6 alternatives to Fundbox business loans

OnDeck is an online lender that offers business lines of credit and short-term loans. It has similar credit requirements to Fundbox, and a similar approval process. But it’s one of the few online lenders that can transfer funds within minutes after requesting a draw. It also has a higher credit limit and offers discounts to repeat borrowers. However, its starting rates tripled during the coronavirus outbreak — it might not offer much savings compared to a Fundbox line of credit.

• Pros and cons

  Pros

  • Instant access to credit line funds
  • Credit limits as high as $250,000
  • Accepts fair credit

  Cons

  • High starting APR of 35%
  • Choice between higher rates and prepayment penalty
  • Weekly or daily repayments

• More details

  Loan amount	$5,000 – $250,000
  APR	As low as 35%
  Min. Credit Score	600
  Loan Term	3 to 18 months
  Requirements	600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account

BlueVine is an online lender that offers lines of credit and invoice factoring — which Fundbox also used to offer. Its credit, time in business and revenue requirements are similar to Fundbox. But its credit limits can reach $250,000 and it offers a lower starting rate of 4.8%. While you can receive funds within the same day you make a withdrawal request, BlueVine charges a $15 fee. Sole proprietors and partnerships might also have a more difficult time getting approved than other types of businesses.

• Pros and cons

  Pros

  • Low starting rate of 4.8%
  • Credit limits as high as $250,000
  • Also offers invoice factoring

  Cons

  • $15 fee for same-day funding
  • More requirements for sole proprietors and partnerships
  • $5,000 minimum first-time draw

• More details

  Loan amount	$5,000 – $250,000
  APR	Starting at 4.8%
  Min. Credit Score	600
  Loan Term	6 to 12 months
  Requirements	6+ months in business, $10,000+ in monthly revenue, 600+ credit score

Kabbage is another online lender that offers business lines of credit. It has a similar fee structure to Fundbox and minimizes paperwork by connecting with online business accounts. It’s one of the few providers that offers a debit card connected to your credit line, which you can swipe wherever Visa is accepted. You can also access your funds by making a request through the Kabbage app or through your online portal. But American Express acquired this lender in 2020 and may be rolling out new rates, fees and additional products in the near future.

• Pros and cons

  Pros

  • Minimal paperwork
  • Debit card linked to credit line
  • low revenue requirements

  Cons

  • Front-loaded fees
  • Options may change in coming year

• More details

  Loan amount	$500 – $250,000
  APR	Varies
  Min. Credit Score	600
  Loan Term	6 to 12 months
  Requirements	1+ years in business, $100,000+ annual revenue or $4,200+ monthly revenue over last 3 months

Lendio is an online business loan marketplace that partners with over 75 lenders, including many of the providers on this page. While it won’t fund your loan, it allows you to prequalify with multiple providers by filling out a simple online form — at no cost. This makes it easier to make a more accurate comparison based on your business’s profile rather than a general range of rates and terms. But while it has a wide range of partners, it doesn’t work with every lender out there — you still might be able to find lower rates if you prequalify with providers on your own.

• Pros and cons

  Pros

  • Network of over 75 partner lenders
  • Funding available within 24 hours
  • Offers a variety of financing options

  Cons

  • Warning from FTC over charging fees on PPP loans
  • Some product may have high rates

• More details

  Loan amount	$500 – $5,000,000
  APR	Starting at 6%
  Min. Credit Score	560
  Loan Term	1 to 25 years
  Requirements	Operate business in US or Canada, have a business bank account, 560+ personal credit score

Funding Circle is one of the few peer-to-peer lenders that offers business loans. You can find term loans, lines of credit and a range of other financing options. Its term loans have much lower rates, starting at 4.99% plus an origination fee of 3.49% to 6.99% — though other products are generally more expensive. But you need a credit score of at least 660 and must be in an eligible industry to qualify for the term loan. It also typically takes three days to fund your loan after you get started on the application — fast for a peer-to-peer lender but slower than Fundbox.

• Pros and cons

  Pros

  • Low rates starting at 4.99%
  • Wide range of financing options
  • Funded by investors instead of a bank

  Cons

  • Relatively high origination fees
  • Non-loan products are more costly
  • Limited industry eligibility

• More details

  Loan amount	$5,000 – $500,000
  APR	4.99% to 38.43%
  Min. Credit Score	660
  Loan Term	3 to 120 months
  Requirements	660+ personal credit score, 2+ years in business, for-profit business in an approved industry, not located in Nevada

FundThrough is an online factoring company that offers advances on your business’s unpaid invoices from other businesses or government agencies. It’s one of the few fully-automated factoring companies that can transfer you the funds within 24 hours by connecting with your business accounting software. While the factoring fee range of 2.5% to 5% is average compared to other factoring companies, it can provide as much as 100% of the funds upfront, less the estimated fees. Most factoring companies only advance up to 90%.

• Pros and cons

  Pros

  • Fully automated application
  • Funding within 24 hours
  • Up to 100% of advance upfront

  Cons

  • Average factoring fees
  • May not work with all accounting software
  • Expensive compared to term loans

• More details

  Loan amount	$500 – $10,000,000
  APR	Not applicable
  Loan Term	1 to 3 months
  Requirements	Regularly receives invoices due within 30 to 90 days.