TL;DR
Fundbox is the right call when your business is brand new (3-12 months) and you need a small line of credit fast. The trade-off is cost, Fundbox's "weekly fees" translate to effective APRs of 30-65%+. They also don't report positive payment history, so making every payment on time won't help you build business credit. Frank pre-approves in 3 minutes, funds in 72 hours, gets you to bank rates from 6% APR, and reports to the bureaus. The only operators who genuinely need Fundbox are those under 1 year in business, and even then, Frank can often help.
Side by side
Yes (via bank lenders)
NO — does not report positive payment history
$0 Fees. Always
Frank charges you nothing. We report to credit bureaus.
Fundbox doesn't charge origination fees, but the weekly fee structure (4.66%-8.99%) translates to effective APRs of 30-65%+. And they don't report positive payment history to business credit bureaus, so paying perfectly for two years won't help you graduate to bank financing. Frank-brokered bank loans report to credit bureaus and build the business credit score that unlocks better financing later.
Fundbox, founded in 2013, has served over 500,000 small businesses and deployed more than $3 billion in working capital. They built a focused product and execute it well.
The eligibility bar is genuinely low. Three months in business. $30K-$100K annual revenue. 600 FICO. For a brand-new HVAC tech who just hung the shingle, a landscaper in his first season, or a contractor with thin financials, Fundbox might be the only option that says yes.
Speed is real. Three-minute approval decisions. Funds in your account by next business day. The integration with QuickBooks and major accounting software pulls real-time financial data, which is how they can underwrite so fast.
No prepayment penalties, and they actually waive remaining fees. This is rare in the alternative-lending space. If you draw $10,000 on a 12-week term and pay it back in week 4, you don't owe the remaining 8 weeks of fees.
No origination fees, no maintenance fees. The fee you see at draw time is the fee you pay. No surprises buried in the contract.
Soft pull during application. Hard inquiry only happens when you make your first draw.
The fee structure is where operators get hurt. Read this carefully.
4.66% over 12 weeks is not 4.66% APR. It's roughly 30% effective APR. Here's the math. If you draw $10,000 on a 12-week Fundbox plan with a 4.66% fee, you owe $466 in fees over 12 weeks. Annualize that and you're at roughly 30% APR. The 24-week plan at 8.99% is similar — closer to 35-40% APR. Operators with weaker credit profiles see fees that push effective APRs above 60%. Frank gets you bank rates from 6% APR.
Max term is 24 weeks. That's six months. Fundbox doesn't do long-term financing. If you need to amortize a loan over 12, 24, or 36 months, this isn't the product. The 24-week max means weekly payments are large relative to the principal — a $50K draw means roughly $2,200 in weekly payments. That'll squeeze any small operator's cash flow.
Weekly repayments, automatically debited. Fundbox pulls payments out of your business checking account every week, automatically. If revenue is lumpy or seasonal — common in trades — those weekly debits don't pause when work slows down.
Positive payment history isn't reported to credit bureaus. Fundbox doesn't report positive activity to the major business credit bureaus. That means you can pay every Fundbox draw perfectly for two years and not move your business credit score. For an operator trying to graduate to bank financing, that's a real missed opportunity. Frank-brokered bank loans do report.
Personal guarantee required. Standard for the space, but worth knowing.
Industry restrictions. Adult entertainment, online gaming, online gambling, marijuana, firearms, ammunition, nonprofit, and financial sectors are excluded.
When Frank is the better fit
Frank is built for operators who've crossed — or are close to — the threshold Fundbox is designed to bridge.
You've been in business at least a year. If you have 12+ months of operating history, $120K+ in revenue, and a 640+ FICO, you almost certainly qualify for traditional bank financing through Frank — at 6-15% APR instead of 30-65%. The math is staggering. A $50,000 capital need at Fundbox costs you ~$5,000-$10,000 in fees over 12-24 weeks. The same $50,000 from a bank costs you ~$1,500-$5,000 in interest over a longer term.
Frank is just as fast. 3-minute pre-approval. As fast as 72 hours to funding. The "I have to use Fundbox because banks are too slow" argument doesn't apply anymore. Frank closed the speed gap.
You want to build business credit. Frank-brokered bank loans report to credit bureaus, including positive payment history. Two years of clean payments on a bank loan does what two years of Fundbox draws cannot, it moves your business credit score and unlocks better financing in the future.
You need more than $150K, or longer than 24 weeks. Fundbox caps at $150K with a six-month max term. For real growth capital — equipment financing, acquisition financing, real estate, working capital lines that match your business cycle — you need a different product. Frank's bank network handles deals from $25K to $5M+ with terms from 1 to 25 years.
You need invoice financing. Fundbox doesn't offer it. Frank brokers invoice financing from 1% per period — which for most trade businesses with B2B/B2G customers is dramatically cheaper than Fundbox's weekly fee structure.
You're a trade or services operator. Fundbox is generic small business — they underwrite based on bank statements and accounting software signals, but they don't speak HVAC, GC, landscaping, plumbing, or roofing. Frank does.
How to decide
Are you under a year in business, under $120K annual revenue, with fair credit and an urgent short-term need under $150K? → Fundbox. It's literally what they're built for.
Have you been in business 12+ months and need real growth capital, equipment financing, or a longer term? → Frank. Same speed, fraction of the cost.
Are you currently using Fundbox and want to graduate to lower-cost financing? → Frank. We help operators move from short-term high-cost lending to bank financing all the time. Apply and we'll tell you if you qualify.
FAQ
Is Fundbox cheaper than OnDeck? Sometimes, but not by much in real-world use. Fundbox's effective APRs (30-65%+) overlap heavily with OnDeck's range (35-99%). Both are in the "fast and expensive" category. Frank is in a different category, fast AND cheap.
Why does Fundbox use weekly fees instead of APR? Because the weekly fee number looks small. "4.66%" sounds cheaper than "30% APR" even when they describe the same cost. Frank publishes APR ranges transparently because that's what banks do.
Can I refinance Fundbox into a bank loan? Often, yes. Once you have 12+ months of operating history and decent financials, you may qualify for traditional bank financing — and a bank term loan can refinance an outstanding Fundbox balance at a much lower rate. Apply with Frank and we'll tell you if you qualify.
Does Fundbox require collateral? No collateral on the LOC, but a personal guarantee is required. UCC liens may be filed on business assets for higher-limit accounts.
Can I use Fundbox for equipment purchases? Technically yes, but it's the wrong product. Equipment financing is specifically designed to be paid back over the equipment's useful life (often 5-10 years) with the equipment as collateral. Fundbox's six-month max term means you'd be paying $X per week on equipment that lasts a decade. Use equipment financing through a bank — Frank brokers that from 6% APR.
What if I have a 600 FICO and 6 months in business — should I just take Fundbox? Maybe. But apply with Frank first. Some banks we work with will fund operators in that profile, especially in trades where industry experience and revenue trajectory matter as much as time in business. The bank route, if available, will save you significantly.
Same speed. A fraction of the cost. Build credit while you borrow.
If you're new and need cash tomorrow, Fundbox is a real option. If you've crossed 12 months, Frank gets you to bank financing in 72 hours at 6-15% APR, and unlike Fundbox, the payments build your business credit score.
Let's talk