BlueVine Review: Expert Opinion About a Fast and Easy Small Business Loan

BlueVine is a financial technology company that offers checking accounts and business loans. The company deposits are insured by the Federal Deposit Insurance Corporation (FDIC) in the event of bank failures.

BlueVine offers two types of loans - invoice factoring and lines of credit, making it an attractive alternative to traditional banks and credit unions. These loans can be a great option for businesses that just don’t have the credit where they want it to be. By applying for a loan from BlueVine, businesses with poor credit can avoid making their credit score any worse when applying for a traditional bank loan. Our expert, Gordon Scot reviews and describes each of these loan types in detail. Find the full BlueVine review video and all the details down below.

BlueVine Review Video

The BlueVine Loan Application Process (Rated - 4/5)

The loan application process is incredibly simple, and you can expect to hear back about the decision very quickly. In fact, the application process can be completed in as quickly as 5 minutes, with a response time of about 10 minutes. Let's walk through the process step-by-step as described by Gordon Scott

1. Credit Check

When assessing your application, BlueVine performs a soft credit pull. This means that they check your credit, but not through one of the three major rating agencies. Instead, they check it through an independent party, which gives them enough information to make sure you qualify without hurting your credit score.

Keep in mind, however, that even soft credit pulls can add up if you shop around for 4 or 5 of these types of loans, hurting your credit for a little bit. In that case, you might lose five points or so, which would take six months to get back. However, if you are only completing one or two loan applications, it should not impact your credit at all.

2. Submitting the Application Form

Now, let’s take a closer look at the application form that you would need to fill out. The questions you would need to answer are very simple, including:

• The amount of money required
• The preferred financing type
• Your identification information
  

3. Read the Fine Print

When filling out the application form, make sure to read the fine print as well, so that you don’t miss any important details. You will then be asked to share some details about your business. The answers you provide to the questions in the application form will determine what additional information you will be asked for. 

3. Connecting Your Bank Account

Once you fill out all the required fields, you will be asked to connect your bank account. This is incredibly convenient: if you are approved for the loan, the funds will be electronically transferred right into your account and appear there in as little as 24 to 48 hours.

4. Paying Back the Loan

When the time comes to make your payment, BlueVine will electronically take it out of your bank account. While this is very convenient, this means that the lender can take the money out on their own terms. You would need to keep track of your payment schedule in order to be prepared for automatic payments.

After breaking down the application process, let's explore BlueVine's key parameters in more detail. 

Advantages and Disadvantages Of BlueVine

 Let’s take a look at the advantages and disadvantages of BlueVine.

 BlueVine Advantages 

• The application process for lines of credit and invoice factoring is quick and simple.
• Funds can be made available in a matter of hours or days depending on the product
• The interest rates are competitive.
• Even though BlueVine primarily operates online, the person-to-person customer support is first-rate.
• BlueVine funding is available to customers with relatively low credit scores
• The online dashboard allows customers to request advances for invoices regularly.

BlueVine Disadvantages

• BlueVine funding is not available in every state, such as North and South Dakota, so check before applying.
• Because BlueVine loan terms extend over 6-12 months, repayments can be high.
• Customers have two weeks from the invoice due date to pay invoices for invoice factoring accounts. Otherwise, borrowers will need to pay back the amount received upfront immediately. If they cannot, borrowers are put on an automatic 12-week installment plan to settle the account.
• Services are only available for B2B companies
• Not all industries are eligible for invoice factoring.
• Rates for lower credit scores can be high.

BlueVine Loan Options (Rated - 2.5/5)

Below, we are going to take a closer look at the types of loans offered by BlueViner, their strengths and limitations, and corresponding rates and schedules.

1. Invoice Factoring

Invoice factoring can be used whenever you have an agreement between your business and a client stating that your business will receive the money because you have completed the specified work.

Let’s say you are running a small business and have completed $50,000 worth of work. The client you have completed the work for has a net 60 days policy, meaning that they have 60 days to pay the cost of the work you performed. In the meantime, however, you need to meet your payroll and pay for other expenses. You might even need some seed money to move to the next phase of the business contract with the same client. So what do you do?

With BlueVine invoice factoring, you can receive a loan of a minimum of 85% of that invoice, depending on how solid the invoice is. While you don’t have to borrow the full amount, this gives you tremendous flexibility until the client completes their payment.

2. Line of Credit

Unlike a collateralized invoice factoring loan, a line of credit is an unsecured type of loan. This means that you need to have a higher credit score of around 600 in order to qualify.

3. PPP Loans

BlueVine is currently no longer accepting new PPP loan forgiveness applications. If your application is already in progress, complete it today.

BlueVine Interest Rates and Fees (Rated - 3.3/5)

Interest rates are often quoted in weekly terms which is different from most loans that are quoted in annual percentage rates (APR).

1. Invoice Factoring

When you receive an invoice factoring loan from BlueVine, you would have to pay it back weekly over the following 13 weeks or less (3 months). So, if you have a net 60-day policy with your client, you will be able to pay the money back on time.

Interest rates for invoice factoring can vary anywhere between 0.25% per week up to 1.5% per week. While this translates to a high annual rate of 13% to 72%, keep in mind that you won’t carry the loan to a full year, so you will not end up paying at a full annual rate.

2. Line of Credit

BlueVine offers monthly or weekly repayment options for their lines of credit, with a 6 or 12 months payback period. As such, you have a longer period of time to repay the money, with a lot of flexibility.

With business lines of credit, however, you need to make sure that you will be able to repay the loans quicker than the full term. So, you should definitely consider your ability to repay early when applying for a line of credit.

How Do I Qualify For A BlueVine Loan? (Rated - 4.2/5)

During the application process, your business will be evaluated to determine the likelihood you can pay back the loan. Certain industries are not eligible for lines of credit including gambling, political campaigns, auto sales, firearms, financial institutions, and nonprofits. In addition, North and South Dakota businesses are not eligible for lines of credit with BlueVine.

• Credit History: One of the essential factors BlueVine looks at is your business/personal credit history. Borrowers need to have a 530+ FICO score to qualify for invoice factoring and 600+ FICO score for lines of credit.
• Time in Business: BlueVine looks at whether you’ve been in business for 3+ months for invoice factoring and 6+ months for lines of credit.
• Monthly Revenue: To obtain an invoice factoring account, your business will need to generate a minimum of $10,000 a month in revenue. For lines of credit, BlueVine requires at least $10,000 a month in revenue.

Line Of Credit 

 Invoice Factoring

BlueVine Customer Support (Rated - 5/5)

Bluevine’s customer service is highly rated and regarded. You can get in touch with the customer care support team from morning (8 am ET) to evening (8 pm ET) from Monday to Friday. Customers can reach representatives through their website contact page as well as Facebook and Twitter for less formal interactions.

BlueVine’s customer service representatives are very responsive, depending on the contact method you choose. Additional help is also available through the FAQ section for general questions on BlueVine’s website. There are two types of FAQ sections available for customers: one for people before the signup process and the other for customers already using the services.

BlueVine is highly rated for its transparency. Although the site’s recent overhaul made it more difficult to look into their products and offerings’ details, you can still find information in their resources section, including an FAQ, help center, list of partners, and a business blog that covers a variety of relevant topics.

BlueVine Loan Reviews - What People Say Online (Rated - 4.1/5)

BlueVine has a robust online presence. Most of the BlueVine reviews online speak positively about the platform. The company garnered an average rating of 4.2-stars on Trustpilot with over 5,000 reviews. On Merchant Maverick, customers rated BlueVine loans and products 4 out of 5 stars.

Let us take a closer look at customer reviews on Trustpilot

While 82% of customers rate BlueVine as “excellent”, 11% of customers rate their experience as “bad.” However, most of these bad reviews refer to BlueVine’s checking accounts. 

BlueVine offers a 1% interest on their checking accounts, which is quite attractive. However, during the period between September and October 2021, the company underwent a transfer from one named entity to another, and some of the funds got held up and frozen. So, when looking at negative reviews, keep in mind that most of them are related to the frozen funds in checking accounts, and not BlueVine’s loan services.

In fact, most small business loan customers rate BlueVine as “excellent,” meaning that they are generally happy with their loan products. So, if you believe that you are the right type of customer for loan products offered by BlueVine, this alternative lender is definitely worth your attention.

Final Thoughts

BluVine business loan products are best for businesses that are steady and have a need for bridge funding just to help them get from one project to the next. Another type of costumers for BlueVIne loans are businesses with high probability projects that don't have the required credit scores but don't want to make their credit score any worse by taking loans from traditional banks.

In fact, most small business loan customers rate BlueVine as “excellent,” meaning that they are generally happy with their loan products. So, if you believe that you are the right type of customer for loan products offered by BlueVine, this alternative lender is definitely worth your attention.