BlueVine Review

BlueVine, an online lending platform, was launched in 2013. It provides invoice factoring, which is a type of company financing in which outstanding invoices are sold at a discount to B2B (business to business) companies. In addition, it also offers typical lines of credit if the business does not process invoices.

BlueVine: Overview

BlueVine, an online lending platform, was launched in 2013 when the founder’s father, a physical therapist, struggled with inconsistency in cash flow due to insurance companies’ late payouts. It provides invoice factoring, which is a type of company financing in which outstanding invoices are sold at a discount to B2B (business to business) companies. In addition, it also offers typical lines of credit if the business does not process invoices.

Services Provided by BlueVine

  • Invoice Factoring:

    It purchases your unpaid bills and pays a lump sum amount, providing you funds to make use of rather than waiting for the reimbursement of the invoices. The credit score of a corporation determines the rates and terms.
  • Lines Of Credit:

    These are the same as credit cards in which you'll have a specific credit amount that you can use, and you only start paying interest on the amount owed when you withdraw from the line of credit to get cash. BlueVine offers a renewable line of credit, which means that your credit gets replenished once you’ve made a payment. The credit lines are available with a six-month or 12-month repayment schedule.

Pros

  • Financing is accessible to entrepreneurs and newly-started businesses.
  • The application is quick and simple to use.
  • The funds get disbursed immediately.

Cons

  • In some states, financing is not accessible.
  • Rates might be quite high.
  • Must make repayments as soon as possible.
  • Inconsistent customer service

BlueVine

BlueVine has an A+ rating from the Better Business Bureau

Requirements of BlueVine Borrower

The requirements for BlueVine borrowers differ depending on the product. These borrowers' criteria aren't comprehensive. When you apply with BlueVine, the lender considers much more than the information listed below when determining your eligibility for funding.

Invoice Factoring

B2B (business to business) and B2G (business to government) companies can benefit from invoice factoring. To be eligible, you must have eligible outstanding invoices and meet the following criteria:
Business Income $10,000/Month
Score 530
Time In Business 3 Months

 

You must be based in the United States. Factoring for invoices is accessible in all 50 states.

Line Of Credit

The lines of credit given by BlueVine have repayment lengths of 6 or 12 months. Your
business must meet the following requirements for qualifying for the Line of Credit.

Business Income$120,000/Year
Credit Score300
Time In Business6 Months

 

BlueVine lines of credit are not available in North Dakota and South Dakota now.

Except for financial services and organizations, most sectors can use this product.

 

BlueVine Interest Rates & Fees

Invoice Factoring

The Statistics for BlueVine’s Invoice Factoring Services are:
Size of Credit Facility $20,000-$5 Million
Discount Rate Between 0.25% and 1.7% weekly
Advance Rate 85%-90%
Additional Charges Wire transfer fee of $15 (ACH no-charge transfers)
Maximum Overdue Account 13 weeks (91 days)
Minimums in a Month No
Length of Contract N/A
Recourse Or Non-Recourse Recourse
All Invoices Factoring No
Non-Notification or Notification Both

How Does BlueVine’s Invoice Factoring Work?

When you are authorized to carry out your business with BlueVine, the company will open a lockbox bank account in your name that only the company has access to.

To cash an invoice, it must meet the following requirements:

  • Your consumer accepted the product or service when it was accepted, finished, and delivered.
  • The customer is from Canada or the United States.
  • The customer is a company (not a consumer)
  • The invoice’s face value exceeds $500.
  • The payment period is not as long as 13 weeks (91 days)
  • It’s at least a week till the deadline.

BlueVine will advance you up to 85%-90% of the invoice amount when you make a money request. Then, when your customer settles the invoice, you’ll collect the remaining 10% -15%, less any accrued fees, as a reserve.

Line of Credit

BlueVine includes two credit lines: one with a six-month draw period and the other with a 12-month draw term. Most businesses will not get eligible for lines of credit with 12-month draw durations since the longer-term length makes them riskier.

The fees and rates for both products are:

Credit Facility Size

$5,000-$250,000

Rate of Interest

0.3%-1.5% per week (6-month terms)

1.5%-6.5% per month (12-month terms)

Term Length

6 or 12 months

APR Range

15%-78%

Personal Guarantee

Yes

Draw Fee

1.6%-2.5% per draw

 

BlueVine’s credit lines are now capped at $250,000. However, the amount you can borrow will be determined by the strength of your company.

When you borrow funds from your credit line, you will be charged a draw fee that starts at 1.6 percent. BlueVine does not impose any additional fees.

Process of Application

BlueVine’s services are straightforward to apply for:

  1. Open an account on the website

  2. Answer some important questions about yourself and your company.

  3. You’ll also need to submit the last three months’ bank statements or grant read-only access to your account.

  4. After you provide your phone number, a BlueVine representative will call you to assist you through the process and answer any questions you may have.

BlueVine

Apply Now

Transparency in Sales and Advertising

BlueVine has a decent amount of transparency. Customer service is open and able to answer questions. Check the FAQ section for more details.

Technical Support & Customer Service

Customer service is accessible from 8 a.m. to 8 p.m., Monday through Friday. You may also use the contact page to send an email to BlueVine. In addition, the company has Twitter and Facebook accounts for less formal communication.

BlueVine Reviews, Complaints, & Testimonials

Other complaints and critiques include:

  • Communication Issues
  • Expensive Fee
  • Denials

Testimonials and Positive Reviews

BlueVine’s reputation has remained high on TrustPilot, with over 6,500 reviews and an average of 4.5 stars out of 5.

Customers also enjoy the following:

  • Quick funding turnaround
  • Simple Application Process
  • Transparency in Advertising
  • Responsive Customer Service

Final Verdict

BlueVine appears to have had an extremely difficult 2020 and 2021. The previous year has left a dent in the company’s generally good reputation. On the other hand, it continues to be one of the most comprehensible invoice factors available. You may be able to find better rates elsewhere if you are interested in factoring a large number of invoices. Nonetheless, BlueVine’s invoice factoring service is a suitable alternative for B2B enterprises looking for informal, hassle-free factoring.
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