Bluevine vs. Fundbox: Which small business lender is right for you?

Bluevine and Fundbox both specialize in business lines of credit for fair credit borrowers. With either choice, you’ll get shorter repayment terms than the norm but can pay back ahead of time without penalties.

Bluevine business lines of credit offer higher credit limits than Fundbox. But Fundbox business lines of credit are much more lenient toward younger businesses.

Let’s compare the two lenders in depth to see which one offers the best business line of credit for you.

Bluevine vs. Fundbox at a glance

Both Bluevine and Fundbox are online lenders offering business lines of credit to small business owners that don’t traditionally qualify with a bank. Fundbox offers lightning fast approvals as soon as three minutes and lenient requirements, even accepting of startups.

Bluevine provides a higher credit limit than Fundbox and has more flexible repayment terms.  Fundbox has lower credit score and time in business requirements, making it more accessible to a broad range of business owners.

Bluevine business loans

Bluevine’s business line of credit is open to business owners with fair credit, but you’ll need a large flow of revenue. You can get approved with a personal credit score of 625 for a six-month term, while most banks want to see a score of 670 or more. If you want a 12-month term with Bluevine, you will need a FICO score of at least 700.

The downside? Bluevine’s revenue requirement is strict, which could be a problem for less-established businesses. You’ll need at least $40,000 in monthly revenue, and you can choose the six-month, weekly repayments at this level. If you want to pay monthly across 12 months, your business will need at least $80,000 in monthly revenue.

Bluevine also offers term loans through lending partners. You can be considered for a loan with its partners by filling out the same application for its line of credit. While Bluevine doesn’t state the requirements to apply, you may find an option with more lenient requirements. You’ll receive a lending decision from its partners within 24 hours.

Pros

• Accepts fair credit
• No monthly maintenance fees
• Weekly or monthly payments

Cons

• Steep revenue requirements
• Not offered to sole proprietors
• Potentially high interest rates

Fundbox business loans

Fundbox is welcoming to businesses with fair credit or little time in business. Business owners only need a personal credit score of 600 and six months’ time generating revenue to get approved.

You can also request funds through its user-friendly online dashboard or app. This customer experience stands out because business lenders don’t usually offer an app to access your credit. But Fundbox’s line of credit only goes up to $150,000, falling short of the usual $250,000 or more that you see with other business lines of credit.

Pros

• Accepts fair credit
• Little time in business required
• Handy app to request funds

Cons

• Low credit limit
• Short repayment terms
• High interest rates

How to choose between Bluevine and Fundbox

If you’re looking for a business line of credit, both Bluevine and Fundbox work well for online business lines of credit, and neither lender charges fees for paying off your loan early. Both also cater to the fair-credit crowd.

But Bluevine can grant a higher credit limit to qualifying businesses: $250,000 versus Fundbox’s $150,000. Bluevine also offers other complementary products like business checking or high-interest savings.

Fundbox focuses solely on its line of credit product. But it makes that product much more reasonable to obtain in terms of revenue and time in business.

Choose Bluevine for loan amounts up to $250,000

Bluevine’s business line of credit reaches higher credit limits than Fundbox, offering lines up to $250,000. It’s also more flexible with repayments. You can get terms of six or 12 months and choose between weekly or monthly payments. However, for monthly payments on the 12-month plan, you’ll have to meet higher credit and revenue qualifications: $80,000 in monthly revenue, a FICO score of 700 or higher and a time in business of at least three years.

By contrast, Fundbox offers terms of three to six months with a weekly payment schedule. Its minimum requirements don’t change for either of its repayment terms. Neither lender offers particularly long terms compared to other lines of credit available.

Choose Fundbox for accessible business lines of credit

Fundbox is the more accessible line of credit with more welcoming requirements for startups or low-revenue businesses. It wants to see at least six months in business, $100,000 in annual revenue and personal credit scores of 600.

Bluevine’s standards are set much higher. In order to get a six-month term, your business needs two years in business and at least $40,000 in monthly revenue ($480,000 per year). For a 12-month term, you’ll need three years’ experience and $80,000 in monthly revenue ($960,000 a year).

Alternatives

Bluevine and Fundbox are both highly specialized online lenders, each with its own unique benefits and requirements.

But established businesses with strong credit or slightly less revenue than Bluevine’s standards might look into a Bank of America credit line. Bank of America offers three tiers of credit lines with different criteria to get approved. It accepts revenue as low as $50,000 for its credit-builder line or $100,000 for its unsecured line of credit.

You could also compare Fundible, an online lender with accessible requirements for its line of credit. You only need a personal credit score of 580 and six months in business. But Fundible’s line needs a slightly higher revenue of $200,000. Fundible also offers other traditional and alternative business loans.

Another alternative to a business loan is a business credit card, which also offers reusable credit. Business credit cards also come with rewards for travel or cash back. And you can find cards with a 0 percent introductory APR or no annual fee, reducing borrowing costs. Since every business credit card is different, you should compare a range of business credit cards for their fees and rewards.

SBA loans

The Small Business Administration (SBA) also approves and partially guarantees loans through SBA-approved lenders, offering different types of loans. The SBA’s version of a line of credit is its CAPLines, geared to specific needs like seasonal costs or financing one-off projects. Otherwise, its SBA 7(a) loan program offers loans up to $5 million for general expenses.

Yet fair credit borrowers may not meet the standards to get these SBA loans. The SBA offers microloans up to $50,000 and Community Advantage Lending Companies to fill the gaps. These loans let you work with a nonprofit or community-based lender that lowers lending standards. They may also support you with educational resources for your business’s long-term success.

Bottom line

Overall, Bluevine works best if you’re an established business looking for an online line of credit with standard credit limits. Using its other business banking products might also make this lender a more convenient option.

If you don’t have a steady stream of revenue but you’re still in the fair-credit lane, Fundbox could be the right choice. It offers speedy approval timelines and lower time in business and revenue requirements.
If neither seems like a viable option, you can compare lenders offering working capital loans. Working capital loans offer short repayment terms and often quick funding to cover operational expenses. They can cover similar expenses as you might pay with a business line of credit.

Frequently asked questions

• Is it hard to get approved for Fundbox?

  Fundbox isn’t difficult to qualify for, accepting fair credit scores as low as 600 and annual revenue of $100,000. You also need just six months in business. These standards are in keeping with what’s common for online lenders but much more accessible than bank business loans.

• Does Fundbox require collateral?

  Fundbox doesn’t require collateral to back the line of credit, but it does require a personal guarantee that you can repay. Personal guarantees essentially secure the line with personal assets.

• What is Bluevine used for?

  Bluevine is a fintech company offering business banking and lines of credit through its bank partner, Celtic Bank. Its line of credit caters to fair credit borrowers with established revenue.