BlueVine provides business loans, lines of credit, and financial solutions for businesses. The Northern California-based company maintains a core focus on small businesses and has earned a well-deserved reputation for delivering cash at lightning-fast speeds. Approved borrowers can access their funding in as little as 12 hours.
Since its 2013 founding, BlueVine has funded more than 125,000 business owners to the collective tune of $6.5 billion. If you’re thinking about adding to those impressive totals, this review of BlueVine’s services will help guide your due diligence.
BlueVine’s Loan and Funding Types
BlueVine’s business funding options include two primary solutions:
- Business lines of credit, which provide access to revolving, on-demand forms of credit that help businesses maintain their cash flow and agility
- Invoice factoring, an innovative financial solution that allows entrepreneurs to use their unpaid accounts receivable to access cash up front
BlueVine has also introduced a third option for small businesses seeking financial relief from the economic impact of the COVID-19 pandemic. The company is participating in the Paycheck Protection Program (PPP) authorized by the federal government’s CARES Act relief package. The most recent iteration of the PPP expired on August 8, 2020, but BlueVine has expressed its intent to participate if and when the program is extended.
According to information published on BlueVine’s website in October 2020, here’s what borrowers can expect from each of the company’s two primary funding programs, beginning with lines of credit:
- Gain access to as much as $250,000 in funding
- Interest rates start at just 4.80%
- Applicants can get approved in as little as 5 minutes
Line of credit funding is available on demand, and you will only pay for the money you actually borrow. The line replenishes when you pay back the funds you’ve used, and borrowers who open lines at less than the maximum amount are eligible for helpful credit limit increases as their company grows over time.
Next, let’s look at BlueVine’s invoice factoring program:
- Businesses can open factoring lines valued at up to $5 million
- Rates start at just 0.25% per week
- Applicants can get approved in as little as 24 hours
Invoice factoring is an alternative to a standard term loan. This inventive option allows businesses to transfer the rights of their unpaid invoices to BlueVine in exchange for cash up front. BlueVine then collects the invoice payment from your debtor, with the borrower shouldering a modest weekly interest charge in the meantime.
Who Is Eligible for Funding through BlueVine?
The following eligibility information is current as of October 2020, beginning with lines of credit:
- Your company must have been in business for at least 36 months (3 years)
- The principal owner/borrower must have a personal credit score of 650 or higher
- The business must generate revenues of at least $40,000 per month
- Lines of credit are available throughout the United States, except for Vermont, North Dakota, and South Dakota
Here’s a snapshot of the standards you’ll have to meet to qualify for BlueVine’s invoice factoring program:
- The invoices you want to monetize must represent unpaid accounts receivable from customers with a demonstrated history of prompt, reliable payment
- Your company must have been in business for at least 3 months
- The principal owner/borrower must have a personal credit score of 530 or higher
- The business must generate revenues of at least $100,000 per year
Business-to-business (B2B) invoices are eligible. BlueVine does not currently accept invoices issued to individual consumers for purchases or services rendered.
A couple other things to note:
- You may be asked to sign a personal guarantee, which gives BlueVine the right to collect its debt from your personal assets if you default on your payments
- Some programs and applicants may require business liens instead of or in addition to the personal guarantee, which will give BlueVine legal claim to certain commercial assets if you fail to repay your loan
For these reasons, it’s safest to apply through BlueVine only if you are confident in your ability to manage your payment obligations.
BlueVine’s Application and Approval Process
You need to follow four simple steps to open a BlueVine line of credit:
- Fill out an online application. BlueVine will review it and can make a decision on it in as little as 5 minutes.
- Draw the funds you need through BlueVine’s online dashboard. After submitting your request, the money will show up in your linked bank account within a few hours.
- Repay the money you borrowed by making weekly or monthly payments in fixed amounts over your choice of 6 months or 12 months.
- Use the line of credit to access additional funding as needed once you have repaid the money you have already used.
Here’s how to access the company’s invoice factoring program:
- Fill out an online application, providing BlueVine with information about your company and its clients/customers. The application takes about 10 minutes to complete.
- BlueVine will evaluate your application. In most cases, the company can make a decision on your request in 24 hours or less.
- Submit the invoices you wish to monetize to BlueVine. You can do this in two ways: through synched accounting software, or through BlueVine’s online dashboard.
- Access your cash. BlueVine will immediately forward you 85% to 90% of the invoice’s value and will deliver the rest, minus interest and fees, when it collects the payment from your debtor.
If your business is set up as a limited liability company (LLC) or corporation, BlueVine will not perform a “hard pull” of your credit data at any time. However, applicants representing general partnerships and sole proprietorships will be subject to “hard pulls,” which will temporarily impact your credit score.
Pros and Cons of BlueVine
The following advantages and disadvantages of BlueVine were curated from reviewers and user-generated comments. Here’s what people particularly like about BlueVine:
- BlueVine processes customer applications with lightning-fast speed
- Funds are disbursed quickly
- Financing options grow as your business grows
- Invoice factoring offers extremely generous limits of up to $5 million
BlueVine also has some limitations and caveats. These include:
- Some programs require borrowers to accept liens on their business and commercial assets
- Some services are not available in every U.S. state
- Borrowers may also need to offer a personal guarantee
What Others Are Saying about BlueVine
Here are some highlights from BlueVine’s Better Business Bureau (BBB) profile, as of October 2020:
- Accredited since 2014
- A+ rating
- 4.03 out of 5 average customer rating on 110+ reviews
The company’s strong showing continues on Trustpilot:
- 4.3 out of 5 average rating on nearly 2,500 reviews
- 81% of respondents awarded the company a perfect 5 out of 5
- 88% of respondents awarded the company 4 out of 5 or higher
These are both very impressive performances, indicating exceptional levels of customer satisfaction with BlueVine’s services. The BBB performance is particularly noteworthy, as scores submitted through the network tend to be lower than those reported by other authoritative sources of consumer information. BBB primarily fields complaints, which typically puts a drag on scores and ratings.
The Bottom Line
BlueVine maintains an excellent balance of accessible eligibility standards and high levels of funding at reasonable rates. The company is a particularly strong match for credit-challenged borrowers, businesses that deal with a high volume of unpaid invoices, and well-established companies with the occasional need to borrow cash quickly.
On the whole, BlueVine shapes up as one of the strongest alternative lenders on the market and merits consideration if you are struggling to find financing through traditional channels.