By Bob Coleman
Editor, Online Small Business Lending Report
Here’s a new wrinkle offered by small business online lenders.
Instead of loaning against future credit card transactions, Fundbox will loan against your customer’s receivables — right from QuickBooks, or another online accounting software program.
Fueled by a $40 million Series B financing injection, the lender installs a widget into the small business’ accounting software dashboard.
The small business owner then simply selects which invoices they want to borrower against, and with one-click funds are deposited into their bank account the next day.
Fundbox APRs are in the 33 to 50 percent range. There is a flat fee, and repayment is over 12 weeks.
For example, an $1,000 invoice will incur a fee of $52 to $72. Weekly repayments are approximately $90. Prepayments reduce the fee.