We offer two services, a revolving line of credit and net terms on business purchases. This information applies to the revolving line of credit service.
When you draw funds, you’ll choose a weekly repayment plan. That plan will include the number of weekly payments, and the amount you’ll be repaying each week. All of the weekly payments will be for the same amount and include a portion of the total principal and fees due on the draw.
Weekly fees are the standard fees paid on each draw.
If you were approved for Fundbox before December 3, 2019, all draws you make before January 7, 2020 will include flat weekly fees. In other words, the amount of fees that you pay each week of your repayment plan will be the same amount each week. You can always review your fees rate and the total fees due before you draw.
If you were approved for Fundbox before December 3, 2019, all draws you make after January 7, 2020; or you were approved for Fundbox after December 3, 2019, all draws you make will include amortized weekly fees. This means that while the total amount of your weekly payments 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. And less of the fees and more of the principal later on. You can always review the fees before you draw.
These fees are only relevant in certain cases.
Late payment fees
If you miss a payment one week, it will be due at the end of your payment plan, and fees will be added to it. That last week you will need to pay
- the amount of the missed principal,
- the missed weekly fee,
- an additional weekly fee for this additional week that has been added to your repayment plan, equal to the average of the weekly fees for all of the other weeks of the plan, and
- a $6-NSF fee, if the missed payment was due to non sufficient funds in your account.
Weekly payments are debited automatically—as long as you have enough funds in your checking account to cover the next debit, you will never miss a payment.
Non-sufficient funds (NSF) fee
If you do not have enough funds in your checking account to cover a debit, the debit will bounce. This is called “debit failed due to non-sufficient funds (NSF)” and it carries a fee from Fundbox and a separate fee from your bank.