Cubefunder business loan review: Rates & eligibility

Established in 2017, Cubefunder provides a variety of flexible business solutions to limited companies registered in England and Wales. Rather than assessing businesses solely on their credit score, Cubefunder considers the business as a whole before deciding whether it’s happy to lend to it.

This review takes a closer look at the options available from Cubefunder.

An overview of Crowd2Fund business loans

Cubefunder offers a range of unsecured business loans, including the following:

Small business loans

Small business loans are designed for companies that are looking to expand or need some extra cash to tide them over or pay for new equipment. As these are unsecured loans, you won’t need to provide collateral, such as property, as part of the loan agreement.

Cubefunder offers flexible repayment options to help ensure your loan repayments are affordable, and the interest rate is fixed, so you’ll know the exact cost of the loan from the start.

Short-term business loans

Short-term business loans are a fast and flexible funding solution with repayment periods of between three and 12 months. They can be a good option for businesses looking to cover unexpected payments or bills or take advantage of immediate growth opportunities.

12-month business loans

These business loans are designed to be repaid over 12 months. Again, your business will benefit from flexible repayment terms, and the loan requires no collateral.

E-commerce business loans

If you run an online business, Cubefunder’s e-commerce business loans can help you secure the finance you need. These loans are designed specifically to support all nature of online businesses and include eBay seller business loans, Amazon seller business loans, Etsy business loans and Shopify business loans.

Merchant cash advance alternative

Traditional merchant cash advances are used by businesses that need an advance on their sales, and the loan is repaid through a percentage of their credit card transaction sales, plus fees.

However, with this alternative option, you can decide whether to use traditional card processing to repay the loan, or you can opt for a bank transfer or other alternative. If you choose card repayments, there’s no need to switch your card processing provider as Cubefunder will work with your existing one.

What is Cubefunder’s typical interest rate?

The amount of interest you pay will depend on the type of loan you apply for, the amount you borrow and the term of the loan. It can also depend on factors such as the type and size of business you run, your company’s credit history, and its cash flow.

You may qualify for more favourable interest rates if your business has an excellent credit history, good cash flow and has been trading for several years. But each business is assessed on a case-by-case basis.

How much can I borrow with a Cubefunder business loan?

You can borrow between £5,000 and £100,000 with a business loan from Cubefunder. The exception is the e-commerce business loan which provides borrowing of between £5,000 and £30,000.

What is the acceptance rate for a Cubefunder business loan?

Cubefunder doesn’t publish its acceptance rates. However, generally, you are more likely to get accepted if your business meets the eligibility criteria and has a strong credit rating. That said, Cubefunder says it uses Open Banking to get a clearer picture of your business and won’t base its decision solely on your credit record.

Open Banking is a government initiative that makes it easy and safe for your bank to share banking transactions with financial service providers, who will be given read-only access.

Eligibility criteria and whether you qualify

The minimum eligibility requirements for a Cubefunder loan are that you run a limited company registered in England or Wales, you have a turnover of at least £4,000 a month, and the company has been trading for at least three months. You must also hold a UK bank account and associated debit card.

You won’t be able to get funding if your company is any of the following sectors:

Accountants
Financial services
Debt collection agencies

All other companies will be reviewed on a case-by-case basis.

Additional information

When applying for a business loan with Cubefunder, be sure to read through the terms and conditions of the agreement, keeping the following information in mind:

Early repayment fees

Unlike many other lenders, if you want to pay off your loan early, you won’t be charged an early repayment fee with Cubefunder. Exact terms depend on your loan agreement.

How long does it take to get approved?

You should be able to get approved pretty quickly with Cubefunder. It takes less than a minute to apply and Cubefunder will call you the same day to progress your application. Once Cubefunder has received the required documents, it will assess your application to see how much it is prepared to lend to you. The faster you supply these documents, the faster you can be approved.

Estimated time to receive funds

Cubefunder says it should be able to transfer funds to your business account in as little as two working days. Applications will be processed quickest if your business bank is eligible for open banking technology (which most are).

Can a loan be repaid early?

Yes, you can repay your business loan early at any time, and no fees will be charged. Contact the Cubefunder credit control team to request a settlement quote.

Is security required?

No, you won’t usually need to provide security to take out a business loan with Cubefunder. However, if your business is new, each controlling director may be asked to sign a personal guarantee, making them responsible for repaying the loan if the business can’t.

What documentation is required

When applying for a business loan you’ll need to provide certain information and documentation.

Business information

You’ll need to supply the name and address of your business, your business type, and monthly revenue, as well as the number of business accounts you have.

Cubefunder won’t request as much documentation as other lenders, which means you shouldn’t need to supply business plans or budgeting information. Often, you’ll only be asked to supply the last three months of business bank statements which can easily be done through Open Banking. This enables Cubefunder to assess how much you can afford to borrow.

Business owner information

You’ll also be asked to provide the names and addresses of all business owners, and their roles.

Funding requirement

Finally, you’ll be asked how much you wish to borrow and over what term.

How to apply for a Cubefunder business loan

You can apply for a Cubefunder loan is as little as one minute. Within 30 minutes you’ll receive a call from the customer service team to discuss your funding requirements. Once you’ve sent the required documents, the team will assess your application and inform you of how much you can borrow.

Cubefunder then carries out a credit check to confirm your company’s financial history, and you’ll need to sign a loan agreement. Once this is completed, it will arrange to transfer the funds across.

Is the application process different to other lenders?

Cubefunder’s application process is much quicker compared to many high street lenders. The process can be started online, followed by a short phone call. Cubefunder focuses on offering fast and flexible funding to many types of businesses, including those that have struggled to get accepted by traditional lenders in the past.

How to improve your chances of getting funded

The best way to improve your chances of getting funded is to complete the application form accurately and honestly and provide the requested documentation as quickly as possible.

Pros & cons of a Cubefunder business loan

Before making a decision, make sure you weigh up the advantages and disadvantages of applying for a business loan with Cubefunder:

Pros

Range of unsecured business loans available
Easy and quick to apply for a business loan online
You may get accepted even if you’ve struggled to get a business loan elsewhere
No fees for repaying your business loan early or for late payments

Cons

Can only apply if you’re a limited company in Wales or England
Borrowing limits are smaller than some competitors
Loan terms are short – up to 12 months
You may need to sign a personal guarantee

Alternative funding options for different lenders

If you’re not sure whether a Cubefunder business loan is right for your company, there are plenty of alternative options from other lenders to consider. These include:

Why use a finance broker?

A finance broker can take much of the work out of comparing and applying for business loans. Because they work with a range of lenders and products, they can highlight options that are more likely to suit your circumstances. This can be particularly useful if you’re a newer business with limited credit history or have had debt issues in the past.

A good broker will explain any fees upfront and handle the application process for you.

Keep in mind that some brokers charge for their services, either a flat fee or a percentage of the funds you borrow, so check the costs before going ahead.

Get started with Swoop's business funding platform

Our team at Swoop would be happy to discuss your business funding requirements with you to help you find the right deal to support your application and help your business grow.

Cubefunder business loan review: Interest rates, eligibility, and the application process