SAN FRANCISCO, Jan. 22, 2018 /PRNewswire/ -- Today Fundbox, the leading small business growth company, announced the launch of a new credit-integration service called Fuse. Fuse was designed so that SaaS business providers could offer easy access to Fundbox from within their workflows with just three lines of code. Fuse was developed to address two specific challenges faced by SaaS providers and the small business customers they serve.
Challenges: Churn and Access To Credit
For SaaS providers, one of the biggest challenges they face is the ongoing battle to minimizing customer churn. According to a 2016 survey developed by the SaaS growth marketing agency Cobloom, the average SaaS provider serving small businesses faces between 5-7% churn on an annualized basis. Churn is highly affected by a number of factors on each side of the equation. For small businesses, monthly billing and shorter contract cycles make it much easier to churn; lower ACV makes it easy to switch between products or services and lastly: customer cash flow volatility can lead to frequent customer churn.
For small business owners, the process of applying for financing continues to be an arduous and demotivating journey that for many, does not end well. Since 2008 when the economic bubble burst, most banks made their small business underwriting processes more stringent in an attempt to mitigate potential risks from defaults.
Harsher underwriting requirements of higher loan minimums, FICO scores and collateral has intimidated many a small business owner from even attempting to apply. According to the Biz2Credit Small Business Lending Index, in December 2017 only 25.3% of small business loan applicants are being approved for funding, leaving the other 74.4% scrambling for alternative funding solutions.
Enter Fuse by Fundbox
Fuse is purposely designed to offer leading SMB SaaS providers a lite integration process that immediately expands their service offering and increases platform stickiness. For small businesses, Fuse simplifies the process of applying for and accessing small business financing. With just a few clicks of a mouse, Fuse provides on-demand access to Fundbox from within the native workflow of a participating SaaS business service With Fuse, SaaS providers can offer their customers greater convenience and service value almost instantly.
"For our SaaS partners, we intentionally created a solution that was easy to integrate, increases service value and customer stickiness with just a few lines of code," said Sebastian Rymarz, Chief Business Officer at Fundbox. "And for small business owners, we've 'democratized' access to credit and the underwriting process right from within your favorite business app or platform. Fuse is a true win/win for both our partners and their customers."
"We're excited to partner with Fundbox and to add Fuse to our service," said Ryan Jackson, founder and CEO of Paid. "Anyone who works closely with small business owners know that time and cash flow are their two most important assets. With Fundbox Fuse, our customers get the convenience of accessing credit without having to leave our workflow and we get the additional service value and retention stickiness. It works both ways which is great!"
Fundbox's proprietary technology allows the company to tap into multiple data sources to assess risk and to extend credit to approved SMBs. The data Fundbox collects goes into its Small Business Graph, where it looks at its customers and their interactions with other businesses dynamically. Doing so gives it a robust view of the customer and its entire network. Fundbox works with over 70,000 SMBs but can see 13 million total businesses on the Small Business Graph. Fundbox was recently recognized as a Billion Dollar-Startup to watch in 2017 by Forbes.
Our mission at Fundbox is to simplify and improve the way that small businesses pay and get paid. The company uses cutting-edge technology, data science, and common sense to give small businesses greater access and choice to financial solutions that don't initially require a personal credit score. Fundbox provides credit limits up to $100,000 and can transfer funds as soon as the next business day. Because of us, small businesses across the U.S. have more control over their finances and are better able to succeed and grow.
Fundbox is funded by leading Silicon Valley entrepreneurs, finance veterans, and venture capitalists, including Spark Capital Growth, Bezos Expeditions (the personal investment arm of Jeff Bezos), General Catalyst Partners, Khosla Ventures, SV Angel, former CitiGroup CEO Vikram Pandit, and other prominent investors. information, please visit www.fundbox.com.
Tim Donovan, Corporate Communications Email: [email protected] Cell: 510.593.0064