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Launched in 2013, BlueVine is an online lending service that helps businesses quickly access loans and lines of credit. It helps with fund growth and deals with unpredictable cash flow by providing funds for small and medium-sized businesses.
Over the years, BlueVine has lent out over $3 billion in funds to more than 25,000 borrowers and has created a reputation for being a transparent and convenient way for business owners to borrow money.
However, this transparency and convenience come at a cost, as BlueVine’s services can sometimes be more expensive than other alternatives and have some requirements that most businesses can’t meet.
The cost however does not seem unreasonable when you look at the helpful services that BlueVine provides. Also, when searching for lending options for your business, the cost shouldn’t be your main concern, as the terms and conditions surrounding the loan are likely to have a bigger impact over the long term.
Let’s discuss whether BlueVine is right for you, as a business owner searching for business financing with our BlueVine review.
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What Services Does BlueVine Offer?
Our BlueVine review will cover the three main services, which are;
- Invoice factoring
- Lines of credit
- Term loans
RELATED: No Credit Check Loans For Business.
This is not the normal loan or credit service you are familiar with. Invoice factoring is the process of selling an invoice that hasn’t been cleared or paid by customers to another party. This improves income stability and cash flow. Invoice factoring can be very beneficial, as the revenue obtained from it can be used to repay loans, cover short-term expenses, or take advantage of fleeting business opportunities requiring cash.
RELATED: Invoice App Accounts Receivable.
Lines of credit
This is a type of flexible loan service that works like a credit card. With a line of credit, you will be told the amount of credit you have access to, and you can take money as required until you reach the credit limit.
RELATED: Breakout Capital Business Loans.
This is the normal loan service you are likely most familiar with. You get to borrow a fixed amount and you are given a schedule for repayment with an interest rate.
The eligibility requirements vary among the three services provided. You must at a minimum meet the requirements listed below for the financing solution that interests you. However, some borrowers may need to meet additional requirements in certain cases.
RELATED: Fundera Business Loans Review.
Invoice Factoring Requirements
BlueVine’s invoice factoring service gives you access to fast cash by selling your unpaid customer invoices to BlueVine at a discount. BlueVine then gives you an advance on the invoice and the customer that owes you money pays off the invoice with BlueVine.
Time in Business: At least 3 months
Credit Score: Minimum 530 and above
Business Revenue: At least $10,000 per month
Location: U.S based
Line of Credit Requirement
BlueVine offers two line of credit packages (Six months and twelve months) and both of them have different requirements.
RELATED: SmartBiz Loans Review.
Six Month Line of Credit (Flex 6) Requirements
The six-month line of credit is called Flex 6 and requires weekly payment.
- Time in Business. At least 6 months
- Credit Score. Minimum 600 and above
- Business Revenue. At least $120,000 per year, and no record of bankruptcy within the past year
- Location. U.S based except North and South Dakota
- Industry. Most except prohibited industries like pornography, auto sales, gambling, legal and illegal substance, firearms, political campaigns, financial services, and nonprofit organizations
12 Month Line of Credit (Flex 12) Requirements
Other than the 6-months line of credit, BlueVine also offers a twelve-month line of credit. It is possible to switch from a six-month credit line to a twelve-month credit line. Customers that want to switch from Flex 6 to Flex 12 must make at least ten weeks of repayments to qualify, in addition to meeting revenue and credit score requirements.
- Time in Business. At least 2 years
- Personal Credit Score. Minimum 650 and above
- Business Revenue. At least $500,000 per year
- Personal Credit Score. 620
- Business Revenue. $900,000 per year
- Location. U.S based except for North and South Dakota
- Business Type. LLC Corporation, Ineligible Businesses, Sole Proprietors
- Industry. Most except prohibited industries, financial services, and nonprofit organizations.
Term Loan Requirements
- Time in Business. At least 6 months
- Credit Score. Minimum 600 and above
- Business Revenue. At least $120,000 per year
- Term Limit. 6 or 12 months
BlueVine Rates and Terms
The terms and rates for each service provided by BlueVine are listed below.
Invoice Factoring Terms and Rates
Here are the terms and rates for BlueVine’s invoice factoring service:
- Credit Facility Size. $20,000 to $5 million
- Advance Rate. 85% – 90%
- Discount Rate. 0.25% to 1.7% per week
- Max Overdue Account. 13 weeks (91 days)
- Additional Fees. $15 wire transfer fee (no charge for ACH transfers)
- Contract Length. Not Applicable
- Monthly Minimums. Not Applicable
- Factor All Invoices. Not Applicable
- Recourse or Non-Recourse. Recourse
- Notification or Non-Notification. Both
Lines of Credit Terms and Rates
Here are the rates and fees for both Flex 6 and Flex 12 credit line products:
- Credit Facility Size. $6,000 – $250,000
- Term Length. 6 or 12 months
- Interest Rate. Flex 6: 0.3% – 1.5% per week. Flex 12: 1.5% – 6.5% per month
- Draw Fee. 1.6% – 2.5% per draw
- APR Range. 15% – 78%
- Personal Guarantee. Yes
BlueVine offers two different lines of credit.
- Flex 6 with a term length of 6 months, with lower eligibility requirements, and
- Flex 12 with a term length of 12 months, with higher eligibility requirements.
What’s nice about BlueVine is that you can secure funding as a new business, with only a fair credit score. However, they have high turnover requirements, as your business must bring in at least $10,000 a month.
Although the maximum line of credit is $250,000, the amount that your business receives will depend on your financial strength and creditworthiness. There are no extra or hidden charges but every time that funds are drawn from the line of credit, BlueVine charges 1.6% in fees.
Lines of credit have no early payment penalty; therefore, borrowers can save money by making early interest payments. Interest will only accrue on the outstanding amount, so the earlier your business pays, the more you can save.
RELATED: US Business Funding Loans.
More About Term Loans
BlueVine’s newest financial product is its business term loans. On the surface, the loans seem like the lender’s lines of credit. The primary difference is that instead of drawing funds as needed on a line of credit, you will instead receive your loan as one lump sum payment.
These are the terms and fees for BlueVine’s term loans:
- Borrowing Amount. $5,000 – $250,000
- Term Length. 6 or 12 months
- Interest Rate. Starts at 4.8%
- Origination Fee. Not Applicable
Once again, the higher limit for the loan depends on the financial strength of the borrower. Term loans require a weekly repayment plan and the amount is deducted automatically from the borrower’s account by BlueVine.
BlueVine Loan Forgiveness
BlueVine has no rule for loan forgiveness, as the Small Business Administration is still in the process of developing amnesty guidelines for loan forgiveness. While waiting for the final rules, there are some limits you need to know:
Individual entrepreneurs and other self-employed persons:
Under the SBA rule of 20. April 2020, the loan amnesty is limited to 8 weeks salary or replacement of income. If you are self-employed, you must show that you have paid for business expenses such as rent, which you will document in your form otherwise up to 25% of your loan is non-refundable.
Companies, limited liability companies:
According to the SBA rule of 15. April 2020, companies operating through a formal business form must use at least 75% of the loan for payroll. These companies can use the remaining 25% of the loan for expenses or interest on debt from financial institutions.
Applicants for a PPP loan:
While the PPP program is currently shut down for new applicants, it is possible the service could be activated again. The exemption applies to fees accrued and paid within the first eight weeks of receipt of the loan. We recommend that you collect and store receipts for your payment records during this time frame. The documentation to be accepted was not specified. That said, you want to keep the most official set of documents, such as IRS documents and official payroll reports from companies like ADP.
BlueVine Financial Product Application Process
The application process is simple and convenient. To apply, you simply need to create an account and provide personal and business-related financial details such as bank statements from the last three months, personal details, and business details. BlueVine representatives can also help you fill out financial documents and complete the application process. You can also carry out the application process online.
Once you submit your business financing application, BlueVine will contact you after at least 24 hours if you applied for invoice factoring or five minutes if you applied for a line of credit. If approved, you will receive your loan, line of credit, or invoice advance of 85%-90% into your account in 24 to 72 hours.
It takes around 3 days to receive your funds if you’re using the invoice factoring service, as your customer’s creditworthiness also determines the terms of your advance from BlueVine. Your credit score won’t be affected since Bluevine doesn’t do hard credit pulls.
BlueVine Customer Service
You can contact BlueVine via:
- Social media platforms
BlueVine’s customer service is helpful and responsive. Their FAQs are also helpful whenever you have a question about the application or repayment process. As mentioned above BlueVine scores high on transparency. Their site is set up in a manner that is helpful for both new and existing customers.
BlueVine Reviews & Complaints
BlueVine has mostly positive reviews from customers. Negative reviews are rare and when customers do leave negative reviews they are mostly about expensive fees or the inability of the applicants to qualify for BlueVine.
The most frequent complaint is that BlueVine often rejects line of credit withdrawal attempts if the credit score of a borrower drops below a certain threshold. BlueVine is therefore very strict when it comes to the creditworthiness of its loan holders.
Positive reviews often discuss the ease of making payments and tracking transactions. When it comes to keeping payments and accounting straight, you can either use BlueVine’s platform or sync payments with your own software. There are app integrations available for QuickBooks, Xero, and FreshBooks.
Although BlueVine has a lot of positive feedback from customers their services are lacking in some aspects.
For you to fully enjoy their invoice factoring services your customers must be reliable or else you won’t have strong credits and you will be unable to pay the bills. If a customer fails to pay to your BlueVine account after two weeks you will have to pay for the invoice. The conditions seem right but some people find it inconvenient.
The repayment plans are weekly or monthly and the frequency of payments can be an issue for businesses without much working capital in the bank and with unpredictable sales.
BlueVine Pros and Cons
We take a closer look at the Bluevvine pros and cons with our BlueVine review below.
- Low Eligibility Requirement: Many people who have applied for loans have been hampered by their poor credit history. BlueVine, on the other hand, has a wide range of loan options for borrowers with credit scores less than 630. Overall, BlueVine is best suited for small-scale business owners because it focuses on cash flow rather than credit score for loan approval.
- Low Cost: BlueVine’s rates are widely regarded as competitive, and within the margins other lenders offer.
- There Are No Hidden Costs: Unlike most other service providers, the company’s terms and fees are clearly outlined for scrutiny.
- Excellent Customer Service: BlueVine’s customer service is generally regarded as superior, regardless of the method of contact used.
- Fast Funds Disbursements: One of BlueVine’s main advantages is that it pays borrowers instantly within a few hours, ranging from 12 hours to 24 hours.
- Multiple Loan Tenure: BlueVine offers a variety of loan time horizons to accommodate a wide range of borrowers. This is done to ensure that borrowers’ various financial needs are met.
- Requires Personal Guarantee: Before official verification and confirmation of the agreement, BlueVine financial products require a guarantor. Obtaining a guarantor, on the other hand, can be a difficult task for some borrowers.
- The Cost Can Be High For Businesses With Low Fundamentals: BlueVine does not charge origination, application, or maintenance fees on most of its loans; however, late repayment incurs a fee. Furthermore, for some businesses, the rates charged may be exorbitant. In general, the majority of loan options have high-interest rates.
- Quick Repayment Structure: BlueVine loans typically have a short repayment term of about 12 months or a year, which can put a heavy burden the borrower’s finances. When this repayment amount is frequently demanded, failure to comply results in increased loan fees.
- Available to US Residents Only: This lending agency is not available in all states and cities across the United States. South Dakota (Vermont) and North Dakota are the only two states that cannot access BlueVine financial products.
Some BlueVine alternatives are:
- OnDeck: OnDeck provides small and medium-sized businesses with lines of credit and short-term loans, and it may appear to be slightly more expensive than other lending companies at first glance. However, if an applicant has a stable business income and a good credit history, they may be eligible for market-competitive rates.
- Kabbage: This financial services firm is suitable for borrowers with low credit scores, businesses with a robust online presence, and those in need of quick funds. The eligibility requirements for this lender are clearly stated; to qualify for a line of credit of up to $100,000, the business must be at least a year old, have $50,000 in annual revenue, and have a personal credit score of at least 640.
- Fundbox: Fundbox is a small business financial solution provider. It has been around since 2013, and its popularity has grown over time. Fundbox, like most financial service providers, does not have specific eligibility requirements based on the length of time the borrower has been in business. To be eligible to apply for a line of credit or invoice financing, you must have a personal FICO credit score of at least 500, and your business must be based in the United States or one of its territories. These are very lenient terms, making Fundbox especially appealing to startups, freelancers, and small businesses.
- Lendio: Lendio is a business financing platform that connects customers with lenders rather than making loans itself. It offers these financial services in collaboration with over 300 lending companies. Borrowers benefit from using an aggregator service like Lendio because they are exposed to loans with varying terms from which to choose.
- Fundation: Fundation is an excellent substitute for BlueVine. They provide cash and terms that are suitable for businesses seeking low-interest rates and rapid disbursement. On the other hand, the organization requires companies to meet specific criteria, one of which is that they have at least two employees. A minimum credit score of 660 is also required, as is an annual income of $100,000 or more.
- LendingTree: This financial services provider serves borrowers in all 50 states. This lender provides various loan options, including personal loans, allowing borrowers to navigate the multiple loan options and choose the ones that best meet their needs.
Frequently Asked Questions (Faq)
We answer some of the most commonly asked questions below with our BlueVine review.
Is BlueVine legit?
BlueVine is a legitimate lending platform offering invoice factoring, lines of credit, and term loans to businesses. BlueVine is a reputable company with an A+ rating from the Better Business Bureau and a “great” rating from TrustPilot. Furthermore, the company has adequately outlined loan terms and costs for public scrutiny.
BlueVine provides excellent and transparent services that are simple to qualify for, convenient, and beneficial to businesses. Although personal assets are not used as collateral, you must provide a personal guarantee to access BlueVine’s financing.
Is BlueVine a bank?
BlueVine is a business bank offering flexible funding options, payments, and checking accounts specifically designed for businesses. BlueVine’s services and products include lines of credit, invoice factoring, and checking accounts with no monthly fees.
Is BlueVine FDIC insured?
BlueVine checking accounts are FDIC insured through Bancorp Bank, and deposits are insured up to $250,000.
How long does BlueVine take to deposit money?
Funds are usually approved in about five minutes and are available within an hour. A wire transfer from a bank will arrive the same day, but it will cost you $15. On the other hand, ACH transfers are free but typically take one to three days to arrive.
Is there a professional service fee?
Yes, but it is only disclosed after the applicant is given a quote.
Is BlueVine an SBA approved lender?
BlueVine has been approved as a direct non-bank lender by the SBA for the Paycheck Protection Program (PPP).
Where is BlueVine located?
The primary BlueVine office is located at 401 Warren St. Suite 300, Redwood City, California 94063, US. The company also has offices in Louisiana, New Jersey, and Utah.
What is the BlueVine phone number?
The BlueVine contact number is 1-888-216-9619.
BlueVine Review: Parting Thoughts
BlueVine is a good option for small businesses that need capital quickly. The products BlueVine offers help businesses meet their short-term financing needs. This is especially true of the invoice factoring service, which is meant to provide financing over a short period of time. BlueVine’s rates are market competitive with low eligibility requirements, except for business income. The combination of these factors makes BlueVine one of the most suitable lenders available to finance small businesses and recently established companies.
Get Started With BlueVine
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Thanks for reading our BlueVine review.
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