How Fundbox Differs from Other Online Lenders

Author: Justin Reynolds | September 9, 2016

Are you a small business owner looking for a loan? If so, as you begin researching the different financial vehicles available for businesses, you’ll quickly find out you have no shortage of options, whether traditional bank loans or alternative online lenders.

It’s becoming increasingly harder for small businesses to get loan approval from traditional banking institutions. In the aftermath of the financial crisis, only about half of loan applications are approved.

Since that’s the case, there’s a good chance you’ll have to search through various alternative lending options to find the one that makes the most sense for your specific situation—particularly if your business is young and you don’t have a pristine credit score.

We don’t think it makes a whole lot of sense to go with an alternative nonbank lender, use financial vehicles like merchant cash advances, or apply for an unsecured working capital loan. When you’re short on cash, you should use an invoice financing service like Fundbox to get the money you need to grow your business.

Why You Should Choose Fundbox Over Other Online Lenders

  1. Fees aren’t outrageous

    Many other alternative financing options carry exceptionally heavy fees. For example, merchant cash advance APRs can hover anywhere between 70% and 350%! Making matters worse, these fees are often well hidden in the fine print—something many business owners don’t realize until it’s too late. With Fundbox, you simply won’t incur any hidden fees. Our pricing is very straightforward. Clear an invoice, and you get the full amount you’re owed within a business day or two. You then have 12 weeks to repay the advance, plus a small fee that’s based off of your invoice amount, your business’ health, and your customer history.

  2. You don’t need to put up collateral

    Fearing they’ll be left with nothing if you default on your loan, many lenders require you to put up collateral—like your home, your business, or other valuable possessions (e.g., expensive jewelry)—in order to secure financing. Should you default, lenders are able to collect this collateral to recoup their costs. With Fundbox, you don’t have to worry about any of that. In the event you don’t want to put up collateral—or don’t have it in the first place—Fundbox has you covered.

  3. You control how much money you receive

    Because they make money on commissions, hidden fees (like origination and early repayment fees), and interest rates, alternative lenders often try to stick their customers with the biggest loans they’ll agree to. That’s how these companies generate revenue, after all. Fundbox is different: Simply connect your accounting software to the service and clear the invoices you want to clear, however big (up to $100,000) or small they are (at least $500). With Fundbox, you get access to the money you need—no more, no less.

To learn more about how Fundbox is different from other online lenders, check this out.

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