|10/27/2020||BlueVine's fully rolls out business banking|
|09/22/2020||BlueVine hires new Chief Marketing Officer|
|09/09/2020||BlueVine secures $75M credit facility|
|07/29/2020||BlueVine partners with Doordash on PPP|
|11/19/2019||BlueVine raises $102.5M Series F|
BlueVine, a leading small business lender, has resumed its normal services after generating $4.5 billion in PPP loans to more than 155,000 businesses. The company had continued to offer its normal lending products even while others in the industry paused completely, the company says. Herman Man, the chief product officer, said that BlueVine has also fully launched a small business checking account platform.
“Our goal always was to be that small business banking platform,” Man said. “Last year at Money 20/20 we announced we were going to build a small business checking account. Recently, we launched it post-COVID, derailing our plans. We have a breadth of offerings now, and we are that small business platform.”
BlueVine also released a survey this week of more than 800 small business owners to learn what they need most in an ever-changing market. Their findings supported their online product offering. Distressed by COVID-19, the respondents reported an overwhelming interest in reliable customer service, day to day support, and fee-less transactions.
77% of small business owners surveyed reported demand for direct guidance in day-to-day accounting. In the face of an emergency, many respondents noted that banks were more interested in new customers than servicing current customers.
Following this emergency support trend, nearly nine out of ten or 87% of small business owners said access to emergency credit was necessary from the same bank providing them regular service. Accessing credit from the same provider was not just important, but over half or 64% reported it was exceptionally so.
Finally, 58% of business owners reported that a lack of overdraft, monthly, or maintenance fees were the essential features a business checking accounts could offer.
With the launch of a checking account platform, BlueVine can service the needs of these businesses, offering one common platform that connects factoring services, payments services, and now credit and banking services.
“If a small business wanted to take a line of credit and do it on a Friday night, using our algorithm and things that are automated, it could run through our system; if they get approved, money would be transferred into their checking account instantaneously,” Man said. “This isn’t something they have to wait until Monday morning. It will land immediately, so that’s a huge game-changer.”
This week BlueVine announced that since partnering with the food delivery service DoorDash in late April, over 180 businesses have received funds from the Paycheck Protection Program via said partnership. Totaling over $6 million, the partnership exclusively served restaurants on DoorDash’s platform, offering them a PPP pathway through BlueVine in email correspondence as well as the DoorDash merchant portal.
“DoorDash saw a need within their merchant partner base to be able to quickly apply for and receive a PPP loan – something many were not able to do through traditional banking services – and was looking to solve the accessibility factor with a partnership,” BlueVine CCO Brad Brodigan said in an email. “Small restaurants in particular were unable to access funds they needed to stay in business and navigate through this uncertain time, and the hope was that information from a trusted source like DoorDash would help them look for solutions if their bank was unable to help them.”
The $6 million funded is part of the larger $3.5 billion in PPP money that BlueVine claims to have funded to +100,000 businesses. According to Brodigan, the median loan size for the DoorDash deals was $16,000; with the median employees on payroll being five. DoorDash will be donating all referral fees from the program to the CRA Restaurants Care Covid-19 Grant as well as the Small Business Relief Fund.
BlueVine Capital, the Redwood City-based alternative funder, has announced today that it will launch its BlueVine Business Banking product in 2020, which will offer checking accounts that come with debit Mastercards, checks, and ATM access exclusively to small businesses. And just like many of the new competitors in the banking space, BlueVine Business Banking will be app-based, with access also being available through an online dashboard.
With the financial infrastructure and regulatory framework being provided by The Bancorp Bank, BlueVine is the next alternative finance company to look toward becoming a bank, a move which has proven difficult for companies who already tried, such as SoFi and Square.
“Historically, banks have under-invested in small businesses and as a result, small businesses have been left with products and services that don’t meet their needs,” said BlueVine CEO and Co-founder Eyal Lifshitz in a press release that claims only 9% of small businesses believe their banks meet all of their needs. “Credit is a core part of banking and with the addition of checking accounts to our existing suite of financing products, customers can have a truly seamless banking experience.”
Such seamlessness spawns from BlueVine’s goal to promote an integrated and instant banking model, Lifshitz told me. “No more waiting for ACH for two days, or for wires to come in. You press a button, you draw from your line of credit, and magically it’s in your checking account … It’s the way that we believe it should be. The fact that it’s not currently like this is incredible in our eyes. This is what we believe the future looks like.”
BlueVine Business Banking will offer customers 1.00% interest rates on their savings and aims to cut out many of the fees associated with checking accounts, as Lifshitz explained that there will be no monthly, excess, or ACH charges; and that wire fees will be a fraction of what they cost with traditional banks.
“We feel we have the ability to build a true small business bank. Finally, one that is built and designed for small businesses rather than one that is having them as the third or fourth priority on the list, which many of the larger banks do … We believe the reason we’re here providing alternative finance is because banking is broken, and our goal is to build better banking, not just financing, but overall better banking.”
BlueVine announced this week that it closed $60 million in equity funding, the company’s largest funding round to date. The series E round was led by Menlo Ventures and includes new investors, including SVB Capital. All major existing investors also participated.
This new financing will be used to expand the company’s current invoice factoring and business line of credit products, and to develop new products.
“Our vision is to let our customers guide us,” BlueVine Chief Revenue Officer Eric Sager told deBanked, with regard to what products might come next.
BlueVine also plans to use the funding to accelerate R&D hiring. BlueVine’s total funded volume since inception is expected to top $1 billion this year, according to the company’s press release.
“In just four years, BlueVine has scaled two major financing products,” said BlueVine CEO and founder Eyal Lifshitz.
Founded in 2013, the company started with a factoring product and later introduced a line of credit product. BlueVine provides business lines of credit up to $250,000 and invoice factoring lines up to $5 million. These maximum credit lines have been steadily increasing, with the factoring line of credit twice as large as it was at the beginning of the year, according to a deBanked story from February. And its business line of credit was $150,000 at the start of the year.
The company generates its revenue about 50-50 from its factoring and line of credit products, and about 50 percent of its factoring clients also use its line of credit product, Sager said.
This new $60 million investment follows a credit facility of $200 million with Credit Suisse last month.
“BlueVine has continued to impress us since we first invested in 2015,” said Tyler Sosin, a partner at Menlo Ventures, in a written statement. “The company has demonstrated dramatic, sustainable growth and has proven that there is enduring value in developing a comprehensive offering of credit products that small and medium sized businesses can use throughout their lifetimes.”
Headquartered in Redwood City, CA, BlueVine also has offices in New Orleans, Jersey City and Tel Aviv, and employs approximately 200 people.
BlueVine announced today that it has secured a $200 million asset-backed revolving credit facility with Credit Suisse. This will be used to expand its business line of credit product and the company’s customers will now be eligible for a credit line of up to $250,000.
“Capital markets partnerships are critical to our ability to scale and effectively serve our expanding customer base,” said BlueVine CFO Ana Sirbu. “This financing will support our next phase of growth [as] we continue to build a business for the long-term by offering the best working capital financing solutions to business owners.”
The company offers two products – invoice factoring and business lines of credit. The latter was introduced in January 2016 with a maximum credit line of $30,000, Sirbu told deBanked. That maximum soon became $50,000 and has steadily risen. In February, the company increased its business line of credit from $150,000 to $200,000.
Founded in 2013 by CEO Eyal Lifshitz, the company first offered only factoring in March 2014. Now, Sirbu said that the breakdown of its business is about even between its factoring and business line credit offerings.
This is BlueVine’s first facility with Credit Suisse. Not counting this facility, the company had $318 million in funding as of October 2017, according to Crunchbase.
BlueVine is headquartered in Redwood City, CA, with other offices in Jersey City, NJ, New Orleans, LA, and a large office in Tel Aviv, Israel, where most of its Research and Development team is based. Altogether, BlueVine employs about 200 people.
Invoice factoring and small business loan company, BlueVine, recently doubled its credit line size for its invoice factoring product up to $5 million. Simultaneously, it has also increased its business line of credit maximum to $200,000, from $150,000.
“The number one [reason for the expansion] has been an increase in demand from our existing customers,” said BlueVine Chief Revenue Officer Eric Sager.
He said they had granted higher lines of credit to some customers who asked for it, and when BlueVine saw success, it decided to make the higher credit available to all customers.
The Redwood City, CA-based company was founded by Eyal Lifshitz in 2013 as a factoring company, but it has since offered small business loans, which Sager told deBanked now accounts for about half of the company’s revenue.
Last year, BlueVine introduced a 12-month line of credit based on monthly payments. Previously, they had only offered a 6-month business line of credit, called Flex Credit, based on weekly payments. Sager that said that many BlueVine customers use the company’s factoring services as well as its credit line offering.
“The reason why [this increase in credit] is so important is because it allows customers to use our line of credit facility not just for working capital…but now for capital expenditures as well,” Sager said.
Many alternative lending companies boast of using sophisticated technology to almost instantly issue loans or credit lines. While Sager said that BlueVine does use sophisticated technology, he said they also use reliable industry standard technologies and that they have a dedicated account management team that customers can reach out to, particularly large ones.
One of Sager’s favorite slogans that he applies to BlueVine is: “Always available, never needed.”
BlueVine also increases business line of credit to $200,000; opens New Jersey office
REDWOOD CITY, Calif. – January 30, 2018 – BlueVine has doubled the credit line size for its invoice factoring product to up to $5 million, underscoring the online business lender’s push to offer fast and flexible working capital financing to small and medium-sized businesses.
BlueVine also increased the limit for its business line of credit product to $200,000 from $150,000, making its Flex Credit product an even more attractive financing option for larger or fast-growing companies.
“In just four years, we’ve dramatically increased our invoice factoring credit line to $5 million, and our business line of credit to $200,000,” BlueVine CEO and founder Eyal Lifshitz said. “We continue to be fully committed to providing business owners with robust financing options to help them thrive.”
BlueVine helped Mindstar Aviation unlock capital trapped in unpaid invoices. The Virginia-based company, which develops and writes software for flight simulators, used to wrestle with cash flow gaps while waiting for customers to pay their bills, which often took 45 days or longer.
BlueVine allowed Mindstar to get cash advances on those invoices.
“Because we have BlueVine in place to make a purchase, we could proceed immediately,” said Johnny Johnson, the company’s executive vice president. “We don’t have to wait, which could impact a project timeline. BlueVine financing is easy. It’s quick. No hassle. BlueVine is not nickel-and-diming people, charging fees here and fees there. It’s really straightforward and easy to understand.”
A business line of credit from BlueVine enabled entrepreneur Jesse Urrutia, owner of MarketMe, a video production company in San Carlos, California, to take on bigger clients and grow his business.
“In the past, if I didn’t have cash to pay for a production, I would just turn down the project,” Urrutia said. “It’s ridiculous to turn business down because you don’t have the money. BlueVine fixed that for us.”
BlueVine also announced the opening of its new office in Jersey City, New Jersey, from where the company hopes to better serve customers and partners on the East Coast. Aside from its headquarters in Redwood City, BlueVine also has offices in New Orleans and Tel Aviv.
BlueVine revolutionized business lending with a highly automated, completely online invoice factoring platform that allows businesses to get advances on unpaid invoices.
In 2016, BlueVine introduced a 6-month business line of credit called Flex Credit based on weekly payments. The company introduced a 12-month line of credit based on monthly payments in 2017.
BlueVine provides flexible working capital financing to small and medium-sized businesses, giving them quick access to funds needed to purchase inventory, cover expenses, or expand operations. A fintech pioneer, BlueVine developed a fully-online cloud-based platform for invoice factoring, revolutionizing the 4,000-year old financing system that allows businesses to receive cash advances on outstanding invoices. BlueVine also offers FlexCredit, business line of credit financing based on 6-month and 12-month payment terms. Based in Redwood City, Calif., BlueVine has raised $273 million in equity and debt funding and is funded by Lightspeed Venture Partners, 83NORTH, Correlation Ventures, Citi Ventures, Menlo Ventures, Rakuten Fintech Fund and other private investors.
Helping businesses get paid on their invoices faster is a big market. So big, in fact, that when I met up with BlueVine CEO Eyal Lifshitz at LendIt last week, his company had just recently secured a $75 million warehouse credit line with Fortress. BlueVine had also just come off of a big year in which they provided more than $200 million to small businesses, earning them a spot in our rankings.
BlueVine’s success comes at a time when some in the online lending space have lost their luster. Lifshitz feels his company, however, is positioned well. “The time of exuberance has disappeared,” Lifshitz says. “Investors are looking to create value.”
Part of what makes them different is that they not only factor invoices, but they also provide lines of credit to prime and near-prime customers. Factoring is still a bigger percentage of their overall business, Lifshitz says, but he asserts that their credit line segment is growing at a faster clip. And he insists that they are working on other products too, not just loans. It sounds like the beginnings of a bank, I tell him, while making references to SoFi and their ability to live on the threshold of banking without actually currently being one.
“People have been saying that PayPal would become a bank forever but they haven’t become one,” he points out.
Still, running a company as big as his does require prudent decisions. “We are very mindful of how we manage capital,” he says. I ask if he thinks his business model protects them from an economic downturn. “It doesn’t protect it,” he asserts. Instead, he explains, his model gives him the ability to make adjustments rapidly. Since BlueVine’s capital is typically repaid in a matter of months, they can react to economic changes quickly.
Big name backers aren’t afraid to show that they believe in this either since they have been funded by Lightspeed Venture Partners, 83NORTH, Correlation Ventures, Menlo Ventures, Rakuten Fintech Fund and other private investors. A recent announcement by BlueVine says that they are on track to fund approximately $500 million to small businesses in 2017.
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