Short answer
Fundbox is a real, operating, well capitalized small business lender, and the public record does not show a single federal or state enforcement action against it. Seven federal dockets name Fundbox, Inc. as a party since 2017, and every closed one ended in a stipulated dismissal, a voluntary dismissal, or an approved settlement rather than a judgment against the company. The thing almost every Fundbox review page gets wrong is the part that actually matters when you are behind: a Fundbox line of credit is a loan, and in most states Fundbox is not the lender. Its own disclosure says the loan is originated by First Electronic Bank or Lead Bank, with Fundbox acting as servicer. In California, Fundbox lends in its own name under a state finance lender license. Which of those three names is on your paperwork determines who you negotiate with.
This page summarizes what the public record shows as of August 11, 2026, using federal dockets from CourtListener and RECAP, Fundbox's own website disclosures and help center, archived versions of those disclosures, and published Better Business Bureau and Trustpilot data. Allegations in a filed complaint are allegations only. They are not findings of fact or liability.
What Fundbox is and who holds the debt
Fundbox began in 2013 as an invoice financing company. Today it sells a revolving line of credit, term loans, a vendor payment product called Flex Pay, and invoice financing delivered through partner platforms. Its site footer lists an address at 5760 Legacy Drive, Suite B3-535, Plano, Texas, and its About page names Prashant Fuloria as chief executive officer and claims more than 190,000 small businesses served.
The single most important sentence for anyone reading this because their payments hurt is printed on Fundbox's own disclaimers page and in the footer of every page on the site:
"Fundbox makes capital available to businesses through business loans and lines of credit originated by First Electronic Bank or Lead Bank. California businesses: Fundbox makes business loans and lines of credit loans pursuant to California Financing Law license 60DBO-48774."
Fundbox's privacy policy identifies both banks precisely. It says all business loans and lines of credit issued by First Electronic Bank, "a Utah chartered Industrial Bank," are subject to that bank's privacy policy, and those issued by Lead Bank, "a Missouri state-chartered bank," are subject to Lead Bank's. That is a bank partnership origination model, and it produces a structure most competing review pages skip entirely.
A partner bank is usually the originator.
Outside California, the entity that made the loan is First Electronic Bank or Lead Bank, not Fundbox. Your loan documents will name one of them.
Fundbox is the servicer.
Fundbox runs the dashboard, sets the draw terms, pulls the ACH debits and handles collections contact. Its privacy policy discloses that it may share your information with "credit bureaus, consumer reporting agencies, financial institutions, collections agencies, and fraud prevention services" in order to "locate borrowers, or recover debts."
In California, Fundbox is the lender itself.
The California carve out in the disclosure exists because Fundbox holds California Financing Law license 60DBO-48774 and lends directly there. California borrowers are dealing with Fundbox, Inc. as principal.
It is a loan, not a purchase of receivables.
Fundbox's help center is unambiguous: "Each draw acts like an individual loan, and has fixed repayment terms between 12 and 104 weeks" (How do payments work?, updated August 20, 2025). There is no factor rate, no reconciliation clause, and no purchase and sale of future receivables in the current core product.
Your file is reported to credit bureaus.
Fundbox states it reports both on time and missed payments monthly to business bureaus through the Small Business Financial Exchange, which feeds Equifax, Experian and Dun and Bradstreet, and adds that it "may also report past due accounts to Experian's consumer credit bureau" (Fundbox help center).
The practical takeaway is that you should open the first page of your Fundbox agreement before you do anything else and find out which entity is named as lender. If it says First Electronic Bank or Lead Bank, the balance you owe legally belongs to a chartered bank and Fundbox is administering it. If it says Fundbox, Inc., you are dealing with a California licensed finance lender. Those are different counterparties with different internal policies, and a settlement conversation that starts with the wrong name goes nowhere.
One important limitation applies to everything in this section. Fundbox does not publish its Line of Credit agreement or its personal guarantee form. They are presented inside the application flow. We could not obtain a copy from any public source on August 11, 2026, so this page does not describe the acceleration clause, the exact collateral description, or whether and when a partner bank assigns the loan back to Fundbox after origination. Those questions can only be answered from the document itself.
How the disclosure changed in 2024
Fundbox rewrote the sentence describing who makes its loans sometime between May and June of 2024. The archived versions are public and the change is material for anyone whose account predates it.
- 2014
The original product was an advance against unpaid invoices, not a loan. The company's early site described advances "repaid with a clearing fee over 12 weekly installments," and quoted a customer approvingly noting that "Fundbox doesn't buy the invoices" (archived fundbox.com, 2014).
- 2018 through May 1, 2024
The disclosure read: "Fundbox makes capital available to businesses through business loans and lines of credit made by First Electronic Bank, a Utah chartered Industrial Bank, member FDIC, in addition to invoice-clearing advances, business loans and lines of credit made directly by Fundbox" (archived May 1, 2024).
- June 1, 2024
The current wording appears. Lead Bank is added as a second originating bank. The words "member FDIC" are removed. The phrase "invoice-clearing advances" disappears. The broad statement that Fundbox makes loans "directly" is replaced by a California only license disclosure (archived June 1, 2024).
- August 11, 2026
The June 2024 wording is still the live wording on fundbox.com.
Why this matters in a workout: if your line was opened before mid 2024 under the older regime, the paperwork may name First Electronic Bank alone, or it may describe an invoice clearing advance made directly by Fundbox. If it was opened after, Lead Bank is also in play. Two borrowers with identical looking dashboards can be dealing with two different creditors. Do not assume the disclosure on the website today describes the contract you signed three years ago.
What a Fundbox draw actually costs
Fundbox prices per draw, in a flat fee expressed as a percentage, and does not publish an annual percentage rate anywhere on its consumer facing site or in its help center. Everything below is quoted from Fundbox's own material.
Rates start at 4.66 percent for a 12 week plan.
The help center says: "Rates start at 4.66% for a 12-week repayment plan, but can change over time and vary from one applicant to the next" (How much does it cost to use Fundbox?).
Fees are amortized and front loaded.
"While the total amount of your weekly payment is the same each week, the breakdown between principal and fees changes. You will pay more of the fees and less of the principal early in the plan" (How do fees work?). That is why paying a draw off halfway through saves less than half the fees.
Terms run 12 to 104 weeks.
Each draw carries its own fixed schedule, and multiple draws stack into one combined weekly debit.
Payments are weekly ACH debits at 10am Pacific.
Fundbox debits the business checking account you connected, one day per week, automatically.
There is no prepayment penalty.
Fundbox says it waives remaining fees on early payoff and that "there are never prepayment penalty fees."
There is no published APR.
Any annualized number you see quoted for Fundbox on a comparison site is that site's own calculation, not a Fundbox disclosure.
What the record does not give you is a rate card. Fundbox says explicitly that pricing varies by applicant and changes over time, and it does not publish the top of the range. The only reliable number is the max fee shown on your own dashboard before you confirm a draw.
What happens if you miss a payment
Fundbox publishes a Missed Payment Policy, last updated July 6, 2026. It is the clearest public description of the pressure a struggling borrower will feel, and it is worth reading before you decide to let a debit bounce.
A failed debit creates an overdue balance that Fundbox says is "due immediately." That balance includes the missed principal and weekly fees, plus "a late payment fee equal to the average of the original fees of the repayment plan," plus a six dollar NSF fee if the debit failed for insufficient funds. Your ability to draw is suspended while any overdue balance exists.
The compounding mechanic is the part borrowers miss. Fundbox states that on a scheduled debit date it "may attempt to debit any or all amounts you owe," and that if it debits your oldest missed payment instead of your currently scheduled one, "your originally scheduled payment will become overdue, and it will also accumulate late fees if the debit of your oldest missed payment fails." One bounced week can cascade into two.
Fundbox also publishes a phone number, (855) 908-3533, and says that if you contact it before 9am Pacific on the day of a scheduled debit you can switch the debit to a different business bank account and avoid additional fees. On the invoice financing product, Fundbox says that "after three unsuccessful debit attempts, automatic collection attempts will stop," which is when a human collections process typically begins.
The personal guarantee and the UCC lien
Two features of a Fundbox line reach past the business entity, and both are documented in the company's own help center rather than in any third party review.
On the guarantee, Fundbox says: "If you have been approved, you may need to electronically sign a personal guarantee in order to draw funds. You only need to do this once, the first time you draw" (Fundbox help center). Removing it is not a negotiation. Fundbox states that "to remove a personal guarantee from your Fundbox account, you must pay off your outstanding balance and close your Fundbox account" (Fundbox help center).
On the lien, Fundbox confirms it files UCC financing statements: "Liens expire automatically after 5 years from the filing date, which may occur at any point after you have drawn on your account" (Fundbox help center). Early release requires payoff, account closure and a written request, and Fundbox warns that even then "the financing statement may remain in your state's public records and reflect as 'repaid'" after termination (Fundbox help center).
The practical takeaway is that a Fundbox balance is not a business only problem. There is very likely a signature on a guarantee with your name on it and a filing in your state's UCC index that other lenders can see. Both facts shape what a realistic workout looks like, and both are reasons to deal with the balance rather than ignore it.
Federal court records naming Fundbox
A search of the CourtListener and RECAP federal docket archive on August 11, 2026 returns 326 federal dockets that mention Fundbox. Filtered to dockets where Fundbox is an actual named party, the number is seven. The remaining dockets are overwhelmingly other companies' bankruptcy filings in which Fundbox appears as a scheduled creditor, which is the ordinary footprint of any active small business lender rather than evidence of anything.
Here is every federal docket naming Fundbox as a party, with what the docket shows.
Shelton v. Fundbox, Inc., E.D. Pennsylvania, 2:17-cv-03301
James Everett Shelton filed a putative class action against Fundbox on July 24, 2017 under the Telephone Consumer Protection Act, 47 U.S.C. 227, alleging unlawful telemarketing calls. Fundbox answered on September 25, 2017 and moved to stay. On October 6, 2017 the complaint was amended to add Rapid Response Marketing, LLC and an individual, Kevin DeVincenzi, and both answered with affirmative defenses. The litigation ran through discovery motion practice into 2018, including a February 26, 2018 order requiring the marketing defendant to produce its contracts with a third party vendor.
The outcome was a stipulation and order dismissing all claims in the case with prejudice, signed by Judge R. Barclay Surrick on September 12, 2018. No class was certified, and no judgment or finding of liability was entered against Fundbox (docket).
The Transporter of Arizona, LLC v. Fundbox, Inc., Bankr. D. Arizona, 0:20-ap-00147
A Chapter 11 debtor filed this adversary proceeding against Fundbox on May 20, 2020. The docket categorizes it as an action for recovery of money or property under section 542 of the Bankruptcy Code, which is the turnover provision a debtor uses to recover property of the estate.
The outcome was quick. A motion to approve was filed on August 3, 2020 with a proposed order lodged the same day, and the court entered an order dismissing the adversary proceeding on August 4, 2020, closing the case the same day. The free docket text does not state the terms of whatever was approved (docket).
Glenns Cleaning Service LLC v. Fundbox, Inc., Bankr. S.D. Indiana, 21-57005
This adversary proceeding, filed March 4, 2021, is the most instructive of the seven for a borrower, because of what the plaintiff attached. The docket describes a complaint seeking injunctive relief with seven exhibits, and the exhibit list is a map of a post bankruptcy lien dispute: a certificate of service of the 341 notice, the Fundbox financing statement, the debtor's confirmed plan, the confirmation order, a demand letter, a USPS green card, and lien information from the Secretary of State. In plain terms, a business that had gone through bankruptcy was pointing at a Fundbox UCC filing and a demand letter.
The outcome was a voluntary dismissal. Counsel for the plaintiff filed a Notice of Dismissal of Adversary Proceeding on April 16, 2021, 43 days after filing, and the court closed the case on April 26, 2021. Nothing was adjudicated, and the docket does not say why the plaintiff withdrew (docket).
Groundswell MMA, LLC v. Fundbox, Inc., Bankr. D. Maryland, 24-00274
Filed October 20, 2024, this is the most recent adversary proceeding against Fundbox. Summons issued October 25, service was made, and the parties stipulated to extend the answer deadline in November. On January 28, 2025 the clerk entered a default against Fundbox.
The outcome was a settlement rather than a default judgment. A motion to approve a stipulation and settlement was filed February 7, 2025, the court entered an order approving it on March 5, 2025, and the adversary case was closed on March 20, 2025. The publicly available docket entries do not describe the underlying claims or the settlement terms, so this page does not characterize either (docket).
Johnson v. Experian Information Solutions, Inc., D. South Carolina, 4:25-cv-13130
Antonio Johnson, filing without a lawyer, sued five defendants on October 27, 2025 under the Fair Credit Reporting Act, 15 U.S.C. 1681. Fundbox, Inc. is named alongside Experian, American Express, Goldman Sachs Bank USA and Wells Fargo Bank, N.A. The docket is coded as a consumer credit matter.
The outcome is not yet known. As of August 11, 2026 the case shows no termination date and the docket does not show a responsive pleading from Fundbox. The complaint is an allegation and nothing in it has been tested (docket).
Two miscellaneous dockets captioned FUNDBOX, Bankr. S.D. Texas
Two miscellaneous case dockets carry Fundbox as the sole listed party: 23-00336, opened March 17, 2023 and closed July 2, 2024, and 24-08327, opened November 15, 2024 and closed December 16, 2024. Both consist of hearing settings, notices of mailing and a closing order.
The outcome in both is a routine closure. The free docket text does not disclose what relief was sought or by whom, so we make no claim about their substance beyond their existence.
A word on sourcing: this survey covers federal dockets only. Fundbox's ordinary collection litigation happens in state courts, which CourtListener does not comprehensively index, and PACER was not searched behind the paywall. The accurate statement is that no borrower class action against Fundbox was found in publicly searchable federal dockets, not that none exists.
Fundbox in other companies' bankruptcies
The most useful document we found on the question of who holds a Fundbox debt was not filed against Fundbox at all. It was filed by a borrower.
In re Logistics Giving Resources, LLC, Bankr. D. Utah, 22-20143
In a Chapter 11 plan filed May 25, 2022, the debtor had to define its creditors. Section 2.55 of that plan reads, in full: "'Fundbox' shall mean Fundbox, Inc. and/or First Electronic Bank." The debtor's own lawyers, looking at the paperwork, could not separate the two and did not try.
The same plan grouped Fundbox with ten other funders under a defined term, "Future Receivables Financiers," alongside names that are unambiguously merchant cash advance shops. It then set out arithmetic that any distressed borrower will recognize. The Fundbox Principal Amount, defined as cash actually delivered to the debtor, was 79,647 dollars. Subtracting everything Fundbox had already collected before the petition date, including "via ACH" and directly "from the Debtor's account debtors," left a Fundbox Net Amount of 34,826.71 dollars. The plan also expressly excluded from principal any amounts Fundbox "purports or asserts to have 'advanced'" that were in fact retained as fees, prepaid interest or loan charges.
The outcome of that plan is not the point here, and the debtor's characterizations are the debtor's own contentions rather than findings by the court. The point is documentary: a real borrower's real filing shows Fundbox and its partner bank treated as a single creditor, weekly ACH sweeps counted against principal, and a stated balance cut by more than half once collections were credited (plan, docket 124).
The practical takeaway is that the payoff number on your dashboard and the number a creditor will actually defend in a negotiation are not always the same figure. Knowing exactly what you received and exactly what has been swept out of your account is the foundation of any credible conversation about how to settle business debt.
What the ratings actually show
Fundbox's public ratings are strong, and a fair page has to say so plainly.
The company's primary Better Business Bureau profile, filed in San Francisco, shows an A+ rating and BBB accreditation since April 29, 2014. Customer reviews average 4.67 out of 5 across 137 reviews. The complaint record shows 28 total complaints in the last three years and 8 closed in the last 12 months, and the published complaint types skew heavily toward billing issues rather than allegations of fraud or failure to fund. BBB records also list the California Department of Financial Protection and Innovation license 60DBO-48774 with an expiration date of April 30, 2028.
On Trustpilot, Fundbox is rated 4.7 out of 5 from 4,544 reviews as of August 11, 2026, in the band Trustpilot labels Excellent. Fundbox links that badge from its own site, solicits reviews and replies to them, which is normal practice and worth knowing when you compare a 4,544 review average against a 137 review one.
There is a second, stale BBB profile worth noting for completeness. A separate listing filed in New York shows Fundbox as not accredited with a B- rating, and gives the reason as "Failure to respond to 1 complaint(s) filed against business." That profile lists Eyal Shinar as chief executive, a role he has not held since 2020, so it appears to be a dormant duplicate rather than a live second rating. It is accurate to say it exists. It would not be accurate to present it as Fundbox's current standing.
On financial condition, Forbes named Fundbox to its Fintech 50 for 2026 and puts the company's 2025 revenue at 110 million dollars, up from 78 million in 2024, on 410 million dollars raised. Whatever a borrower's individual experience, this is not a company showing signs of collapse, and nobody should plan a workout on the assumption that it will simply go away.
What we looked for and did not find
Every item below is an adverse finding we actively searched for on August 11, 2026 and could not substantiate. Publishing the misses is the only way the hits mean anything.
- No Federal Trade Commission enforcement action, complaint, consent order or warning letter naming Fundbox. Fundbox was also not among the six companies that received the joint FTC and Small Business Administration warning letters about pandemic era small business loan marketing in June 2020.
- No Consumer Financial Protection Bureau enforcement action, and no complaints filed against Fundbox in the CFPB complaint database. That absence proves jurisdiction rather than innocence: the CFPB database covers consumer credit, and Fundbox originates commercial credit, which is outside its complaint intake.
- No Securities and Exchange Commission enforcement action, and no EDGAR filings by Fundbox itself. A company search for Fundbox returns no matching registrant.
- No New York Attorney General action. Fundbox is not among the funders named in that office's merchant cash advance enforcement work.
- No California Department of Financial Protection and Innovation enforcement action, consent order or cease and desist, and no lapse in its California license.
- No state attorney general action, consent order or assurance of discontinuance in any jurisdiction between 2020 and 2026.
- No borrower class action against Fundbox in publicly searchable federal dockets. The one TCPA case that was pleaded as a putative class was dismissed with prejudice by stipulation in 2018 without a class ever being certified.
- No Paycheck Protection Program fraud litigation naming Fundbox. Fundbox operated a PPP intake funnel that routed applications to a partner bank, and no action arising from it was found.
- No investigative or critical coverage of Fundbox in the industry trade press. Coverage on deBanked consists of product and partnership announcements, the most recent dedicated item dating to 2019.
- No evidence of a down round, insolvency, restructuring or acquisition in 2023 through 2026.
Two limitations belong on that list. First, state trial court records are not comprehensively searchable for free, and Fundbox does sue borrowers in state court under its own name and as servicer for its partner bank, so a state level sweep would show more than this one does. Second, the loan agreement itself is not public, so nothing here describes its acceleration, default or assignment terms.
If the payments are the problem
If the weekly ACH is the reason you are reading this, the sequence that matters is: identify the named lender on your agreement, total what you actually received against what has already been debited, and find out whether a personal guarantee and a UCC filing are in play. Only then does a negotiation have a foundation.
Business Debt Adjusters negotiates with funders on behalf of small businesses carrying expensive short term debt. What is achievable depends entirely on your agreements, your funder, and your finances. A bank originated installment loan serviced by a fintech does not behave like a receivables purchase agreement from an aggressive MCA shop, and anyone who promises you a specific percentage before reading your contract is guessing. There are no guaranteed outcomes.
If you want the wider picture first, start with our overview of MCA debt relief and how merchant cash advance relief actually works, then see our comparison of the best MCA settlement companies in 2026. For Fundbox specifically, we maintain a Fundbox review, a page on what to do if you have been sued by Fundbox, and a guide to a Fundbox settlement. When you want a straight read on where you stand, you can book a free consultation.
Frequently asked questions
Is Fundbox legit?
Yes. Fundbox is a real, operating company founded in 2013, currently headquartered in Plano, Texas, holding California Financing Law license 60DBO-48774 and carrying an A+ rating and BBB accreditation dating to April 29, 2014. A search of federal enforcement records on August 11, 2026 found no FTC, CFPB, SEC or state attorney general action against it. The legitimate criticism of Fundbox in public complaints is not about fraud, it is about cost, weekly ACH debits, and credit lines being reduced or frozen without much warning.
Is Fundbox a merchant cash advance?
No, not in its current core products. Fundbox's own disclosure describes business loans and lines of credit, and its help center states that each draw "acts like an individual loan" with fixed repayment terms between 12 and 104 weeks. There is no factor rate and no purchase of future receivables in that structure. Two caveats matter. Fundbox's original 2013 to 2017 product was an advance against invoices rather than a loan, and Fundbox today lists a revenue based financing product for platform partners that repays through a share of sales, which is MCA shaped. Check which product your agreement describes.
Who do I actually owe money to on a Fundbox line of credit?
In most states, a chartered bank. Fundbox's own disclaimer says its loans and lines of credit are originated by First Electronic Bank, a Utah chartered industrial bank, or Lead Bank, a Missouri state chartered bank, with Fundbox acting as servicer. In California, Fundbox lends in its own name under California Financing Law license 60DBO-48774. The name on the first page of your agreement is the counterparty, and it determines whose policies govern any workout. Fundbox does not publish the agreement, so the document you signed is the only reliable source.
Has Fundbox been sued?
Yes, but rarely, and never to a judgment against it in the federal record. A search of CourtListener and RECAP on August 11, 2026 returns 326 federal dockets mentioning Fundbox, of which seven name it as a party. They include a 2017 Telephone Consumer Protection Act case in the Eastern District of Pennsylvania that ended in a stipulated dismissal with prejudice in 2018, three bankruptcy adversary proceedings that ended in dismissal or an approved settlement, a pending Fair Credit Reporting Act case in South Carolina in which Fundbox is one of five defendants, and two miscellaneous dockets in Texas. Filed complaints are allegations, not findings.
What happens if I miss a Fundbox payment?
Fundbox's published Missed Payment Policy says a failed debit creates an overdue balance due immediately, consisting of the missed principal and weekly fees, a late payment fee equal to the average of the original fees of the repayment plan, and a six dollar NSF fee if the debit failed for insufficient funds. Your ability to draw is suspended while any overdue balance exists. Fundbox may then attempt to debit any or all amounts you owe on a scheduled debit date, which can push your next scheduled payment into overdue status as well. Fundbox says you can switch the debit to a different business bank account if you call before 9am Pacific on the day of the debit.
Can a Fundbox line of credit be settled?
Sometimes, and the answer depends on facts specific to you. Because the balance is usually a bank originated loan rather than a purchased receivable, the negotiation runs through the servicer to the named lender, and there is very likely a personal guarantee and a UCC financing statement attached. Whether a settlement is realistic depends on your agreements, your funder, and your finances, including how far behind you are, what other funders are in the picture, and what your business can actually support. No firm can guarantee an outcome, and any that does is not describing this market accurately.
