BlueVine is an online business loan provider that gives small businesses an easy way to leverage loans on unpaid invoices. This frees funds that can be used to increase inventory, cover payroll costs or invest in marketing. The company is based in Palo Alto, California and was founded in 2013 by Eyal Lifshitz and Nir Klar. It has an A rating with the BBB and is backed by important venture capital investors, such as 83North, Lightspeed Venture Parteners, Correlation Ventures and Kima Ventures.
BlueVine gives eligible businesses 85% of an invoice amount upfront and the balance, after fees, when the client finally pays. Unlike similar online business lenders, BlueVine does not charge monthly or weekly payments, the fees are discounted from the invoice when customers pay. Businesses must open an online account and give BlueVine access to general business information, online access to business' bank account and the personal guarantee of the business owner or owners.
BlueVine charges advance payment fees instead of traditional interest rates. The fees vary depending on the credit history of the business, the size of the line of credit and the businesses' characteristics. The standard rate is 1% per week with a minimum term of 3 weeks. The APR for BlueVine lines of credit ranges from 28% to 60%. These rates are very competitive when compared to industry competitors, such as Fundbox, OnDeck and Kabbage.
BlueVine finances lines of credit ranging from $5,000 to $100,000. This is a total line of credit, not a range for individual invoices. As invoices are paid, available credit increases. Loan terms must range from 3 weeks to 12 weeks. To illustrate a $10,000 pending invoice amount, could leverage a $8,500 advance payment and a $300 rebate when the client pays the debt. Total fees would amount to $1,200.
BlueVine operates in all 50 states.
Borrowers must open an online account with BlueVine, which takes less than two minutes. Once the registration is completed, you can select invoices for early payment. Approvals are fast, and funding requests can often be financed in as little as an hour.
Eligibility is determined by the borrower's business cash flow, default risk of debtors and the business' (and owner's) credit history. Candidates must have a credit score of 530 or more to apply. Only US-based companies that sell products or services to other businesses qualify. BlueVine excludes purely retail businesses, and any company in the medical and health care sectors. On the other hand there are no minimum years in business or a minimum volume of sales required to qualify.
BlueVine differentiates itself from similar online business lenders by not requiring weekly or monthly payments. Borrowers receive a lump sum which is repaid once the business debtor pays. Fees are competitively low and borrowers can qualify for 20% to 30% discounts on fees once they build a positive payment history with BlueVine. A big advantage of BlueVine over other competitors in the sector is that it doesn't require companies to have a set number of years in business or a minimum volume of sales and its minimum credit score is just 530: lower than what most business lenders require.
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