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.

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.

Right now, BlueVine is also part of the COVID-19 paycheck protection plan, with loans up to $10 million, a 0.1% forgivable interest rate and no payments for six months.

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

  • 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 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
Term Loan
Invoice Factoring
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+

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.

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.

Too long, didn’t read?

Bluevine offers a range of products to help small businesses get quick financing, with the potential to get approved even with below-average credit. While its lending products start at a low rate, keep in mind that you may also end up paying high interest rates if your credit is less-than-stellar. Another potential downside is that brand new start-ups are not accepted.

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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