Invoice Factoring: Bluevine vs Fundbox, Which One Is Better?

January 26, 2016 / Reading: 5 minutes

The need to keep a steady cash flow and to push your company as much as possible is more important now than ever before, it seems. Thicker competition, tighter lending requirements, and an overall more conservative marketplace can put the squeeze on any company.

This is why it is important to keep outstanding customer invoices at an absolute minimum. If you can’t process them quickly on your own, the next best thing is to convert them into instant cash advances, in the form of invoice factoring.

There are many invoice factoring service providers online, two of the most popular ones out there are BlueVine and Fundbox. They both carry their own sets of pros and cons. We are going to compare both of these great alternatives to small business loans, so that you can find the perfect solution for your financial needs.

Going with either BlueVine or Fundbox

Each company has a reputation for providing great alternatives to typical SBL terms and conditions. BlueVine is the meatier service of the two, offering up to $500,000 worth of financing, however, the minimum requirements also scale up, needing at least $120k in annual revenues to qualify.

Lender ratingBlueVine ratingFundbox rating
Loan productsLine of Credit, Invoice FactoringInvoice Financing
Estimated APR16 – 62%13 – 68%
Time to Approval1 day1 hour
Time to Funding1 day1 day
Repayment term6 monthsUp to 6 months
Loan amountUp to $50,000Up to $100,000
Prepayment penaltyNONENONE

Fundbox is a bit more palpable for smaller businesses, though. Not only are their annual revenue requirements lower (essentially only needing to prove that your business makes a profit), but they also don’t require a high credit score, either. Your borrowing limit is set at $100k, but you receive all of it at once, unlike BlueVine’s “85% now and the rest later” contract.

Let’s take a closer look at these two options, based on their own merits.

BlueVine review

Before considering BlueVine, make sure you have a credit score of 530 or greater and that your business meets the necessary annual revenue requirements. While you can get as little as $20,000 worth of invoices factored, it is recommended for a larger amount amassed to really take advantage of BlueVine’s potential to improve your business’ current capacity and grow it exponentially.

If you can’t process outstanding customer invoices quickly on your own, the next best thing is to convert them into instant cash advances, in the form of invoice factoring.

It is especially advantageous for situations where unpaid invoices are legitimately holding a company back from a major upgrade or purchasing of equipment that will increase revenues. An unintended side-effect of utilizing invoice factoring for large unpaid invoices is that it can separate the truly delinquent customers from the loyal customers who made honest mistakes.

Fundbox review

Fundbox is not meant only for small businesses who are in financial distress, but it is undoubtedly one of its greatest strengths. They don’t care about your credit, all they want to see is that you have a positive history of being in business for a minimum of six months.

Snapshot of Fundbox platform

Fundbox works quickly via online accounting software, such as QuickBooks. They excel in getting companies past the small bumps in the road, which could turn into bigger problems if left unattended. You won’t find the same low rates as small business loans offered to those with good credit and more established businesses, but it could just be the type of cash injection that can save the life of your business or professional career.