If your small business needs flexible access to cash to buy inventory, bridge a seasonal cash flow gap or fund day-to-day expenses, consider a business line of credit from BlueVine or Fundbox.
Here’s a side-by-side comparison of the two small-business lenders, with details to help you choose.
BlueVine line of credit
Consider BlueVine if:
- You have strong revenue.
- You need to borrow a large amount of money.
- You need more time to repay.
BlueVine offers a business line of credit between $5,000 and $250,000 for short-term financing needs. The company also offers a separate invoice factoring product for businesses looking to finance unpaid customer invoices.
Minimum qualifications: You must have a minimum personal credit score of 600, at least $100,000 in annual revenue and six months of business history to qualify for a six-month line of credit. Qualifying for a 12-month line of credit requires a minimum credit score of 620, at least $450,000 in annual revenue and two years of business history. It is unavailable to borrowers in North Dakota, South Dakota or Vermont.
Costs: The annual percentage rate, which includes all fees and interest, on BlueVine’s line of credit ranges from 15% to 78%.
Repayment: Draws on the line of credit are repaid weekly or monthly over six or 12 months.
Speed: Borrowers have access to funds by the same day, which makes it an option for financing immediate short-term business needs.
Best uses: BlueVine’s line of credit works best for businesses that need quick access to cash.
If BlueVine sounds like the right fit:
Fundbox line of credit
Consider Fundbox if:
- You have bad credit.
- You need to borrow smaller amounts of money.
- You can repay draws quickly.
Fundbox offers a business line of credit of up to $100,000 for businesses that need working capital financing.
Minimum qualifications: Fundbox requires a minimum credit score of 500 to qualify, lower than BlueVine and other online lenders. It also requires at least $50,000 annual revenue, and you must connect your accounting software or bank account.
Costs: The APR on Fundbox’s line of credit ranges from 10.10% to 79.80%, similar to BlueVine’s rates.
Repayment: Draws on the line of credit are repaid in 12 or 24 equal weekly installments, although you can repay it early to save on interest.
Speed: You can immediately request funds following approval, with funding as fast as one business day.
Best uses: Like BlueVine’s line of credit, Fundbox is an option for businesses in need of fast cash. However, it has looser requirements and works best for businesses that can repay what they borrow within the 12- or 24-week time frame.
If Fundbox sounds like the right fit:
Evaluate small-business loans carefully
If a business line of credit isn’t the right financing option for you, there are other choices, depending on your financial situation and needs. When shopping for loans, be sure to compare APRs, the true cost of borrowing that includes all fees. NerdWallet’s small-business loans comparison tool can help you find, compare and apply for different types of financing.