BlueVine Small Business Loan Review

About BlueVine

BlueVine

We started BlueVine with two things in mind. First, to provide small businesses like yours access to capital when you need it, so you don’t have to worry about making payroll or investing in growth. Second, to serve small business owners with speed, simplicity, and transparency – no long waits, paperwork, or hidden fees that happen with other financial institutions. Running a business is challenging; BlueVine makes working capital easy. BlueVine is based in Redwood City, California and backed by leading venture capital firms and private investors. We are proud to enable small businesses to grow and thrive with our service.


BlueVine is an online lender offering term loans, invoice factoring and a line of credit for eligible small businesses. BlueVine’s financing would be a good fit for business owners seeking short-term funding who cannot qualify for traditional bank financing because of their credit history. Though BlueVine does consider applicants’ personal credit score, other factors play a role in approval decisions, such as the quality of a business’s customers.

BlueVine, founded in 2013, has offices in Redwood City, Calif. and Los Angeles, as well as Jersey City, N.J.


Types of financing BlueVine offers

Business owners have three types of financing to choose from, depending on how much they need to borrow and what form of funding they prefer. Here’s a look at the options BlueVine provides.

Amount Terms Interest rates Time to Funding After Approval
Invoice factoring Up to $5,000,000 Based on invoice due dates As low as 0.25% per week 1 to 3 business days
Line of credit $5,000 to $250,000 6 to 12 months As low as 4.80% for a 6-month repayment plan 1 to 3 business days
Term Loan $5,000 to $250,000 6 to 12 months As low as 4.80% for a 6-month repayment plan 1 to 3 business days

 

Invoice factoring

Invoice factoring allows you to sell your unpaid invoices to BlueVine in exchange for upfront cash. BlueVine advances up to 90% of individual invoices, up to $5,000,000. Once your customer pays the invoice, BlueVine would collect its fee before sending you the remaining amount.

BlueVine’s factoring fee starts at 0.25% per week while the invoice is outstanding. You’d owe the accumulated fee at the time the invoice is paid.

How it works
You could choose which invoices you’d like to sell, then upload those through the BlueVine dashboard. As long as your customer pays the invoice as expected, you would not take on any debt or liability. But if your customer doesn’t pay, you’re on the hook to pay the bill to BlueVine.

Line of credit

BlueVine’s business line of credit gives business owners access to cash on an ongoing basis, from $5,000 to $250,000. You could draw on your line as needed from your BlueVine dashboard. You’d only pay interest on what you borrow rather than the whole amount. Rates start at 4.80% based on a 26-week repayment plan. However, you could make fixed weekly payments for as long as 12 months.

If you’re solely interested in a business line of credit, Kabbage, another online lender, offers a line of credit that is comparable to BlueVine’s product. BlueVine or Kabbage may be able to provide the on-demand funding that your business needs.

How it works
BlueVine would automatically withdraw payments from your business bank account. As you repay your debt, the principal balance would be added back to your available credit, replenishing your credit line.

Term loan

BlueVine’s term loan provides a lump sum of funding from $5,000 to $250,000. You’d receive the full funding amount upfront, then make weekly payments on a 26- or 52-week schedule with a fixed interest rate. Term loan rates start at 4.80%, based on a 26-week repayment term. Borrowers could repay their debt early without facing penalties.


Who is eligible for BlueVine funding?

Applicants with a few months in business and stable revenue would likely qualify for funding from BlueVine. The lender approves borrowers based on their FICO Score, time in business and monthly revenue. BlueVine works with businesses in a range of industries, including business and professional services, IT services and technology, manufacturing, staffing services and wholesale trade and distribution.

Invoice factoring requirements

Invoice factoring has the most lenient requirements of BlueVine’s three products:

    • 530 credit score or higher
    • At least three months in business
    • $10,000 in monthly revenue

Line of credit and term loan requirements

Eligibility requirements for lines of credit and term loans are bit stricter:

    • 600 credit score or higher
    • At least six months in business
    • $10,000 in monthly revenue

BlueVine does not perform a hard credit inquiry at any time for applicants that are structured as limited liability corporations or standard corporations. However, sole proprietors and partnerships could expect a hard credit pull after receiving and accepting an offer from BlueVine. A hard credit inquiry could affect your credit score.

Businesses that are not eligible

BlueVine restricts its funding products from businesses in the following industries:

    • Auto dealerships
    • Donation-based nonprofits
    • Financial institutions and lenders, including insurance
    • Firearms and paraphernalia
    • Gambling
    • Legal and illegal substances, including medicinal marijuana, and paraphernalia
    • Political campaigns
    • Pornography and paraphernalia

BlueVine does not offer term loans to businesses in North Dakota or South Dakota. Lines of credit are also not available in those two states, in addition to Vermont.


BlueVine: How to apply

You can complete an application for funding online. BlueVine would ask for general information about your business, as well as personal information about you as the business owner, such as your Social Security number and Employer Identification Number. BlueVine would need either three months’ worth of recent bank statements or a connection to view your business bank account.

If you’re applying for invoice factoring, you’d also need to provide information about the invoices you’d like to factor. Applications for more than $250,000 could require additional information as well.


BlueVine review: Pros and cons

BlueVine may be a good fit for business owners who need relatively low amounts of funding that they can pay back within a year or less. However, BlueVine might not be the right lender for your business if daily or weekly payments would be burdensome, or if you need a large amount of money. 
Pros

    • Lenient personal credit score requirements
    • No hard credit inquiry for LLCs and corporations
    • Several funding products and a range of amounts offered

Cons

  • Invoice factoring may be risky if your customers are not reliable
  • Low funding limit on term loans
  • General lien on business assets and personal guaranty required to secure funding
  • Weekly interest can equal a high APR, making BlueVine an expensive option

FAQ

Is BlueVine financing unsecured?

No, BlueVine places a general lien on business assets to secure financing. That means BlueVine could seize those assets if you fail to repay debt. BlueVine does not require specific business assets as collateral, nor does BlueVine take personal assets as collateral.

Does BlueVine charge fees for funding?

Beyond interest, BlueVine does charge additional fees for some funding options. For instance, term loans do not come with an origination fee. BlueVine also does not charge fees if you choose to end your invoice factoring or line of credit arrangement. However, BlueVine does charge a withdrawal fee between 1.6% and 2.5% when you draw from your line of credit.

How fast can I get funding for my business?

Once approved, you could receive funds in your business bank account in a few hours if you choose a bank wire deposit, which costs an additional $15. BlueVine’s ACH transfer option is free, and you could see funds in your account in one to three business days.