Fundbox developed a payment and credit service for small businesses serving other businesses (SMB2B) called Fundbox Pay, however this product is no longer available as of September, 2020. Fundbox can still help you access liquid capital through a business line of credit that can even allow you to draw upon your outstanding invoices.
We purposefully designed Fundbox Pay to help make business transactions between SMB2B buyers and sellers a dynamic, frictionless, and most important, a fast experience.
How does Fundbox Pay work?
There are a couple of key things to know about how Fundbox Pay works.
If you sell products or services using Fundbox Pay, you will get paid once a buyer confirms the payment, funds arrive as soon as the next business day , similar to how business-to-consumer (B2C) merchants get paid at the point of sale.
When you accept payment through Fundbox Pay, you no longer have to extend net terms or trade credit, and you won’t have to deal with chasing unpaid invoices in order to reconcile your accounts receivables. Instead, simply invite your customers to begin transacting with you on Fundbox Pay. Fundbox will take care of the rest by providing your approved customers with convenient, flexible financing and net terms.
The upshot? You will no longer have to act like a bank, assuming all of the risk while getting none of the rewards.
If you are a buyer approved for credit on Fundbox Pay, then you will have faster access to products or services with 60 days of interest-free financing right out of the gate. After those 60 days are up, you can select extended payment terms that work best for your business and your cash flow. Buyers paying with Fundbox Pay can extend terms up to a year with a flat weekly fee.
Our goal with this new product is simple: to make all your SMB2B business transactions as simple and as fast as purchasing a cup of coffee.
Background: How Fundbox Pay solves the small business cash crunch
Often the greatest challenge of running a small business is keeping cash flowing in order to operate or grow their businesses over time. The situation for smaller businesses is very difficult, with a lack of cash flow killing more than 50% of small businesses annually.
If you’re an SMB2B, you probably know that getting a reliable stream of cash flowing into your business in a timely manner is an elusive goal. One big reason for this is that your own customers are not paying their invoices on time which has a direct impact on your ability to keep the lights on, let alone grow and expand.
The late paying of invoices and their impact on cash flow has forced many SMB2B’s to seek out credit from commercial lenders and banks to compensate for the slow flow of cash, therein lies the rub. The reality is that commercial lenders have made access to credit incredibly challenging for SMB2B owners by requiring good to great FICO scores and loan thresholds that are higher than what most small businesses need or want. Both of these issues create major stumbling blocks for most SMB2Bs, which is part of the reason why bank approval rates for small businesses are a lowly 24%.
All this is why Fundbox Pay is such an exciting solution for SMB2B owners. We designed it to remove payment friction while democratizing access to credit.
Fundbox Pay brings the B2C commerce experience to the SMB2B market to make transactions between small businesses as simple as buying a cup of coffee. And we think that’s pretty neat.