How it Works

After creating a Fundbox account, you simply need to connect your accounting software or bank account so they can get an idea of your financial situation.

This allows them to assess the overall health of your business to make initial approval and offer a certain loan amount.

You could be approved in a matter of hours!

Once you draw funds, you are typically able to receive the money by the next business day, although in some cases it can take up to three business days, depending on your bank and other factors.

Borrowers can choose to repay the invoice in either 12 or 24 weekly installments.

Fundbox Fees

A weekly factoring fee is the price you pay to borrow, which may vary over time, and is determined based on several factors:

  • How long you’ve been a Fundbox customer
  • The amount of the financing loan
  • The length of the repayment terms

Each time you make a weekly payment, the amount you’ve repaid becomes available again, less the fee.

If you pay early, the remaining fees are waived.

Your weekly payments are automatically debited from your bank account, so you don’t need to worry about logging in each week to make payments.

Fundbox Review of Benefits

Low Qualifying Criteria

Fundbox has low barriers for customers to qualify, making it an attractive option for business owners who have been denied traditional financing options in the past.

Strict minimum requirements that other lenders impose just don’t factor into Fundbox’s approval process, such as:

  • Credit score
  • Annual revenue
  • Length of time in business

To be considered, business owners simply need to have unpaid invoices and have used online accounting or bookkeeping software for a minimum of 6 months that can be linked to Fundbox.

Some popular accounting options that work with Fundbox include:

If the accounting software you use is not supported, or you don’t use accounting software at all, you can still apply for Fundbox credit by connecting your business bank account for Fundbox review.

No Personal Assets on the Line

Unlike with a traditional lender, there is no need to provide any collateral upfront in order to qualify for a loan.

Fundbox also does not require borrowers to provide a personal guarantee for lower credit limits.

What this means is that as the borrower, you are not personally responsible for repayment if your business fails to repay a loan.

No Pre-Payment Penalty

Fundbox also allows you to repay loans early, without any penalty.

Not to mention, early payment may result in getting your remaining fees waived – which lowers the annual percentage rate on the loan.

Fundbox Fees Are Flat

Another perk is that Fundbox’s fees are flat.

This means the total fees due are divided evenly across the entire repayment period.

This is different from many other loans, where the fees are heavily front-loaded.

If you are able to pay your loan early, it can add up to substantial savings for business owners.

Preserve Customer Relationships

Finally, you don’t need to worry about Fundbox reaching out to your customers regarding their outstanding invoices – the company won’t try to collect on your customers.

It’s still up to you to get your customers to pay.

This is uncommon with other methods of invoice financing.

So, if you are concerned about a third party reaching out and damaging your customer relationships, Fundbox allows you to circumvent that step.

Fundbox Review of Drawbacks

While Fundbox has several advantages for young businesses or ones with limited or poor credit, there are some downsides business owners should consider before applying.

Capped Loan Amounts

One drawback is the limit on the amount a business owner can borrow.

Remember, the maximum loan you can get at Fundbox is $100,000.

This is because the lender is focused on serving small businesses and freelancers.

If you are a business with more extensive financing needs, you will need to look elsewhere.

High Factor Rate

Fundbox also can be a pricier option in terms of invoice financing.

As we mentioned earlier, the company charges a fixed weekly fee on the invoice depending on how much cash you need advanced, how long you’ve been a Fundbox customer and the repayment timeline.

Also worth noting is that fees that tend to be around 4% per week, but could be either a little higher or lower depending on your business.

This adds up to a much higher APR than the average invoice financing company or traditional term loan.

Borrowers can lower the APR if they choose the 12-week versus 24-week option and you can also save on interest by repaying the invoice loan early.

Other than some standard late fees, there are no other fees such as maintenance or termination fees to worry about.

GENIUS TIP: Skirt the Fundbox fees by passing them along to your own late-paying customers.

Fundbox Review: In A Nutshell

Fundbox can be beneficial to freelancers and start ups that have difficulty obtaining other forms of financing or require occasional cash infusions to cover day-to-day costs like payroll.

This alternative financing option can come in handy if your accounts receivable are unpredictable.

For example, seasonal businesses may receive the majority of their money at certain times of the year, and occasionally need a quick infusion of cash as a bridge to pay expenses until their busy season starts up again.

As long as they have open customer invoices to draw on, Fundbox can be a valuable resource for small business owners who need small amounts of working capital from time to time.

Before taking the plunge with Fundbox, check out these other small business lenders:

Other Online Lender Reviews

We know you’re busy, so don’t get overwhelmed – having lots of options is a good thing!

Save yourself some time and energy. If you’re looking to connect with a lender, get started with our easy online form:

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Rebecca Hosley Finance Journalist

Rebecca Hosley is a content writer based in Chicago.

She frequently writes about small business, insurance and finance.

In her free time, she enjoys trivia, craft beer and disc golf.

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Late Payments Hurt Your Credit Score

Please be aware that missing a payment or making a late payment can negatively impact your credit score. To protect yourself and your credit history, make sure you only accept loan terms that you can afford to repay. If you cannot make a payment on time, you should contact your lenders and lending partners immediately and discuss how to handle late payments.