Fundbox vs. American Express® Business Line of Credit: Which Loan Is Best?

Fundbox vs American Express® Business Line of Credit: Line of Credit

Both Fundbox and American Express® Business Line of Credit come with relatively convenient application requirements. A business line of credit is a revolving type of loan similar to a credit card. You borrow funds up to your approved loan limit, pay them back, and can use them again. Lines of credit can help businesses cover working capital expenses such as cash flow issues, inventory, or marketing projects.

• Fundbox: Lines of credit with terms of 12 or 24 weeks. Fees start at 4.66% for 12-week terms and 8.99% for 24-week terms. The minimum amount companies can get is $1,000 and the maximum amount is $150,000.
• American Express® Business Line of Credit: Flexible terms of 6, 12, or 18 months. This payment period is longer than what you get with Fundbox (12 or 24 weeks) and the payment is made monthly rather than weekly. The interest rate is charged as a monthly fee: 3-9% for 6-month loans, 6-18% for 12-month loans, and 9-27% for 18-month loans.

Both Fundbox and Americn Express will automatically withdraw the necessary payments from the business bank account you register during the application.

Fundbox vs American Express® Business Line of Credit: Short-term Loans

A short-term loan is a lump sum of capital that you pay back monthly, typically over the course of one to two years. These loans may require you to sign a personal guarantee, which states that if your business can’t repay the loan, you will be held responsible.

American Express Business Blueprint^TM only offers business lines of credit, but Fundbox gives you the option of a line of credit or a short-term loan. A short-term loan from Fundbox ranges from $1,000 to $150,000 with a 24 or 52 week repayment term. Interest rates start at 8.33% for 24-week terms and 18% for 52-week terms. There are no prepayment or maintenance fees for their loans, but you might have to pay late payment fees. These fees will be added at the end of your payment plan.

Bottom line: Fundbox offers more types of small business loans compared to American Express® Business Line of Credit.

Both Fundbox and American Express charge fees as a percentage of the loan you get. Fundbox charges a weekly fee, while American Express requires monthly payments.

In terms of Annual Percentage Rates (APR), both companies are slightly more expensive than traditional lenders. Both lenders apply a transparent policy and will tell you exactly how much interest and what fees you have to pay before each line of credit draw you make.

Bottom line: American Express appears to offer lower starting rates than Fundbox. However, your rate is highly dependent on your credit score. The higher your score, the better the rate you’ll receive with both companies.

Fundbox Requirements

To qualify for a loan or line of credit from Fundbox, you need to have a credit score of at least 600, show at least $100,000 in annual revenue, and be in business for six months or more.

American Express® Business Line of Credit Requirements

To qualify for a American Express® Business Line of Credit, borrowers need to have a minimum FICO score of at least 660 at the time of application, be in business for at least one year, and meet the monthly revenue requirement of at least $3,000. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.

Bottom line: Both loan products have flexible eligibility criteria. American Express® Business Line of Credit has a lower monthly revenue requirement, but Fundbox accepts borrowers with a lower credit score. You’ll need to assess your specific business to determine which lender is right for you.

You can apply online for both Fundbox loans and American Express® Business Line of Credit by using an automated approval process. Keep in mind, though, that both companies may require additional documentation before making a lending decision.

In order to complete your application, you will need to link your business bank account to the platform. After the application is analyzed and approved, funds will be released as soon as the next business day for Fundbox and within a few business days for American Express® Business Line of Credit.

Bottom line: Both Fundbox and American Express offer straightforward online applications and approval times. If you need your funds as quickly as possible, though, we recommend Fundbox since their funding time can be made as soon as the next business day.

Fundbox and American Express Business Blueprint^TM offer excellent customer support services. With Fundbox, you can reach a live customer service representative by phone Monday through Friday from 8 AM to 8 PM EST, or you can reach out to their support staff via email. Additionally, Fundbox offers a robust help center to answer questions, provide tech support, and more.

You can reach a American Express representative Monday through Friday from 8 AM to 9 PM EST. Like Fundbox, American Express provides a help center to answer common questions, provide information on fees, and more.

Bottom line: Both companies offer similar means of customer support and online help centers. We call it a tie for customer support!

Both Fundbox and American Express Business Blueprint have a mix of positive and negative reviews on customer review sites. Fundbox has 4.8 out of 5 stars on Trustpilot, and American Express has 3.2 out of 5 stars.

Positive reviews for American Express Business Blueprint include the ease of the application process, great customer service, and timely funding. Negative reviews tend to revolve around the banking side of American Express Business Blueprint, but some reviewers also state the customer service was less-than-stellar.

Praises for Fundbox include great support staff, a smooth and simple process, and flexible repayment terms. Negative reviews focus on slow response times and poor IT help.

Bottom Line: Fundbox ranks higher on Trustpilot, having both more reviews total and more positive reviews overall.

The two biggest perks of Fundbox are the early prepayment discount and the FlexPay feature. If you pay your loan off early, Fundbox not only will not charge you, but they’ll also waive all the remaining fees on the weeks you did not use. FlexPay gives borrowers a three-day grace period to make their line of credit payment at no extra charge.

American Express Business Blueprint^TM perks include an app that allows you to apply for funds and withdraw the amounts you need, and enrollment in their Autopay system, which allows American Express® to automatically collect your payment each month. This helps simplify and streamline your business financing needs and makes it so you don’t need to worry about missing a payment.

When to Choose American Express® Business Line of Credit

American Express® Business Line of Credit is a good option for borrowers who:

• Have decent monthly revenues, as their average monthly revenue is at least $3,000 
• Seek a dedicated representative and great customer support 
• Are in need of more than $150,000 
• Want flexible daily or weekly payments 
• Have been in business for at least one year

When to Choose Fundbox

Fundbox may be the best option for small business owners who:

• Have a credit score of 600 or more 
• Would like to choose between a loan and a line of credit 
• Are looking for flexible monthly repayments, as the terms are 6, 12, or 18 months 
• Have been in business for at least six months 
• Are in need of no more than $150,000