FreshBooks has partnered with Fundbox – a secure online service that lets you quickly turn unpaid invoices into cash. Fundbox helps small business owners just like you squash short-term cash-flow worries, giving you the comfort of knowing you can get the funds you need, when you need ’em.
Why should I care?
One of the greatest challenges of running a small business is managing cash flow. Regardless of how well your business might be doing, every now and again you might encounter cash flow gaps that need bridging right away – whether it’s to pay your staff or contractors, buy the equipment and supplies you need to serve your customers better, or even plan a last-minute trip to that awesome conference all your clients are attending. Fact of the matter is, securing money for your business through traditional means (aka, via banks & other financial institutions) isn’t easy in today’s economy – and if you’re lucky enough to get approved for credit, the funds usually take forever to reach your bank account.
That’s where Fundbox comes in. Fundbox helps small business owners just like you solve short-term cash-flow issues by turning unpaid FreshBooks invoices into money in the bank within 24 – 48 hours.
But Fundbox isn’t necessarily for everyone. If you have steady cash-flow into your business or are able to wait until your client pays you, then you likely won’t need this service. And like any other type of credit, be respectful of how you use it and make sure you understand the costs and repayment plans upfront (more info on this in the next section). Long story short – if you do encounter cash-flow problems and are looking for options, Fundbox is a reliable and easy-to-use online service that can help get you the funds you need, fast.
How much does it cost?
Signing up for a Fundbox account is free. You’ll only pay a fee when you choose to receive payment on an outstanding invoice. Here’s exactly how it works: the fee for using $1,000 of credit runs between $52 and $72, plus the borrowed amount, spread over 12 weeks. That means on $1000, you’ll pay anywhere from $87.67 – $89.33 in weekly repayments over 12 weeks…and that’s basically it. No hidden costs, no surprises. If you ever want to pay back the total balance earlier, Fundbox will waive the remaining fees. Plus, the more you use Fundbox, the less fees you have to pay.
How does it work?
Setup is easy and only takes a few minutes. Once you’ve created a Fundbox account (you can do so here), you’ll be prompted to enter your FreshBooks subdomain:
Once you’ve entered your subdomain, hit Continue, and then key in your FreshBooks account credentials on the ensuing pop-up. Once your accounts are connected, Fundbox will begin processing and pulling in your unpaid invoices:
During this period, Fundbox pulls in your unpaid invoices and analyzes your accounting data to see how much credit you’re eligible for. Note that not everyone is guaranteed to receive credit, but if you have at least 6 months worth of accounting data and invoicing activity in FreshBooks, you stand a pretty good chance. This process typically lasts about 2-3 hours, so go for a walk, get some coffee or start working on that next big project. As soon as the process is complete, you’ll receive an email notification telling you so:
Once the assessment process is over, you’ll see that Fundbox has automatically pulled in all your unpaid invoices from FreshBooks:
If you’re ready to use some of your credit, choose an invoice you want to clear and evaluate the cost and repayment plan:
Happy with what you see? Hit the green button to move forward. If you’re new to Fundbox, you’ll be asked to enter in bank details (you only have to do this once). Note that the bank account you choose will also be used to automatically withdraw funds as part of your repayment plan. Once you confirm your bank details, you’ll receive an email confirming that funds are on their way, along with a detailed repayment plan:
And voila! In just 24 – 48 hours, you’ll receive the funds you need to solve any short-term cash flow issues you might be having. And in case you’re wondering, Fundbox isn’t a collections agency, meaning they’ll never meddle with your clients. Fundbox works directly with you and only you, which lets you preserve the relationships with your clients that you’ve worked so hard to build.
Interested? Give it a whirl!
Got a few unpaid invoices lying around and need some money into your bank account fast? Feel free to give Fundbox a try by signing up here. If you’re curious to see how much credit you’re eligible for, but don’t have any unpaid invoices at the moment, you can still sign up. You won’t have to pay anything until you actually start using the service.
As always, feel free to drop us a line in the comments section below – we’re always listening.