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BlueVine Small Business Loans: 2021 Review

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Susan Guillory

Susan Guillory

Updated February 8, 2021

Overview of BlueVine

BlueVine offers a variety of business financing services. In addition to providing BlueVine loans, which include invoice factoring and lines of credit, the company also offers business checking accounts and payment management services.
Pros and cons

Pros

  • Multiple business service offerings mean you have the option to keep more under one umbrella
  • Speed up the payment process with invoice factoring, which allows you to get an advance on outstanding invoices.
  • Fast funding on both line of credit and invoice factoring

Cons

  • Line of credit requires a 650+ FICO® Score
  • Repayment period for line of credit is short: either 6 or 12 months
  • Repayments on line of credit are taken from your account weekly

BlueVine Small Business Loan Terms, Rates, and Fees

Loan amounts: Credit lines up to $250,000; invoice factoring up to $5 millionSimple interest rate range: starts at 4.80% for 6-month-term and 12-month-term lines of credit;  starts at 0.25% per week for invoice factoring (updated as of 8/17/2021)Origination fee: NoneDraw fee for lines of credit: 1.6% - 2.5% for 6-month term; 1.6% - 3% for 12-month termMinimum credit score: 650 for line of credit; 530 for factoringTime to funding: As soon as a few hours after being approved

Other Lenders

As part of your research for the best lender for your needs, consider exploring these other small business lenders. It may be helpful to see how BlueVine compares to Kabbage and other alternative lenders.

What Types of Loans Does BlueVine Offer?

As mentioned, BlueVine has two financing products—lines of credit and invoice factoring—in addition to a service allowing customers to send payments to vendors and a business checking account. The line of credit provides funds up to $250,000, which can be continually used as funds are replenished.BlueVine invoice factoring involves you sending your unpaid invoices to BlueVine. They pay 85-90% of the invoice value up front, and the rest, minus fees, once the invoice is paid.The invoice factoring could be an option for startups looking for working capital, as the required time in business is only three months. Note that invoice factoring is only available to businesses with invoices from other businesses or from the government. The line of credit, on the other hand, requires businesses to have operated a minimum of three years.The invoice factoring requires a 530 FICO® Score, which may make it more appealing to companies who may not qualify for funding options with higher qualifications. Also, businesses must have at least $10,000 in monthly revenue.

What is BlueVine Invoice Factoring?

Here’s more on BlueVine invoice factoring. If you struggle with cash flow, this could be a solution to get an advance on certain invoices.You upload your sent invoices (or connect your accounting software to do so automatically), then select the ones you want money up front for. BlueVine pays you the agreed-upon percent (85-90%) immediately, and then the rest, minus its fee (0.24% - 1.5% per week) once your client pays the invoice.You can upload almost as many invoices as you’d like to BlueVine (with a cap of $5 million), and there is no minimum, nor any termination fees.

Important to Keep in Mind

Each time you draw on a line of credit, a draw fee of 1.6% - 2.5% for 6-month terms or 1.6% - 3% for 12-month terms is incurred. Also, understand that BlueVine’s line of credit and invoice factoring come with higher rates than traditional small business loans. Higher rates can make these financial products more expensive than small business loans, but for some businesses, there are few other options.It’s important to note that BlueVine offers full-recourse invoice factoring, which means that if a client fails to pay an invoice, you are responsible for the amount you borrowed against that invoice from BlueVine. Other companies offer non-recourse factoring, such as Riviera Finance and Paragon Financial, which means they take the risk of whether that client will pay, and you aren’t on the hook if the client doesn’t pay. Companies may have stricter requirements for non-recourse invoice factoring than for full-recourse invoice factoring, which can make it more challenging for potential borrowers to qualify for non-recourse invoice factoring.

Applying for a BlueVine Small Business Loan

BlueVine’s application process, either for the line of credit or invoice factoring, appears to be straightforward and fast (the site boasts that it takes 10 minutes or less to apply for invoice factoring).

Applying for a BlueVine Line of Credit

The application for a line of credit starts with asking for some basic information about your business, such as how long you have been in business and your monthly revenues. If eligible, you can find out in minutes how much you are eligible for and at what rate.Once you connect your business bank account, you can access your funds within hours. The BlueVine line of credit requirements include:
  • Minimum 650 FICO® Score
  • 3+ years in business
  • $40,000 in monthly revenue

Applying for BlueVine Invoice Factoring

You'll be asked for similar information about your company with the application for invoice factoring, though the approval process may take a day to process. If approved, you can start uploading your invoices and getting paid.To qualify for invoice factoring, requirements include:
  • Minimum 530 FICO® Score
  • 3+ months in business
  • Business is B2B
  • $10,000 in monthly revenue

The Bottom Line

If you need cash fast and don’t qualify for traditional or SBA loans with lower interest rates, BlueVine provides speedy financing that may suit your needs. (Not sure who qualifies for SBA loans? Find out here.)The good news is: even if you run a startup and don’t have a long credit history or time in business under your belt, you could still qualify for invoice factoring through BlueVine, provided your customers are B2B and you meet their other underwriting requirements.Looking for more small business loan options? With Lantern's help, you can spend less time searching for financing and more time growing your business.

Frequently Asked Questions

Is BlueVine a legitimate lender?
Does BlueVine report to credit bureaus?
Is BlueVine a good loan company?
How does BlueVine work?

About the Author

Susan Guillory

Susan Guillory

Susan Guillory is the president of Egg Marketing, a content marketing firm based in San Diego. She’s written several business books, and has been published on sites including Forbes, AllBusiness, and Cision. She enjoys writing about business and personal credit, financial strategies, loans, and credit cards. Follow her on Twitter @eggmarketing.
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