Fundbox VS BlueVine
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Fundbox and BlueVine are two popular financing services for B2B and B2C businesses. Both use technology to offer fast, hassle-free invoice financing and lines of credit to small businesses.
If you run a small business, especially one that processes invoices, you’ve probably heard of one or both of these companies. But while both provide excellent services, you only need one — so which do you choose?
In this article, we will compare Fundbox and BlueVine’s invoice financing and lines of credit, based on business eligibility, and take a close look at the terms and fees offered.
Which is right for your business? Keep reading to find out!
Table of Contents
Fundbox vs BlueVine: Invoice Financing
Fundbox’s invoice financing service is called “Fundbox Credit,” whereas BlueVine’s is simply called “invoice factoring.”
Invoice financing is B2B service in which businesses use their unpaid invoices to gain access to immediate cash. While BlueVine and Fundbox both offer invoice financing services, they differ based on technicalities. BlueVine offers invoice factoring, where the company purchases your unpaid invoices at a discount, whereas Fundbox merely uses the invoices as collateral. In either case, the amount of money you are able to access is based on the value of your unpaid invoices.
Because you have to have unpaid invoices in order to utilize Fundbox Credit or BlueVine’s invoice factoring services, only B2B businesses are eligible for these services. If you are looking for a sum of money that is not tied to invoices, you’ll want to look at the line of credit services below.
To qualify for invoice financing services from Fundbox or BlueVine, you’ll need to meet these qualifications:
|N/A (see below)||Time In Business||3 months|
|N/A||Minimum Sales||$100,000 per year|
|N/A||Minimum Credit Score||530|
|Must have been using compatible accounting or invoicing software for at least 3 months||Other||Must run a B2B business|
As you can see, both Fundbox and BlueVine have low borrower requirements, which make them suited for many small businesses.
Fundbox is the easier of the two to qualify for — the only requirement is that you have been using compatible accounting or invoicing software for at least three months. Fundbox currently works with 12 accounting and invoicing solutions, including popular vendors like Xero, QuickBooks, FreshBooks, and Wave.
Fundbox does not have any requirements about time in business, income, or good credit. In fact, in most cases, this financier doesn’t check your credit at all.
That said, BlueVine’s borrower requirements are also very easy to meet. All you need is to have at least three months in business, make at least $100,000 per year, and have a credit score of 530 or above. BlueVine integrates with three invoicing and accounting services: FreshBooks, QuickBooks, and Xero. And even if you don’t use any of those programs, you can still use BlueVine’s services.
That said, the above are the minimum qualifications required to be eligible for the invoice financing services. As the company learns more about your business, there is a chance they will discover that you are not eligible for the service after all. However, provided you meet the above requirements, you have a good chance of qualifying.
With no time in business, revenue, or credit score requirements, Fundbox is the easier of the two to qualify for (provided the accounting or invoicing software you use is compatible with the service). However, given the relatively low requirements, many businesses will also be eligible for BlueVine’s service. Read on to learn about the terms and fees for both services to find out which is a better fit for your business.
Terms & Fees
These are the terms and fees for BlueVine and Fundbox’s invoice financing services:
|Up to $100,000||Credit Facility||$20,000 – $5,000,000|
|100%||Advance Rate||85% – 95%|
|0.4% – 0.7% per week||Discount Rate||0.3% – 1% per week|
|None||Other Fees||Possible $15 wire transfer fee (no fee for ACH transfers)|
|12 or 24 weeks||Term Length||13 weeks (91 days)|
|No long-term contract||Contract Length||No long-term contract|
|No||Factor All Invoices?||No|
|Recourse||Recourse Or Non-Recourse||Recourse|
|Non-Notification||Notification Or Non-Notification||Both|
Confused about what all this means? Take a look at our Basic Introduction To Invoice Factoring. (But keep in mind that although borrowing amounts are based on your invoices, Fundbox’s service is not traditional invoice factoring.)
Because of a few small technical differences, Fundbox and BlueVine’s services work in different ways. The biggest differences are in how much money you can borrow from a single invoice and how the funds are repaid.
Fundbox will grant you the entire value of the invoice. To repay, you’ll be making weekly fixed payments of a portion of the invoice value plus a borrowing fee. On the other hand, BlueVine will only grant you 85% to 95% of the value of an invoice and hold the rest in reserve. You do not have to make any payments; instead, BlueVine waits for your customer to pay. When that happens, BlueVine will deduct their fee from the reserve and send the remainder to your business.
Neither funder requires you to sign a long-term contract, imposes monthly minimums, or includes other restricting clauses. Because BlueVine has a larger possible credit facility, it is the better option for businesses that want to (and have the resources to) finance more than $100,000 worth of invoices at a time. However, if you want to finance less than $100,000, either service might be worth considering.
Overall, BlueVine offers potentially higher fees, but the amount you are charged will vary depending on how each company calculates risk. Your personal rate will depend on the strength of your business, details of your customers’ businesses, and the funder’s underwriting procedures.
Fundbox vs BlueVine: Lines Of Credit
Fundbox’s line of credit is called “Direct Draw,” while BlueVine offers two lines of credit, called “Flex6” and “Flex12.”
A business line of credit is a sum of money that is granted to a business. The business can take money from the credit line at any time; draws are treated like small business loans — the outstanding balance accrues interest and the money is repaid in fixed installments over a set period of time. Fundbox and BlueVine offer revolving lines of credit, which means that the amount of money you have available replenishes as you repay the money borrowed.
Because these lines of credit are not tied to invoices, BlueVine and Fundbox’s lines of credit can be used by both B2C and B2B businesses that qualify.
Below are the borrower requirements for Direct Draw from Fundbox and Flex6 from BlueVine:
|N/A (see below)||Time In Business||6 months|
|N/A||Minimum Sales||$120,000 per year|
|N/A||Minimum Credit Score||600|
|Must have been using a compatible business bank account for at least 6 months||Other||N/A|
Both products are slightly more difficult to qualify for than their invoice financing counterparts. Note that the above requirements are for Flex6, BlueVine’s line of credit with a six month repayment period. Flex12 is a bit more difficult to qualify for; check out our full BlueVine review for details.
Fundbox’s sole requirement is that you have been using a compatible business bank account for at least six months. I wouldn’t be too worried about using an incompatible business account — the company integrates with over 24,000 banks and credit unions across the country. In most cases, Fundbox will not check your credit score to determine your eligibility.
BlueVine has a few more requirements, but they should be easy for most businesses to meet: you have to be in business at least six months, make $120,000 or more per year, and have a credit score of 600 or above. BlueVine’s lines of credit aren’t available in some states. Check our full review of BlueVine to see if your state is eligible.
You must have been in business (or in Fundbox’s case, have a business bank account) for at least six months to qualify for either service. If you make less than $120,000 per year or have a credit score below 600, you will only qualify for Fundbox’s service. If you meet or exceed those requirements, you have a good chance of qualifying for either service.
Terms & Fees
Below is a comparison of the terms and fees for BlueVine and Fundbox:
|$1,000 – $100,000||Size Of Credit Facility||$6,000 – $250,000|
|12 weeks||Term Length||6 or 12 months|
|0.5% – 0.7% per week (borrowing fee — see below)||Interest Rate Or Borrowing Fee||0.3% – 1.5% per week (Flex6)|
1.3% – 6.5% per month (Flex12)
|None||Other Fees||1.6% – 2.5% draw fee|
|12% – 54%||Effective APR||15% – 78%|
As you can see, BlueVine has a larger possible credit facility — you might be able to qualify for a maximum of $250,000 from BlueVine, whereas the most Fundbox will extend is $100,000. Naturally, the amount you are offered is dependent on the strength of your business financials.
BlueVine’s term lengths are much longer than Fundbox’s. While you will have to repay your draws in 12 weeks (or about three months) for a Fundbox loan, borrowers will have six or 12 months to repay BlueVine draws. A longer time to repay means that you will have lower weekly or monthly payments.
Price is one area where Fundbox appears better than BlueVine, at least on paper. Fundbox’s effective APR maxes out at 54%, whereas BlueVine’s can reach 78%. Additionally, Fundbox does not carry a draw fee, whereas BlueVine will deduct 1.6% – 2.5% of the value of the draw before sending you the money. However, although Fundbox has a lower possible range, remember that your personal rate will be dependent on the strength of your business. Because each company has their own way of evaluating risk, you might be offered a lower rate from either company.
BlueVine grants access to a larger possible credit facility and longer times to repay (which translates to smaller weekly or monthly payments). Although Fundbox has a lower possible APR and no extra fees, your rates for both lines of credit will depend on the strength of your business; either lender could offer your business a lower rate because they calculate business strengths and risks differently.
As a general rule, Fundbox is intended for small businesses processing smaller amounts of money; BlueVine is better for businesses that want larger sums. Fundbox Credit and Direct Draw are very easy to qualify for, but borrowers won’t have access to as much money as they might be able to get from other sources. BlueVine can be used by larger businesses, and offers particularly suitable invoice factoring services for big organizations, with credit facilities potentially as large as $5,000,000.
Choose Fundbox if:
- You have a personal credit score below 530 (or below 600 for a line of credit)
- Your monthly revenue is below $10,000
- You use accounting/invoicing software that integrates with Fundbox
- You don’t want a credit check
- You want to repay invoice draws on a weekly basis (instead of waiting for your customer to pay their invoice)
- You don’t need a large credit line
- You only need to redeem an invoice occasionally
Choose BlueVine if:
- You have a personal credit score above 530 (or above 600 for a line of credit)
- Your monthly revenue is above $10,000
- You aren’t using compatible accounting/invoicing software or don’t want to integrate your software
- You need an invoice factoring credit line above $20,000
- You need (and will qualify for) a line of credit above $100,000
- You need to sell a large volume of invoices
For more information on either of these services, read our full reviews of Fundbox and BlueVine. Still on the fence? Neither of these services charges fees until you redeem an invoice. Sign up for both, see your beginning rates and fees, and decide which one you like better.
Have you tried one or both of these services? Which one do you prefer — BlueVine or Fundbox? Let us know in the comments!