Online lender BlueVine offers small-business owners three loan options to address short-term financing needs.
BlueVine’s business line of credit, invoice factoring or term loan may be right for your business if you:
- Need cash fast: Funding times for BlueVine’s products range from 12 to 24 hours.
- Have B2B customers who don’t pay promptly: BlueVine invoice factoring may help fill a cash gap.
- Don’t meet credit requirements with other lenders: BlueVine considers borrowers with bad credit.
Reasons to use BlueVine
You need fast cash
Applying with BlueVine is quick, and once approved, you may have access to funds by the same day. Here’s how long the approval process typically takes for BlueVine’s products:
- Line of credit: An average of 12 hours.
- Invoice factoring: A few minutes to a day.
- Term loan: As fast as 10 minutes.
You typically deal with unpaid invoices
If your customers are other businesses or organizations, they may not always pay you promptly. BlueVine’s invoice factoring, also known as invoice financing or accounts receivable financing, could ease cash flow hiccups caused by such delays.
Here’s how BlueVine invoice factoring works: You receive funding against invoices due in one to 13 weeks. BlueVine advances 85% to 90% of the invoice amount and then the remainder when a customer pays you, minus fees.
You have bad credit
Poor credit can be an obstacle to obtaining small-business financing, but BlueVine considers you even if your credit score is below 630. The lender focuses on your business’s cash flow and, if you’re applying for an invoice factoring account, the creditworthiness of your customers.
Where BlueVine falls short
Pricey financing option
With annual percentage rates of up to 68% on its lines of credit and invoice factoring accounts, and APRs of up to 88% on its term loans, BlueVine is more expensive than many business loan options.
You get penalized for deadbeat customers
BlueVine invoice factoring lets you tap unpaid invoices as a source of capital, but you must have reliable customers who have strong credit and pay their bills.
BlueVine gives your customer two weeks to directly pay your BlueVine account. If a customer fails to pay, you have to pay back the invoice.
More frequent repayments
BlueVine’s term loan and line of credit carry short repayment terms of up to 12 months, which results in higher payment amounts.
Its term loan requires weekly repayments, while its line of credit is repaid weekly or monthly. The high frequency of payments can pose an issue for businesses that have uneven sales or don’t hold much cash in a bank account.
Compare business loans
If you’d like to compare loan options, NerdWallet has a list of small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.