This is a subscriber-only article.

Get an annal subscription to Entrepreneur+ for $49 $32.83 during our
Memorial Day Sale

Use code SAVE33 at checkout.

Subscribe Now

Already have an account?

Sign in
Entrepreneur Plus - Short White
For Subscribers

This Startup Bridges Cash Flow Gaps, One Invoice at a Time Fundbox chases down the payments for you. Here's how it works.

By Michelle Goodman

Opinions expressed by Entrepreneur contributors are their own.

Brad Wenner
In the clear: Eyal Shinar.

Chasing down late payments from clients was par for the course for Martin Stevens. Diversified Technical Support, his IT company in Portage, Ind., regularly carried up to $5,000 in outstanding balances per year. That is, until Stevens signed up for Fundbox—a financial-technology company that doles out low-cost advances on invoices of $100 to $20,000.

Gone are his days of sending Net 7 invoices and praying for payment. Since late 2013, Stevens has used Fundbox to clear $22,000 in accounts. He finds that by extending payment terms to customers to 90 days and using Fundbox to pick up the slack, he gets paid faster and more often.

Besides liberating cash flow at a lower rate than any offered by his credit cards, Fundbox has enabled Stevens to increase his business due to the easier payment terms. "Our average transaction has grown from the $150-to-$200 range to the $250-to-$350 range," he says.

The rest of this article is locked.

Join Entrepreneur+ today for access.

Subscribe Now

Already have an account? Sign In