If your small business has unpaid customer invoices and you want to turn them into fast cash, BlueVine and Fundbox are good options for invoice factoring or invoice financing.
Here’s a side-by-side comparison of BlueVine and Fundbox, along with more details to help you find the best fit. We’ve compared each lender by loan amount, borrowing costs, speed of funding, repayment terms and minimum qualifications.
| $20,000 to $5 million ||$1,000 to $100,000|
|15% to 68%||10.1% to 78.6%|
|One to 13 weeks||12 or 24 weeks|
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BlueVine is your best invoice financing option if:
- You have strong revenue
- You need to finance a large amount of invoices
BlueVine provides invoice financing between $20,000 and $5 million for industries such as manufacturing, wholesale, staffing, tech and software, professional services, subcontractors and trucking. BlueVine also offers a separate business line of credit between $5,000 and $250,000 for short-term financing needs. (Read our BlueVine review.)
Minimum qualifications: You must have a minimum personal credit score of 530, at least $100,000 in annual revenue and three months of business history. Approval also is based on your business cash flow and the financial strength of your customers. The lender typically requires no fewer than three years since a bankruptcy. The only industries not eligible for BlueVine factoring are the medical and health care sectors.
Costs: The annual percentage rate, which includes all fees and interest, on BlueVine’s invoice factoring ranges from 15% to 68%, with an average APR of 35%. That includes a weekly fee of 0.5% to 1% of the invoice amount, although this drops by 0.1 to 0.2 percentage point for borrowers whose clients pay their invoices on time.
Repayment: For each approved invoice, BlueVine advances 85% to 95% of the total invoice amount to you upfront and the rest — minus fees — when your customer pays the full invoice. The due date of the invoice can be anywhere from one to 13 weeks from when you get the advance. Your customers will send payments to a new bank account or post office box set up by BlueVine.
Speed: Borrowers have access to funds as quickly as 24 hours after approval. Learn more about invoice factoring and BlueVine’s application process in our step-by-step guide before applying.
Best uses: Businesses that may get the most out of BlueVine are those that have slow-paying but reliable strong-credit customers, such as Fortune 1000 companies. It’s best for larger invoices because you can finance up to $2.5 million.
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Fundbox is your best invoice financing option if:
- You have poor credit and you want to avoid a credit check
- You need to finance smaller invoices
Fundbox provides between $1,000 and $100,000 in invoice financing. The more you use Fundbox, the more capital you may be able to tap. Fundbox says its funding is commonly used by the trade industry (contractors, plumbers), professional services (lawyers, doctors, accountants) and micro-manufacturers and distributors.
Fundbox also offers a separate business line of credit up to $100,000 for businesses that need working capital financing. (Read our Fundbox review.)
Minimum qualifications: Fundbox doesn’t require a minimum credit score or time in business. But you must have at least $50,000 in annual revenue and a minimum of three months of activity with an online accounting or bookkeeping software program that can be linked to the Fundbox website (such as QuickBooks, FreshBooks, Harvest, Kashoo, Jobber and InvoiceASAP). Learn more about the application process in our step-by-step guide.
Costs: Fundbox’s APR ranges from 10.1% to 78.6%.
For customers who choose the 12-week repayment option, the APR ranges from 10.1% to 68.7%. For the 24-week repayment options, the range is 11.4% to 78.6%.
Fees are based on your business’s health and the amount of the invoice, and they decrease the more you use Fundbox. Borrowers pay a median fee of 7% on each advance on the 12-week repayment option and 15.7% on the 24-week option. You can pay down the advance early without penalty, which limits the fees you owe and lowers the APR on the loan.
Repayment: You get all the money upfront and begin making repayments in 12 or 24 weekly installments eight days after you receive funds from Fundbox.
Speed: Funding is as fast as the next business day, but could take up to three business days, depending on your bank and other factors.
Best uses: Businesses that need to finance less than $100,000 in unpaid invoices, borrowers with bad credit and businesses that don’t have strong enough annual revenue to qualify for BlueVine.
If Fundbox sounds like the right fit:
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Evaluate small-business loans carefully
If invoice financing is not right for you, there are plenty of 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: