Fundbox Review 2022: Lines of Credit―Even for Fair Credit

We’ve spent hours and hours researching and keeping up with Fundbox over the years―all so we can tell you what you need to know.

Best for low credit
Fundbox
Fundbox
3.1 out of 5 stars
3.1
  • Starting at 4.66% draw rate
  • Check
    Near-instant approval
  • Check
    Moderate borrower requirements
  • Check
    Next-day funding
  • X
    Low credit limits

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Fundbox offers business lines of credit (LOCs). These can help business owners smooth over cash flow issues and get flexible working capital―but is Fundbox a good place to get a line of credit?

Well, it depends. Fundbox has pretty moderate borrower requirements compared to other LOC lenders. Plus, it offers minutes-fast approval and next-day funding. But those perks come with a cost―literally. Fundbox costs more than many other lenders, and it doesn’t have the big credit limits or other credit options of those lenders.

Want to know more? In this Fundbox review, we’ll explain what Fundbox is, how it works, and why it might work well (or not) for your cash flow needs. Let’s get started.

Pros
Pro Bullet Moderate approval requirements
Pro Bullet Automated application
Pro Bullet Fast funding
Cons
Con Bullet Low maximum loan amounts
Con Bullet High APR
Con Bullet Lines of credit only

Our top-rated lender: Lendio

Lendio partners with over 75 lenders, which improves your odds and efficiency to get the funding you need.

Qualifications:

Money Approach

$50k in revenue

Calendar Approach

6 mos. in business

Analysis Approach

560 credit score


Fundbox review table of contents

Fundbox pricing

While Fundbox used to offer invoice financing (called Fundbox Credit), it now offers just a business line of credit (formerly known as Fundbox Direct Draw).

Fundbox line of credit

Product
Min./max. loan amount
Lowest listed rate
Repayment term
Get a loan
Line of creditUp to $150,0004.66% draw fee12 or 24 wks.

Data as of 11/9/21. Offers and availability may vary by location and are subject to change.

Fundbox’s line of credit acts as a revolving form of credit. You have a credit limit, and you can draw funds against that limit. As you repay what you borrow, that amount becomes available to borrow again―over and over (hence calling it a revolving line). You use only what you need as you need it, so you won’t pay fees on money you never actually used.

Fundbox doesn’t charge a traditional interest rate. Instead, it charges weekly fees. Your fee rate will depend on both your borrower qualifications and the length of your term. (Longer terms, as we said, have higher fees.)

Here’s how this works out: Let’s say you withdraw $10,000. On a 12-week plan, which will have lower fees but higher payments, you might have a fee of 4.66%. Multiply that fee by the total (10,000 × 0.0466), and you’ll see you have $466 in fees, for a total repayment of $10,466.

If you opt for a 24-week repayment period instead, you’ll have higher fees (but lower weekly payments). So with that same $10,000, you might have an 8.99% fee. That means you owe $899 in fees and $10,899 total.

Info
Fee formula

Withdraw amount × draw fee = total fees

Ex., $10,000 × 0.0466 = $466

Fundbox does front-load your fees, so you’ll pay more in interest during the first month of your repayment term. Your weekly payment will stay the same―but after that first month, more of your payment will go to the business loan principal (your draw amount) than to fees.

That means that, while you can repay your loan early to save on fees (Fundbox will waive any remaining fees), you won’t save nearly as much if you pay after that first month.

Keep in mind that Fundbox will tell you exactly how much you’ll pay in fees before you make a draw, so you don’t have to worry about nasty surprises down the line.

Effective APR

So how do these fees affect APR? Before we answer, let’s brush up on APR.

APR, or annual percentage rate, expresses the total cost of a loan over a year. It includes interest and other fees, like maintenance fees or origination fees. In theory, APR helps you understand how much your loan actually costs you.

Because Fundbox uses drawing fees rather than interest, it doesn’t technically have an APR. Instead, it has what’s known as an effective APR, which serves pretty much the same function as a normal APR.

Here’s the thing about APR: it largely tells you that fees spread over many years cost less each year than the same fees spread over one or two years. If you have a total of $1,000 fees on a loan, but you pay those fees over five years, that’s only $200 in fees each year. That same total over two years comes out to $500 in fees each year.

Sounds obvious when you put it that way, right? Well, keep that in mind as we talk about APR and Fundbox. You’ll see people complaining about Fundbox’s APR, which falls between 10% and 80%.

And sure, that sounds high—and it is when compared to SBA loans that can have APRs between 6.3% and 10%. But mostly Fundbox’s high APR tells you that you’re paying fees over a short period of time (12 or 24 weeks, in this case). It does not necessarily mean you’re getting a bad deal. You have to decide that part for yourself.

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Easiest application
Fundbox
Best if established
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Best for longer terms
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Most convenient
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Money
Payment schedule

Fundbox credit lines have loan terms of 12 or 24 weeks. Terms of 12 weeks will have higher payments but lower fees; 24-week terms will have lower payments with higher fees. Either way, you make weekly payments.

Other fees

Aside from drawing fees, which you’ll know from the beginning, Fundbox doesn’t charge common fees. You won’t pay application fees, origination fees, or early repayment fees on your Fundbox line of credit.

All you have to worry about are late payment fees and NSF fees (non-sufficient funds fees) if your bank account doesn’t have enough money to cover your payment.

Fundbox's flexible borrower requirements

Now that we’ve talked pricing, let’s look at what it takes to get a Fundbox line of credit.

Good news: Fundbox is a little more willing to work with you on borrower requirements than other lenders.

That’s partially because Fundbox has competitive borrower requirements to begin with. Though Fundbox has raised its borrower requirements quite a bit in the last year, it still has very moderate requirements compared to many lenders. Young businesses under a year old can qualify, for example. And business owners with less-than-perfect credit have a good shot too―as Fundbox accepts a personal credit score as low as 600 (a fair FICO score).

In other words, Fundbox is way more likely to approve most borrowers than traditional banks or even other online lenders are. Only a few lenders (mostly offering merchant cash advances) have significantly lower borrower requirements.

But just as important as Fundbox’s moderate baseline requirements? The fact that Fundbox is willing to compromise on those requirements, even a little bit. Fundbox’s website says that “ideally” your business should meet the minimum revenue and time in business requirements listed below―but you can still apply if you’re a bit under. Put simply, Fundbox offers flexibility we simply don’t see from other lenders.

Minimum borrower requirements for Fundbox financing

Min. credit score
Min. revenue
Min. time in business
600$100,000/yr.1 yr.

Data as of 5/17/22. Offers and availability may vary by location and are subject to change.

That’s not to say you can automatically get approved for Fundbox with a bad credit score and a few months in business. (As you can see from Fundbox’s median borrower requirements, that would be very unusual.) More likely, you can probably get flexibility in one category if your other qualifications are strong.

If, for example, you have an excellent credit score and plenty of revenue, a slightly too-young business may not matter so much. Or if you’ve got an older business and a great credit score, but you’re still working on building revenue, Fundbox might be willing to flex for you.

Do keep in mind, too, that Fundbox’s flexibility does come with some tradeoffs. As you’ll see in the next section, Fundbox has relatively high rates on its lines of credit, and you won’t be able to get a high credit limit.

But considering that Fundbox might offer you financing when other lenders won’t, those downsides may well be worth it.

Fundbox vs. the competiton

Fundbox stands out from the crowd of lenders who offer traditional loans, but it’s not the only company to offer invoice-based financing or lines of credit. Here’s how it compares to some of its biggest competitors.

Fundbox vs. other lines of credit

Lender
Min./max. loan amount
Lowest listed rate
Min. time in business
Get a loan
Up to $150,0004.66% draw fee1 yr.
Up to $250,0004.8% interest6 mos.
$1,000/$150,000Unlisted12 mos.
$6,000/$100,00035.9% APR12 mos.
$10,000 and up4.5% interest2 yrs.

Data as of 5/17/22. Offers and availability may vary by location and are subject to change.

As you can see, some other lenders offer higher credit limits than Fundbox. They also have lower costs (and they mostly use interest instead of draw fees).

But Fundbox definitely requires less time in business than other line of credit lenders. As we pointed out earlier, Fundbox prefers you to have been around for six months, but will accept younger businesses. For most lenders, though, six months is the bare minimum.

With that said, let’s talk more about how Fundbox compares to some of its most popular competitors.

Fundbox vs. Kabbage

Both Fundbox and Kabbage offer business lines of credit, and they both use automated approval processes to decide whether or not you get financing.

While Kabbage used to offer higher credit limits, Kabbage recently raised its maximum loan amount while Fundbox raised its own. They’re the same now.

Unfortunately, Kabbage doesn’t list its rates anymore, so we’re not sure how Fundbox and Kabbage compare, cost-wise. But we do know that Kabbage has stricter borrower requirements than Fundbox, requiring at least one year in business.

(Another key difference? Kabbage has temporarily paused its lending to anyone but prior customers and American Express customers, while Fundbox continues to accept new customers. We expect Kabbage to reopen soon, but we don’t know when.)

Fundbox vs. Bluevine

BlueVine, like Fundbox, provides a business line of credit―but it also offers invoice factoring.

BlueVine offers much larger loan amounts (up to $5 million for invoice factoring and up to $250,000 for lines of credit), and it offers low interest rates and longer repayment terms than Fundbox does.

But BlueVine also has higher borrower requirements than Fundbox, at least for its line of credit. To get a BlueVine line of credit, you need at least a 650 credit score and $30,000 in monthly revenue. And while BlueVine’s invoice factoring is easier to qualify for (a 530 credit score can work), it still requires at least $10,000 in monthly revenue―more than Fundbox asks for.

Overall, BlueVine probably offers the better value―but given its stricter borrower requirements, many business owners will prefer Fundbox anyway.

Drawbacks

We’ll tell you how to get a Fundbox line of credit in just a moment. But first, let’s make sure you fully understand the drawbacks to Fundbox.

We’ve already told you that Fundbox isn’t cheap. But it’s worth repeating again: Fundbox costs more than many other kinds of business financing. So make sure a Fundbox credit line fits in your budget before you formally accept a credit offer or draw from your line.

You’ve also probably noticed that Fundbox offers only lines of credit (at least for now). Credit lines work give you lots of flexibility, so you can use them for lots of different things. But for some specialized needs, like real estate purchases or big equipment purchases, you’ll be better off finding a specialized loan from a different lender.

And one other thing we want to point out: Fundbox won’t help your credit score. It doesn’t report to credit bureaus, so paying off your credit line on time won’t make any difference to your credit report. That means that Fundbox isn’t the best stepping stone to other (better loans). It may be able to help you get more revenue and allow your business time to age, sure, but you’ll have to improve your credit score in other ways.

Fundbox application process

Think you might want to apply for a Fundbox credit line?

Fundbox doesn’t use traditional applications. Instead, its proprietary process determines your creditworthiness. You simply allow Fundbox to connect to either your accounting software or your business checking account, and it uses the information within to make a decision.

You’ll start by filling out a form with the most basic of details—your name, phone number, and estimated yearly revenue. Once you submit that information, Fundbox invites you to connect either your accounting software or your business checking account.

Once you give Fundbox the log-in details for whatever method you choose, it will look at your transactions and evaluate you as a borrower. This automated process doesn’t require human underwriters, so you can get an answer within minutes.

Bell
What if you get rejected?

If Fundbox rejects your funding application, that’s not necessarily the end. If you keep your bank account or software connected to Fundbox, it will periodically check to see if you can get approved.

Note that Fundbox stays connected to your software or bank account until you revoke permission. In fact, Fundbox requires a continual connection to extend you funds. While that might sound scary, Fundbox uses up-to-date security protocols to protect your information, and we haven’t found any consumer complaints of privacy violations or data breaches.

If you get approved, Fundbox gives you a credit limit, and you can start drawing funds. And if you draw before noon Monday through Thursday, you can get your money within just one business day.

Fundbox customer reviews

All this information is well and good, but do people actually like Fundbox after using it? Well, yes. Fundbox has a 4.71 out of 5 on its Better Business Bureau profile and a 4.7 out of 5 on TrustPilot.1,2

Reviews praise Fundbox’s reasonable cost, easy applications, and fast fund transmission. Interestingly, the few negative reviews complain about some of the same things positive reviewers praise. But they also say Fundbox’s fees cost too much and funds were slow to arrive.

Some reviewers also complain that Fundbox gave them a credit limit that was too low, and a few reviewers said they wish they could repay monthly instead of weekly. If weekly repayment poses a problem for you, Fundbox might not be your cup of tea.

The takeaway

Fundbox offers very accessible business lines of credit. Its automated application process means you can get approved and funded quickly, even if you haven’t been in business for several years or if you don’t have a perfect credit history.

However, Fundbox does come with high APRs and relatively low credit limits, so some more established businesses may want to look elsewhere.

Want to compare Fundbox to other business LOCs? Check out the lenders on our rankings of the best business lines of credit.

Related reading

Fundbox FAQ

We’ve covered a lot, but not everything. Let’s answer some lingering questions about Fundbox.

Which banks does Fundbox support?

Fundbox claims to connect with over 10,000 banks. We don’t have the full list, but we think you can safely assume Fundbox supports your bank. You’ll find out for sure about two minutes into the application process.

What accounting software does Fundbox support?

Fundbox supports some of the most popular accounting software:

  • Clio
  • Ebillity
  • FreshBooks
  • Harvest
  • InvoiceASAP
  • Jobber
  • Kashoo
  • PayPal Invoices
  • QuickBooks
  • Xero
  • Zoho

Will Fundbox ever raise my credit limit?

Yes, Fundbox can raise your credit limit over time—but it’s not a guarantee. Fundbox reviews active accounts from time to time to make sure they have appropriate credit limits. Your chances of getting a limit raise increase if you make payments on time and have lots of transactions in your software or account.

Will applying for Fundbox affect my credit score?

Fundbox could have a small effect on your credit score if you get approved for funding. It may conduct a soft inquiry into your credit when you first apply, which won’t affect your score. If you get approved and make a draw, Fundbox might make a hard inquiry, which could affect your score.

Does Fundbox report to credit bureaus?

No, Fundbox doesn’t report payment activity to any credit bureaus. That means that getting and repaying a Fundbox line of credit can’t boost your credit―but it can’t hurt it either.

Methodology

We researched everything we could about Fundbox, from rates and fees to customer reviews to its funding process. We used our research to score Fundbox and see how it compares to other lenders. Its scores formed the basis of this review.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Sources
1. Better Business Bureau, “Fundbox, Inc.” Accessed November 9, 2021.
2. Trustpilot, “Fundbox.” Accessed November 9, 2021.

Chloe Goodshore
Written by
Chloe Goodshore
Chloe covers business financing and loans for Business.org. She has worked with many small businesses over the past 10 years, from video game stores to law firms. Those years watching frustrated business owners try to sift through their many options gave her a passion for breaking down complex business topics. She wants to help business owners spend less time agonizing over their businesses so they can spend more time running them.
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