One of the greatest challenges of running a small business is managing cash flow. Regardless of how well your business might be doing, the 30- to 90-day wait to get paid can result in stressful cash flow gaps that need to be bridged right away.
Whether it’s to pay your staff and contractors or to buy supplies for your next job, you need to keep your business running while you wait to get paid. But securing money through traditional means (like banks & other financial institutions) isn’t easy. If you’re lucky enough to get approved for credit, the funds usually take forever to reach your bank account.
FreshBooks has partnered with Fundbox to help small business owners (just like you) solve short-term cash flow problems by providing payment advances for unpaid invoices within 24–48 hours. Getting an advance can help you bridge the cash flow gap, so you can pay your employees and contractors on time and avoid the awkward payment conversations with your clients.
You can connect your account to Fundbox directly in FreshBooks and receive the details of your credit limit within 24 hours. If your account is approved for funding, you’ll see a “Get an Advance” link on your unpaid invoices that are less than 90 days old.
Before you make any commitments, you’ll see how much you’ll receive, how much you’ll have to repay (including fees) and, finally, your repayment schedule. Confirm the advance and funds will be sent directly to your bank account within 2 business days.
Signing up for Fundbox is free—you only pay a fee when you choose to receive an advance on an unpaid invoice.
Here’s how it works: When you take an advance, Fundbox will add a fee on top of the invoice value. The fee for using $1,000 of credit and repaying over 12 weeks, ranges from approximately $48 to $84. Fees may vary, but you’ll always know them before you commit to anything. After receiving the invoice amount upfront, you then pay back the invoice amount plus fees, over 12 or 24 equal weekly payments—that’s it. No hidden costs or surprises.
If your client pays you sooner than expected or you have the funds to repay early, you can do so in your FreshBooks account to save on fees. Unlike other lending solutions that penalize you for early repayment, Fundbox rewards you by waiving all of the remaining fees on your advance.
When you log into your FreshBooks account, you’ll see this notification:
Click on the “Connect to Fundbox” button and if you don’t have a Fundbox account, you’ll be automatically prompted to create one directly in FreshBooks.
Once you’ve confirmed your details, Fundbox will analyze your accounting data to determine whether they’re able to approve your business for funding. This review process usually takes around 2–3 hours, so go for a walk or start working on that next big project while Fundbox works its magic.
Once your account has been reviewed, you’ll receive an email notification with the details of your credit limit, as well as the invoices eligible for an advance. For your account to be activated by Fundbox, you’ll need to click on the green button in the email to verify your email address.
If you’re ready to receive an advance, head over to the Invoices tab in your FreshBooks account and select an unpaid invoice. If the invoice is eligible for an advance, you’ll see the “Get an Advance” link in the status bar.
Click the “Get an Advance” link to review the full details of your advance. Before you make any commitments, you’ll see how much you’ll receive, how much you’ll have to repay (including fees) and, finally, your repayment schedule. Select your preferred repayment plan and click on the green button to confirm the advance.
If it’s the first time you’re receiving an advance, you’ll need to enter your banking details. The bank account you enter will be used by Fundbox to deposit your advance, but also will automatically withdraw your weekly repayments:
Once you’ve confirmed your bank details, you’re done! Your advance will typically arrive the next business day, but could take up to two business days depending on your bank.
Simply select the invoice for which you received an advance and click the “View Repayment Schedule” link in the status bar:
You’ll see how many weekly repayments you have left and the upcoming withdrawal date. Click on the “Repay Early and Save” button to view your early repayment details.
You’ll be shown exactly when and how much will be repaid from your bank account. Plus, you’ll also be able to see how much you’ll save.
Once you’ve confirmed by clicking on the “Pay Remainder” button, you’re done!
Connect to Fundbox to find out how much credit you’re eligible for—you won’t have to pay a penny in fees until you actually take out an advance on an invoice.
Have any questions or feedback? Let us know—you can give our Support Rockstars a call at 1-866-303-6061 or send us an email.