Businesses end up with unexpected expenses that cannot be ignored. Of course, commonly expected expenses cannot be brushed off either. With little cash flow or other fiscal problems, paying bills or covering other costs might seem extremely difficult to do. Business owners should not assume no options or strategies for funding exist. Online business loans are an option as several financial companies do make them available.
BlueVine is one such business loan lender. BlueVine is considered one of the more well-known names in the industry. The significant number of clients who have signed up for BlueVine loans reveal just how successful the financial entity is.
Popularity only tells a small story about a company. A more detailed look is required to give potential borrowers a better perspective about BlueVine.
What is BlueVine?
BlueVine is based out of Redwood City, CA. Since the company handles applications via the internet, Golden State residents are not the only ones who can take advantage of the company’s offerings. The company’s endeavors are backed by venture capital funding, which may put additional confidence into the minds of those thinking of applying for funds.
Applicants are not limited to a single business loan option. BlueVine serves up two paths. Applicants can choose between a line of credit or invoice factoring.
Line of Credit
Applicants may apply for a line of credit that ranges from $5,000 to $100,000. The company dubs the line of credit “Flex Credit”. Borrowers are able to tap into the line of credit when the need arises.
The line of credit is also a revolving credit source, which is similar to a credit card. Borrowers can pay down the balance and then draw money from the available credit. Lines of credit are much more flexible than a standard bank-issued business loan. For this reason, lines of credit could be more beneficial to certain businesses that must deal with constant unexpected expenses.
The interest rates on the line of credit can be very high, as would be the case with virtually all online business lenders. Loans do come with six month terms.
Certain qualifications are necessary to be approved for a line of credit. Businesses must be in operation for at least six months with revenue of more than $60,000 annually. A minimum credit score of 600 is also required.
Businesses that receive payments based on invoicing already are in a position in which a wait of one, two, or more weeks is required to receive funds. The long wait time becomes even longer when delays in payments occur.
Businesses rely on the prompt payment of invoiced funds for a variety of reasons. The non-receipt of funds could cause all manner of troubles. Invoice factoring allows for taking an advance on forthcoming invoice payments. BlueVine affords anywhere from $20,000 to $2 million in invoice factoring-based loans. Repayment terms range from one week up to 12.
Working with BlueVine
BlueVine does try to make things as easy as possible for applicants and clients. A streamlined application process makes it easier to acquire funds. Approval for a line of credit may take as little as 12 hours. In terms of accessing the funds, this might be done in as little as 24 hours. Persons with bad credit might find the low threshold of a 600 score extremely helpful when limited in terms of options.
Being approved for invoice factoring is relatively painless as well. $60,000 in annual revenues is also a low minimum amount. Small businesses that are only recently established might find the opportunity for fund access through invoice factoring to be a huge help.
Do Not Ignore Costs
Worth noting is that BlueVine’s interest rates are rather high. Those unable to repay their debts in a timely manner may run into significant costs. With invoice factoring, the non-payment of funds from customers does not eliminate obligations to pay back the money fronted. Borrowers must never ignore the potential costs that may be incurred with such borrowing.
William Anderson has been working with small business owners for the past 10 years. He got his start at an investment bank, but felt that he was too detached from where real people were making decisions that affected local economies. As a result, he took his experience and his MBA degree to work helping local small businesses.