Popup icon
BlueVine
9.4
ratings

Overview

BlueVine is a fully online lender that provides transparent and convenient funding to small businesses through flexible options that include invoice factoring and a traditional business line of credit.

BlueVine ‘s focus is on delivering an easy and transparent funding process. If you fail to get funding from banks for your business, you could opt for either of the two products offered by them.

read less

Pros

  • Simple application process
  • Excellent customer care
  • No personal assets as collateral

Cons

  • Online-only services
  • More expensive services than banks
  • Additional fee for wire transfers

Customer feedback and overall reputation

Customers have given excellent feedback about BlueVine’s support team. The staff at BlueVine unanimously responds in a few minutes after customers place their queries. BlueVine assures users of quick and prompt solutions for every single query. It has an A+ rating on BBB.

Collateral Required

BlueVine does not provide unsecured financing. Nonetheless, it does not require any asset, amount, or any other specific item as collateral. The loan is sanctioned by a personal guarantee of the borrower and a general mortgage of the assets of the business. Personal assets are not taken as collateral.

Eligibility and documents required

The borrower qualifications vary for invoice factoring and line of credit. Invoice factoring is available for B2B businesses. To qualify for invoice factoring, the borrower must be a US citizen who has been doing business for at least three months with a personal credit score of more than 530. Moreover, the borrower must have an earning revenue of $100,000 per year. Additionally, they must possess B2B invoices with clients who process minimum revenue of $10 million annually.
For Flex 6 line of credit, which is for six months, the borrower will need a personal credit score of at least 600 and must earn revenue of $120,000 annually. For 12 months line of credit (Flex 12), their credit score should be more than 650 if they earn annual revenue of $450,000, and the credit score can be around 620 if annual revenue is above $900,000.
The documents required are bank statements of the last three months, accounts receivables, tax ID number, business DBA, and social security number.

Interest rate and loan term (fees)

BlueVine offers two financing plans, invoice factoring for which the credit line ranges from around $20,000 to $5 Million, and the traditional line of credit for which the credit line ranges from $5000 to $250,000 approximately. If you want to get cash advances on outstanding invoices, then you can benefit from invoice factoring. On the other hand, the line of capital provides borrowers with an access to working capital. The pricing for both the funding options are discussed below:

  • Invoice factoring
    The advance rate is 85% to 90%. It allows the users to receive 85% to 90% of the total invoice upfront. The remaining amount, after deducting BlueVine’s fees, is processed after the customer settles the full amount of invoice. The discount rate is as low as 0.25% per week for a maximum overdue account of 13 weeks, or 91 days, to be more specific. There are no charges for Automated Clearing House (ACH) transfers, but they do charge an additional fee of $15 for wire transfers.
  • Line of credit
    The term length is six months to one year with an interest rate which is as low as 4.8%. The draw fee is 1.5% per draw, with an additional fee of $15 for wire transfers. However, they do not apply any charges for ACH transfers.

Application process

The application process for both invoice factoring and traditional line of credit is quite simple. One needs to apply for a loan online. First, visit the official website of BlueVine and answer a few questions about yourself and your business. You also need to provide documents like the bank statements of the past three months. You could also choose to give them read-only access to your bank account.
You will get an option to hook up your invoicing software, but this is not mandatory. Even if you are not using software that is compatible with BlueVine, you can create invoices directly on the interface of BlueVine. Once you feed your phone number in the application form, an expert from the BlueVine team will contact you and guide you through the entire process of funding. Approval is based on your credit score as well as other factors like your social media presence, the volume of transaction, your business history and creditworthiness also play a role in getting your application approved.
The initial approval needs a minimum of 24 hours. After you get the initial approval, you can draw funding from either of the two alternatives. Money transfer happens within three business days.

BlueVine