BlueVine: Is It Legitimate? (Lines of Credit & Factoring Review)

BlueVine Reviews: Overview

BlueVine, an online loan service, was launched in 2013 when the founder’s father, a physical therapist, struggled with inconsistency in cash flow due to the late payouts in insurance companies. As a result, it should come as no surprise that BlueVine provides services to assist businesses with cash flow issues which trigger the need for reviews.

For starters, BlueVine specializes in invoice factoring, which is a type of business financing for B2B (business to business) companies that involves the sale of unpaid invoices at a discount. BlueVine also offers standard lines of credit if you don’t process invoices.

But because some factoring companies charge excessive fees, have restrictive contracts, and have unpleasant termination clauses, invoice factoring has a bad reputation. Funders like BlueVine, on the other hand, have streamlined and simplified the process. These new invoice finance options are far more adaptable than their older counterparts. You will have more flexibility over which invoices you fund, and you will not be required to sign any long-term contracts or pay a slew of additional fees.

BlueVine’s fees might add up quickly, however despite the risk of excessive expenses, BlueVine provides wonderful and transparent services that are simple to qualify for, convenient, and valuable for merchants who are experiencing cash flow issues.

BlueVine Services

The following services are provided by blueVine:

• Invoice Factoring: BlueVine’s invoice factoring service purchases your unpaid bills and pays you a flat sum of cash, providing you cash to work with instead of waiting for invoice payments. The credit score of a corporation determines the rates and terms.
• Lines Of Credit: Lines of credit are similar to credit cards in that you have a specific amount of credit that you can use, and you only start paying interest on the amount borrowed when you draw from the line of credit to get cash. BlueVine offers a revolving line of credit, which means that once you’ve made a payment, your credit will be replenished. The credit lines are available with a six-month or 12-month repayment plan.

BlueVine Reviews: Borrower Requirements

The requirements for BlueVine borrowers differ depending on the product. Note that these borrowers’ criteria aren’t exhaustive; when you submit an application with BlueVine, the lender takes into account way more than the information listed below when determining if you’re eligible for funding. But then, you have a decent chance of qualifying if you match the standards listed below.

Invoice Factoring

B2B (business to business) and B2G (business to government) companies can benefit from invoice factoring. To be eligible, you must have eligible outstanding invoices and meet the following criteria:

You must also be based in the United States. Factoring for invoices is accessible in all 50 states.

Line Of Credit

The lines of credit given by BlueVine have repayment lengths of 6 or 12 months. To be eligible for a line of credit, your company must meet the following criteria:

North Dakota and South Dakota do not currently offer BlueVine credit lines. Plus except for financial services and organizations, this product is offered to most industries.

BlueVine Reviews: Interest Rates & Fees

Like we earlier mentioned, invoice factoring and standard lines of credit are both available through BlueVine.

Invoice Factoring

The following are some statistics about BlueVine’s invoice factoring service:

BlueVine provides invoice factoring credit facilities of up to $5 million, albeit the amount your company is eligible for will be determined by a number of factors.

How Does BlueVine’s Invoice Factoring Work?

When you are approved to do business with BlueVine, the company will open a lockbox bank account in your name that only the company has access to. You’ll educate your clients about the new payment information so that when they make a deposit, BlueVine can take a cut before sending the rest to you. If you don’t ask for an advance on a particular invoice, BlueVine will simply send you the entire amount when the client pays.

For the most part, the client will be unaware of the money advanced to you because the bank account is in your name. BlueVine, on the other hand, can offer you a higher line of credit if you agree to alert your clients about the arrangement. This process is known as notification factoring.

Some merchants, however, get anxious that if their customers find out they are using an invoice factoring service, it would reflect adversely on their business. Factoring is so old and prevalent that most clients, especially bigger ones, are accustomed to it. Whatever the case may be, the option is yours.

Read Also: Invoice Financing: Definition, Types, Pros & Cons

Meanwhile, to redeem an invoice for cash, it must meet the following requirements (as stated in the FAQ):

• Your client accepted the service or product when it was completed, delivered, and accepted.
• The customer is from the United States or Canada.
• The customer is a company (not a consumer)
• The invoice’s face value exceeds $500.
• The payment period is not as long as 13 weeks (91 days)
• It’s at least a week till the deadline.

When you make a money request, BlueVine will advance you up to 85%-90 percent of the invoice amount. When your customer settles the invoice, you’ll collect the remaining 10% -15%, less any fees that have accrued, as a reserve.

Consider the following scenario:

You pay off a $1,000 bill. BlueVine gives you an advance of $850. There is a $40 fee if your consumer pays you in four weeks. You’ll receive $110 from the reserve at the end of the procedure.

For invoice factoring, BlueVine does not charge application fees, maintenance fees, origination fees, or lockbox fees. There are no long-term contracts or cancellation fees with BlueVine.

Only two types of additional fees can be incurred: bank wire fees and late fees. The bank wire cost is $15, although free ACH transfers can be used instead. After a two-week grace period, late fees are charged. If you or your customers do not pay by then, you will be charged a cost of 2% to 3% of the outstanding balance, plus a daily recurring fee of 0.2 percent to 0.3 percent until the debt is cleared.

Line Of Credit

BlueVine offers two credit lines: one with a six-month draw term and the other with a 12-month draw term. Most businesses will not qualify for lines of credit with 12-month draw durations since the longer-term length makes them riskier. To find out which product you might be eligible for, look over the borrower qualifications listed above.

For both items, the following are the rates and fees:

BlueVine’s credit lines are now capped at $250,000, however the amount you can borrow will be determined by the strength of your company.

You can draw funds up to your available credit line at any moment once you’ve been approved. Furthermore, when you request funds from your credit line, be advised that there are draw costs starting at 1.6 percent. BlueVine does not impose any additional fees.

If you have a 6-month term, you will pay in 26 weekly installments; if you have a 12-month term, you will pay in 12 monthly installments. Regardless, you have the option to pay off the loan early at any moment. You’ll only have to pay back the interest that has collected up to that time if you do so. BlueVine does not impose a penalty for early payment.

BlueVine Reviews: Procedure for Submitting an Application

BlueVine’s services are straightforward to apply for: create an account on the website and answer some basic questions about yourself and your company. You’ll also need to supply the last three months’ worth of bank statements or grant read-only access to your account.

You can connect your accounting or invoicing software if you want, but it’s not essential. You’ll be able to make invoices right in BlueVine’s interface if you’re interested in invoice factoring but don’t utilize software that’s compatible with BlueVine. Currently, the firm collaborates with:

• QuickBooks
• Xero
• FreshBooks

After you provide your phone number, a BlueVine representative will call you to assist you through the process and answer any questions you may have.

However, approval is contingent on a number of conditions. BlueVine takes your credit score into account, but it also considers things like your social media presence, business history, transaction volume, and the creditworthiness of your consumers.

Your initial approval for a loan, line of credit, or invoice finance will take roughly 24 hours, according to the BlueVine website. You’ll get your loan in a few hours if you’re authorized, or you can start drawing on your credit line or selling invoices right away. Money transfers take one to three business days on average. Expect a 24-hour wait if you’re selling an invoice from a customer who isn’t familiar with BlueVine because BlueVine needs to assess your customer’s creditworthiness.

With BlueVine’s term loans, you might get your money in as little as a few hours by bank wiring. There is a $15 cost for this option. If not, an ACH transfer will be initiated, and your payments will be in your bank account within one to three business days

BlueViine Reviews: Transparency in Sales and Advertising

BlueVine has a decent amount of transparency. Although their most recent web redesign has made it a little more difficult to find information about their items, they’re still an excellent choice.

Similarly, customer service is open and willing to answer questions.

Technical Support & Customer Service

Monday through Friday, 8 a.m. to 8 p.m. ET, customer assistance is available by phone. You may also use the contact page to send an email to BlueVine. The company has Twitter and Facebook accounts for less formal communication.

The general impression (supported up by my own experiences) is that BlueVine representatives are extremely attentive, regardless of how you contact them. If you don’t want to talk to someone, BlueVine includes a FAQ for general inquiries before signing up, as well as one for consumers who have already used the lender’s services.

BlueVine Complaints, Reviews, and Testimonials

Below include reviews, complaints, and testimonials on the BlueVine platform.

Complaints & Negative Reviews

According to online sources, BlueVine has an A+ rating from the Better Business Bureau and has resolved 83 complaints in the last three years. The site’s complaints are mostly from 2019 and early 2020, with no information on any more recent complaints. BlueVine can also be found on the Intuit QuickBooks app store and Trustpilot, among other places.

But then, according to reviews, BlueVine is notable for being particularly aggressive in responding to bad reports and resolving complaints when possible, though they appear to have had problems resolving some of the most recent ones submitted to the BBB. Customer ratings on the site are still overwhelmingly good, with BlueVine receiving a 3.53 out of 5 star rating based on 131 reviews. Unfortunately, this is a drop from the 3.95/5 average score we discovered a few months back when we last updated.

When we looked into the most recent round of negative BlueVine reviews, we discovered that several of them are about the company’s PPP loan offers rather than the company’s main business loan products. From the beginning, the PPP program has been plagued by problems, and nearly every participating PPP lender has received a large number of complaints from PPP borrowers. PPP-related complaints are most likely to blame for BlueVine’s recent drop in average customer rating on the BBB website.

Other complaints and critiques include:

#1. Denials:

Some reviewers were disappointed to find that they had been refused financing despite meeting all of BlueVine’s conditions. A few people were even more irritated since they believed BlueVine did not provide them with a clear rationale for their rejection.

#2. Expensive Fees:

Some customers may find the fees to be too excessive.

#3. Rejected Draws:

Some consumers were disappointed to discover that their credit line requests had been denied. BlueVine keeps track of your income and debts and won’t let you borrow if it appears that you won’t be able to repay based on the information it has. Unfortunately, for some firms, this might occur at inconvenient times.

#4. Notification Factoring:

A few reviewers were disheartened to hear that without notification services, they would not be eligible for a large enough credit facility (meaning, BlueVine alerted its customers to the factoring arrangement).

#5. Communication Issues:

One of the more difficult complaints to resolve was a lack of clarity regarding the point of contact for BlueVine items distributed through their partnerships.

Positive Testimonials & Recommendations

BlueVine’s reputation has remained high on Trustpilot, with over 6,500 reviews and an average of 4.5 stars out of 5.

BlueVine has been heavily covered by news outlets such as TechCrunch, Forbes, HuffPost, PYMNTS.com, Crowdfund Insider, American Banker, and others, in addition to a large number of user reviews.

BlueVine’s services are popular among merchants for resolving cash flow issues. Waiting for clients to pay can be difficult for your cash flow and, as a result, your business. Even though it costs a little money, having the option of getting an advance on your invoices provides tremendous assistance and peace of mind. Similarly, the funder’s lines of credit can be used whenever you need extra cash, for any reason.

Customers also enjoy the following:

• Responsive Customer Service
• Open and Transparent Advertising
• Simple Application Procedure
• Quick funding turnaround

Summary of Kabbage vs. BlueVine

We compared Kabbage and BlueVine to see how they stack up. In general, we recommend Kabbage to business owners who are looking for a more traditional line of credit or who have poor credit. BlueVine, on the other hand, is great for newer enterprises or those trying to clear overdue invoices.

The eligibility criteria and loan packages offered by Kabbage and BlueVine are summarized in the table below. We analyzed each lender’s credit and company requirements, as well as the goods they offered, such as rates, terms, and repayment alternatives.

Read Also: Free Invoice Software: Best 15 invoicing apps in 2023

Kabbage offers 6- and 12-month durations if you need a longer-term line of credit. BlueVine, on the other hand, offers only 6-month maturities on its line of credit.

BlueVine’s line of credit also needs weekly payback, which some borrowers may find inconvenient for their cash flow. Consider Kabbage in this scenario, as the lender requires monthly payback rather than weekly.

Furthernore, while neither lender charges prepayment fees, we calculated that prepaying your loan balance with Kabbage will save you less money. This is because Kabbage charges a monthly fee rate (rather than a typical interest rate) on its line of credit, which is higher in the first few months.

Kabbage has more flexible credit standards than BlueVine for lines up to $100,000, making it a better option for borrowers with bad credit. BlueVine, for example, requires borrowers to have a minimum credit score of 600 or 650 to qualify for its line of credit, but Kabbage has no such limitations. And because BlueVine’s credit standards are stiffer if your firm has a lower yearly income, Kabbage may be a better option for business owners with lower revenue.

Basically. if a company’s yearly income is between $60,000 and $200,000, BlueVine demands that the owner have a credit score of at least 650. BlueVine just requires a 600 credit score for annual income beyond $200,000. Kabbage, on the other hand, requires only $50,000 in yearly income to qualify for a line of credit up to $100,000 — and, of course, no minimum credit score.

When Should You Use BlueVine Instead of Kabbage?

Bluevine is a a healthier alternative to Kabbage, if you’re looking for;

• a way to free up cash from outstanding invoices.
• your company is less than a year old, yet it has already generated revenue.

Outstanding Invoices

Basically, BlueVine is likely the better option for firms trying to bridge cash flow gaps caused by unpaid invoices. This is because it has an invoice factoring program that allows companies to get cash advances on invoices worth up to $2 million.

If you sign up with BlueVine, you’ll be able to submit particular bills ahead of time and collect 85 percent to 90% of the payment upfront. You will receive the remaining 10% to 15% less fees when your customers pay their invoices.

For example, if you send BlueVine a $10,000 invoice, you can get 85 percent of that amount, or $8,500, up front.

Let’s say your consumer pays the invoice after five weeks, and BlueVine charges you a 1% weekly fee. The fee would be $500 ($10,000 x 1% = $100, and $100 x 5 = $500) spread out over five weeks, and when your customer pays, you’ll get the remaining 15% of the invoice less the $500 cost. This equals $1,000 ($1,500 minus $500).

On the $10,000 invoice you advanced through BlueVine, you would receive a total of $9,500 ($8,500 + $1,000).

Companies Less than a Year Old

For enterprises that are less than a year old, BlueVine is a fantastic solution. To apply for invoice factoring at BlueVine, you must have been in business for at least three months, and for a line of credit, you must have been in business for at least six months.

To qualify for Kabbage’s line of credit, on the other hand, you must have been in business for at least one year.

One downside of BlueVine is that it has higher revenue requirements: to qualify for invoice factoring, your company must generate at least $10,000 in monthly revenue, and to qualify for a line of credit, your company must generate at least $5,000 in monthly revenue.

How to Choose Between Kabbage and BlueVine

When comparing these two lenders, we recommend first determining if you fulfill each lender’s basic eligibility requirements. For example, Kabbage requires a one-year-old business with $50,000 in yearly revenue to qualify for a $100,000 line of credit. Your company must be at least three months old and generate $10,000 in monthly revenue to be eligible for BlueVine invoice factoring. You’ll also need a credit score of 530 or better to qualify.

The conditions for BlueVine’s line of credit are more stringent: you must have been in business for at least six months and have generated $5,000 in monthly revenue in the previous three months. You’ll also need a minimum credit score of 600 or 650, depending on the size of your company’s income. Furthermore, your monthly bank account balance must be at least $1,000. A personal guarantee is required for both BlueVine products, but not for a Kabbage line of credit.

But then, if both lenders approve you, consider how much money you’ll need, what you’ll use it for, and how you’ll pay it back. Both lenders can finance your loan offer within a few days, therefore funding speed isn’t a differentiator. Your intended use of funds, on the other hand, will assist you select which lender is best for you. BlueVine is perhaps the preferable option if you need to clear invoices, for example. Kabbage, on the other hand, offers a more standard line of credit solution.

Consider the payback period as well: would a monthly or weekly repayment schedule be preferable for your company? Some business owners prefer to pay a substantial lump sum each month, but others may find that this puts a strain on their finances.

Read Also: Lump-Sum Payments & Investing Definitive Guide (Updated!!!)

Finally, if you are authorized for a loan, make sure to read the loan contract carefully. Before you sign, read the contract to make sure you know what you’re getting yourself into. You should be aware of how much money will be disbursed to you, how you will repay it, the amount of each repayment, and the overall amount you will repay. You should also be informed of any additional penalties or fees that may apply if you violate the contract’s conditions or pay late. In fact, having a lawyer or legal advisor evaluate the contract for any red flags or ambiguous provisions may be a good idea.

Is Bluevine Legitimate?

Yes, to put it succinctly, it is legitimate. BlueVine is an internet lender that specializes on small company loans. The Bancorp Bank also offers a small-business checking account.

Who Owns Bluevine?

The owner of BlueVine is Eyal Lifshitz. Other founders inlude Moti Shatner, and Nir Klar.

How Long Does It Take To Get Approved for Bluevine?

Your initial approval for a loan, line of credit, or invoice finance will take roughly 24 hours, according to the BlueVine website. You’ll get your loan in a few hours if you’re authorized, or you can start drawing on your credit line or selling invoices right away.

Does Bluevine Allow Wire Transfers?

You can use ACH electronic transfers or bank wire transfers with Bluevine. ACH transfers are free, and the money usually shows up the next business day (but may take up to three). Each bank wire costs $15, and the money is usually in your account the same day.

Does Bluevine Accept International Payments?

With small businesses in mind, the fintech startup has made it easier and cheaper for small businesses to send and receive international payments.

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