Founded in 2013, BlueVine provides its customers with an advance on their outstanding invoices. When the invoices are due, customers pay the amount owed to BlueVine’s account instead of the business’ account. BlueVine founder and CEO Eyal Lifshitz told the Wall Street Journal that he was inspired to found the company after watching his father, a physical therapist, struggle to maintain his business when his customers had a 90-day billing cycle. With BlueVine, businesses sell their outstanding invoices to improve their cash flow by reducing their wait time for payment. BlueVine offers its customers funding advances between $5,000 and $100,000.
BlueVine reviews a business’ cash flow, the financial strength of its debtors, and the business and owner’s credit history. Although BlueVine states it works with business owners who have less than perfect credit scores, business owners must have a personal credit score greater than 530 to qualify for advances. Businesses that use BlueVine’s services must be based in the U.S. and have outstanding invoices with U.S. or Canadian business customers. BlueVine does advance funds for invoices to consumers. Invoices must be greater than $500 and have a payment due that is at least one week but less than 12 weeks away. Other benefits include:
Available for Startups
BlueVine does not require a certain number of years in business or a minimum sales volume, making it a good resource for new businesses. BlueVine’s customers are not required to sign a contract and there is no requirement to get a specific number of invoice advances. Small businesses in a cash flow crunch can use BlueVine’s services for as short or long a time as needed.
Automated Process Gets You Funds Fast
Businesses sign up for a BlueVine account and connect their bookkeeping applications to BlueVine to upload their available unpaid invoices. BlueVine supports the following bookkeeping software:
- Intuit QuickBooks
If companies do not use invoicing or accounting software, they can create invoices in their BlueVine dashboard.
BlueVine can make a decision on a customer’s initial invoice advance in as little as one business day, while decisions about advances for existing BlueVine customers can take only minutes. BlueVine sends advances to its customers’ bank accounts within 24 hours, although the company states the funds may take 1-2 business days to appear in customers’ accounts depending on the bank they use and the method they choose for funds transfer.
Rates May Decrease with Use
BlueVine states customers that build a history of using BlueVine and receive invoice advances of over $30,000 per month may receive a 20%-30% discount on BlueVine’s standard rate.
Transparent Fee Structure
There are no origination or closing fees, and no fees for early payment. BlueVine charges fees of 1% per week, with a minimum of three weeks.
Great Ratings & Venture Capital Support
As of January 2015, Lizette Chapman of the Wall Street Journal reported BlueVine had received investor funding of $22.5 million, including support from venture capital firms 83North and Lightspeed Ventures, as well as from Silicon Valley Bank.
Businesses are limited in the kinds of funds they can receive from BlueVine. The company only offers advances on outstanding invoices that have a payment due date of less than 12 weeks and it only offers advances on invoices to U.S. and Canadian businesses. Other areas of concern we have about BlueVine include:
Paying for Your Money
BlueVine offers quick funding for businesses struggling with cash flow problems, but you only get 85% upfront and you must pay a 1% fee per week for the advance. For a $20,000 invoice advance for 12 weeks, BlueVine initially keeps $3,000 of the loan advance, $600 of which will be paid as a rebate to the business when its customer pays the invoice in full. Nerdwallet.com states the APR on BlueVine’s funding advances are 21% to 61%.
Personal Guarantee Required
If a business’ customer fails to pay an invoice that BlueVine has advanced funding on, the business and/or business owner is responsible for paying the balance.
BlueVine Account Required
BlueVine sets up an account where it receives the full invoice payment. Businesses that receive invoice advances from BlueVine must ensure their customers make payments to the account administered by BlueVine and not their own account. Switching account information may cause confusion for customers who are paying some invoices directly to you and some to BlueVine.
The company has only been offering cash advances since 2013 so it does not have a lengthy track record of business funding and may lack the expertise to identify the businesses that would be the best choices for this kind of funding advance.
Only Available to U.S. Businesses doing business with U.S. & Canadian Businesses
Currently, BlueVine only offers advances to businesses registered in the U.S. that have outstanding invoices with U.S. or Canadian businesses. The company does not advance funds to businesses outside the U.S. and it does not advance funds for invoices to consumers.
*Star Rating is determined by evaluating APR range, minimum credit score requirement, revenue requirement, length in business requirement, and other related approval data.