6 alternatives to Fundbox business loans

Pros

• Apply for invoice financing in seconds
• Personal credit score doesn’t matter
• Small credit lines available
• Competitive rates
• Funding in as little as the next business day
• No prepayment penalty

Cons

• Only works with some bookkeeping software
• Short loan terms
• Weekly repayments
• Only up to $100,000 in financing

1.- BlueVine

BlueVine is another online lender that specializes in lines of credit and invoice factoring, as well as term loans. Like with Fundbox, invoice factoring comes in the form of a credit line, though all three options come in different amounts and rates.

Starting at $5,000, BlueVine’s invoice factoring is designed to help businesses with a larger invoice load and can go up to $5,000,000. Typically, your business can get a credit line worth 85% to 90% of the invoice value. With both Fundbox and BlueVine, your factoring funds come in the form of a credit line and your business can retain its relationship with its customers. BlueVine’s standard lines of credit go up to $250,000 — higher than Fundbox’s option.

While it takes at least one business day to get funding through Fundbox, BlueVine can get you funds in just a few hours if you opt for a wire transfer, which comes with a $15 fee. Both provider’s loans are secured by a lien on your business assets and require a personal guarantee. But lines of credit and term loans through BlueVine aren’t available in North Dakota or South Dakota.

Pros

• Up to $5,000,000 for invoice factoring
• Keep your relationship with customers
• Same-day funding available for a fee
• Competitive rates
• No prepayment fees

Cons

• Not available in all 50 states
• Considers personal credit
• Requires collateral
• Potential for weekly repayments

BlueVine is another online lender that specializes in lines of credit and invoice factoring, as well as term loans. Like with Fundbox, invoice factoring comes in the form of a credit line, though all three options come in different amounts and rates.

Starting at $5,000, BlueVine’s invoice factoring is designed to help businesses with a larger invoice load and can go up to $5,000,000. Typically, your business can get a credit line worth 85% to 90% of the invoice value. With both Fundbox and BlueVine, your factoring funds come in the form of a credit line and your business can retain its relationship with its customers. BlueVine’s standard lines of credit go up to $250,000 — higher than Fundbox’s option.

While it takes at least one business day to get funding through Fundbox, BlueVine can get you funds in just a few hours if you opt for a wire transfer, which comes with a $15 fee. Both provider’s loans are secured by a lien on your business assets and require a personal guarantee. But lines of credit and term loans through BlueVine aren’t available in North Dakota or South Dakota.

Pros

• Higher amounts
• Monthly repayments
• Considers a variety of business data
• Fast funding with business debit card
• Available in all 50 states

Cons

• No invoice factoring
• Complicated fee structure
• Can’t save much with prepayment

OnDeck is an online lender that offers business lines of credit and term loans. One of its main draws is fast decisions. While it can take a few hours to get approved through Fundbox, OnDeck can give you an answer in just a few seconds. And if you apply for a term loan, your business can get as much as $500,000. You also have a choice between short- and long-term loans with OnDeck, which range from 3 to 36 months .

If you’re looking for bigger loans, OnDeck may be a good choice with lending starting at $5,000 capping at $500,000.

Both of OnDeck’s loan options are also slightly more expensive than Fundbox’s. Its term loans come with an annual interest rate (AIR) starting at 9.99%, and its credit lines come with an APR starting at 13.99%. On top of this, OnDeck can come with weekly or even daily repayments, which give your business less flexibility.

Pros

• Faster decision
• Rewards loyalty with lower fees
• Up to $500,000 for a loan term
• Available in all 50 states
• Cares more about cash flow than your personal credit score

Cons

• Origination fee on line of credit
• Smaller range of loan amounts on credit line
• Weekly or daily repayments
• Can’t save much with prepayment on short-term loans

While not a direct lender like Fundbox, National Business Capital can be a great place to start when you’re looking for business financing. That’s because it’s a combination between a lender and service that connects borrowers with several different types of business loans, including lines of credit and accounts receivable financing.

While you won’t be able to get Fundbox’s small-dollar financing through this provider — its loans start at $10,000 — your business can potentially access up to $5,000,000 from its lenders. A wider range of financing amounts comes with a wider range of terms, from 3 months to 25 years.

This marketplace has slightly tighter requirements than Fundbox: Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000. It can also take a bit longer to get your funds — up to five days after getting approved. On top of that, it can get expensive with costs as high as 30 cents on the dollar.

Pros

• Up to $5,000,000 in financing
• Wider range of loan terms
• Available in all 50 states
• Multiple offers with one application
• No upfront fees

Cons

• Potentially expensive
• Can’t see what amounts and terms you might qualify for without applying
• Less control over who gets your information

Unlike Fundbox, LendingTree doesn’t fund loans directly. It’s a connection service that can help your business quickly get offers from lenders offering eight different types of business loans, including lines of credit and accounts receivable financing.

Rates, loan amounts and terms vary widely, depending on the lender and type of financing, so it’s difficult to compare with Fundbox. However, most lenders it works with rely on alternative data rather than your credit score, so your likelihood of getting approved might be similar. The benefit of using LendingTree is that you can get several offers after filling out just one application — apply to Fundbox and you only get one offer from one lender.

You might want to avoid LendingTree or other connection services if privacy is a concern. The reason you get all those offers at once is because LendingTree shares your information with several third parties. This can sometimes translate into constant calls and emails from lenders, even after you’ve taken out a loan.

Pros

• Multiple offers with one application
• No upfront fees
• Lenders don’t rely on credit score alone
• Available in all 50 states

Cons

• Less control over who gets your information
• Can’t see potential rates and terms before applying

When it comes to lines of credit, Excel Capital Management has more options than Fundbox. You can choose between a secured and unsecured line of credit — Fundbox’s only offers unsecured financing. Unfortunately Excel Capital Management is less forthcoming about invoice factoring — how much you’re eligible to borrow depends on factors like your customers’ creditworthiness, revenue and sales volume and how long it takes to process your invoices.

Your business must meet tougher eligibility requirements than with Fundbox: Your company must have been in business for at least 6 months and have an annual revenue of at least $100,000. But Excel Capital Management combines direct lending and business loan connection services to give you more chances for approval.

Fill out an application and your business will get offers from Excel and its partners for over nine different types of business financing. It specializes in funding small and mid-sized businesses, though it also has options for startups.

Pros

• Choose between in-house and partner financing for multiple offers
• Secured and unsecured lines of credit
• Available in all 50 states
• No upfront fees

Cons

• Can’t apply for specific loan type
• Website lacks informations on potential terms and rates
• Calls from lenders
• Less control over who gets your information