Many small businesses can struggle in the early days, weeks, and months. It’s always a risk to begin a business, but it’s a risk that can pay off in a big way, provided you make the right decisions in order to navigate those early challenges and begin to grow as the months go by. One of the biggest issues facing start-ups and small businesses is capital, but the best business lenders like Fundbox can help with that.
Founded in 2013 and located in San Francisco, Funbox is a business lender specializing in offering a range of different financial products to small businesses and start-ups. It offers a couple of unique products, including lines of credit and invoice financing, ideal for companies in various industries and especially suitable for B2B companies.
It stands out from the crowd by offering really relaxed application requirements, letting people apply and get approved without too many restrictions. It doesn’t even require you to have been in business for several months or a year in order to be approved, making it perfect for start-ups. However, on the downside, the rates with Fundbox can be a little on the high side when compared to some other business lenders out there.Back to top ↑
Business Loans Offered by Fundbox
Here are some of the loan types you can find when choosing Fundbox as your business lender:
- Fundbox Credit – Fundbox Credit is the name Fundbox gives to its invoice financing service. This is a great option for B2B companies in which the lender will basically provide money to cover the costs of any outstanding invoices you have that need to be paid right away.
- Direct Draw – Direct Draw is the term used by Fundbox to describe its lines of credit. This is when you take out a temporary credit account with Fundbox that you can draw from, up to a set limit, over the set duration, and you only have to pay interest on the money you actually use.
Here’s all you need to know about how Fundbox business loans work:
- Applications – Fundbox is popular with many businesses for its relaxed application requirements. You don’t need to have been in business for any set amount of time and you don’t need any set amount of revenue either. You do, however, need a personal credit score of 500+ in order to qualify for funding.
- Rates and Fees – Fundbox offers two different financing products, as listed above. If you choose Fundbox Credit, you can take out up to $100,000, with an advance rate of 100% and an advance fee starting at 4.66%. Terms run from 12 to 24 weeks. For Direct Draw, you can take out a line of credit ranging from $1,000 to $100,000, also for 12 to 24 weeks. The borrowing fee begins at 4.66%.
Overall, Fundbox is a great choice for many small businesses, especially those in need of lines of credit or invoice financing. Users have lots of good things to say about their experiences with this company, and it’s a really efficient option for B2B and B2C businesses in need of cash quickly. Larger businesses, however, may want to look elsewhere.Back to top ↑