BlueVine vs. Fundbox: Which Online Lender Can Meet Your Funding Needs?
Fundbox and BlueVine may both be alternative lenders offering lines of credit, but they have key differences you should know.
BlueVine and Fundbox are two popular fintech companies, using technology to make business financing easier than ever. So how do they actually stack up against each other?
Well, BlueVine offers more types of financing, while Fundbox has lower borrower requirements. That means that, for many businesses, one of the two lenders will be a much better fit.
To help you figure out which company fits your particular needs better, we’ll break down all the key similarities and differences between BlueVine and Fundbox―and we’ll tell you what kinds of businesses can benefit from each lender’s strengths.
BlueVine and Fundbox’s COVID-19 responses
We’ll get back to the usual article in a moment. But before we do that, we want to give you some insight into how BlueVine and Fundbox have responded to the coronavirus pandemic.
On the plus side, both BlueVine and Fundbox now accept applications for the Paycheck Protection Program. (Funding initially ran out for the program in mid-April 2020, but the program has been refunded with new applications being accepted April 27, 2020).
But on the not-so-plus side, both BlueVine and Fundbox have responded to the COVID-19 crisis by restricting funding to their customers. Business owners with lines of credit at BlueVine have had their credit lines completely closed, with no prior warning. And over at Fundbox, business owners have had their lines of credit drastically reduced (think a $1,000 credit limit).
To be clear, both lenders are well within their rights to take such action. It’s perfectly legal, and it’s within their terms of service. At the same time, many business owners feel understandably furious, especially since the change happened without warning.
As of this writing, both BlueVine and Fundbox are technically accepting applications for their usual funding. That said, it doesn’t seem like they’re approving and funding new customers―with one key exception.
BlueVine still appears to be offering invoice factoring with no interruption, perhaps because it’s not technically a form of credit.
While we obviously can’t see the future, we expect BlueVine and Fundbox to resume lending once things settle down. So the remainder of this review will discuss how BlueVine and Fundbox usually operate. Just keep in mind, it may be a while before normal operations resume.
How BlueVine and Fundbox compare
BlueVine and Fundbox are both online lenders that offer small-business financing to business owners. As online lenders (also called alternative lenders), their financing is easier to qualify for than traditional business loans from banks and other traditional lenders.
When it comes down to it, though, they have pretty different financing options and borrower requirements.
Fundbox offers just one type of business financing, while BlueVine gives you three different options.
|Lender||Financing type||Loan min./max.||Lowest listed rate||Get a loan|
|BlueVine||Invoice factoring||Up to $5 million||0.25%/week||Apply Now|
|BlueVine||Line of credit||$5,000/$250,000||4.8%||Apply Now|
|BlueVine||Term loan||$5,000/$250,000||4.8%||Apply Now|
|Fundbox||Line of credit||$1,000/$100,000||4.66% draw rate||Apply Now|
Line of credit
Both BlueVine and Fundbox offer business lines of credit (LOCs). An LOC from either lender will give you a credit limit you can borrow against. So you can borrow money, repay the money you borrowed, and then borrow more money.
But how much can you borrow? Well, that depends on which lender you go with . You can get a much higher credit limit with BlueVine than you can with Fundbox―more than double, in fact. Just remember that your actual credit limit will depend on your borrower qualifications (which we’ll come to in just one minute).
BlueVine also gives you longer to repay each credit draw. An LOC repayment term at BlueVine ranges from 6 to 12 months, while the repayment term at Fundbox ranges from 12 to 24 weeks.
But regardless of term length, Fundbox and BlueVine both require (automatic) weekly payments on their lines of credit.
Fundbox used to call its line of credit Fundbox Direct Draw. These days, it just refers to its business line of credit―no special name necessary.
BlueVine also offers invoice factoring. This type of financing lets you submit unpaid invoices to BlueVine to then get up to 90% of the invoice amounts. When your customers pay their outstanding invoices, that payment goes directly to BlueVine (but don’t worry―BlueVine does its best to make sure your customers don’t notice any difference). Then you’ll get the remaining percentage of that invoice, minus BlueVine’s weekly fees.
We should note that Fundbox used to offer invoice financing (known as Fundbox Credit), but that product has been discontinued.
Finally, BlueVine offers a term loan. This is the classic type of business financing—what most people think of when they think about funding options. You borrow an up-front lump sum of cash, and then you repay it over your loan term. But unlike a line of credit, you have to reapply entirely if you want to borrow more money.
While BlueVine’s term loans and lines of credit technically have the same maximum amount, BlueVine says that it usually extends larger loans than it does lines of credit. So keep that in mind as you decide which type of funding to apply for.
If you do decide to go with a term loan, you’ll have a repayment term ranging from 6 to 12 months. And whatever your term length ends up being, you’ll have a weekly repayment schedule.
As you can see, BlueVine has a clear advantage when it comes to funding offerings. But when it comes to borrower requirements, Fundbox suddenly looks a whole lot better.
Pretty much all lenders require borrowers to meet certain business loan requirements. Both BlueVine and Fundbox have looser requirements than most traditional lenders (by far).
|Loan type||Min. credit score||Min. revenue||Min. time in business||Get a loan|
|BlueVine invoice factoring||530||$10,000/mo.||3 mos.||Apply Now|
|BlueVine line of credit||600||$10,000/mo.||6 mos.||Apply Now|
|BlueVine term loan||600||$10,000/mo.||6 mos.||Apply Now|
|Fundbox line of credit||500||$50,000/yr.||3 mos.||Apply Now|
Note that BlueVine has different requirements for its different financing types. For example, its invoice factoring is much easier to qualify for than its term loans or lines of credit.
Even with that in mind, Fundbox has lower requirements overall. It will accept a minimum credit score of 500 (technically a “Poor” FICO credit score). BlueVine, however, requires at least a 530 (still poor) and a much higher 600 (a “Fair” FICO score) for its better financing.
Likewise, Fundbox has much lower revenue requirements. You can qualify for Fundbox with just $50,000 per year in revenue. But to get a BlueVine loan, you’ll need $10,000 a month in revenue―which comes out to $120,000 a year, or more than twice Fundbox’s requirements.
The two lenders get a little closer when looking at the minimum time in business. Both lenders will accept businesses as young as three months, though that will qualify you for only invoice factoring through BlueVine. To get its term loan or LOC, you’ll need to have been operating for at least six months.
For reference, traditional lenders often require a credit score in the high 600s, revenue over $200,000 a year, and at least two years in business.
In other words, it’s much easier to qualify for Fundbox financing than BlueVine funding. But if you have higher revenue and credit qualifications, BlueVine gives you more funding choices―and more favorable borrowing terms.
Application, approval, and funding process
Fundbox and BlueVine have pretty similar application and approval processes. They both use fancy algorithmic technology for their approval process. Sounds boring, but it means you can get approved much more quickly than you would through a traditional lender.
To apply to either lender, you’ll need to answer a few basic questions about yourself and your business (think name, location, etc.). Then the lender will need to connect to your business bank account. Its technology looks at your bank account history and decides whether or not to approve you.
(Don’t worry―Fundbox and BlueVine both have a history of keeping their customers’ data safe. You should be fine connecting your bank account.)
With Fundbox, you should get an answer in just a few minutes. BlueVine also offers near-instant approval on its invoice financing, but for its business loans and lines of credit, you should expect to wait at least a few hours to get approved (usually it takes less than 24 hours).
Once you’ve been approved, you can get your funding. In many cases, Fundbox can get you your money within one business day. BlueVine offers same-day funding if you pay a $15 wire transfer fee, or you can wait one to three days for free funding through an ACH transfer.
But assuming you get your financing, will you be happy with it? Well, according to customers of both lenders, probably.
BlueVine has a 4.6 out of 5 on Trustpilot, while Fundbox has a slightly higher 4.7 out of 5.1,2 Those are both excellent scores that indicate tons of positive reviews.
Positive reviews for BlueVine rave about good customer service interactions, helpful account managers, and the fast funding process. We also saw praise for BlueVine’s low interest rates. The negative BlueVine reviews, on the other hand, complain that the automated application didn’t work properly or that BlueVine placed surprise freezes on lines of credit.
Fundbox reviews largely praise its fast and simple application process, along with the quick funding process. Some reviewers even say that Fundbox offers fair pricing for its funding. Negative reviews, though, sometimes complain about Fundbox’s fees. They also complain about low credit limits and the weekly repayment schedule.
But again, as you can see, most customers have really good things to say about BlueVine and Fundbox. Based on their experiences, you’ll probably have a good borrowing experience with either lender.
Even so, we want you to have the best possible experience. So let’s talk about which lender you should choose.
BlueVine: Best for flexible financing
- Simple, quick application process
- Large funding amounts available
- Financing for various needs and qualifications
- Limited availability in some states
- Higher revenue requirement
BlueVine can meet a wide range of financing needs, thanks to its three funding products.
Take its invoice factoring, for example. BlueVine’s invoice factoring has relatively low borrower requirements (except that $10,000 a month revenue requirement). That makes it a workable solution even for young startups or businesses with less-than-perfect credit.
On the other hand, that same invoice factoring can give you up to $5 million in funding. Yes, you’ll probably need some solid qualifications to get a credit limit that high. But if you’re a bigger business with bigger needs, BlueVine can meet those too.
Add in a line of credit and a term loan, and you’ve got a variety of financing products that can meet all sorts of business needs. Whether you need immediate cash flow (with invoice factoring) or just some steady working capital (through a line of credit), BlueVine can help.
Put simply, BlueVine’s financing is flexible enough to work for many businesses―as long as you can meet its slightly higher borrower requirements.
(For a more thorough analysis of BlueVine, check out our BlueVine review.)
Fundbox: Best for bad credit
- Automated application
- Low approval requirements
- Fast funding
- Low maximum loan amounts
- High APR
If you’ve got poor credit, you often have limited business funding options. Luckily, you can still get money through Fundbox.
Fundbox has some of the lowest borrower requirements we’ve seen this side of a merchant cash advance (which we don’t recommend). Business owners with bad credit, young businesses, and businesses still building their revenue can all qualify for financing with Fundbox.
Now, we’ll be honest: You won’t get the lowest rate or the highest credit limit when you get a line of credit through Fundbox. But you’ll still get a credit line that you can use for all sorts of working capital needs.
Compare that to other financing options available to business owners with bad credit, like invoice factoring or merchant cash advances. Only certain types of businesses can qualify for those in the first place. And it’s a one-time funding deal. Fundbox, on the other hand, works for many types of businesses and lets you borrow over and over again.
So if you’ve got bad credit (at least for now), then Fundbox may be one of your best business funding options.
(If you want even more details on Fundbox, you can take a look at our Fundbox review.)
FAQs about BlueVine and Fundbox
Does Fundbox check credit?
Yes, Fundbox checks your credit score as part of its application process. It performs a soft pull, so it shouldn’t affect your credit score.
And don’t worry―Fundbox has low credit requirements. You can get approved with just a 500 personal credit score.
Does Fundbox report to credit bureaus?
No, Fundbox doesn’t report to credit bureaus. So you can’t build your credit with a Fundbox line of credit―but you won’t hurt your credit score either.
How much does Fundbox cost?
Fundbox’s fees start at a 4.66% drawing fee, also described as 0.4% a week. Your exact fees will depend on things like your borrower qualifications, your repayment term, and your credit limit.
Want more options? Fund your business with a personal loan.
BlueVine and Fundbox both offer business financing, but they go about that in pretty different ways. BlueVine has more versatility―with its lines of credit, invoice factoring, and term loans―but it also has higher borrower requirements for those products. Fundbox offers only lines of credit, but its loose borrower requirements make it more accessible.
But whether you choose BlueVine or Fundbox loans, you’ll be choosing a lending company with many positive reviews and a good reputation behind it. So go ahead and feel confident in whatever you decide.
Not sure BlueVine or Fundbox sounds right for your business needs? No worries―you can find plenty of other options in our rankings of the best small-business loans.
At Business.org, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.