Companies operating in a wide range of industries and in need of a reliable source of extra funding can benefit from BlueVine’s financial products. When seasonal changes in cash flow or delays between issuing invoices and receiving payment create difficult financial situations, a line of credit or invoice factoring option from BlueVine covers the gaps. Merchants without stellar credit ratings or lengthy business histories for which bank loans aren’t an option may be able to get help from BlueVine.
Business success is the focus at BlueVine. Established in 2013, this alterative lender is on a “mission is to help business owners succeed and thrive by making sure they have convenient access to capital.” The lender has funded over $1 billion in business needs to date with lines of credit and invoice factoring for B2B and B2C companies.
By providing multiple financial products, BlueVine distinguishes itself from other alternative lenders offering only the most common “fast cash” options. The company is headquartered in Redwood City, California but also has offices in New Jersey and Louisiana, giving it a prominent presence across the U.S. and making its options easily accessible to a variety of merchants.
Small businesses wary of the volatile nature of MCA loans and other high-cost, high-risk lending options can consider BlueVine as a potential solution for cash flow problems. The lender uses a unique combination of flexible financing options, technology and security to provide a user-friendly platform through which merchants can apply, get funding and manage money. By offering convenient and secure integrations with common financial software and making it possible to request money any time through the BlueVine website or mobile app, this lender gives modern businesses easy access to essential funds.
By providing multiple funding options. BlueVine is able to cater to businesses in several stages of growth and financial health. The company began by offering only invoice factoring for B2B merchants but added the “Flex Credit” line of credit option in 2016 to branch out into the B2C market.
To qualify for a 6-month line of credit, also called Flex 6, a business must:
Flex 6 is available in all U.S. states except North Dakota, South Dakota and Vermont.
Flex 12, BlueVine’s 12-month credit line, is for corporations and LLCs with:
Existing Flex 6 customers meeting these requirements and showing at least 10 consecutive weeks of on-time payments may request to switch to Flex 12. However, this form of funding is not available to businesses in Kentucky, Nevada, New Hampshire, North Dakota, South Dakota, Tennessee or Vermont.
B2B companies wishing to qualify for invoice factoring must have:
Invoices submitted after approval also need to meet certain criteria to be eligible for funding. BlueVine only accepts invoices for products and services “completed, delivered and accepted” by business customers in the U.S. and English-speaking Canadian provinces, in amounts of at least $500, with payment terms of less than 13 weeks and with due dates at last one week from the time of submission.
No exceptions are listed on the BlueVine website, but the FAQs note the lender bases approval on multiple factors, including cash flow, creditworthiness of customers, personal credit and business credit. Transaction volume may also influence eligibility. Merchants choosing to establish long-term relationships with BlueVine can become candidates for increases in available credit if their financial status improves.
Between the two types of funding it offers, BlueVine covers a variety of industries. Invoice factoring is available for B2B companies operating in:
According to the lender’s website, “any type of business” may obtain a line of credit, although eligibility is restricted to those meeting all application requirements.
BlueVine’s policies are fairly lenient for the types of financial help it offers customers, but there are several industries to which it will not provide funding:
These types of businesses must seek funding from a different alternative lending company or work with a bank to obtain a traditional loan.
Invoice factoring from BlueVine requires no long-term contracts or scheduled payments. As long as customers pay invoices on time, merchants have no obligations aside from the fees deducted at the time the invoice is fulfilled.
Lines of credit are issued with 6- or 12-month terms depending on a merchant’s qualifications. Six-month credit lines require weekly payments over the course of 26 weeks, and payments for 12-month lines are due monthly.
Basic application requirements are the same for all of BlueVine’s financial products. Qualifying merchants must submit an application and the most recent three months’ worth of bank statements. The lender also offers the option of a secure bank connection to make account reviews easier. To apply for invoice factoring, merchants also need to provide invoice details. Only B2B businesses may apply for invoice factoring.
BlueVine’s online application takes about 10 minutes to fill out and requests the following information:
Once the application has been submitted, BlueVine reviews the information and responds in as little as 24 hours. Additional information may be requested to complete the approval process, and BlueVine may perform a “hard pull” credit check once a merchant has accepted a loan offer. No hard pull is required for LLCs or corporations.
Although BlueVine doesn’t require collateral to secure the loans it provides, the lender does place a general lien on assets and asks merchants to back this lien with a personal guarantee. This gives BlueVine the right to seize assets in the event the merchant violates the terms of the loan.
Once a loan has been approved, a merchant may either request cash from a line of credit through BlueVine’s online dashboard or submit invoices to receive 85 to 90 percent of the value upfront. The remainder of the amount is delivered, minus BlueVine’s fees, once the customer pays.
BlueVine’s website advertises rates as low as 4.8 percent on lines of credit and 0.25 percent per week for invoice factoring. Third-party reviews indicate average rates are higher, with a credit line APR of 16 to 62 percent and 0.3 to 1 percent per week discount fees on invoices. Merchants are charged between 1.6 and 2.5 percent per draw when obtaining funds from a line of credit.
BlueVine also requires merchants to cover the cost of any invoices customers fail to pay. A two-week window of time past the due date of the invoice is provided to give late customers a chance to make good on the invoice amount, but if neither the customer nor the business pays during this time, a late fee of 3 percent is applied for every week the invoice remains outstanding.
BlueVine may accept applications from companies with as many as two outstanding loans or liens. However, the lender prefers to be first-position with its invoice factoring customers and will only allow one bank lien to be in place when extending lines of credit for more than $20,000. This requires merchants to pay off existing loans and resolve liens before applying for funding.
No documentation fees are required when applying for funding from BlueVine.
BlueVine charges no origination fee for invoice factoring. Lines of credit require a 1.5 percent fee to cover expenses associated with securing and providing the loan.
Invoice factoring and lines of credit are structured to provide funding when needed. Funds are available based on the number of invoices transferred to BlueVine or cash requested from the credit line. The available balance on a line of credit is replenished as payments are made, and both forms of funding allow merchants to ask for more cash at any time up to the credit limit set on the account.
Connecting QuickBooks, Xero or FreshBooks accounting software makes it easier to manage BlueVine’s financial products by speeding up the process of syncing invoices and submitting funding requets.
BlueVine customers can draw on lines of credit or factor invoices as needed without being charged a prepayment penalty. No termination fees are applied to accounts paid in full.
Funding provided by BlueVine must be put toward business expenses. Merchants may request cash at any time by drawing on a credit line or submitting eligible invoices. Funding is delivered either through an ACH or by bank wire transfer. ACH transactions are usually completed by the next business day but may take up to three days. A $15 fee is required to obtain funding the same day via wire transfer.
Companies commonly use the types of funding provided by BlueVine to:
The flexible nature of lines of credit and invoice factoring is preferable for merchants without the financial stability to manage the large payments required by many “fast-cash” lenders or the long-term commitment of a traditional loan. Funding from BlueVine only requires payment when cash is drawn out or in the form of fees when customers pay invoices transferred to the lender.
Rated A+ by the BBB, BlueVine has an overall positive reputation around the web. Testimonials on the lender’s website show a 5 out of 5 rating. TrustPilot ratings stand at 9.2 out of 10, and Merchant Maverick gives the company 4.5 out of 5 stars. However, because of a number of complaints, BlueVine has only earned 2 out of 5 stars on the BBB website.
Positive feedback from customers includes:
Negative comments cite several problems experienced by some businesses:
BlueVine publicly addresses customer complaints on all platforms and works to resolve issues by reviewing accounts, comparing information and offering solutions.
BlueVine has been accredited by the BBB since 2014 and has been featured in prominent online publications like TechCrunch, Forbes, PYMNTS.com and HuffPost. Reviews by Merchant Maverick, Fundera and NerdWallet provide additional information about the lender and expand its online presence.