It uses technologies such as big data, predictive modeling, and process engineering to reach business customers effectively.
The primary target market of the company includes small businesses, freelancers, and independent consultants. As of 2019, the company has already raised more than $430 million from over 14 investors. At present, the company has more than 100,000 customers.
The fundamental objective of the firm is to ensure a steady flow of cash for small businesses and individuals. The company achieves this by advancing money against a borrower’s outstanding invoices. Such advances are aimed at optimizing the cash flow for companies that are starved for funds. There are instances when small businesses are struggling with a lengthy accounts receivable cycle. This is where the company steps in and helps them out. To help you decide whether these services are suited to your small business, this Fundbox review will closely examine the offerings and advantages.
What is Fundbox Loans
Fundbox small business loans can be categorized as invoice financing. If a small business wants to maintain operations on a consistent basis without having to worry about short-term cash flows, then this lender is the ideal solution for them. In addition, the company lends money to all types of business entities, so long as they are based in the US.
How Fundbox Works?
The Fundbox line of credit is calculated on the basis of your existing invoices, your turnover, and the risk involved in each invoice. The loan amount that is provided by the company typically ranges between $1000 and $100,000. Furthermore, the typical term of the loan is between 12 and 24 weeks. You will have to pay back the loan within a shorter period compared to other lenders that are active in the market.
How Do I Qualify For Fundbox?
There are three major qualifying criteria that you need to fulfill in order to qualify for these loans:
- You need to have an annual turnover of at least $25,000
- You need to have a business history of at least three months
- You need to have a credit score that is in excess of 500
Advantages and Disadvantages
Before signing any financing agreement, discover the various advantages and disadvantages of availing a loan from this company to ensure that the financing method is a good fit for your business needs.
- Short Application Process: The biggest advantage is that the application process is fairly simple and straightforward. You only need to register your business and link your accounting software with the platform. The rest of the process is handled by the company, and it provides you with an estimated line of credit.
- Funds Disbursed Rapidly: Another major advantage is that the loans are disbursed much quicker compared to the other players in the market. In fact, the loans can be provided as early as the next day. This could prove to be a major boost for small businesses that need funds urgently.
- Low Minimum Credit Score Requirement: The credit score that is needed to qualify for this financing option is also fairly low. There are multiple other lenders that require a minimum credit score in excess of 650. However, Fundbox line of credit requirements indicate that you only need a credit score of 500 or higher. This is a major advantage for small businesses that are struggling to pay off existing loans and have weaker credit histories.
- No Collateral Needed: According to Fundbox requirements, you do not need to provide any personal guarantee or collateral to secure a loan.
- No Additional Fees: Apart from the interest that is charged on loans, there are no additional fees that you need to pay. Thus, you can save on expenses such as registration fees and origination fees. Similarly, there are no prepayment penalties, and you can prepay the loan whenever you wish to do so.
- No Monthly Minimums: Another advantage is that there are no monthly minimums that you need to worry about. The repayment is completed on a weekly basis and funds are automatically debited from your account.
- High-Interest Rates: The interest rates that are charged by the company are relatively higher when compared to other competitors in the market. For instance, the rate of interest starts at 4.66% and rises based on the risk involved with your invoices. These rates are quite high and could eat into your profits.
- Relatively Small Credit Limit: The amount that you can borrow from Fundbox financing is lower when benchmarked to the market average. The maximum amount that you can typically borrow from the company is $100,000. On the other hand, several lenders in the market offer loan amounts of up to $500,000.
How Do I Apply To Fundbox?
In order to receive loan approval, the first step is to register with the company. After your registration is complete, you also need to link your accounting platform with the company. The registration and linking process does not require you to pay any fees. Once you have connected your accounting platform, the company will make use of the latest technologies to arrive at a suitable line of credit for your business.
Documents I Need to Apply
The only mandatory thing that you need to supply is an online-accessible checking account. In addition to this, you may also wish to furnish other documents such as your tax returns. These documents are not mandatory and are only useful in terms of proving your creditworthiness to the company. You may also want to keep your transaction history ready, just in case it is needed.
Fundbox For Bad Credit
The credit score hurdle is pretty low for this lender in particular. The company even offers its loans to small businesses that suffer from weaker credit histories. The minimum credit score needed to apply for the loan is just 500, which is among the lowest in the market. This shows that you do not need to worry about your past credit experiences to such a large extent and can easily apply for a loan.
Fundbox Customer Support
The platform is connected with more than 10,000 banks across the US. In addition, the customer service provided by the company is among the best in the business. You will not have any issues when you come to representatives with any questions or encounter issues with the service. There are multiple channels that you can use to connect with the technical support team both online and offline including the Fundbox phone number.
To sum up, Fundbox invoice factoring techniques mean small businesses can arrange rapid financing while availing a range of great benefits. If you have just started your business and are seeking to raise funds against your invoices, this company might be an ideal lender choice. At the same time, if you are concerned about high interest rates or if you need larger sums of financing, then you may consider exploring other lenders in the market.