Buy Side’s take on Bluevine business financing
Bluevine received 4.5 stars in Buy Side’s assessment of alternative online business lenders. While there is room for improvement, Bluevine offers fast funding and relatively flexible eligibility requirements.
What’s appealing
Bluevine stands out for the possibility of same-day or instant funding for customers with a Bluevine Business Checking account. Receiving funds the same day incurs a fee for customers without a checking account, but fast funding options are helpful to businesses needing capital right away.
Business owners locked out of traditional financing options might qualify for a Bluevine line of credit. It requires only 12 months in business and a personal credit score of 625 or higher for its business line of credit.
Bluevine reports your payment history to Experian, one of the three major credit bureaus in the U.S. Having your payment history reported can help you build business credit, and having stronger business credit can help you qualify for lower-cost business financing later.
What’s concerning
Bluevine must review and approve each request to draw from your line of credit. While fast funding options are available, having to wait for approval on every draw could present challenges for businesses.
Borrowing costs might also be higher than expected. Bluevine has a starting simple interest rate of 7.80%, but it doesn’t advertise its APR, which better represents the true cost of borrowing. If you aren’t the most qualified borrower, you will likely have a higher interest rate.
Finally, small businesses likely won’t be approved for a monthly repayment plan, as it requires $80,000 in monthly revenue or $960,000 in annual revenue. Weekly payments can be challenging for some businesses, such as those with inconsistent income.
How to apply for a Bluevine business line of credit
Bluevine offers a simple online application for a line of credit. You must create an account or use your QuickBooks login to apply.
- Verify eligibility: Ensure you meet the eligibility requirements, such as having an annual revenue of at least $120,000 and a personal credit score of at least 625.
- Gather documentation: Have business bank statements, proof of revenue and a form of identification with you. Bluevine’s application process outlines the documents you need.
- Fill out the application: Apply using the online form. Bluevine says you might receive a decision in five minutes, and applying won’t affect your credit score.
- Access funds: Link a bank account and request the funds you need. You typically see funds within 1 to 3 business days of approval. Faster funding is available, but you might have to pay a fee.
- Set up repayments: You might have weekly or monthly payments, depending on your repayment plan. You can set up automatic payments to replenish your available capital on a fixed schedule.
How Bluevine compares to other lenders
When choosing a funding source, compare three to five lenders to determine which might work best for you.
Bluevine vs. Fundbox
Bluevine and Fundbox both received 4.5 stars in Buy Side’s assessment. Their funding amounts and speed are similar, and both offer lines of credit with up to $250,000 in funding. Both require a personal guarantee.
Fundbox has more relaxed eligibility requirements, with businesses as new as three months old eligible to apply. It also has a lower credit score requirement of 600 and a lower annual revenue requirement of $100,000.
One advantage Bluevine has is its monthly repayment plan, as Fundbox offers only weekly repayment. Bluevine has much stricter eligibility requirements for monthly repayment, however. Bluevine also gives you the option to apply for a business term loan through its partner network.
Bluevine vs. OnDeck
OnDeck received a 5-star rating from Buy Side for its fast funding, flexible repayment options and relaxed underwriting. Its time-in-business and personal credit score requirements are the same as Bluevine’s, but it requires a lower annual revenue of $100,000.
OnDeck offers business loans and lines of credit without using a partner network. Its funding amounts are smaller than Bluevine’s, however. Its lines of credit have a maximum of $200,000, and its term loans have a maximum of $250,000.
