If you’re looking for reliable business credit, Fundbox is a lender you will often run into. The company serves small businesses by providing two forms of credit: a line of credit and vendor credit. Because of its popularity (and several features), the Fundbox line of credit is the option we will be looking at today.
Fundbox’s line of credit is easier to qualify for than most other lines of credit. Most importantly, the minimum credit score required to do business with them is only 500. In addition, they are easy to deal with and their application process is fast and easy. However, this loan product deserves a closer look…
The Fundbox Line Of Credit Qualities & Features
Diverse Rates
Not everyone is eligible for a Fundbox line of credit. However, they do serve business borrowers with “very poor” credit. With a “fair” or better credit score, you can apply and get better rates than similar alternative lenders would offer you.
Next-Day Funding
Applying for a Fundbox line of credit only takes minutes. After you apply, you can get a credit decision within minutes as well. The median time it takes for Fundbox to come to a decision is three minutes, according to their figures.
No Collateral Necessary
You do not need to provide collateral when you take a line of credit from Fundbox. Furthermore, for smaller loans, you don’t even need to provide a personal guarantee. However, you will face higher rates because business lenders view unsecured loans as riskier.
Fair Lines Of Credit
Unlike many lines of credit, the one from Fundbox doesn’t come with any strings attached. You can get the line you need without application fees and other sneakier fees. You can then draw funds throughout the draw period. During this phase, you will only be charged when you draw funds from your line of credit. There are no other fees for keeping the line of credit open.
Early Repayment
While many lenders don’t appreciate early repayment because of the interest they lose, Fundbox does. You can repay early to save money if you have the money to pay them back sooner than you’d expected.
Quickly Explore Fundbox’s Biggest Competitors:
| Lender | Minimum Revenue | Time in Business | Minimum Credit | Next Steps |
|---|---|---|---|---|
 |
$50,000/yr | 1 year | 560+ | See if you qualify |
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$100,000/yr | 1 year | 600+ | See if you qualify |
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$25,000/yr | 3 months | 500+ | See if you qualify |
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$42,000/yr | 9 months | 550+ | See if you qualify |
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$75,000/yr | 2 years | 620+ | See if you qualify |
Pricing & Terms For A Fundbox Line Of Credit
Draw limits for Fundbox lines of credit max out at $100,000. The amount you can qualify for starts at a minimum of $1,000.
The APR for your fundbox line of credit can range between 10% and 69%. With an excellent credit score, you can qualify for a $100,000 line of credit that won’t cost much more than $10,000 from start to finish. On the other hand, the lower your credit score and income are, the worse your rates will be and the lower the draw limit will be.
The repayment process can last for up to 24 weeks. Fundbox’s loan options are short-term, and they are expected to be paid off fairly quickly. So, Fundbox is a strong lender that can help you in many situations. But if you foresee large, long-term expenses, then their lines of credit may be too short for you.
Do I Qualify For A Fundbox Line Of Credit?
Many borrowers with very poor credit can qualify for a Fundbox Line of credit. Specifically, any business owner with an annual revenue of over $50,000 and a personal FICO credit score of 500 can qualify.
Fundbox is a very fast lender that can enable you to start drawing funds within two business days. So, they won’t have high requirements, but they will charge higher rates if they assess you to be a risky borrower.
Applying For A FundBox Line Of Credit? Here Are Some Factors To Keep In Mind
Potentially High Rates
If you are borrowing from Fundbox with bad or worse credit, make sure you can pay them back as per your agreement. For bad or worse credit borrowers, the high rates can lead to cash flow problems if you fail to pay them back on time.
Paying Back Early
Because Fundbox rewards, not punishes, early repayment, you should try to repay your line of credit early. This way you can save on the line’s expenses.
The Last Word
If you have bad credit and still feel like you deserve a no-nonsense line of credit, Fundbox is a good option. Their rates aren’t the best, but they are far from the worst as well.
Where Fundbox really shines is in its speed and straight-forward business. You don’t need to worry about hidden fees and you don’t need to pay until you draw funds. This also makes Fundbox a good backup option when you can foresee potentially large expenses. Applying for their line of credit is free, so you have little to lose if you don’t draw more money than you can afford to pay back.
