Lending: There are New Options

If you need some extra cash for your e-commerce business, your local brick and mortar bank is no longer your only option. Online lenders offer quick access to cash to make payroll, purchase inventory, and grow your business.

There are many different lenders to choose from, if you are having a hard time deciding which is right for you, check out Fundera.


Fundera is an online marketplace that uses your business information to match you with the best lender for your needs. You can connect your accounting software to the Fundera app and they will help you analyze available credit options.  The service is free to you as they receive commissions from the lenders.

Here are three lenders and the pros and cons of utilizing them for your business.  While we much prefer the Profit First approach of reducing debt and becoming your own bank, there can be instances where you need cash quickly.  These lenders can help in those cases.


Fundbox has recently expanded their offering to include Direct Draw and Line of Credit Options.  This is in addition to “factoring-style” products they have offered in the past.  This new Line of Credit option is much better suited to E-commerce businesses that aren’t invoicing customers.

Register, connect your bank account, and onboard within two minutes.  This is best for customers who need short term cash flow for quick acquisition.  For example, if you needed $1000 for a week your fee would be $8.  Why not just use a credit card?  Fundbox will not impact your FICO score and in a business where cash is king, you could pay your vendors early and receive your discount.


BlueVine offers quick approval times for a line of credit (around 12 hours) and an invoice factoring account (minutes to a day). Once approved, you can access funds within 24 hours. They advance 85% of the invoice amount upfront, and the remaining sum (minus fees) when the customer pays. BlueVine considers your business’s cash flow and customer creditworthiness rather than just your credit score, making it accessible for those with scores below 600.

However, be aware that BlueVine’s APRs can be as high as 62%, making their lines of credit and invoice factoring accounts more expensive than many online term loans. This financing is best used as a short-term solution. Nonpaying or late-paying customers can result in penalties, and you may need to repay the invoice if a customer fails to pay. A late fee of 3% applies after two weeks.


Kabbage is a fast cash option for business owners who need immediate funds, even if it means paying higher rates. You can easily connect your business checking account, bookkeeping software, or payment platforms like PayPal, QuickBooks, Xero, Etsy, Amazon, eBay, or Square. The more accounts you link, the better Kabbage can evaluate your application. While they do check your credit history, it’s not the primary factor in their decision-making. They mainly consider data from your linked accounts, average monthly revenue, and years in business to determine eligibility, credit limit, and fees.

However, Kabbage’s rates can be high, ranging from 24% to 99%, making it one of the pricier small-business loan options. Their fee structure is also complicated, and early repayment doesn’t offer significant benefits, though they don’t charge a prepayment penalty.

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Post Author Cyndi Thomason


Cyndi Thomason is founder and president of bookskeep, a U.S.-based accounting, bookkeeping, and advisory firm for ecommerce sellers worldwide. She has a passion for data analysis and process development. She uses that passion to educate her clients and help them structure their businesses to maximize profits.

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