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Fundbox Reviews- Scam Or Real Deal?

Fundbox Reviews- Scam Or Real Deal?

Name: Fundbox

Owners: Eyal Shinar, Tomer Michaeli & Yuval Ariav

Website: www.fundbox.com

Price: APR 16.4% to 76.5% for invoice financing

15%- 59% for lines of credit

Overall Rank: 5 Out of 10

Fundbox is claiming that they have helped ten of thousands of small business owners by offering invoice financing ranging from $1000- $100,000.

You can get funded in 1- 3 days with invoice financing and get approved in a day for a credit line. But can you trust these guys?

Is Fundbox a scam or real deal?

Well, I understand why you are skeptical.

One of the best ways to learn more about a company is by researching it and reading the review, so I’m glad you’re here!

In the review, I will be showing you whether Fundbox is best suited for invoice financing needs or not.

 

Fundbox Review:  The Company


Fundbox is an online lender that offers business owners a simple way to fix their cash-flow by advancing payment for their outstanding invoice. The company was founded by Eyal Shinar, Tomer Michaeli and Yuval Ariav in California, USA.

There are some great options for alternative small business lending such as Ondeck or Lending Club. Those lenders cater to small business loans to help with expansion or increasing inventory, but they don’t help with general day-to-day cash flow.

One of the primary challenges for small business owners is keeping up with your own expenses while you’re waiting for your customers to pay you.

This is where Fundbox comes in their service model is to lend you money to cover your outstanding invoices in the short term.

They currently service ten of thousands of customers and advance invoices on a weekly basis ranging anywhere from $1000 to $100,000 each.

The company has been around for quite a while and it’s trusted by industry leaders, small business owners, and freelancers like Freshbooks, Xero, Intuit, Quickbooks etc.

 

Fundbox Review: How Does It Work?


Fundbox is a great way to deal with cash-flow for small business, freelancer, etc. First, you need to create an account with them.

They connect your existing accounting software and allow you to upload all of your outstanding invoices at one time from their algorithm, filter out fraudulent companies and go through all your record to make sure your financial health to repay the advance that they’re gonna give you.

It takes only a matter of hours from the time you upload those invoices to the approval of your first advance and even better the money is in your bank account the very next day.

The advances can be paid back over the course of 12 weeks and there a flat service charge based on loan amounts and if you pay back ahead of schedule, they will reward you.

The fee is set automatically for each advance once the invoice amount is set. For example, if you had an outstanding invoice of $1000, your fee would start at $3.88 and you will need to repay $87.22 for 3 months or $45.41 minimum for 6 months.

 

What I Liked About Fundbox


  • You can increase your cash-flow without waiting for your customers to pay you.
  • You can create an account with them in less than a minute.
  • They don’t have minimum requirements for revenues, credit score or time in business to qualify for invoice financing.
  • It interacts directly with almost all system like Quickbooks.
  • You don’t need personal guarantee or collateral to qualify for a loan.

 

What I Don’t Like About Fundbox


  • Their interest rates are high compared to other traditional banks and some other online lenders.
  • Funds are limited which tops out at $100,000.
  • Not everyone is qualified for an invoicing finance. To qualify for an invoice financing, you need to have unpaid invoices and at least 3 months of activities in online accounting or bookkeeping software.
  • You will need to use compatible online accounting software to qualify for invoice financing.

 

Who Is Fundbox For?


If you have many unpaid customer bills and need very fast cash, Fundbox will be a great option for you because you can get funded in one to three days.

If you have poor credit and don’t meet the requirement for other financings, it can be an alternative for you since they don’t have minimum requirements for revenue, credit score or time in business.

It is also good if you need short-term working capital to create cash-flow which means you don’t need to wait for customers to pay you.

 

Here’s My Final Opinion About Fundbox


Fundbox is a great way to help you deal with your business day-to-day cash flow for the small business. It offers business owners a simple way to fix their cash flow by advancing payments for their outstanding invoices.

If you need cash fast for the cash flow, Fundbox is out there for you.

However, keep in mind that their interest rates are higher than many of the traditional financial institution and other online lenders. So you will need to weigh the good and bad, whether you will do business with them.

Thanks for reading this review and hopefully I have given you more information than you need.

If you have any questions about this or other “invoicing financing” just leave them in the comments section below.

Cheers!

-Maun

 

Fundbox At A Glance


Name: Fundbox

Owners: Eyal Shinar, Tomer Michaeli & Yuval Ariav

Website: www.fundbox.com

Price: APR 16.4% to 76.5% for invoice financing

15%- 59% for a line of credit

Overall Rank: 5 Out of 10

Verdict: Legit, But High-Interest Rates

 

 

 

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5 Comments

  1. I have never heard about Fundbox.
    With this article you made me discover something interesting to help us managing our business cashflow.

    Thanks Muan for this discovery !

    • Hi Driss,
      First of all, thanks for commenting the article!
      Fundbox is a great way to manage day-to-day cash flow for the small business owners. You don’t to wait for customers to pay you with the help of Fundbox.
      Wish you all the best!

  2. What a great concept, I have never heard of this before. I think it would really take off mainly for people who have a bad credit history, having access to money in a day or so ago without complicated process to qualify in order to keep their business afloat is a no-brainer.

    I book marked your article for future use, thanks again for an informative option to business!

    -Mike

    • Hi Michel,
      Thanks for stopping by!
      Definitely, Fundbox is best suited to small business owners who need to quickly fill a cash-flow gap. With Fundbox’s invoice financing, you can borrow up to $100,000 and get 100% of the value of invoices that you’re waiting for the customer to pay.
      All the best!

  3. I’ve received some bad credit offers in my time, but this one takes the prize for sucking. I applied online out of curiosity. Nowhere online, nor in their “terms” that you have to agree to, do they disclose interest rates.

    Once I was approved, I was given three “pre-made” offers to choose from. Even when you click on a specific offer and read the attached terms, there is STILL no mention of the interest rate you are agreeing to pay. They give you an algebraic formula to figure out your interest rate if you want to, but never disclose an APR that I could find anywhere.

    So, I clicked on the offer of $2500 and was given two repayment schedules … 12 weeks or 24 weeks. In each, you’re given the weekly payment that you must make and the total of those payments. Nothing about interest or APR.

    So, as an exercise, I calculated the APR on a $2500 loan paid back over 24 weeks at about $128 per week. Their total of payments was listed at $3090. and change. The most generous APR I could arrive at when calculating the numbers they gave me was 89%. That’s 89% APR on a $2500 loan. Those are the kind of terms that used to get lenders arrested and these terms could probably be much improved if you can still find a “street corner” lender to borrow from.

    I cannot imagine Fundbox being an attractive funding source for anyone but the most desperate business owner in dire straits with absolutely nowhere else to go. Even the worst credit card on the planet offers better terms.

    I am now trying to figure out how to close my Fundbox account and get them disconnected from my business bank account. Another thing they have no information about on their website … how to extricate yourself from Fundbox.

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