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BlueVine specializes in invoice factoring, which allows business owners to sell their invoices in exchange for short-term cash advances of 80% to 90% of the invoices’ value. This practice of nontraditional financing speeds up cash flow, which can then be used to cover payroll, inventory or temporary cash shortfalls. BlueVine also offers lines of credit with no maintenance fees; these can serve as good sources of credit for borrowers who intend to draw on them sparingly.
BlueVine offers both a business line of credit and invoice factoring solution. Businesses that need flexible financing options should be pleased to see an online lender that offers relatively lenient requirements, fast application processing and multiple forms of small-business financing.
BlueVine is probably best known for its invoice factoring, which is where BlueVine buys an outstanding invoice from you at a discount. This helps ease any immediate cash flow gaps with invoices that typically take a long time to pay off.
|6-Month Business Line of Credit|
|12-Month Business Line of Credit|
BlueVine Capital: Worth Applying?
BlueVine has proven itself to be a great lender for businesses looking for fast and easy financing. Even compared to other online lenders, BlueVine strays closer to the more lenient side with its requirements. Also, borrowers have the advantage of choosing from either a business line of credit or invoice factoring.
Low Credit Scores: Business owners with low personal credit scores will quickly realize how difficult it is to qualify for a small-business loan or financing. Most lenders, especially banks, will prioritize a borrower's credit score when qualifying applicants. BlueVine is a highly recommended choice for those with low credit scores since it only requires that borrowers have a credit score of 600, which is low even when compared to other online lenders.
Need Invoice Factoring: Many small businesses struggle to collect due payments from outstanding invoices, and BlueVine's invoice factoring product helps alleviate those struggles. BlueVine will finance 85% to 95% of an invoice and then be paid the remaining sum of the invoice plus interest when the actual invoice is paid by the customer.
If you struggle with collecting invoice payments, we'd recommend comparing offers from multiple lenders who specialize in invoice financing like Fundbox.
Fast Funding: BlueVine, similar to other online lenders, can finance qualified borrowers within days. BlueVine can approve applications as fast as 24 hours and provide funding within a business day of approval. We'd highly recommend gathering all the necessary documents before starting the application.
BlueVine incurs a greater risk by keeping its requirements lenient, and that is reflected in the higher rates that it charges. Additionally, BlueVine doesn't offer as much flexibility as a traditional lender in its terms or types of products offered.
High Rates: BlueVine's rates can be as high as 78%, which is on the more expensive, even when compared to other online lenders. Rates will vary depending on the product you're trying to borrow, as well as your strength as an applicant.
Invoice Risk: BlueVine is a recourse invoice factoring company, which means that your business will be responsible for covering any outstanding balances if your customers fail to pay. The lender charges a 2% to 3% late fee after the expiration of a grace period, with an added 0.2% to 0.3% in penalties assessed each day afterward. Businesses that anticipate delays or trouble in payments from certain customers should avoid factoring those invoices to minimize transaction costs.
Constant Monitoring: Some users have reported that access to their already approved lines of credit was denied during their active terms. BlueVine monitors borrowers' financials even after approval, so if your business's financials change dramatically during your term, you may not be able to use your previously approved financing.
How Does BlueVine Compare to Other Online Lenders?
While BlueVine offers an easy cash flow solution, you may be looking for different options. Let’s take a look at some of its top competitors.
BlueVine vs. Kabbage
BlueVine and Kabbage's line of credit offerings are similar, but if you have a credit score under 600 or own a business that generates under $100,000 in annual revenue, you will not qualify for a line of credit with BlueVine. By contrast, Kabbage has no minimum credit score requirement for applicants seeking lines of credit and only requires annual revenues of $50,000+ to qualify for a $100,000 line of credit. Additionally, Kabbage features monthly repayments on all line of credit borrowings, a feature that is only offered under BlueVine's 12-month line of credit. However, borrowers should be aware that loans obtained through Kabbage may entail higher interest costs, as the lender uses "monthly rate fees" instead of interest rates, which largely negates the benefit of prepaying your loan.
- APR: 20.00% - 80.00%
- Amount: $2,000 - $250,000
- Terms: 6 or 12 months
- Repayment: Monthly
BlueVine vs. OnDeck
OnDeck's line of credit limit is capped at $100,000, which is half of BlueVine's limit. However, OnDeck offers line of credit APRs of 13.99% to 39.9%, which are more competitive than BlueVine's rates. OnDeck also offers term loans which are a better fit for large long-term borrowings. Repeat customers at OnDeck are rewarded with discounts on fees and interest rates if their accounts remain in good standing. If you're an established business that intends to take out multiple loans or want more traditional financing options, OnDeck may be a good fit for you.
- APR: 9.30% - 99.70%
- Amount: $5,000 - $500,000
- Terms: 3 - 36 months
- Repayment: Daily or weekly
BlueVine vs. Fundbox
Fundbox and BlueVine both offer similar loans and cater to the same types of customers. However, Fundbox offers invoice financing, which is different from invoice factoring. Both loan types are similar, but FundBox's invoice financing entails no direct sale of invoices to the lender and advances 100% of the invoice value. In comparison, invoice factoring through BlueVine results in a cash advance of only 80% to 90% of the invoice amount and requires businesses to set up separate payment accounts for each customer. Small businesses that require less than $100,000 in invoice credit, but want the full amount of their invoice paid upfront, may prefer FundBox.
Highlights (invoice financing)
- APR: 13.00% - 60.00%
- Amount: $100 - $100,000
- Terms: 12 or 24 weeks
- Repayment: Weekly