BlueVine Threatens Competitors with a New Platform

Founded in 2013, the online lending service BlueVine offers options to individuals who need small business financing. This unique platform provides traditional lines of credit and term loans. The service also offers simplified B2B financing, like invoice factoring. 

At the end of 2019, BlueVine Lending said that it raised $102.5 million in a Series F funding round to scale up its business banking platform. This funding was backed by several investors and will be used to further business banking loans, including BlueVine's line of credit, invoice factoring, and a term loan. 

BlueVine Business Checking Account

The funding was assisted by existing investors, including Lightspeed Venture Partners, 83North, SVB Capital, Nationwide, Microsoft's M12 Venture, Citi Ventures, and other private investors. The capital raised by the lender will be used to develop BlueVine's Business Checking Account. This platform is a zero-fee, mobile checking account for small businesses that pay 1% interest. 

This new focus is in line with the company's mission to "revolutionize banking for small business owners" by offering a suite of services designed especially to fit their needs. The company will use it to develop the platform's features, including integration with existing services such as BlueVine's lines of credit, invoice factoring, and term loan. 

How BlueVine Compares

BlueVine loans reviews are overwhelmingly positive, and the lender has an A+ BBB rating. It is no surprise that borrowers are satisfied, considering BlueVine offers transparent and convenient options.

The new platform will be integrated with the existing services provided by BlueVine, which the company says has already provided $2.5 billion to a total of 20.000 small business owners around the country. 

Invoice Factoring

Invoice factoring is an option that's available for US-based B2B and B2G businesses. To qualify, you must be a merchant with unpaid invoices. You must have been in business for three months and have an average revenue of at least $10,000 per month. 

So is BlueVine for bad credit? Loan financing is an option for merchants with any credit score above 530. BlueVine offers invoice factoring credit facilities up to $5 million. There are several characteristics the lender will take into consideration in determining the amount of financing. 

When you're approved for invoice factoring, you'll get set up with a lockbox bank account. You'll give this new payment information to your customers so that when they make deposits, the lender can take it's cut. 

There are no fees for application, maintenance, origination, or lockbox with blue vine business loans. There are also no long-term contracts or termination fees.

Flex6

Flex6 is this lender's six-month line of credit. Payments are made weekly. This option is available to companies that have been in business for at least six months and makes at least $120,000 a year in revenue. 

This product isn't available for businesses in North Dakota and South Dakota or those that operate as financial services or nonprofits. The required credit score for Flex6 is 600.

Flex12

As you may have guessed already, Flex12 is a line of credit with a repayment period of one year. To apply, your business must be a registered LLC or corporation. This financing option is not available to sole proprietors or businesses in ND or SD.

You'll need a credit score of at least 650 to qualify, but the lender is more flexible if you have annual revenue of over $900,000. 

Terms

The current cap for both lines of credit is $250,000, but the amount that you can borrow depends on how strong your business is. Aside from draw fees starting at 1.6%, BlueVine doesn't include any hidden costs for these financing options. 

While the repayments are made in 26 weekly installments for both products, you can make an early payment at any time. There aren't any penalties for prepayment; you'll only be responsible for repaying the interest accrued up until that point.

Term Loans

Another option available to businesses is BlueVine term loans which can be repaid over either six or 12 months. To qualify, you must have a credit score of at least 600 and annual revenue of $120,000. Your business has to be at least six months old.

What the Future Holds From BlueVine

BlueVine is a lender that focuses on providing transparent and simple financing for small business owners. As it grows as a company and continues to develop new innovative banking solutions, we expect that an increasing number of entrepreneurs will be drawn to them as a first pick for finding funding for their new ventures. As there's a bright future ahead for BlueVine, we'll be keeping an eye out for the company to become available for public markets.