FundBox is a fast alternative business lender. One of its main benefits is its low credit score requirements. Borrowers with less than fair credit can still get approved for a loan. But there are other FundBox requirements as well.
Let’s go over the most important factors for FundBox approval.
The basic FundBox requirements are:
- Minimum revenue of $25,000 per year
- At least 3 months in business
- A minimum credit score of 500
- Invoices with customers – for their factoring option
|Lender||Minimum Revenue||Time In Business||Minimum Credit||Next Steps|
|$25,000/yr||3 months||500+||See if you qualify|
How Do The FundBox Requirements Compare To Other Lenders?
In short, FundBox is one of the more accessible business lenders.
The thing is that there are many business financing options with even fewer requirements. But those kinds of financing are usually expensive and aren’t exactly “loans”. You can get merchant cash advances and other business cash advances with low credit scores.
What FundBox offers is fast, low-credit business loans. They offer a few loan products:
- Installment loans
- Invoice financing – required you have invoices with customers
- Lines of credit
These loan options are the most typical of alternative business lenders. But FundBox is particularly lenient with who they give them out to. For that same reason, their rates are often higher.
Low Credit High Rates
Like all lenders, FundBox will assess your needs based on many different factors. But your credit score is the most important for their assessment of your business.
If you have a low credit score, there is little you can do to avoid high interest rates. But that doesn’t mean that FundBox is a particularly expensive lender.
If you have excellent credit, you can get very good rates with a FundBox business loan. In fact, their interest rates start at just 4.66% of the value of your loan or draw amount. This is a very competitive rate, but you have to be running a financially competitive business to access those low rates.
When it comes to low credit borrowers, things are a bit different. Usually, business lenders will start rejecting you when your credit score starts slipping below 600. With FundBox, you can still get a loan with poor credit, but they will view you as a risky borrower.
Words Of Warning
When you add up the interest rates and all the fees, FundBox APRs range from about 10% to 80%. For borrowers with excellent credit, this isn’t a bad deal. But if you have bad credit, the higher APRs can present a serious risk for your cash flow.
FundBox offers repayment terms of only 12-24 weeks. As far as business loans go, that’s not a very long time. So, you can treat FundBox loans as a quick alternative to business cash advances and payday loans. But the short repayment terms will translate into more expensive repayments. You will have to pay FundBox a lot back and fast.
All of this should sound a bit worrying if you’re facing cash flow problems that you aren’t sure you can solve. But this should also explain why FundBox offers lower sums with their loans than other lenders. You can only borrow $1,000 to $100,000 in a single loan with FundBox. And access to larger loan sums or draw limits depends on your qualifications.
Pro: Early Repayment
If you are taking a low-risk loan out, you can benefit from repaying early. Repaying FundBox loans early can help you save on interest and, more importantly, fees.
A significant portion of a FundBox loan’s APR comes from fees you must pay for the life of the loan. So, if you were to pay a 12-week loan off in just 4 weeks, you would save on 8 weeks’ worth of fees.