Compare business credit lines from Fundbox, Kabbage, OnDeck and BlueVine

Business credit line comparison matrix chart, comparing Fundbox, Kabbage, OnDeck and BlueVine

Compare business credit lines from Fundbox, Kabbage, OnDeck and BlueVine

For almost all small business owners, credit lines are a wise consideration. You have many choices, from traditional banks to online fintech providers, including Fundbox, Kabbage, OnDeck and BlueVine. To help you compare business credit line options, this article provides a quick description of the main differences between them.

What is a commercial credit line?

The credit line provides a certain amount of funds from which you can withdraw funds (up to your credit line) and repay it over time. Similar to credit cards, most credit lines are revolving; this means that when you repay the amount you have withdrawn, your available credit is replenished, and you can reuse it without having to apply for a new loan. This makes the line of credit an attractive option because once approved, funds can be obtained quickly, so you can always have funds ready.

Current and COVID

This article is current as of October 2020, and the research cited in this article reflects the state of the industry during the COVID-19 pandemic.

Key questions to ask

When considering your commercial credit line options, we recommend that you ask yourself the following questions about the provider and your needs:

  • Is the provider actively lending? When the pandemic hits, many lenders suspend accepting new applications, even though their website may still display a valid “Apply Now” button. Before applying, it can be helpful to try to verify that they are looking for new customers. Throughout the pandemic, Fundbox has never stopped accepting applications from new customers or providing loans to existing customers. On the other hand, the economic slowdown will affect all lenders differently.For example, Kabbage stops Approve new customers Very early, March 2020.
  • How much do you really need? Although it may seem tempting to ask for as much money as possible, it also has risks. If your approved amount exceeds the amount you actually need, you may eventually face difficulties in repaying the amount used. You can do more with a smaller amount (so there is less credit risk). This is because, with revolving credit, you can reuse these funds when repaying funds, and the available credit line will be replenished.
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How soon do you need money? Sometimes there are new business opportunities that require immediate response; a new customer calls before a fast deadline, or an old customer has a last-minute request. If this happens, you may want to prioritize lenders with simplified application or fast decision-making processes so that you can get a response after approval and accept new jobs with confidence.

Business credit line comparison matrix chart, comparing Fundbox, Kabbage, OnDeck and BlueVine

Consider the application process

Every lender is different, and this extends to their application process, as well as their requirements and timelines. Before choosing a lender, understand their process and the information and qualifications they need from you.

  • How long does it take to apply? Check the form of each potential lender and estimate how long it will take you to complete the application. This is especially important if you need to make a credit decision in a hurry.
  • What information do they need? You may be asked to provide some information, including your company’s federal tax number. Do you have such information on hand? Many applications require personal details of everyone who owns more than 25% of their business to verify their identity. In addition, most applications will require some way to prove your company’s performance or financial situation. For example, they may ask to connect to your business bank account or accounting software.
  • How do they provide credit decisions? Just because the provider’s credit application is available online does not mean that they will give you the result within a few seconds. Sometimes the lender may take hours or even days. Fundbox’s application is optimized to provide rapid decision-making for most customers in a matter of minutes.
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Eligibility criteria are just the beginning

Do you meet the eligibility requirements? Each lender has different minimum standards to determine which companies to provide credit to. You should note that even if you meet the minimum standards, you may not necessarily be approved. Many lenders consider many different factors when approving customers—the minimum standard is just the first filter that the applicant must pass.

For example, although Fundbox has minimum requirements, our “typical” customers exceed these minimum requirements, have an annual revenue of approximately $300,000, and have been in business for many years, not months.

Terms: Your loan term

Although it may not be at the top of every business list, loan terms are a key consideration when looking for credit lines. Some companies focus on longer payback periods, while others require quick returns. Do you prefer monthly payment or weekly payment? Do you want to repay within 12, 24 or 52 weeks?

Customer experience is important

Business credit line is a tool you may use frequently, depending on your needs. We recommend that you consider the product experience and the availability of customer support before making a decision. Some companies have invested in design and built a streamlined product. Others may lack attention to user experience (UX). The design will affect the speed at which you complete the application and withdraw funds, and even affect your overall satisfaction with the product.

Likewise, customer support (customer service) is critical to whether your business credit line is satisfied. Imagine if you have a question about the product, or a problem that needs to be solved, but no one answers the call? Fundbox won the Steve Gold Award Provide excellent customer support for the financial services category, but not all companies have invested in the team and technology needed to provide a great experience via phone and email.

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Customer reviews

Although companies themselves can talk about great experiences or awards they have won, a good indicator of the level of service they provide is what their customers say about them. Websites such as Trustpilot or Better Business Bureau allow customers to post and post comments so that you can better understand their real experience and their likes and dislikes of the company and its credit line.

The stability of the lender itself

In a world of economic uncertainty, we believe that the part about company stability should be added. If you are applying for a credit line from a company, you should consider whether you think the company will exist for a long time.

A few questions to ask yourself when conducting research are:

  • How did they respond to the epidemic? Do they continue to lend?
  • Are they raising funds recently or are there money in the bank to deal with economic fluctuations?
  • Have they been acquired by another company?

Fundbox is fortunate to raise more than 170 million US dollars in 2019, and we deposit most of the funds in the bank to protect ourselves from unexpected influences. Throughout the pandemic, we continued to issue new loans and continued to attract new customers during this period.

Apply for fund box

If you think Fundbox might be suitable, you can Apply anytime. In just a few minutes, you can make a decision in a few minutes. Because we only initiate soft pulls, the application will not affect your credit score.

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