Bluevine is a popular online lender offering three types of financing to small businesses: lines of credit, term loans and invoice factoring. The qualifying criteria for each product varies, but you can generally find more relaxed credit and business standards at Bluevine compared to other providers.
Bluevine is best-known for fast funding times and brief repayment terms, which could help your business stay afloat with a quick cash infusion. Broadly speaking, that makes Bluevine a better option for short-term needs than long-term business goals. 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.
Bluevine Loans at a Glance
- Lines of credit go up to $250,000 with rates as low as 4.8%. Bluevine draws funds directly through your online dashboard and deposits them into your bank account within hours.
- Term loans also go up to $250,000 with payments automatically withdrawn from your account every week. Repayment terms last either six or 12 months.
- Invoice factoring lines go as high as $5 million. Rates start at 0.25% each week and your credit limit can increase as your customer base grows.
|Loan Amount||$5,000 – $5 million|
|Best For||Small businesses who need quick financing with flexible credit requirements.|
|Not For||Small businesses with excellent credit seeking long-term financing options.|
|Types of Financing Available||Line of Credit
|Loan Terms||6 or 12 months|
|How Payments Work||Weekly payments deducted automatically from your business bank account|
|Approval Time||5 minutes|
|Funding Time/strong>||12 – 24 hours|
|Funds Delivered||$2 billion+|
|In Business Since||2013|
|Better Business Bureau Rating||A+|
Bluevine promises minimal qualifications to get approved for small business financing, even for for business owners with bad credit. 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 weather 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.
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 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.
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.
- 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 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 anytime without any 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 between 85% and 90% of your invoice amount up front. Once your customer pays, you’ll receive the remaining money with Bluevine’s fees deducted first.
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 is charged on the amount withdrawn at an APR between 15% and 78%. 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.
A Bluevine term loan features an APR ranging between 15% and 88%. 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.
You’ll receive advances on your customer invoices between 85% and 90% of the full amount. Bluevine then charges weekly interest at an APR between 15% and 68%. Once your customer pays the invoice, the total interest is deducted from the remaining balance and you receive whatever is left.
The sooner your customers pay, the less money you’ll owe on the advance. The downside is that if a customer doesn’t pay the invoice at all, you’re still responsible for the amount you borrowed and the interest. If this happens, you can either self-pay directly or enroll in an installment payment plan.
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.
Another financing alternative is to use a business credit card if you’re in a cash crunch. 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.
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.
- On the positive side, one customer wrote, “Bluevine had approved my company for a 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 has an A+ rating with the Better Business Bureau.
The Bottom Line
Bluevine offers a range of products to help small businesses get quick financing. With the potential to get approved even with below-average credit, you may also end up paying excessive interest rates. Compare your options and only take on additional debt when it makes strong financial sense for your business. Also be sure to fully realize your responsibility for the loan, including the details of the required lien and personal guarantee.
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