Overview
Fundbox is a small business finance company that its own site says has been lending since 2013. Its BBB profile gives a business start date of April 4, 2013 and a San Francisco address, while its current website lists a mailing address on Greenville Avenue in Dallas, Texas. The company says it has funded more than $7 billion in total and has connected more than 500,000 businesses to its products.
The most important thing to understand about Fundbox is that it is not a factoring company. A factor buys your invoices, collects payment from your customers and, under non-recourse terms, can take on some of the risk that a customer will not pay. Fundbox does none of those things. It lends money. Its own guide to invoice factoring says the main difference between Fundbox and a factor is the relationship with your customers: with Fundbox, you keep billing and collecting from them as you always have, and they keep paying you. You then repay Fundbox on a schedule.
The footer of every Fundbox page says the same thing in legal terms. Fundbox makes capital available through business loans and lines of credit originated by First Electronic Bank or Lead Bank, and in California it lends under a California Financing Law license. Financing is subject to credit approval and may not be available in all states.
Fundbox's business has also shifted. Its homepage now leads with embedded financing for software platforms, meaning that accounting tools, payment apps and vertical software companies offer Fundbox credit to their own users, and Fundbox handles underwriting, funding and servicing behind the scenes. A separate page for businesses still lets owners apply directly. The company says it is available in the United States, Canada, the United Kingdom and Australia.
We include Fundbox in our profiles because so many owners search for it alongside factors. If you need a company to buy your receivables or protect you from customer default, look elsewhere.
Rates, advances and fees
Fundbox's invoice financing works as a credit line tied to invoices. According to its invoice financing page, a business draws against an approved open invoice, up to a set credit limit, and receives the money net of a discount. Pricing is a single discount rate on the amount, shown before the business accepts, with no compounding interest. How much you can draw depends on the invoice volume Fundbox can see, which for embedded programs means the data flowing through the partner platform.
Fundbox does not publish its current discount rates. An older guide still hosted on its site says Fundbox fees start at 4.66% of drawn funds and that credit limits run up to $100,000, and the same page says Fundbox is trusted by more than 70,000 businesses. Those figures do not match the company's current headline numbers, so treat them as dated and ask for a current quote.
Its line of credit page describes the other main product. Each draw is treated as a separate loan with its own fixed payment schedule, and the page lists terms of 3, 6, 12, 18 or 24 months chosen per draw, with a note that some terms are available only through partner platforms. The FAQ on the same page describes typical terms of 12, 24 or 52 weeks. There are no origination fees, and remaining fees are waived if you pay a draw off early.
Because Fundbox lends rather than buys invoices, the cost comparison with factoring is not like for like. A factor's fee is usually a percentage of the invoice for the time it is outstanding. A Fundbox draw costs a discount or fee you pay back over a set term, regardless of when your customer pays you. If your customer pays early, you still owe the scheduled payments unless you choose to repay early. Our guide to factoring vs a line of credit explains the trade-offs.
Contract terms
There is no factoring agreement, reserve account or customer notification with Fundbox. Each invoice draw has its own repayment schedule. Its invoice financing page says payments can be fixed weekly or monthly over 1 to 12 months, or a single payment at net 30, 60 or 90 days, and different invoices can carry different terms.
The key contractual difference from factoring is liability. With a Fundbox draw, you owe the money whether or not your customer pays. That is the opposite of non-recourse factoring and is closer to full-recourse factoring, except that Fundbox never takes over collections. If a customer goes bankrupt, you still have to repay Fundbox. Read the loan agreement carefully for default terms, and check whether a personal guarantee applies.
On the plus side, there is no long-term contract to escape. You use the credit line when you need it and repay each draw on its schedule.
Funding speed and service
Speed is Fundbox's main appeal. Its page for businesses says you can get a credit decision in as little as three minutes and, if approved, receive funds as soon as the next business day, with no penalty for early repayment. Underwriting is automated: Fundbox's homepage cites 99% automated underwriting, and its invoice factoring guide says it assesses businesses using data from a connected accounting system or business bank account rather than a long paper application.
Fundbox's BBB profile shows an A+ rating, no BBB accreditation and 26 complaints in the last three years. For a lender of its size, that is not a large number, but it is higher than most of the factors we profile. Support is by email at support@fundbox.com or by phone at (855) 572-7707.
Who it's for
Fundbox fits small businesses that want quick, revolving credit and do not want their customers to know they are using financing. Owners who already use a software platform that offers Fundbox may find the embedded version the easiest route.
It does not fit businesses that need what a factor provides: collections handled by someone else, protection against a customer's insolvency, or funding based mainly on a customer's credit rather than their own business's track record. Newer companies with thin bank history may also struggle with an automated, data-driven approval that leans on their own cash flow.
If a Fundbox offer appears inside software you already use, such as an accounting or payments app, treat it the same way you would a direct application. Ask which bank originates the loan, what the total cost is in dollars for the draw you want, whether the platform earns a share of the fees, and what happens if you miss a payment. Embedded offers are convenient precisely because they skip the comparison step, and that is when owners are most likely to accept a price without checking it against a factor or a bank line. Fundbox's own homepage says partners receive revenue-share payments, which is not a reason to avoid the product but is a reason to compare it.
Pros and cons
Pros
- Credit decision in as little as three minutes
- Funds as soon as the next business day
- Customers are not notified and keep paying you
- Draw against individual invoices with repayment terms chosen per invoice
- No origination fees on the line of credit, and remaining fees waived on early payoff
- Long track record, lending since 2013
- A+ BBB rating
Cons
- Not a factor: it does not buy invoices, collect from customers or take credit risk
- You repay every draw even if your customer never pays
- Current pricing is not published, and an older page on its site carries outdated figures
- Loans come from partner banks, so terms depend on the originating bank and state
- 26 BBB complaints in three years
- Increasingly sold through partner platforms rather than direct
How it compares
If you want early payment on invoices without taking on a loan, FundThrough is the closest online alternative that actually buys invoices, with published pricing per 30 days. altLINE is a bank-owned factor for owners who want a human account manager and collections support. Bluevine, another fintech that once offered invoice factoring, now offers lines of credit that are a more direct comparison with Fundbox's line. Our guide to how factoring works explains the difference between selling invoices and borrowing against them.
Frequently asked questions
Is Fundbox an invoice factoring company?
No. Fundbox lends against invoices and offers lines of credit and term loans, but it does not buy invoices. Its own guide says you keep working with your customers and they keep paying you.
Will my customers know I use Fundbox?
Fundbox says it communicates directly with you and that your customers continue to send payments to you, so there is no notice to customers.
How fast does Fundbox fund?
Its business page says credit decisions can come in as little as three minutes and approved funds can arrive as soon as the next business day.
What does Fundbox invoice financing cost?
Fundbox charges a single discount rate on the amount drawn, shown before you accept. It does not publish current rates, so you will only see your price after applying.
Who actually lends the money?
Fundbox says its business loans and lines of credit are originated by First Electronic Bank or Lead Bank, and that it lends in California under a California Financing Law license.