Our Take
5.0
NerdWallet rating
The bottom line:
Fundbox loans are a good option for fast access to working capital, especially for startups and business owners with bad credit.
Fundbox - Line of credit
Max Loan Amount
$150,000
Min. credit score
600
Pros & Cons
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly — accepts borrowers with six months in business, potentially less.
- Low minimum credit score requirement.
- No application fees, inactivity fees or origination fees and no prepayment penalties.
- Can be used to build business credit.
Cons
- Rates are high compared to traditional banks.
- Requires UCC lien and may require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Full Review
Fundbox is an online lender offering small-business loans to entrepreneurs who need to quickly fill a cash-flow gap — you can get access to a line of credit as soon as the next business day. Fundbox is known for its flexible eligibility requirements, offering funding to business owners with bad credit or just a few months in business.
But that flexibility doesn’t continue into its repayment schedule — you’ll need to make weekly repayments during a maximum loan term of just 24 weeks. If you need a longer repayment period, look at other online business loan options.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Fundbox is best for borrowers who:
- Need cash fast: With minimal documentation required, you can complete Fundbox’s application and receive a decision the same day. Once your application is approved, funds are available as fast as the next business day.
- Can afford weekly repayments over a short term: Fundbox requires weekly repayments over a 12- or 24-week term.
- Don’t have perfect personal credit: Fundbox accepts borrowers with a minimum credit score of600. While underwriting your loan, Fundbox also looks at your business checking account and/or accounting software data — in addition to your credit report — to get a more holistic look at your financial performance.
- Have startup businesses: Many lenders require that you have at least one year in business before you’re eligible for financing. With Fundbox, you may qualify for a line of credit with only3months in business.
Fundbox loan features
Fundbox offers revolving business lines of credit up to $150,000 with repayment terms of 12 or 24 weeks.
Loan amount | Up to $150,000. |
Estimated APR range | 36 % to 99 %. |
Fees |
|
Terms | 12 or 24 weeks. |
Repayment schedule | Weekly. |
Funding speed | Get approved as fast as the same day and receive funds the next business day. Processing may take a little longer on weekends or holidays and may also vary depending on your bank. |
Fundbox is testing a paid version of its platform that offers reduced fees, longer repayment terms and other perks. This subscription, called Fundbox Plus, costs $99 per month, but is not yet available to all borrowers.
Where Fundbox stands out
Fast access to cash
Fundbox is a good option for businesses that need fast access to working capital. You can complete an application for a line of credit online by providing basic information about your business and connecting your Fundbox account to your business checking account or accounting software.
Once your application is approved, you can immediately request funds. Fundbox then transfers the cash to your bank account, and you’ll receive your funds as fast as the next business day.
Easy to qualify
Fundbox has less stringent qualification requirements compared to other small-business lenders, including both traditional and online lenders.
Whereas many lenders require that you have one year or more in business to qualify for financing, Fundbox only requires a few months in business — making its line of credit a good choice for startup businesses.
Similarly, if you have bad credit (a FICO score of 629 or lower), you may still qualify for a line of credit from Fundbox. Fundbox has a minimum credit score requirement of
600
, and it uses data from your credit report and financial services that you connect — such as your business checking account and accounting software — to evaluate your application.Early repayment flexibility
Fundbox allows you to repay your line of credit early to save on fees, and there is no prepayment penalty for doing so.
Fundbox also does not charge inactivity fees, account maintenance or origination fees.
Where Fundbox falls short
Can be expensive; short repayment period
The APR on Fundbox’s line of credit ranges from
36
% to 99
%, which is higher than traditional banks and some online lenders. Its line of credit is repaid in equal weekly installments with amortized fees.Whereas certain online lenders offer monthly payments, Fundbox only offers weekly payments. The maximum available repayment term is 24 weeks, which is shorter than some competitors.
» MORE: Compare business lines of credit
Limited funding options
Fundbox offers flexible lines of credit, but it doesn’t offer other products, such as equipment financing or SBA loans. Although Fundbox is in the process of offering a term loan, this product is not yet available to all customers.
Fundbox also provides financing up to $150,000 only, which could be problematic for businesses that need to make bigger investments. If you’d prefer a different type of business loan or need access to a larger credit line, you’ll want to consider other lenders.
Fundbox loan requirements
Fundbox’s minimum borrower eligibility requirements include:
- Minimum credit score:600.
- Minimum time in business:3months, though Fundbox may consider newer businesses.
- Minimum annual revenue: $30000.
You also must have a business checking account, and your business must be based in the U.S. to qualify for a Fundbox line of credit.
Alternatives to Fundbox
Bluevine
Bluevine offers a larger credit line, with amounts up to $250,000. Like Fundbox, Bluevine is a good option for businesses that need quick access to capital, with same-day approval and funds available the next business day.
Unlike Fundbox, Bluevine allows you to choose between weekly and monthly payments and offers terms of up to 12 months.
» Learn more about how these lenders compare in our Bluevine vs. Fundbox review.
OnDeck
OnDeck offers a business line of credit of up to $100,000 borrowers with a minimum FICO score of at least
625
. You must have at least 12 months in business and $100,000 in annual revenue to qualify.Interest rates on the OnDeck line of credit range from
35.9
% to 84.9
%. Unlike Fundbox, OnDeck allows you to choose weekly or monthly payments and terms are available of 12, 18 or 24 months.Compare your business loan options
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
Frequently Asked Questions
Yes. Fundbox is accredited by the Better Business Bureau and has an A+ rating. Fundbox’s loans are funded through First Electric Bank, a Utah chartered Industrial Bank and member of the FDIC.
The lender also has a 4.7-star rating on Trustpilot.
No, Fundbox does not report to either the commercial or consumer credit bureaus. This means you can neither hurt nor build your business and personal credit scores by using Fundbox’s line of credit.
Yes. Fundbox will do a soft pull on your credit score when you apply for a line of credit. This soft pull will not impact your credit score.
When you draw funds for the first time, Fundbox will perform a hard pull, which will temporarily affect your credit.
Fundbox generally requires that you have a personal credit score of
600
or higher to qualify for financing.New elevated offer
