Fundbox, a San Francisco-based online lender, is opening its platform to a wider swath of U.S. small businesses.

Previously, companies that applied for credit from Fundbox were required to provide access to their accounting software, which the lender used to analyze applicants’ flow of invoices. But many small businesses do not use software to keep track of their books.

Under changes announced Tuesday, Fundbox applicants can instead provide electronic access to a business bank account.

Eyal Shinar, CEO of FundBox
Fundbox estimates that out of 30 million U.S. small businesses, only about 5 million to 10 million use accounting software. “But all of them have a bank account,” said CEO Eyal Shinar.

The firm estimates that out of 30 million U.S. small businesses, only about 5 million to 10 million use accounting software, such as Intuit Quickbooks. “But all of them have a bank account,” said Fundbox CEO Eyal Shinar.

The 5-year-old company said that its algorithms will review transactions in applicants’ bank accounts to learn about their businesses and make credit decisions.

Fundbox offers lines of credit that can be repaid on 12-week or 24-week schedules. The firm, which raised $50 million in a September 2015 funding round, says it has worked with more than 50,000 small businesses.

One of Fundbox’s selling points is that unlike many banks and other online lenders, it does not consider business owners’ personal credit scores, and instead makes an evaluation of the health of their companies.

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Kevin Wack

Kevin Wack

Kevin Wack is a California-based reporter for American Banker who covers the U.S. consumer finance industry.