BlueVine Lending Review for 2020

Overview

BlueVine is an online lender that offers business loans, lines of credit, and invoice factoring for small business owners. The company was founded in 2013, and offers a fast, fully digitized application and underwriting process, providing approvals in as little as 24 hours.

Pros
  • Fast access to short-term funding
  • Simple, streamlined application process
  • Multiple financing options to meet different business needs
  • Easier to qualify for than bank or SBA loans
  • Financing solutions available for startups and business owners with lower credit scores
Cons
  • Interest rates can be expensive
  • Short repayment terms
  • Line of credit has a draw fee
  • Personal guarantee required

BlueVine Business Loans

BlueVine caters to a wide variety of funding needs with the three different types of business financing they offer—invoice factoring, lines of credit, and short term loans.

BlueVine Invoice Factoring

BlueVine’s invoice factoring is best for B2B businesses that need to stabilize their cash flow. It’s ideal for businesses that are frequently waiting longer than one week for customers to pay their invoices—but whose customers are still reliable with repayments.

  • Factoring lines up to

    $5 million

  • Factoring terms

    1 to 13 weeks

  • Interest rates

    Starting at 0.25% per week

Qualifications for BlueVine Invoice Factoring

  • Time in business

    3+ months

  • Annual revenue

    $120,000

  • Credit score

    530+

BlueVine Line of Credit

BlueVine’s business line of credit is best for business owners who need to cover short-term working capital needs, as well as those who want a safety net to rely on in case of an emergency. With a BlueVine line of credit, you can draw capital from your account as needed and only pay interest on the funds you borrow.

  • Max credit line

    $5,000 to $250,000

  • Line of credit terms

    6 or 12 months

  • Interest rates

    Starting at 4.8%

Qualifications for a BlueVine Line of Credit

  • Time in business

    3+ years

  • Annual revenue

    $480,000

  • Credit score

    650+

BlueVine Term Loan

BlueVine’s term loan is best for business owners who need quick access to short-term financing—with no origination or other fees. In particular, BlueVine’s short-term loans are great for newer businesses and those who don’t qualify for traditional bank loans.

As of November 2020, however, BlueVine’s term loan product is currently on pause. This review includes details about the BlueVine term loan prior to that pause—if and when BlueVine begins offering their term loan again, this review will be updated to reflect any new changes or information.

  • Max loan amount

    $5,000 to $250,000

  • Loan terms

    6 or 12 months

  • Interest rates

    Starting at 4.8%

Qualifications for a BlueVine Term Loan

  • Time in business

    6+ months

  • Annual revenue

    $120,000

  • Credit score

    600+

BlueVine Borrower Eligibility

Your ability to qualify for financing from BlueVine will ultimately vary based on which of their products you’re applying for. That said, here are some additional eligibility criteria to keep in mind:

Restricted Industries

Regardless of the product, BlueVine does not work with businesses in the following industries:

  • Gambling
  • Adult entertainment or paraphernalia
  • Political campaigns
  • Legal and illegal substances (e.g. marijuana)
  • Firearms and paraphernalia
  • Lenders and financial institutions
  • Donation-based nonprofits
  • Auto dealerships

Financial History

  • BlueVine does not require a minimum average bank balance.
  • BlueVine can approve customers with a declared personal bankruptcy after one year has passed since discharge.
  • BlueVine can approve businesses with tax liens, as long as the business can provide proof of a repayment plan. A tax lien will impact a borrower’s eligibility for larger amounts of funding.
  • BlueVine can refinance up to 100% of a borrower’s existing debt.

Invoice Factoring

For businesses applying for invoice factoring, you must also meet the following requirements:

  • Must be a B2B business (no B2C businesses)
  • Must be located in the U.S. or Canada
  • Must have already provided the product or service to their customer
  • Cannot have past-due outstanding invoices
  • Invoices must be due in one week or more

Location

Finally, for BlueVine lines of credit and term loans, they cannot work with businesses located in North or South Dakota. The term loan product is also not available for businesses in Vermont.

Of course, on top of the annual revenue, time in business, credit score, and all of the business loan requirements listed above, BlueVine will evaluate your application as a whole to determine if you qualify for financing.

What You Need to Apply

  • Three months of business bank statements or a read-only connection to your business bank account
  • General information about your business (business address, phone number, business DBA, and tax ID number)
  • Personal information about the business owner applying (phone number, email, personal address, social security number, date of birth, ownership percentage)
  • Copy of invoices or read-only connection to your invoicing or accounting software (for invoice factoring)
  • Applicant must be an owner or officer of the company

How to Get a Loan With BlueVine

If you think one of BlueVine’s financing products might be right for you, here’s everything you need to know about their application and underwriting process.

Application and Underwriting Process

You’ll begin the BlueVine application process by filling out an online application and providing some basic information about yourself and your business. At this point, BlueVine will do a soft credit pull of your personal credit score and look at your business’s age and revenue. 

If you’re applying for invoice factoring, you’ll also have the option to link your accounting or invoicing software, such as QuickBooks. If you choose not to, you can manually input your invoice information.

For invoice factoring applicants, BlueVine will also consider the quality of your customers during the underwriting process. In addition, BlueVine will also want to see that the outstanding invoice is more than $500 with a due date at least one week—but less than 13 weeks—away.

If you pass underwriting, BlueVine will approve you for a set credit limit. Initial approval takes about one business day. If you decide to accept BlueVine’s offer, you’ll enter the closing process and sign final documents. On average, BlueVine’s time to fund is two to seven business days.

At this point, if your business is organized as a sole proprietorship or general partnership, BlueVine will do a hard credit pull when you accept their offer. They do not perform a hard credit pull at any point in their process for businesses organized as LLCs or corporations.

Additionally, they will not perform a hard pull if they don’t present an offer of if you choose not to accept. With that in mind, it’s also important to note that BlueVine will file a blanket UCC lien on your business assets after they close on your loan.

Moreover, in most cases, BlueVine will require an officer of the business to sign a personal guarantee, but this can be waived for large funding lines. This is decided on a case-by-case basis.

That said, once you’ve accepted the offer, you can immediately start drawing funds from your credit/ factoring line or access funds from your loan. The funds should take just a few hours to reach your bank account if you pay $15 for a wire transfer. ACH transfers are free and usually take one business day, but can take up to three days.

Post-Funding Process

After BlueVine approves you for funding, they’ll give you access to an online dashboard where you can get monthly statements, see a history of your account usage, and review your repayment progress. 

If you’re factoring invoices, you can also request advances for as many invoices as you like—within your approved credit line—on your online dashboard. When BlueVine approves your requests, they’ll advance you up to 90% of your invoice’s value, hold the remaining 10%, and charge a 0.25% to 1.7% fee each week your invoices go unpaid. 

On or before the invoice due date, your customer will pay the amount due to your BlueVine account—instead of sending it to your business address or bank account. As long as your customer pays the invoice on time, there’s no repayment requirement on your end. You’ll receive the 10% held in reserve—minus BlueVine’s fees—once your customers pays.

Unlike other invoice factoring companies, BlueVine does not notify your customers that you are receiving advances for their outstanding invoices—this way the relationship between you and your customer remains the same. That said, BlueVine could offer you a larger credit line contingent upon notification of assignment being sent to your customers.

In the event your customer doesn’t end up paying the invoice, you are responsible for settling the balance with BlueVine by either directly paying the invoice yourself or enrolling in BlueVine’s repayment installment plan.

Repayment Process

Repayment is simpler for BlueVine’s line of credit and term loan products. For their line of credit, you’ll pay your balance back over 26 weekly payments (automatically debited from your bank account) if you have a six-month term. Otherwise, you’ll repay over 12 monthly payments if you have a 12-month term.

You can make as many draws (in an amount of $500 or more) as you need up to your overall credit limit. Just be mindful that you’ll pay a 1.6% to 2.5% fee for each draw. As you repay what you’ve drawn, the principal portion of your repayment is added back to your available credit line—this is a revolving line of credit.

As an example, if your weekly payment is $100 and your fees that week are $10, your available credit will go back up to $90 when you repay. 

That said, term loan payments are automatically debited at a fixed weekly rate from your bank account over 26 or 52 weeks, depending on the term of the loan.

With all of this in mind, BlueVine does report payment activity on their products to the credit bureau Experian, so you can build business credit using your BlueVine financing.

BlueVine Customer Service

BlueVine customer service is available by phone and email.

You can call customer support representatives at (888) 216-9619 on Monday through Friday from 8 a.m to 8 p.m. ET and Saturday from 12 p.m. to 4 p.m. ET.

You also email support using the contact form here or send a message directly to support@bluevine.com.

BlueVine Customer Reviews

What do online reviewers have to say about their experience with BlueVine?

Positive BlueVine reviews from customers tend to focus on the speed and accessibility with which they fund small businesses. Customers highlight the simple application, minimal paperwork, and fast access to funds.

In addition, many reviewers also mention how helpful the BlueVine customer service representatives are, as well as how easy they are to work with—especially in comparison to traditional brick-and-mortar banks.

Overall, many BlueVine reviews call this lender out as one of the easiest companies to work with in the industry.

On the other side of things, however, negative BlueVine reviews from customers often focus on the lender’s tendency to deny requests to draw from lines of credit. Every time a customer requests to draw from their BlueVine line of credit, BlueVine will review their file, and if they discover new debt, then they could very well deny the customer’s request to withdraw funds.

It can be frustrating to secure a business line of credit, only to be denied access to it later on, and BlueVine reviews from customers who’ve experienced this certainly exhibit this frustration.

That said, some other reviewers report issues with application denials and accessing customer service.

In general, however, BlueVine is well-reviewed across the internet—with an A+ Better Business Bureau rating and 4.3 stars on Trustpilot—and their customer service team often responds and works with customers who report issues with their experience.

Top Alternatives to BlueVine

BlueVine Lending

Fundera's Score

5
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Kabbage

OnDeck

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Fundera Score

5

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5

Fundera Score

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Products Offered

Line of Credit

Products Offered

Term loan; line of credit

Products Offered

Invoice financing; lines of credit

Products Offered

Working capital loans

Interest rates

1.5% to 10% per month

Interest rates

Starting at 35.1%; 31%

Interest rates

Starting at 4.66% per week

Interest rates

Factor rates as low as 1.15

Minimum credit score required

No minimum

Minimum credit score required

600

Minimum credit score required

500

Minimum credit score required

500
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Frequently Asked Questions

Is BlueVine in Fundera's Network?

BlueVine is in Fundera’s Lender Network. The Fundera team has carefully vetted BlueVine and determined that their offering is one of the best in their product category. When working with BlueVine, you can be sure you’re getting transparent, fair pricing on a best-in-class product.

Senior Staff Writer at Fundera

Randa Kriss

Randa Kriss is a senior staff writer at Fundera.

At Fundera, Randa specializes in reviewing small business products, software, and services. Randa has written hundreds of reviews across a wide swath of business topics including ecommerce, merchant services, accounting, credit cards, bank accounts, loan products, and payroll and human resources solutions. 

Read Full Author Bio