Bluevine Business Loans Review for 2020

If your business needs cash fast and you don’t meet the credit requirements for traditional lenders or have customers who fail to pay promptly, a Bluevine business loan may be an option to consider. It offers business lines of credit, term loans and invoice factoring to help businesses resolve their short-term financing needs.

Your business doesn’t have to suffer from growing pains — BlueVine can adapt and grow with your company’s capital requirements.

APR Range
15%–88%
Loan Amount
Up to $250,000
Term
Varies
SimpleScore
3.6 / 5.0
close
SimpleScore Bluevine 3.6
APR 3
Max Loan Size 3
Product Variety 2
Resources 5
Fees 5
  • Loan amounts go up to $5 million
  • Offers loans with a credit score as low as 530
  • Financially strong
  • Doesn’t offer services to business in North Dakota, South Dakota, or Vermont
  • Have only been in business since 2013
Bluevine Disclosure

1. For businesses organized as a limited liability company or corporation, we do not perform a hard credit pull at any point in our process, which means your credit score will not be impacted. For businesses organized as sole proprietors or general partnerships, we will only perform a hard credit pull after you receive and accept your offer.

2. The rate is a simple interest rate calculated from total repayments over 26 weeks.

3. Once approved, get funds deposited in your bank account in as quickly as a few hours if you choose our bank wire option ($15). Or, choose our free ACH transfer option which typically gets funds deposited the next business day, although it may take up to three.

Although qualifying criteria varies with each product, fast funding times and short repayment terms from BlueVine can help your business can stay afloat with a quick cash infusion. Business owners with good credit and other strong credentials may qualify for better terms with other lenders.

Submitting a BlueVine application won’t impact your credit score. If you accept your loan offer, you can take advantage of fixed rates and no origination fees.

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In this article

    Bluevine Loans at a Glance

    Lines of Credit

    • Loan amounts from $5,000 to $250,000
    • Rates as low as 4.8%
    • Draw fees of 1.6% to 2.5%
    • Loan terms from 6 or 12 months
    • Not available in North Dakota, South Dakota or Vermont

    To qualify for a six-month line of credit, you must have at least a 600+ personal credit score, have been in business for more than six months and have $100,000 in annual revenue from your business.

    To qualify for a 12-month line of credit, you must have a personal credit score of at least 620, have been in business for over two years, and have more than $450,000 in annual revenue.

    Term Loans

    • Loan amounts from $5,000 to $250,000
    • APRs starting at 4.8%
    • Loan terms from 6 or 12 months
    • Not available in North Dakota, South Dakota or Vermont

    To qualify, you must have a 600+ personal credit score, have been in business for at least six months, have $100,000 in annual revenue and put up a business lien and personal guarantee on the loan.

    Invoice Factoring

    • Advance of up to 85% of your outstanding invoice
    • Weekly interest rate as low as 0.25% based on the time that the invoice is outstanding
    • Flat rate advance/processing fees (about 3% on average)
    • Loan terms from 1 to 13 weeks

    To qualify, you must have at least a 530+ personal credit score, have been in business for more than three months and have $100,000 in annual revenue.

    The Specs

    Funding Amounts$5,000 – $5 million
    Best ForSmall businesses who need quick financing with flexible credit requirements.
    Not ForSmall businesses with excellent credit seeking long-term financing options.
    Types of Financing AvailableLine of Credit
    Term Loan
    Invoice Factoring
    Loan Terms6 or 12 months
    How Payments WorkWeekly payments deducted automatically from your business bank account
    Approval Time5 minutes
    Funding Time/strong>12 – 24 hours
    Funds Delivered$2 billion+
    In Business Since2013
    Better Business Bureau RatingA+

    The Claim

    BlueVine promises minimal qualifications to get approved for their small business financing products, even for business owners with bad credit as low as 530. They also advertise fast approval in five minutes or less and funding within hours. With three different financing structures available, BlueVine lets small business owners take advantage of time-sensitive opportunities or withstand unexpected struggles.

    Is Bluevine Legit?

    Yes, and it’s a good option for certain businesses with certain needs. A hard credit check isn’t pulled when you apply. In fact, BlueVine only performs credit checks for sole proprietors and general partnerships. Even then, this step only occurs after you’ve received an offer and accepted your financing terms. However, BlueVine loans are secured, which means all financing is backed by a personal guarantee and guaranteed by a general lien on the assets of your business. BlueVine does not take personal assets as collateral.

    For lines of credit, business owners need a minimum personal credit score of 600 in order to qualify. Invoice factoring requires a credit score of 530 or higher. Additionally, your company must be at least six months old with $100,000 or more in annual revenue. BlueVine also considers your business cash flow and the strength of your customers when evaluating your financing application. Once your application is approved, you can opt for a bank wire transfer to receive your funds in just a few hours. This expedited service costs $15. For a free alternative, choose the ACH transfer. While you won’t have to shell out any extra cash, the ACH transfer is a bit slower, anywhere between one and three business days.

    Even though BlueVine’s financing options come with the potential for fast funding, some of the variables are either out of your hands or require an extra cost. It’s smart to go in with realistic expectations so you don’t end up disappointed with the actual speed of business.

    Our Deep Dive

    • Bluevine’s financing options are not unsecured. Instead, your loan, line of credit or invoice factoring is secured by a general lien on your business. You must also provide a personal guarantee, although personal assets are not used as collateral.
    • There are no penalties or early termination fees for paying off your financing early.
    • To apply, you must provide your business address, tax ID, business owner’s personal information and either a read-only connection to your company’s bank account or your three most recent bank statements.
    • Bluevine products are not available to certain restricted industries, including those related to gambling, political campaigns, firearms, nonprofits and auto dealerships.
    • BlueVine does not service businesses in North Dakota, South Dakota and Vermont.

    Lines of Credit

    • No fees are added to your account for prepayment, account closure or monthly maintenance.
    • You can repay your drawn funds over a period of either six months or 12 months. Payments are made on a weekly basis.
    • Your available credit replenishes as you repay your balance.

    Term Loans

    • Payments are deducted from your bank account weekly, so it’s important to make sure you have enough money to cover the fixed payment amount.
    • When your term loan is paid down to 50%, you may be eligible to apply for additional funding.
    • The advertised 4.8% rate is a simple rate calculated over a 26-week period, not an annual percentage rate. Make sure you’re comparing similar terms for different loan products.

    Invoice Factoring

    • Invoice factoring allows you to borrow against invoices owed by your customers while you wait for them to pay.
    • It’s a good alternative if your business doesn’t qualify for a line of credit.
    • Invoice factoring with Bluevine does not involve a long-term contract. You can cancel your agreement at any time without incurring a penalty.
    • Factoring rates are advertised as low as 0.25% but also have the current LIBOR rate added to the base.
    • You can opt to either sync invoices from your business software or manually input them into your online Bluevine dashboard.
    • Receive up to 85% of your invoice amount up front. Once your customer pays, you’ll receive the remaining money with Bluevine’s fees deducted first.

    Cost Rundown

    The cost of a Bluevine service depends on which type of financing you choose. None of its products come with an origination fee, so you don’t have to worry about upfront costs or money deducted from your financed amount. Here’s a rundown of each Bluevine product so you can compare your options.

    Line of Credit

    With no origination fee, you won’t end up paying anything until you actually start drawing funds from your line of credit. Your first draw must be a minimum of $5,000 and can be as high as your available credit. For additional draws, your minimum withdrawal is just $500.

    Interest starting at 4.8% is charged on the amount withdrawn. Your fixed payments are either weekly or monthly over a period of six or 12 months. The line of credit’s balance automatically replenishes as you repay the borrowed funds.

    Term Loan

    A Bluevine term loan features APRs starting at 4.8%. Payments are fixed and paid on a weekly basis so you know exactly what to expect. Like the line of credit, Bluevine’s term loan is repaid either over six months or 12 months. Your business account is auto-debited until your payment period finishes. You can also repay the loan early without facing any prepayment penalties.

    Bluevine Invoice Factoring

    When slow-paying customers slow down your business, BlueVine invoice factoring could be a solution. While the high-interest of a traditional loan may be cost prohibitive, invoice factoring offers a less expensive way to ensure steady revenue when your customers take 60 or 90-days to pay.

    With invoice factoring, BlueVine gives you advances on your customer invoices, up to 85%, in return for flat-rate fees and a weekly interest rate as low as 0.25% based on the time that the invoice is outstanding. The total interest and fees are deducted from the remaining balance once your customer pays the invoice. The faster your customers pay, the less money you’ll owe on the advance.

    With BlueVine, you decide which invoices to submit. You fund only what you need without long-term contracts. Here’s how it works:

    • Apply online with basic details about you and your customers and possibly get approvals in less than ten minutes.
    • BlueVine looks over your information and gives you a decision in less than 24 hours.
    • Sync invoices automatically from your accounting software or you can upload invoices to your company dashboard.
    • Get 85% of your money right away and then get the rest, minus BlueVine’s fee, once the invoice is paid.

    Cheaper (or Free!) Alternatives

    Bluevine is a direct online lender. To compare it with your other options, consider applying with a loan broker representing several lenders or to multiple lenders to make sure you pick the most agreeable financing for your business. Be aware of how credit checks are handled with each one to avoid excessive hard pulls on your credit report.

    If you’re in a cash crunch, you may want to consider a business credit card. Bluevine is designed for small business owners with limited credit scores or quick financing needs. Keeping a credit card on hand can take care of temporary cash flow issues without the hassle of applying for online financing or taking on above-average interest rates.

    Check Your Personal Loan Rates

    Answer a few questions to see which personal loans you pre-qualify for. It’s quick and easy, and it will not impact your credit score.

    Get Started

    with our trusted partners at Bankrate.com

    The Competition

    Online business financing is becoming increasingly prevalent in this digital world. Here are some top competitors in the business loan industry.

    • OnDeck: Provides lines of credit and term loans to small businesses. Borrow loan funds up to $500,000 with an APR between 9.99% and 99%. Get up to $100,000 with a line of credit and 13.99% to 63% APR.
    • Kabbage: Offers businesses a line of credit up to $250,000. Term lengths are more flexible with terms lasting six, 12 or 18 months. The revenue minimum to qualify is just $50,000 annually. APRs range between 24% and 99%.
    • Fundbox: Business owners can choose between a line of credit and invoice financing with the ability to borrow anywhere between $1,000 and $100,000. You also don’t have to provide a personal guarantee or any physical assets as collateral.
    • StreetShares: Choose between secured and unsecured loans or a line of credit. You can receive same-day approval up to $250,000 with APRs from 8% to 39.9%. The credit minimum is a low 550 and the required revenue is just $25,000 annually.

    What Others are Saying

    • Bluevine averages 4.5 out of 5 stars on Trustpilot. It has over 1,400 reviews for an excellent rating.
    • On the positive side, one customer wrote, “Bluevine had approved my company for a Line of Credit (LOC) or loan. I chose the LOC. We finalized the paperwork and logged in to Bluevine’s super user-friendly site to complete the transfer and track my activity. I had funds showing the next day in my bank and usable the following day.”
    • Another verified user noted, “I found them to be very high pressure and high interest presented in a deceptive fashion. They are ok for brief, short-term funding but their draw fees and interest rates are excessive.”
    • BlueVine is accredited with the Better Business Bureau (BBB) and has an A+ rating. Just like on Trustpilot, most BBB BlueVine reviews have a 4.5 star rating with 90 customer reviews. One customer said that working with BlueVine ‘s lending was fast, seamless, simple and straightforward. On the other hand, Bluevine lending reviews from an unsatisfied customer said that customer service is terrible. To BlueVine’s credit, all complaints were answered.

    Methodology

    SimpleScore

    We’ve created the SimpleScore to help you objectively compare products and services here at The Simple Dollar.

    Our editorial team:

    • Identifies five factors to compare across each brand
    • Determines the rating criteria for each factor
    • Calculate an average of those five factor scores to get one SimpleScore™

    We break down each of these five factors and their rating criteria for our review of the best auto loan companies of 2020.

     

    Why do some brands have different SimpleScore on different pages?

    Some brands offer a variety of financial products, which is why they have different SimpleScores on different pages. We rate individual products that brands offer — not the brand as a whole. 

    For instance, in our American Express personal loans review we rated the company a 4.25 out of 5 based on rates, loan amount, customer satisfaction, customer support and fees. In our review of the best small business loan rates, American Express earned a 3.4 out of 5 SimpleScore based on its business loan product. By tailoring our SimpleScore to each financial solution, we’re able to give you a more accurate view of each brands’ services and how they compare to competitors’ products.

    Median APR

    Lenders with a lower median APR are awarded higher scores — because even if you’re APR is average, your business is not.

    Maximum loan size

    Lenders that dole out loans with high maximums are also rewarded with higher scores. It takes money to run a business, and businesses need access to as much capital as it takes.

    Product variety

    Need more than just a business loan? Lenders that offer more than one type of financial product for businesses score higher than others that don’t.

    Educational Resources

    We gave out higher scores to lenders that have the following subjects covered in their blogs: loans, marketing, employee and staff, and credit or finance resources.

    Fees

    Fees can add up fast and eat into operating costs –– that’s why we give a higher score to lenders that have fewer fees.

    Kathryn Pomroy

    Contributing Writer

    Kathryn Pomroy is a journalist and freelance writer. She has written for dozens of major publications, small businesses and many well-known companies. As a writer, she turns the details of an assignment into something that is compelling, digestible and useful. Kathryn holds a BA in Journalism and drinks black, super bold coffee while eating peanut butter and honey toast. Yum.