We’re thrilled to announce the launch of Direct Draw, our latest innovation to help small businesses grow.
We recently learned that 6 out of 10 small businesses in the U.S. are financially underserved and struggle to find funds to grow. Banks only approve 24% of the applications they receive from small businesses and often cannot lend less than $100,000 profitably. But the average small business is only looking for $20,000-$40,000 in funding.
Many banks and fintech companies in the U.S. require a small business owner’s personal credit for underwriting. We’ve spoken with lots of owners who dislike using personal credit for their business because it prevents them from separating personal and business finances, and because using their personal credit can hurt their credit scores.
Direct Draw is a revolving line of credit for small businesses with limits up to $100,000. What makes it special is the way we make credit decisions by reviewing your bank transactions. You simply connect your business bank account and we automatically review your transactions to assess the health of your business. If approved, you can click to draw funds anytime and repay us over 12 weeks.
Here’s what the Direct Draw dashboard looks like:
Direct Draw has a clean design that lets you draw any amount up to your credit limit. Use the funds toward your next project as soon as the next business day.
We don’t need personal credit, or even accounting data, to get started; and Direct Draw features all of the great stuff you’ve come to expect from Fundbox:
- No paperwork
- Real people if you want to talk
- Funds transfer as soon as the next business day
- Repay early and we waive all remaining fees
- With each repayment, the repaid amount (minus fees) becomes available again
Direct Draw is another step we’re taking to give small businesses control over their finances and how they gain access to credit.
Get started here