BlueVine Invoice Factoring Review: Faster Cash, Greater Flexibility

BlueVine Invoice Factoring Review: Faster Cash, Greater Flexibility

BlueVine offers excellent short-term financing solutions for new business owners who process large orders but experience cash shortfalls due to delayed payments.
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Editor's Rating

4.0

Good for

  • Invoice factoring and short-term funding.
  • Businesses that process a large amount of receivables.
  • Newer businesses.

Bad for

  • Businesses in health insurance, financial services and nonprofit.
  • Businesses financing customers with delayed payments for extended periods of time.
  • B2C businesses.
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Advertiser Disclosure

Advertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products.

Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone. For a full list of our advertisers, see our disclosure page.

Opinions, analyses, reviews, or recommendations expressed here are the author’s alone, and have not been reviewed or endorsed by the issuer. We may be compensated through the issuer’s Affiliate Program. For a full list of our advertisers, see our disclosure page.

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 Review: Should You Apply?

BlueVine is best-suited for businesses that process large quantities of receivables but operate on tight budgets. New businesses that have trouble obtaining traditional financing may also be able to secure an invoice factoring loan with BlueVine, provided they process invoices from reliable customers with good credit. We review BlueVine's invoice factoring and line of credit product below based on details provided to us by the lender.

ProsCons
  • High loan limits.
  • Can pick which invoices to factor.
  • No account maintenance fees or minimum transaction requirements.
  • Line of credit requires draw fee.
  • Line of credit not available in VT, ND or SD.
  • Weekly or monthly repayment.

The Pros of BlueVine

BlueVine approves invoice factoring transactions for businesses that have been open for as little as three months. This makes funding attainable for new businesses that have trouble qualifying for other sources of financing. Invoice factoring companies like BlueVine are comfortable with poor-credit business owners because the repayment of invoices is dependent on the underlying customer payments rather than the business receiving the cash advance.

BlueVine customers can also pick which invoices they wish to sell. Many invoice-factoring companies require a business to provide all of their invoices within a set period of time or sell a minimum number of invoices per month to avoid penalties. By contrast, BlueVine customers are not subject to these requirements. Qualifying businesses have the flexibility to factor invoices at will or leave their accounts inactive without incurring any fees.

Additionally, most reserves are returned on the same day that outstanding invoices are paid, less fees. By comparison, many of BlueVine's competitors only pay back reserves on certain days of the month or at the end of an agreed-upon term. BlueVine's generous cash flow policies leave businesses with more control and quicker access to their funds. Business owners concerned about maintaining customer relationships will also be relieved to know that BlueVine does not notify customers of their invoice assignments, as long as their accounts remain in good standing.

Businesses who need a larger credit line may also be able to increase their credit limits by notifying customers of assignment or linking their invoicing or accounting software to their BlueVine accounts. BlueVine's stated loan limits are $250,000 for lines of credit and $5 million for invoice factoring.

Finally, BlueVine customers who open an account need not worry about any account maintenance, origination or unused credit line fees. BlueVine only charges interest on borrowed amounts, which is helpful for businesses that prefer to limit the use of credit. Prospective applicants should keep in mind that BlueVine charges a 1.6% to 2.5% draw fee on all line of credit withdrawals.

The Cons of BlueVine

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. This can add up to significant amounts if left unchecked, leaving your business at the mercy of its customers. Businesses that anticipate delays or trouble in payments from certain customers should avoid factoring those invoices to minimize transaction costs.

BlueVine only offers invoice factoring for companies serving business to business (B2B) and business to government (B2G) needs; invoice factoring applications depend primarily on the creditworthiness of your customers, so not all invoices will qualify.

Where Can You Get Financing With BlueVine?

BlueVine’s lines of credit are available for all businesses in qualifying industries, but they are not offered in the states listed below due to regulations.

Invoice factoringLines of credit
By region
  • All 50 states
  • Not available in ND, SD or VT
By industry
  • Not available for health insurance, financial services or nonprofits
  • Not available for B2C businesses
  • Not available to financial services or nonprofit sectors

BlueVine's lines of credit feature higher credit limits when compared with those offered by similar lenders. It permits credit lines up to $250,000 but charges interest rates that are greater than the industry average, with APRs between 15% and 78%. Business owners seeking lines of credit will also be subject to stricter credit reviews and must have credit scores of 650 and $450,000 in annual revenues if they wish to obtain monthly repayment cycles for 12 month periods. Otherwise, BlueVine's 6 month line of credit requires weekly repayment cycles.

Final Thoughts

BlueVine is a reputable invoice factoring company that offers flexibility and generous cash flow terms. This makes BlueVine an excellent choice for businesses of any size that process large amounts of orders with delayed payments. Newly opened businesses with unpaid invoices can also find relief through BlueVine's invoice factoring services. However, if you're a well-established business with solid credit, it may be cheaper to explore other forms of financing, including banks and SBA loans.

Eligibility Criteria

To qualify for BlueVine's invoice factoring and lines of credit, your business will need to meet the requirements below. Keep in mind that meeting these requirements does not necessarily qualify you for financing.

Invoice factoring requirementsLine of credit requirements
  • Minimum personal credit score: 530
  • Minimum annual revenue: $100,000
  • Minimum time in business: 3 months
  • Business must be based in the U.S.
  • Business must have B2B invoices with clients who process at least $10 million in annual revenue
  • Billing must be in arrears
6-Month Line of Credit:
  • Minimum personal credit score: 600
  • Minimum annual revenue: $120,000
  • Minimum time in business: 6 months
  • No more than three non-sufficient fund fees in the past two months
12-Month Line of Credit:
  • Minimum personal credit score: 650
  • Minimum annual revenue: $450,000
  • Minimum time in business: 2 years
  • Business must be LLC or corporation

BlueVine Rates and Terms

BlueVine offers both invoice factoring as well as business lines of credit. Invoice factoring is similar to a cash advance on your invoices, but the source of payment is dependent on your customers rather than your business cash account. The business line of credit is a standard revolving credit line that your business may draw on at will.

Invoice Factoring Features

BlueVine offers the following features for invoice factoring.

Financing Amount Range$20,000 - $5 million
APR Range15.00% - 68.00%
Fees
  • Weekly fee: 0.3-1.1%
  • Wire fee: $15
  • Late fee: 2-3% of amount due
  • No prepayment penalty
Financing TermsUp to 90 days
Repayment OptionsWeekly
Collateral RequiredNo
Personal Guarantee RequiredYes

BlueVine's business line of credit offerings are offered in two terms: six months, known as the Flex 6 which offers weekly repayments, and 12 months which is known as a Flex 12 and offers monthly repayments. Approval of the lines of credit will depend on your credit score and the financial condition of your business.

Line of Credit Features

BlueVine offers the following features for its lines of credit.

Loan Amount Range$5,000 - $250,000
APR Range15.00% - 78.00%
Fees
  • 6-month term:
    • Origination fee: 1% - 6%
    • Late payment fee: Greater of 5% of monthly past due or $15
    • NSF/returned payment fee: $15
    • Check processing fee: $7
    • No prepayment penalty
  • 12-month term
    • Annual fee: $50 (can be reduced or waived)
    • Late payment fee: Not provided
    • NSF/returned payment fee: Not provided
    • No check processing fee
    • No prepayment penalty
Repayment Options
  • 6-month: Weekly
  • 12-month: Monthly
Collateral RequiredNo
Personal Guarantee RequiredYes

BlueVine Application Process

The application is completely paperless and takes about five minutes to complete. You can apply by clicking the “apply now” button on the top right corner of BlueVine's home page. After providing some details about your requested financing, as well as some basic contact information, you will be brought to BlueVine's application page. Here you will be asked to provide more information, including business details, personal details, financials and account review information. To facilitate the process, we recommend that you have the following information ready:

  • Business contact information
  • Business tax ID number (or Social Security number)
  • Annual revenues
  • Type of business incorporation (corporation, LLC, etc.)
  • Types of businesses or entities that your business caters to (small businesses, governments, etc.)
  • Estimated payment terms of your business
  • Any existing financing arrangements your business has
  • Estimated monthly revenues of your largest customers
  • Connection to your business bank account (or three most recent monthly bank statements)

Alternatively, you can sign up for BlueVine by connecting your Intuit QuickBooks account. In the section labeled “financials,” BlueVine allows you to connect other accounting software such as Xero or FreshBooks. This step is not required, but it can speed up your application process and help you qualify for higher lines of credit. Finally, under the “account review” section, BlueVine will ask you to link your business bank account to help conclude your application. BlueVine will not conduct a hard pull on your credit report until after you accept the invoice factoring or line of credit offer.

Approval is based on credit score, 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 new customers’ creditworthiness for invoice factoring; subsequent customer approvals can take as little as one hour once you've successfully completed an invoice factoring agreement.

BlueVine reviews invoice funding

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.

Highlights (loan)

  • APR: 20.00% - 80.00%
  • Terms: 6 or 12 months
  • Amount: $2,000 - $150,000
  • 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.

Highlights (loan)

  • APR: 9.30% - 99.70%
  • Terms: 3 - 36 months
  • Amount: $5,000 - $500,000
  • 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%
  • Terms: 12 or 24 weeks
  • Amount: $100 - $100,000
  • Repayment: Weekly

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