BlueVine offers working capital financing to small and medium-size businesses looking for flexible funding options.
An interruption in cash flow due to a slow season or gaps between issuing invoices and receiving payment can bring your business to a standstill. BlueVine provides two funding solutions to address these common problems: invoice factoring and lines of credit. Whether you need a short-term infusion of cash to cover expenses until invoices are paid, or want peace of mind in knowing that you always have a funding reserve to draw on, BlueVine may have the solution.
With no application, lockbox, or maintenance fees and no prepayment penalties, BlueVine simplifies the funding process and makes it easier for businesses to access financing. The application process is quick, payments are automatic, and no long-term commitment is required. They handle the details of sending advances, collecting on invoices, and processing credit line payments, leaving you free to run your business without worrying about large monthly payouts or unexpectedly running out of funding.
Traditional loans don’t offer much in the way of flexibility. Although you can apply for funding to cover various business expenses, these loans are suited more for equipment purchases, acquisitions, or business expansion projects. Depending on your financial situation, your business may not be able to stay afloat during the long application and approval process.
Your application is reviewed and approved within 24 hours, and funding can often be accessed just a few hours later. Using their dashboard, you can monitor your account, draw funds, and make payments. The option to sync with your accounting software streamlines the process.
The amount of credit you get from BlueVine replenishes as you make payments, and you pay no fees during times when you haven’t drawn out any money. This flexibility means that you can always borrow as little or as much cash as you need and pay interest only on the amount borrowed.
Since BlueVine provides working capital rather than term loans, they ask for much less information than banks do from applicants. These lower requirements speed up the application process and make it easier to qualify even if your credit score prevents you from getting a bank loan.
Basic requirements are different for the two types of financing. They require credit line applicants to:
To apply for funding from invoice factoring, your business must:
Their “five minute” application asks for:
Applicants must also provide bank statements from the past three months or give BlueVine permission to view digital statements in your bank account on a “read only” basis.
As an alternative to banks and other institutions offering large loans with long-term commitments, BlueVine seeks to provide funding to companies looking for quick solutions to cash flow problems. Credit lines and invoice factoring are the only two financing options they offer, and specializing in these types of financing allows them to focus on fulfilling the everyday needs of typical small businesses. To make money management easier, their services can sync with popular accounting software, including QuickBooks, Xero, and FreshBooks.
The BlueVine credit line is called “Flex Credit,” a nod to the revolving structure of drawing and repaying funds. Flex Credit lines are typically approved for $5,000 to $150,000, but it’s possible to request a custom quote for a higher amount. Unlike with a merchant cash advance, your business doesn’t need to accept credit card payments to be eligible for Flex Credit. Using the credit line is straightforward:
No additional fees for maintenance are required, so if you haven’t borrowed any money, you don’t owe them any extra payments. Automatic weekly deductions from your bank account help prevent missed payments and can increase your credit score. As long as there’s enough money in your business account to cover your weekly obligation, you’ll never fall behind. And BlueVine now offers a 12-month business line of credit with monthly payments.
However, there are some restrictions to their credit lines. The company is unable to offer this type of financing in Kentucky, Nevada, New Hampshire, North Dakota, South Dakota, Tennessee, and Vermont. For businesses operating in these states, invoice factoring may be a feasible alternative.
If you choose invoice factoring, you can factor any invoices meeting BlueVine’s criteria:
You’re not obligated to disclose your use of invoice factoring to customers, although they may offer a larger amount of financing to companies agreeing to share this information. The company handles all payments from customers on factored invoices and offers same-day rebate distribution.
Applying for either type of financing takes only five minutes and requires basic personal and business information common to alternative lending applications. Approval usually occurs within 24 hours, and funds may be available the same day if you choose to pay the $15 fee for a wire transfer. Payment via ACH can arrive the next business day but may take up to three days.
To qualify for financing, you need a minimum credit score of 530 for invoice factoring or 600 for a line of credit. However, the company also looks at past business cash flows and the strength of your customer base when considering your application, so credit score isn’t always the deciding factor.
Term lengths and rates aren’t given on the BlueVine website, but Merchant Maverick offers details for both types of financing. According to their review of the service, invoice factoring has a maximum term length of 12 weeks with 0.3 to 1 percent interest paid per week, working out to an approximate APR of 15 to 60 percent. Credit lines have a 26-week term with 0.35 to 1.2 percent interest per week for an APR of 21 to 65 percent. The short terms make overall interest rates higher than those of traditional loans, but you’re not stuck with a long-term commitment to a financial institution, nor do you have to worry about running out of money with payments still hanging over your head.
Payment on the money drawn from a credit line occurs automatically from your bank account every week. For invoice factoring, customer payments are handled through your BlueVine account rather than your regular business bank account. BlueVine facilitates the payment process and takes their fee when the invoice is paid. However, if a customer fails to pay an invoice, you’re responsible for repaying whatever funds they have advanced to you as part of the financing agreement.
A GeoTrust certificate offers security for the entire website, and the company uses SSL encryption to protect any personal information you submit. Sensitive data is stored in secure databases. Information is only accessed and shared as necessary to provide services. Financial transactions are protected by the companies BlueVine works with when handling advances and payments.
The FAQ page covers most general questions about credit lines and invoice factoring, including which types of invoices are eligible, the minimum and maximum amount of credit a company can request, and how payments are handled. However, some information isn’t readily available, and you may have to contact them for more details to determine which financing option is right for you.
Their financial advisors can be reached from 7:00 a.m. to 4:30 p.m. PST Monday through Friday. Phone support is available whether you’re considering applying for financing or you’re already using one of their services.
BlueVine provides fast financing solutions for small businesses in need of working capital. With flexible credit lines ranging from $5,000 to $2.5 million and simple invoice factoring options, the company can serve as a viable alternative to traditional lenders.
A simple application and 24-hour approval allows businesses to obtain funding when and how it’s needed and bypass the lengthy and complex process required by most bank loans. Fewer fees, short terms, and automatic payment options make BlueVine an accessible choice for many small businesses.
BlueVine was founded in 2013 with the goal of helping small businesses avoid cash flow problems. Founder Eyal Lifshitz left his job as a venture capitalist to establish the company and provide businesses with alternatives to more complicated funding processes. Their goal is to “serve small business owners with speed, simplicity, and transparency,” offering solutions to short-term financial problems through flexible working capital loans.
Backed by a combination of venture capital firms and investors, BlueVine holds an A+ BBB rating and is staffed by a team of knowledgeable executives and financial advisors. The company prides itself on providing fast funding and accessible services to help small businesses meet daily financial needs.
BlueVine Capital, Inc.
401 Warren St. Fl. Suite 300
Redwood City, CA 94063-1578
Online live chat and contact forms are also available.