BlueVine is an online lender, which was established in 2013. The founder initiated the company after seeing the inconsistent cash flow of his father, who was a physical therapist, because of insurance companies delaying the payouts.
As a result, BlueVine provides different services, which are aimed at helping merchants to conquer cash flow difficulties.
Precisely, the company provides invoice factoring. A kind of business funding for B2B enterprises, where unpaid invoices get sold at a discount. Also, the company provides traditional lines of credit if you are not processing invoices.
However, since a good number of factoring companies features inconvenient termination clauses, confined contracts and high fees, the reputation of invoice factoring is mostly negative.
But, BlueVine has rectified and made the process easier. Unlike their traditional predecessors, modern invoice funding services are highly adaptable. Thus, decide which invoices to fund, and signing long-term contracts is not mandatory, as well as paying additional fees.
The fees of BlueVine might be somehow costly. But, the services of the company are excellent, irrespective of the possibility of high costs. Apart from being reliable, qualifying for financing is easier, and it’s the best choice for merchants who are experiencing cash flow problems.
- Lines of credit.
- Invoice factoring.
Qualifications for borrowing
Depending on the product, the borrower requirements of the company varies. But, the borrower requirements are minimal. An application with BlueVine is highly considered than the information provided below, to determine if you qualify for financing.
Nevertheless, you have higher chances of qualifying if you achieve the following requirements:
All B2B enterprises can access invoice factoring. However, for funding, your invoice should eligible and unpaid. Also, you should achieve these requirements:
- Time in Business: at least 3months
- Your Credit Score: at least 530
- Revenue made: at least $100,00 annually
Also, your business should be located in the US. In addition, your B2B invoices should be of clients who generates a minimum revenue of $10M per year. The service is available in the entire 50 states.
Lines of Credit for 6 months (Flex6)These are lines of credit that should be repaid within six months. Here are the requirements for accessing the product:
- Time in Business: at least 6 months
- Your Credit Score: at least 600
- Revenue generated: at least $120,000 annually
Presently, the service is not available in Vermont, Tennessee, South Dakota, North Dakota, New Hampshire, Nevada and Kentucky. Also, unless your enterprise is a corporation or LLC, you cannot access the product in Washington DC, Maryland, Nebraska and New York.
With exception of non-profits and financial services, the product is mostly offered to industries.
Lines of Credit for 12months (Flex12)
- Time in Business: at least 12 moths
- Your Credit Score: 620+, and/or 650+
- Revenue generated: $450,000+ AND/OR $900,000
These are repaid within 12 months. It is mandatory that your business be a Corporation or an LLC to gain access to Flex12. Thus, sole proprietors are disqualified.
If you generate a revenue of more than $900,000 and your credit score is over 650, BlueVine is highly adaptable. Also, the service is mostly for industries. Businesses and non-profit organizations are not eligible.
Rates and Fees
Traditional lines of credit and invoice factoring are provided by the company.
Here are the stats of invoice factoring:
- Size of Credit Facility: $20,000-$5,000,000
- Advance Rate: 85%-95%
- Discount Rate: 0.3-1% per week
- Max overdue account: 13 weeks
- Additional fees: $15 for wire transfers only
- Contract Length: N/A
- Monthly Minimums: No
- All Invoices Factored: No
- Recourse or Non-recourse: Recourse
- Notification or Non-notification: Both
BlueVine provides a max of $5,000,000 for invoice factoring. But, some factors determine the amount your eligible business gets.
How is the working of Invoice Factoring with BlueVine?
BlueVine creates you a lockbox bank account which they can access after approving to do business with you. Provide your clients with the recent payment information, which they can use to deposit their payments. Thus, prior to sending your pay, BlueVine deducts their share. But,
BlueVine sends you all the amount paid by your clients if you had not requested for an advance. Also, your clients cannot know about the advance money, because the account was opened with your names.
Nevertheless, on condition that you allow the company to send notification about your plans to your customers, you likely to get a higher line of credit from BlueVine.
According to some customers, the notification factoring shows a bad picture of their business, after the customers realizing an invoice factoring service is applied in their businesses.
But, the truth of the matter is that factoring is old and common to most customers, precisely developed customers are familiar with the plans, although the choice is yours.
Here are the requirements for redeeming an invoice for cash:
- Payment term less than 13 weeks.
- At least 1 week to deadline.
- Invoice value be more than $500.
- You client is a business.
- Your client should be in Canada or US.
- You delivered the service or product, and customer accepted it.
BlueVine advances you up to 85%-95% of your invoice, upon your money request. Once you customers have paid for the invoice, you get a reserve of 5%-15%, exclusive of accumulated fees.
Line of Credit
Flex6 and Flex12 are the two lines of credit provided by BlueVine. However, most businesses get disqualified for Flex12, because the term length is longer, hence riskier. The rates and fees of the two products include:
- Credit facility size: $6,000-$5,000,000
- Term Length: 6 or 12 months
- Interest Rate: Flex6:0.3-1.5% every week
- Flex12: 1.5-6.5% every week
- Draw fee: 1.6%-2.5% every draw
- APR: 15%- 78%
- Personal guarantee: Yes
The strength of your business determines the amount you can borrow. You can draw funds to your credit line whenever you want after approval. But, whenever you place a request of money from your credit line, you get charged a draw fee of between 1.6%-2.5%.
Repayments for both products can be done within 26weekly installments. But, you repay at an earlier time as you wish. When you repay earlier, you only repay the accumulated interest.
The process of application
To apply for any of the products, you just need to visit BlueVine’s website and create an account, followed by answering some basic questions regarding your business and yourself. Also, you will either give permission for read-only to your bank account, or submit bank statements for the last three months.
Although not necessary, you have the freedom of connecting your invoicing software to your account. Here are the invoice software’s used by BlueVine:
After providing your phone number, a representative from BlueVine will call you, to offer guide in the entire process.
Some factors determine your approval. Although your credit score gets considered, other factors like your customer’s creditworthiness, transaction volume, history of the business, and presence in social media get considered.
Your approval for the service takes approximately 24hours. You can immediately start drawing money from your credit line after approval. Basically, it takes one to three business days to transfer money. But, if it is selling your invoice to a customer who is not familiar with
BlueVine, there will be a 24hour delay, a time when BlueVine will be assessing the creditworthiness of your customer.
Clarity provided by BlueVine is outstanding. To explain the service in details, the company plays you a video. Also, their rates and fees are fully disclosed, as well as a payment calculator that is user-friendly on the pricing page.
From Monday to Saturday, you can reach the customer support team on phone. Alternatively, you can use their website contact page to email the staff. Additionally, you can use Facebook and Twitter. BlueVine’s customer support are friendly, responsive and helpful.
The track record of the company in regards to complaints is impressive, because they are very few. Better Business Bureau has accredited the company with an A+ rating. The company responds to complaints and offers solutions whenever possible, thus minimal negative reviews. The few complaints are caused by:
- Notification factoring: without accepting the notification service, some customers were denied large credit, which disappointed them.
- Costly fees: some customers expected BlueVine’s fees to low, which was not the case.
- Rejections: some customers had achieved all the requirements, but they were rejected without solid reasons.
- Rejected draws: there were rejections for draws requested from credit lines of some customers, which is determined by debts and revenues information.
BlueVine provides solutions to cash flow problems by financing invoices, which impresses most customers. Also, customers were impressed by:
- Swift funding time.
- An application process that is easier.
- Transparency in advertising.
- Instant customer service support.
Line of credit or invoice factoring is the ideal solution, if your business experiences cash flow issues. Compared to its competitors, BlueVine invoice factoring service is among the top most accessible in the US. BlueVine invoice factoring is suitable for B2B businesses, but not good for factoring many invoices compared to other funders.
In addition, line of credit of BlueVine is not the cheapest in the market, but their borrower qualifications are among the lowest, hence easier qualification for a line of credit.