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- Date Established
- Redwood City, CA
- Suited to small businesses
- Relaxed borrower qualifications
- Short application process
- Typical time to funding: 2 – 7 days
- Excellent customer support
- Potentially expensive terms and fees
- Line of credit unavailable in some states
BlueVine, an online lending service, was founded in 2013 after the founder watched his father, a physical therapist, struggle with inconsistent cash flow due to slow payouts by insurance companies. It shouldn’t come as a surprise, then, that the company offers a number of services intended to help merchants overcome cash flow problems.
In particular, BlueVine offers invoice factoring — a type of business financing for B2B businesses in which unpaid invoices are sold at a discount. And if you don’t process invoices, BlueVine also offers traditional lines of credit and term loans.
Invoice factoring often has a poor reputation because some factoring companies carry high fees, confining contracts, and inconvenient termination clauses. However, funders like BlueVine have streamlined and de-complicated the process. These new invoice financing services tend to be much more flexible than their old-school predecessors. You have more control over which invoices you choose to finance, and you won’t have to sign any long-term contracts or pay a bunch of extra fees.
BlueVine’s fees can get a little expensive, but despite the potential for high costs, BlueVine offers fantastic services that are easy to qualify for, convenient, and useful for merchants who struggle with cash flow problems. Interested in learning more? Read on for the details.
Table of Contents
- Services Offered
- Borrower Qualifications
- Rates & Fees
- Application Process
- Sales & Advertising Transparency
- Customer Service & Technical Support
- User Reviews
- Final Verdict
BlueVine borrower qualifications vary by product. Note that these borrower qualifications are not comprehensive; when you fill out an application with BlueVine, the lender considers more than the information below when making a decision about whether you’re eligible for funding. However, if you meet the below requirements, you have a good chance of qualifying.
Invoice factoring is available for B2B and B2G businesses. To qualify, you must have eligible unpaid invoices, as well as meet the requirements below:
|Time in business:||3 months|
|Business revenue:||$100,000 per year|
Additionally, you must be US-based. Invoice factoring is available in all 50 states.
Six Month Line Of Credit (Flex6)
Flex6 lines of credit have a repayment period of six months. This product is available to businesses that meet these requirements:
|Time in business:||6 months|
|Business revenue:||$120,000 per year|
Flex6 is not currently available in North Dakota and South Dakota.
This product is available to most industries, except for financial services and nonprofits.
12 Month Line Of Credit (Flex12)
Flex12 lines of credit have a repayment period of 12 months. To qualify for Flex12, your business must be an LLC or a corporation; sole proprietors are not eligible. In most cases, you’ll need a credit score of 650 or above, but BlueVine is a little more flexible if your annual revenue is over $900,000:
|Time in business:||2 years|
|Personal credit score:||650|
|Business revenue:||$500,000 per year|
|Personal credit score:||620|
|Business revenue:||$900,000 per year|
Flex12 is not currently available in North Dakota and South Dakota.
Most industries are eligible, but nonprofit organizations and businesses in financial services are not.
Current customers that want to switch from Flex6 to Flex12 must make at least 10 weeks of repayments to qualify, in addition to meeting the revenue and credit score requirements.
BlueVine’s business term loans can be repaid over a period of 6 or 12 months. Your business must meet the following minimum requirements to qualify:
|Time in business:||6 months|
|Business revenue:||$100,000 per year|
Rates & Fees
BlueVine offers invoice factoring, traditional lines of credit, and term loans.
Here are the stats for BlueVine’s invoice factoring service:
|Credit facility size:||$20,000 – $5 million|
|Advance rate:||85% – 90%|
|Discount rate:||0.25% – 1% per week|
|Max overdue account:||13 weeks (91 days)|
|Additional fees:||$15 wire transfer fee (no charge for ACH transfers)|
|Factor all invoices:||No|
|Recourse or non-recourse:||Recourse|
|Notification or non-notification:||Both|
For invoice factoring, BlueVine offers credit facilities up to $5 million, though the amount your business is eligible for will depend on a number of business characteristics.
How Does Invoice Factoring With BlueVine Work?
When you are approved to do business with BlueVine, the company will set up a lockbox bank account — a bank account in your name, which the company has access to. You will update your customers with the new payment information, so when the customer deposits their payment, BlueVine can take its cut before sending the rest along to you. If you didn’t request an advance on a certain invoice, BlueVine will simply send all the money along to you when the customer pays.
Because the bank account is in your name, the customer will not know about the money advanced to you. However, BlueVine might offer you a larger line of credit with the stipulation that it is allowed to notify your clients about the arrangement. This is called notification factoring. Some merchants are concerned that it will reflect poorly on their business if the customer knows they are using an invoice factoring service. The truth is, factoring is so old and commonplace that most clients, especially larger clients, are used to such arrangements. Regardless, the choice is yours.
To redeem an invoice for cash, your invoice has to meet these requirements (via the FAQ):
- The service or product was completed, delivered and accepted by your customer
- The customer is based in the US or Canada
- The customer is a business (not a consumer)
- The invoice face value is higher than $500
- The payment term is shorter than 13 weeks (91 days)
- The due date is at least 1 week away
When you request money, BlueVine will advance you a maximum of 85% – 90% of the invoice. When the invoice is paid by your customer, you’ll get the reserve of the remaining 10% – 15%, minus the fees that have accrued.
Here’s an example:
You redeem a $1,000 invoice. BlueVine advances you $850. Your customer pays you in four weeks, so there is a $40 fee. At the end of the process, you’ll get $110 from the reserve.
BlueVine does not charge application fees, maintenance fees, origination fees, or lockbox fees for its invoice factoring. BlueVine also does not require a long-term contract or termination fees.
There are only two potential kinds of extra fees you can incur: bank wire fees and late fees. The bank wire fee is $15, but can be avoided by using free ACH transfers. Late fees are incurred after a two-week grace period. If you or your customers don’t pay before then, the fee is 2% to 3% of the amount due, with a daily recurring fee between 0.2% and 0.3% until the debt is settled.
Line Of Credit
BlueVine offers two lines of credit: Flex6 and Flex12. Flex6 carries a draw term length of six months, whereas Flex12 carries a term length of 12 months. Because its longer term length makes it riskier, most businesses will not qualify for Flex12. Check out the borrower qualifications above to learn which product you might be eligible for.
Here are the rates and fees for both products:
|Credit facility size:||$6,000 – $250,000|
|Term length:||6 or 12 months|
|Interest rate:||0.3% – 1.5% per week (Flex6)|
1.5% – 6.5% per month (Flex12)
|Draw fee:||1.2% – 2.5% per draw|
|APR range:||15% – 78%|
Both lines of credit currently cap at a maximum of $250,000, but the amount you can borrow will depend on the strength of your business.
Once approved, you can draw funds up to your available credit line at any time you want. Be aware that there are draw fees starting at 1.2% whenever you request funds from your credit line. Otherwise, BlueVine does not charge any extra fees.
Repayments are made in 26 weekly installments if you have Flex6, or 12 monthly installments if you have Flex12. Regardless, you can repay early at any time. If you do so, you’ll only have to repay the interest that has accrued up to that point. BlueVine does not charge a prepayment penalty.
BlueVine’s newest product offering is business term loans. On the surface, these seem very similar to the lender’s lines of credit. The primary difference, however, is that instead of drawing funds as needed, you’ll 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%|
Loan amounts are available up to $250,000. Like its other financial products, BlueVine will evaluate the strength of your business when determining how much you can borrow. BlueVine’s term loans are repaid through fixed weekly payments that are automatically drafted from your account. A simple interest rate is used to calculate the cost of borrowing. These rates start at 4.8% for the most qualified borrowers. There are no origination fees associated with this product.
The application for BlueVine’s services is simple: create an account via the website and answer some basic questions about yourself and your business. You’ll also have to provide either the most recent three months of bank statements or allow read-only access to your bank account.
You’ll have the option of hooking up your accounting or invoicing software, but it isn’t required. If you’re interested in invoice factoring but don’t use software compatible with BlueVine, you’ll be able to create invoices right in BlueVine’s interface. Currently, the company works with:
Once you give your phone number, expect a call from a BlueVine rep who will walk you through the process and answer any questions.
Approval is based on a number of factors. Your credit score is a consideration, but BlueVine also looks at factors such as social media presence, business history, transaction volume, and the creditworthiness of your customers.
According to the BlueVine website, your initial approval for a loan, line of credit, or invoice financing will take about 24 hours. When approved, you will receive your loan within a few hours, or you can begin drawing from your credit line or selling invoices immediately. Money transfers normally take one to three business days. However, if you’re selling an invoice from a customer unfamiliar to BlueVine, expect a 24-hour delay, because BlueVine has to assess your customer’s creditworthiness.
With BlueVine’s term loans, you could receive your funds in just a few hours through bank wire. This option comes with a $15 fee. Otherwise, an ACH transfer will be initiated and your funds will hit your bank account within one to three business days on average.
Sales & Advertising Transparency
BlueVine provides excellent transparency. The lender provides a video explaining the invoice factoring service, which is always good to see when you’re dealing with a potentially confusing factoring model. Additionally, the company fully discloses all rates and fees, there’s an easy-to-understand payments calculator on the pricing page, and there are not one, but two FAQs.
The customer service is similarly transparent and willing to answer questions.
Customer Service & Technical Support
Customer service is available by phone Monday through Saturday. You also have the option to email BlueVine via the contact page. For less formal contact methods, the company maintains accounts on Twitter and Facebook.
The general consensus (backed up by my own experiences) is that BlueVine reps are very responsive, whichever way you choose to contact them. And if you’re not in the mood to talk to somebody, BlueVine also has an FAQ for general questions before signup, as well as one for customers already using the lender’s services.
Negative Reviews & Complaints
BlueVine has a truly impressive track record regarding complaints.
The company is accredited by the Better Business Bureau with an A+ rating and very few complaints. Additionally, BlueVine also has a presence on the Intuit QuickBooks app center and Trustpilot, among other places. With few exceptions, the reviews for BlueVine are very positive. For example, on the QuickBooks app center, BlueVine has over 300 reviews, all but four of which are rated 4- or 5-stars. On Trustpilot, 95% of BlueVine’s over 1,100 reviews were granted 4- or 5-stars (85% rated 5 stars, 10% rated 4 stars).
It’s also worth noting that BlueVine is extremely proactive in responding to negative reviews and fixing complaints when possible. This level of service goes above and beyond that of many of the lender’s competitors.
Although the service is highly received, a few customers still have some criticisms and complaints:
- Denials: Some reviewers were frustrated to learn that they had been denied for funding, even though they met all the requirements listed on BlueVine’s website. A few were further frustrated because they felt they were not given a clear reason why they were rejected.
- Expensive Fees: The fees may be a little higher than some customers would like. To see how BlueVine’s rates and fees compare to its competitors, take a look at our invoice factoring comparison chart or our business line of credit comparison chart.
- Rejected Draws: Some customers were frustrated to learn that requested draws from their credit line had been rejected. BlueVine monitors your revenue and debts, and will not let you borrow if it looks like you cannot repay based on the information it has. Unfortunately, this can happen at inconvenient times for some businesses.
- Notification Factoring: A few reviewers were disappointed to learn that they didn’t qualify for a large enough credit facility without notification services (meaning, BlueVine alerted their customers to the factoring arrangement).
Positive Reviews & Testimonials
As stated above, customer reviews for BlueVine are overwhelmingly positive. Most customers rate BlueVine 4- or 5-stars, and have very few criticisms of the service overall.
In addition to a large number of customer reviews, BlueVine has been extensively covered by news sources, including TechCrunch, Forbes, Huffpost, PYMNTS.com, Crowdfund Insider, American Banker, and others.
In general, merchants like that BlueVine’s services solve cash flow problems. Waiting around for your clients to pay can be hard on your cash flow and, as a result, on your business. Having the option of getting an advance on your invoices, even if it costs a bit of money, offers significant help and peace of mind. Likewise, the funder’s lines of credit can be used any time you have the need for extra cash, whatever the purpose may be.
Additionally, customers like the:
- Prompt customer service
- Transparent advertising
- Easy application process
- Fast time to funding
Interested in contributing to the conversation? Leave a message with your thoughts in the comments!
If your business struggles with cash flow, BlueVine’s invoice factoring, line of credit, or term loan might be the perfect solution.
Although BlueVine is not the only — or the first — business funder to offer invoice factoring without long-term contracts, monthly minimums, and extra fees, BlueVine is one of the most accessible invoice factors available. If you are interested in factoring a lot of invoices, you may be able to find better rates elsewhere; however, BlueVine’s invoice factoring service is a good choice for B2B businesses looking for casual, hassle-free factoring.
Likewise, while this funder’s line of credit and terms loans are not the only — or the cheapest — products on the market, BlueVine’s borrower qualifications are some of the lowest we’ve come across, which means that your business might qualify for a line of credit or loan from BlueVine if it doesn’t qualify elsewhere.
To learn more about how we score our reviews, see our Business Loan Rating Criteria.