One advantage of BlueVine is that you can choose which invoices you want to factor. Other companies may require you to factor every invoice through them. Additionally, BlueVine does not require you to sign a long-term contract.
BlueVine provides 85 to 90% of the total invoice value upfront, which isn't as much as what other factoring companies we reviewed will advance you. (Some factoring services will advance you 95% or even 100% of the invoice upfront.) However, you get the remainder, minus BlueVine's fee, when the invoice is paid.
For a $15 fee, BlueVine will transfer cash to you the same day you submit an invoice via a wire transfer. Alternatively, you can receive funds in one to two days for free via an ACH transfer.
With this factoring service, you can open a credit line that ranges from $20,000 to $5 million. Smaller businesses may not qualify for a line of credit, but for many medium- to large-size businesses who do qualify, it can be a lifesaver if you have an unexpected expense. BlueVine does not charge prepayment penalties.
BlueVine considers several factors when evaluating your business. In addition to the prequalification criteria below, BlueVine also takes into account your company's cash flow, financial history and the creditworthiness of your customers.
At a minimum, you must meet the following criteria to factor with BlueVine:
- Your credit score is 530 or greater.
- You have been in business for three or more months.
- Your business generates $10,000 monthly.
- Your business earns $100,000 annually.
- Your business serves other businesses (B2B) or the government.
Your customers must also meet certain requirements in order for you to factor their invoices. The minimum requirements are:
- Your customer is based in the U.S. or English-speaking Canadian provinces.
- Your customer is a business.
Finally, your invoices also must meet specific minimum requirements, which include:
- Your services were completed and accepted by the customer.
- The invoice is $500 or more.
- The payment term is less than 13 weeks.
- The due date is at least one week away.
Ease of Application
Applying for a factoring line of credit with BlueVine is fast and easy. The online form takes a few minutes to complete, and asks for basic business details, such as contact information, your tax ID, annual revenue, etc.
Once your personal details are filled out, you can submit your financial documents, such as your most recent bank statements or A/R aging report. Alternatively, you can grant BlueVine access to your bank account and accounting software. With read-only access to your accounts, it will determine your creditworthiness. BlueVine is compatible with QuickBooks, Xero and FreshBooks.
If you connect your accounting software to BlueVine, invoices automatically appear on your BlueVine dashboard, which saves you from manually entering the information, and you can choose which invoices you want to factor. If your business uses QuickBooks, the application process is even faster as most fields are automatically populated for you.
Once you submit your application, BlueVine will respond within 24 hours. Upon approval, BlueVine will help you verify and notify your customers. Initially, BlueVine takes three to five days to provide you cash on a customer's invoice, but subsequent invoices are funded generally in the same day.
Customer Service and Support
We contacted BlueVine as a potential customer to test and determine the effectiveness of their customer support. Overall, we found their customer representatives to be helpful and knowledgeable.
Customer support isn't available 24/7, but BlueVine has extended business hours Monday through Friday from 8 a.m. to 8 p.m. (ET). They are also available on Saturdays from 12 p.m. to 4 p.m.
BlueVine is the best factoring service to quickly factor your invoices, but there are some drawbacks you should be aware of.
First, it advances 85 to 90% of an invoice. This is less than what other factoring companies, such as Fundbox, offer that give you a 100% advance.
Second, BlueVine only offers recourse factoring, which means you are liable if your clients don't pay their invoices. If you work with reputable customers, this shouldn't be an issue, but one missed payment can set you back and disrupt cash flow for your company.
Finally, if you own a new business that generates less than $10,000 a month, or if you have poor credit, you are not eligible to work with BlueVine.