Fundbox, a cash flow optimization tool platform for small businesses, announced on Tuesday the launch of its new product, Direct Draw. According to the company, the Direct Draw product allows small businesses to easily apply for credit with just a business bank account, without requiring their personal credit to get started.
“Direct Draw enables Fundbox to help the 18 million SMBs in the U.S. that are underserved by existing funding options, most of which rely on personal credit, something that is unpopular with many [small businesses]. Direct Draw is possible because of the company’s deep investments in artificial intelligence and the 12.8 million unique businesses in its Small Business Graph. Fundbox estimates that six out of 10 small businesses in the U.S. are financially underserved and struggle to find funds to grow.2 Banks only approve 24 percent of the applications they receive from small businesses3 and often cannot lend less than $100,000 profitably.4Many banks and fintech companies in the U.S. require a small business owner’s personal credit for underwriting, which many owners dislike because it prevents them from separating personal and business finances, and because personal credit inquiries can hurt their credit scores.”
“The launch of Direct Draw marks another way Fundbox is giving small businesses more control over their finances and access to capital to grow their business. Our artificial intelligence allows us to democratize credit access for SMBs that prefer to not use their personal credit. We do this by leveraging our Small Business Graph to analyze customers’ business fundamentals in the context of their network.”
Fundbox customers using Direct Draw only need to connect their bank account to get started. Fundbox noted that approved customers may withdraw funds any time with the funds transferring as soon as the next business day.