Redwood City, Calif.-based BlueVine began in 2013 with the goal of overhauling the invoice factoring business. After watching his father’s physical therapy business struggle due to cashflow issues from a 90-day billing cycle, founder and CEO Eyal Lifshitz set out to automate factoring by bringing the application process online and creating algorithms for underwriting.
BlueVine’s technological approach makes factoring far faster than ever before, brings customers lower costs, and makes lending to small businesses possible. Banks have traditionally done invoice factoring for larger clients, so BlueVine is serving a market of smaller operations that would have previously been denied this financing option.
In early 2016, BlueVine launched a new side of its business, providing straightforward small business loans.
Transparent: BlueVine gives customers a single rate that applies to both line of credit draws and factored invoices, and then charges no other fees except an optional $15 wire transfer fee. As long as your account is in good standing, you’ll know exactly what you’re going to pay up front.
Bad credit-friendly: Customers with credit scores below 600 may still get funding, since BlueVine is more concerned with your business’s cash flow or, in the case of invoice factoring, your customers’ creditworthiness.
Fast and online: BlueVine has transformed the invoice factoring business by automating the process and putting it online. It offers its line of credit this way too. This means you can apply online, get access to funds within as little as a day, and click “get funds” on your dashboard to instantly order up some money.
Pricey: BlueVine is a more expensive option compared to many online term loans. With annual percentage rates reaching as high as 78 percent, this financing is best used for time-limited shortfalls that forthcoming customer payments will cover.
BlueVine APRs are high, but there are no hidden fees (only an option wire transfer fee). With its invoice factoring option, business owners with a credit score as low as 530 can get access to up to $5 million in funding. For the line of credit, weekly repayments are automatically debited.
|BlueVine: At a glance|
|Loan product||Loan amount||Loan term||APR range/ factor rate||Fees||Time to funding|
|Line of credit||$5,000 – $250,000||6 or 12 months||15-78%||Wire fee: $15||Approval in as little as ten minutes, with funds provided within 2 hours with wire option|
|Invoice factoring||$20,000 – $5 million||1-13 weeks||15-68%||Wire fee: $15||As fast as 24 hours|
Rates current as of 6/1/2018
BlueVine’s line of credit features revolving credit and same-day wires. Invoice factoring does not involve a long-term contract, or any termination fees, minimum volume, or reserve account. Loans are secured by a general lien on the assets of the business and backed by a personal guarantee. Personal assets cannot be used as collateral.
|Loan product||Annual revenue||Min. business credit score or personal credit score||Time in business|
|6-month line of credit||$100,000||600||6 months|
|12-month line of credit||$450,000||620||2 years|
|Invoice factoring||$100,000||530||3 months|
Only businesses that serve other businesses (B2B) or governments (B2G) are eligible for BlueVine invoice factoring.
Companies in the medical and healthcare industries are not currently eligible for BlueVine loan products. Due to regulations, BlueVine cannot provide lines of credit in North Dakota, South Dakota, or Vermont.
The application process is fully online. No documents are needed; applicants can connect their bank account directly with BlueVine’s system. If an applicant chooses not to connect their account, they will need to submit three months of bank statements.
|Forgiving of bad credit||In invoice factoring, penalties for unpaid invoices|
|Accessible via online dashboard||Requires a lien and a personal guarantee|
|No hidden fees|
BlueVine’s invoice factoring offer is the best fit for businesses that process a large volume of receivables and/or have receivables with long invoice cycles. It is also good for business owners who need funds quickly and those with less-than-perfect credit.
BlueVine doesn’t offer all information on the website, so it’s smart to contact the lender with any questions before applying. The company will give custom quotes if the available products don’t meet an applicant’s needs.
BlueVine offers solid if somewhat expensive financing options for small businesses. Its invoice factoring product is a particularly good option for businesses with less-than-perfect credit or for those who have cash flow restrictions due to long invoicing cycles or slow-paying clients.