If you have unpaid customer invoices, BlueVine and Fundbox are good options for invoice factoring or financing.
If you use BlueVine, you can borrow up to $500,000. You’ll get 85% of the invoice amount upfront and the rest when your client pays, minus fees. With BlueVine, you have to change the way your customers pay; the lender requires you to set up a new bank account and a P.O. box for customer payments.
Fundbox allows you to borrow up to $100,000, with 100% of the invoice value upfront. Borrowers repay in 12 weekly installments, plus a fee. Qualifying should be easier than with BlueVine because there are no credit or revenue requirements. And you won’t have to change the way your customers pay.
Here’s a side-by-side comparison of the companies and more details to find the best fit for you.
BlueVine vs. Fundbox
 |  |
|---|---|
| • 530+ personal credit score • 3+ months in business • $120,000+ annual revenue | • No minimum credit score • No minimum annual revenue • 6+ months of activity in an online accounting or bookkeeping software |
| • Financing larger invoices • Businesses with strong-credit customers • Jump to more BlueVine details | • Bad credit • Financing smaller invoices • Jump to more Fundbox details |
*BlueVine also offers a business line of credit up to $30,000.
BlueVine is the best invoice financing option if:
- You have a personal credit score of at least 530.
- You earn at least $120,000 in annual revenue.
- You need to finance a large amount of invoices.
BlueVine offers a fast, easy way for small businesses to get cash for unpaid invoices. The company’s invoice factoring ranges from $20,000 to $500,000. BlueVine provides invoice factoring for industries such as manufacturing, wholesale, staffing, tech and software, professional services, subcontractors and trucking.
Minimum qualifications: You must have a minimum personal credit score of 530, at least $120,000 in annual revenue and three months of business history. Approval is also based on your business cash flow and the financial strength of your customers. The only industries not eligible for BlueVine factoring are the medical and healthcare sectors.
Costs: BlueVine charges a weekly fee of .5% to 1% of the invoice amount, although this drops to .3% for existing clients with a good record. APR on invoice factoring ranges from 17% to 60%.
Speed: After opening a free account and completing a two-page registration process you’ll need to select your invoicing software (QuickBooks, Xero or FreshBooks). It takes between one hour to one day to get access to funds. Learn more about invoice factoring and BlueVine’s application process in our step-by-step guide before applying.
Repayment: For each approved invoice, BlueVine advances 85% of the total invoice amount upfront, and the rest when your customer pays you for the invoice, minus fees. The due date of the invoice can be anywhere from one to 12 weeks from when you get the advance. BlueVine sets up a bank account and P.O. box for your account, and you’ll need to instruct your customers to send payments to the new account.
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. BlueVine is also a good option for businesses that need help managing cash flow. It’s best for larger invoices, as you can finance up to $500,000.
If BlueVine sounds like the right fit:
Read our BlueVine review and learn about the application process
Fundbox is your best invoice financing option if:
- You have poor credit and you want to avoid a credit check
- You have at least six months of activity in an online accounting software such as QuickBooks.
- You need to finance smaller invoices.
Fundbox aims to help small-business owners navigate short-term cash-flow bumps with advances on outstanding invoices. The company typically provides $500 to $100,000, although the actual amount depends on your business’s invoice history and cash flow situation. The more you use Fundbox, the more capital you’ll potentially be able to tap.
The most popular industries that use Fundbox are the trade industry (contractors, plumbers), professional services (lawyers, doctors, accountants, and micro-manufacturers and distributors), according to the company.
Minimum qualifications: The company says it focuses on healthy, growing businesses. Fundbox doesn’t require a minimum revenue, credit score or time in business. To qualify, you must have at least six months of activity in an online accounting or bookkeeping software that can be linked to the Fundbox website (QuickBooks, FreshBooks, Harvest, Xero, Clio, Wave, Sage One or InvoiceASAP). Learn more about the application process in our step-by-step guide.
Costs: Although there are no origination fees, borrowers pay both transaction and advance fees on their Fundbox loan; for example, a $10,000 advance comes with total fees of $482 to $678. Fundbox’s APR is 13% to 68%. Fees are based on your business’s health and the amount of the invoice, and fees decrease the more you use Fundbox. Borrowers also have the option of paying down the advance early without penalty, to limit the fees paid and lower the effective APR on the loan.
Speed: You’ll need to create a free account and link your accounting software, which takes just minutes. Funding is fast, with money typically arriving the next day. But it could take up to three business days, depending on your bank and other factors.
Repayment: There are a couple of key differences between Fundbox and BlueVine when it comes to repayment: With Fundbox, the advance is up to 100% of the invoice value, and it is repaid weekly over 12 installments. So instead of getting a percentage of the invoice amount upfront and the rest when the client pays you (less a fee), you get all of the money upfront and begin making weekly repayments eight days after you’ve cleared the invoice.
Best uses: Fundbox is best for businesses that have slow-paying customers and need help managing cash flow but don’t want to finance more than $100,000 in unpaid invoices.
If Fundbox sounds like the right fit:
Read our Fundbox review and learn about the application process.
Evaluate small-business loans carefully
If invoice financing is not right for you, there are plenty of choices, depending on your financial situation and needs. When shopping for loans, be sure to compare APR, the true cost of borrowing including all fees. NerdWallet’s small-business loans comparison tool can help:
Compare business loansSteve Nicastro is a staff writer at NerdWallet, a personal finance website. Email: Steven.N@nerdwallet.com. Twitter: @StevenNicastro.
To get more information about funding options and compare them for your small business, visit NerdWallet’s small-business loans page. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.
The article was updated on May 26, 2016. It originally published Feb. 2, 2015.
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