BlueVine Small Business Loan Review
What Is BlueVine?
BlueVine provides lines of credit and invoice factoring services to small and new businesses, and business owners with low personal credit scores. Their invoice factoring services allow company owners to get access advances of up to $5 million, while the company offers lines of credit up to $250,000.
How Does BlueVine Work?
BlueVine’s invoice factoring customers can use their unpaid invoices as collateral to receive immediate cash advances that should be repaid within one to 13 weeks. The borrower receives between 85% and 95% of the invoices, and the rest is disbursed, minus the fees, once the invoices are repaid. Alternatively, a Blue Vine business line of credit allows business owners to only borrow what they need as they need it.
BlueVine might be a good fit if:
BlueVine might be the right fit for you if you need quick cash for your business, have customers who don’t make timely payments, or you’re having trouble getting approved with other lenders.
Line Of Credit
|Loan Amounts||$5,000 to $250,000|
|APR Range||15% to 78%|
|Repayment Terms||6 or 12 months|
|Time to Funding||As fast as 24 hours|
|Click “Check Rates” to apply to Blue Vine|
|Loan Amounts||$20,000 to $5 million|
|APR Range||15% to 68%|
|Repayment Terms||Up to 13 weeks|
|Time to Funding||N/A|
|Click “Check Rates” to apply to Blue Vine|
Interest rates: BlueVine’s annual percentage rates for their lines of credit start at 15% and go up to 78%, while their invoice factoring rates range between 15% and 68%.
Invoice Factoring: Repayment terms for BlueVine’s invoice factoring services range between one and 13 weeks, with amounts starting at $20,000 with a maximum of $5 million.
Line of Credit: BlueVine’s lines of credit come with repayment terms ranging between six and 12 months, with amounts starting at $5,000 with a maximum of $250,000.
How To Qualify For BlueVine: To qualify for BlueVine invoice factoring, your business should have an annual revenue above $100,000 and at least three months of in business. You should also have a personal credit score of at least 530.
To qualify for a line of credit with them, your business should have an annual revenue of at least $120,000 an at least six months in business. Your personal credit score should also be above 600.
Loan Example: If you take out a line of credit worth $120,000, with an APR of 35% and a repayment term of seven months, your minimum monthly payment will be $19,200.32.
BlueVine Pros and Cons
Fast Cash: Whether you need the funding for an unexpected emergency, overdue utility payments or last-minute expenses, BlueVine can help you get the cash you need for your business within as little as one business day. After you submit an easy, online application, the lender will give you a decision on a line of credit within 12 hours, or a decision on an invoice factoring request within minutes. Funds are also typically disbursed within 24 hours.
Bad Credit Ok: With a minimum credit score requirement of 530 for invoice factoring and 600 for a line of credit, BlueVine is one of the easiest business lenders to get approved with for borrowers with low personal credit scores.
When considering your application, BlueVine puts an emphasis on your annual revenue and, in the case of an invoice factoring, the financial qualifications of your customer base.
This company’s minimum average time in business is also low compared to its industry competitors. Whereas most companies require at least one to two years in business to qualify for large business loans, BlueVine requires just three months for its invoice factoring product and six months for a line of credit.
If your customers don’t pay you: BlueVine invoice factoring allows borrowers to get advances on unpaid invoices. However, this means that a borrower should have financially reliable customers who make timely payments and have good credit. The company offers a two week grace period for overdue invoice payments. However, after two weeks, you’ll be required to pay the entire invoice with with a late fee of 3%. Depending on your financial situation, BlueVine could be willing to waive it.
What You Need To Apply:
You’ll need to have a few documents handy before applying for a BlueVine line of credit or invoice factoring:
- General information about the business, including the company’s Tax ID Number, business DBA, telephone number and address
- Personal information about the applicant including ownership percentage, telephone number, social security number, personal address, email and birth date.
- Accounts receivable aging for invoice factoring
- Three months of business bank statements
BlueVine’s Invoice Factoring Vs. Line of Credit – How Do They Differ?
While BlueVine’s line of credit holds a maximum amount of $250,000, borrowers can get up to $5 million advanced with this company’s invoice factoring service. Repayment terms for invoice factoring are typically much shorter than with a line of credit, with terms starting at just one week and ranging up to 13 weeks, while a line of credit comes with a loan term between six and 12 months.
With invoice factoring, you’re immediately paid for invoices due within one to 13 weeks. The company advances 85% to 95% of your unpaid invoices to you on the first day, and sends the rest, minus the fees, once the customer pays you. A line of credit is not dependent on how quickly your customer repays you, but rather on your ability to make timely payments.
How Does BlueVine Compare?
Kabbage has a lower minimum annual revenue requirement, at just $50,000 per year. However, they require at least 12 months in business. Kabbage also has a lower invoice factoring ceiling amount, with a maximum of just $250,000.
Fundbox’s minimum annual revenue is $50,000, and they require at least three months of invoicing history. This product has a ceiling of $100,000, and borrowers have access to 100% of the value of the invoices before they’ve been paid.
Compare all business loans
Even if you’re a new business or your personal credit is low, it’s still important to compare a variety of business loans to find the product that’s right for you. Although invoice factoring can be a lower cost way to get a large amount of quick cash, it can end up becoming more costly if you don’t have a reliable customer base. In some cases, a traditional business loan or line of credit may be a better choice if you’re not sure that your invoices will be repaid in time. Remember to take the time to look around and explore your various financing options.