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BlueVine Review: Small-Business Lender Offers Multiple Options

June 27, 2019
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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.

    Line of credit

  • Loan amount: $5,000 to $250,000.
  • APR: 15% to 78%.
  • Loan term: 6 or 12 months.
Get started at BlueVine

    Invoice factoring

  • Loan amount: $20,000 to $5 million.
  • APR: 15% to 68%.
  • Loan term: 1 to 13 weeks
Get started at BlueVine

    Term loan

  • Loan amount: $5,000 to $250,000.
  • APR: 15% to 88%.
  • Loan term: 6 or 12 months.
Get started at BlueVine

» MORE: How to use invoice factoring for your business

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.

» MORE: Fast business loans: Best options for quick cash

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.

» MORE: BlueVine vs. Fundbox: Compare invoice financing options

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.

» MORE: Bad credit? Where to find business loans

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.