BlueVine is an online lender that offers invoice factoring and lines of credit to small businesses in the U.S. and Canada. Businesses as young as 3 months old may be eligible for BlueVine’s invoice factoring, making it a good choice for newer businesses. If you cannot qualify for funds from a bank or credit union or if you have unpaid invoices, BlueVine is a good alternative for getting funds quickly.
- Review: Should You Apply?
- BlueVine Invoice Factoring and Lines of Credit
- Application Process
- How Does BlueVine Compare to Other Online Lenders?
BlueVine products are good for new businesses with poor to average credit scores that need funds quickly or that have unpaid invoices. BlueVine offers two products: invoice factoring advances for invoices as low as $500 with a maximum credit line of $500,000 and business lines of credit up to $100,000.
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To qualify for invoice factoring from BlueVine, businesses must be 3 months old with a monthly revenue of $10,000 and borrowers need to have a minimum credit score of 530. BlueVine’s invoice factoring is intended for businesses with invoices that are due within 12 weeks. For a line of credit, small businesses need a minimum of six months in business with $5,000 in monthly revenue in the past three months. Minimum credit scores for lines of credit depend on a business’s annual revenue. Borrowers with businesses earning $200,000 or more annually only need a credit score of 600 while borrowers with businesses earning between $60,000 and $200,000 must have a credit score of 650. Lines of credit also require an average monthly bank account balance of $1,000.
For invoice factoring, repayments are dependent on and made through the business’s customers. If your customers fail to pay their invoices within a two week grace period of the due date, your business has to pay a late fee between 2% to 3% of the amount due and an additional 0.2% to 0.3% for every late day. If the customer fails to pay entirely, the business is responsible for covering the advance. For lines of credit, BlueVine requires either fixed weekly payments.
When you connect your BlueVine account to your accounting software, such as Intuit QuickBooks, BlueVine may be able to offer higher lines of credit based on this data. BlueVine will also have direct access to your customers’ invoices, which allows for quicker funding, though you can also choose to recreate invoices within your BlueVine account without linking it to an online accounting service.
When you establish a positive history with BlueVine, you may be rewarded with a reduction in rates up to 60%. Borrowers can also save on interest costs by paying their outstanding balance early.
BlueVine does not offer invoice factoring for businesses in specific industries including healthcare providers, political campaigns and firearms. BlueVine does not offer lines of credit to any businesses in the aforementioned industries or in the agricultural industry. BlueVine invoice factoring advances are available in all U.S. states, and lines of credit are available in all states, except Kentucky, Nevada, New Hampshire, North Dakota, South Dakota, Tennessee and Vermont. Only LLC and corporations can qualify for a line of credit in New York and Nebraska, and only corporations can qualify for a line in Maryland and Washington, D.C.
If you own a newer business or have a lower credit score, BlueVine could be a good solution for your financing needs. Invoice factoring is a good option for businesses that have to wait a long time to receive payments for their customer invoices. Lines of credit may be better if you want to choose a specific amount as needed and you can afford to make weekly repayments. Both products have simple interest rates between 5% and 17% that roughly translate to APRs between 17% and 60%.
Most borrowers will receive 85% of the invoice upfront. Those with excellent credit scores above 750 may be able to receive 90% of an invoice upfront. Invoices must be due within 12 weeks and can be as low as $500, but you are allowed up to $500,000 as an overall outstanding balance. The remaining 15% of the invoice, minus a fee of about 1% per week, will be deposited into your account once your customers pay.
For example, if you have a credit score of 600 and you want an advance on a $1,000 invoice, you will receive 85% of this upfront ($850). If your customer repays this invoice in 4 weeks, you will receive the remaining 15% ($150) at that point minus the 1% fee per week ($1000 x 1% = $10 and $10 x 4 = $40), which is $110. The total you will receive on this invoice is therefore $960 ($850 + $110).
|How Do I Qualify for BlueVine Invoice Factoring?|
|Invoice Factoring Range||$20,000 - $2.5 million|
|APR Range||16.00% - 56.00%|
|Invoice Factoring Terms||12 weeks|
|Repayment Options||One-time payment at end of term|
This is a revolving line of credit, which means that when you repay your balance, your available line will increase. For example, if your weekly repayment is $300 and your fee is $20, your available credit will increase again by $280 once you make your payment.
|How Do I Qualify for a BlueVine Line of Credit?|
|Line Amount Range||$5,000 - $100,000|
|APR Range||18.00% - 62.00%|
|Line Terms||6 months|
|Repayment Options||Weekly payments|
The application is completely paperless and takes about five minutes to complete. You can check out the pricing tool on BlueVine’s website to determine fees for specific invoices before you apply. BlueVine will not conduct a hard pull on your credit report until after you accept the loan or line of credit offer. To apply, you’ll need a business address, tax ID, three months of bank statements and personal owner information. For the line of credit, you can sign up for BlueVine by connecting your Intuit QuickBooks account. You can also connect other accounting software such as Xero or FreshBooks. This step is not required, but it can speed up your application process or help you qualify for a higher line of credit.
Approval is based on credit score, social media metrics, business history and for invoice factoring, the creditworthiness of your business’s customers. You can get funds within 24 hours for either product, but there can be another 24 hour delay to assess a business’s new customer’s creditworthiness for invoice factoring.
BlueVine has unique lending solutions with many benefits, but you may be looking to borrow larger amounts from BlueVine’s competitors.
If you want the full amount of your invoice upfront and you can afford to make weekly payments, then Fundbox is a good option. Both BlueVine and Fundbox offer invoice financing solutions, though Fundbox will only give advances up to $100,000. Unlike BlueVine, Fundbox will give you 100% of your invoice upfront and requires twelve weekly payments plus a weekly fee between 0.5% and 0.8% (this translates to APRs of approximately 13% to 60%). Fundbox also requires businesses to use eligible accounting software, which includes QuickBooks Online and Desktop, FreshBooks, Xero and Clio. With Fundbox, your customers will continue to pay you regularly (as they do not buy the invoices), so there is no extra step to set up a new payment account for your customers.
Kabbage is another available option if your business is at least 1 year old and has lower revenue and you don't need more than $100,000. Kabbage also offers lines of credit (up to $150,000) and requires a lower minimum annual revenue of $50,000 for lines up to $100,000. Your business will need to be at least 1 year old for a line up to $100,000 and three years old with $500,000 in annual revenue for lines up to $150,000. You’ll need to connect at least one online financial service account to your Kabbage account. Kabbage also allows borrowers to make monthly rather than weekly repayments.
If you can meet the tougher requirements, OnDeck is a good option for a line of credit with a lower possible APR when compared to BlueVine. OnDeck offers a line of credit up to $100,000 for small business owners, but OnDeck does not provide invoice factoring services. OnDeck has stricter eligibility requirements for its lines of credit, requiring a business to be at least one year old with a gross annual revenue of $100,000. Like BlueVine, OnDeck requires a personal guarantee and weekly repayments over the course of six months. Borrowers with good credit scores may qualify for single digit APRs.