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Small and medium businesses were hit extremely hard by the coronavirus crisis. There are many tragic stories from owners who tried and failed to keep their livelihoods afloat. Financing during these hard times is an essential element for SMEs survival. BlueVine is one of the companies providing that kind of life-changing service for businesses. As an approved PPP lender, it helps empower American businesses and support them through the recession. Not stopping at offering basic services, BlueVine also strives to make the Paycheck Protection Program more easily accessible to ensure a greater number of small businesses can benefit from it.
The Importance of Alternative Financing and BlueVine’s Position in the Industry
Upon its funding, the main purpose of BlueVine was to assist small businesses and entrepreneurs that struggled with cash flow. This particular type of problem is the most common cause of small business failure. But unfortunately, traditional lenders were very reluctant in granting loans to SMEs and especially startups after the recession of 2008. Therefore, many businesses could not survive for even a decade.
This situation is what pushed the development of the alternative financing industry. Multiple businesses appeared in response to the rising demand for quick financing. However, the industry remains rather poorly regulated. Therefore, there is a big risk of scams, unfair terms, and extremely high interest rates.
A good reputation that can be easily verified online is the quality you should be looking for in an alternative lender. You can only put your trust into one of the top business loan companies that have positive reviews and good customer standing. BlueVine definitely fits these requirements as you can easily find information about it in reputed sources. It has also been approved as a lender for the Paycheck Protection Program. This means that this lender meets the stringent SBA standards for alternative financing providers. This indicates that BlueVine is rather high up in the industry and its reputation will no doubt grow due to its efforts in facilitating SME’s access to these government-backed loans.
But you need to bear in mind that alternative lenders, BlueVine included, are never cheap. That’s why they are most help to businesses that experience short-term issues, like slow B2B payments. In this case, you are sure that you will get the money. Therefore, you only need to fill the cashflow gap short-term. The sooner you repay an online loan, the cheaper it will be.
BlueVine Loans for Every Business Need
One of the biggest advantages of BlueVine is flexibility. It offers a wide range of loan products that can meet the needs of businesses facing most common issues.
- Invoice factoring
This is a good option for businesses with customers that are slow to pay their invoices. BlueVine will buy those invoices from you and provide you with the necessary money right away.
However, note that if the customer hasn’t paid the invoice within a set time limit, you will have to pay instead.
- Lines of credit (6 and 12 months)
This type of loan is similar to a credit card. This means you will be able to use it only when necessary. And money will be at your disposal right away. Note that BlueVine’s lines of credit replenish every time after you make a payment. You can switch from the 6 to 12-months plan as long as you meet specific eligibility requirements. But this will increase the cost of the loan significantly.
- Term loans
These are “regular” loans where you get the money right away and start paying off your debt and interest rates in installments. This lender offers you a chance to repay within 6 or 12 months. But you will have to make payments every week or month. The rate for term loans from BlueVine starts at 4.8%. It will be calculated based on multiple factors.
BlueVine is a flexible lender and has very few eligibility requirements for borrowers. Even those with poor credit score might be able to secure one of the loan types on offer. Business’s annual revenue is an important factor for this consideration.
What Does BlueVine Do as a PPP Approved Lender?
Today BlueVine is also one of the approved lenders that disperse funds from the Paycheck Protection Program. The program itself is designed to help SMEs affected by the crisis. In essence, it’s the only chance of making it through this trying period for many small businesses.
However, BlueVine doesn’t stop at simply offering this kind of loans to those eligible. It has also recently partnered with FLEECTOR to facilitate the process of obtaining this financing.
FLEECTOR is one of the world’s leaders among business payments providers. As such, it has a huge customer pool. And it now helps all its customers to apply for a PPP loan through BlueVine.
This seems like a simple matter. However, the value of this help is enormous. The process of filing for this loan is rather complex. But anyone who uses FLEECTOR can apply in a breeze using BlueVine’s own technology to facilitate the process.
An easier application process means that more businesses will be able to get the help they so desperately need. The PPP program has already faced a lot of criticism for lenders allocating funds to large businesses. Seeing that BlueVine is taking such steps to ensure SMEs and private entrepreneurs get this money is a relief. This position will, no doubt, boost customer loyalty, as well as attract more people to get their PPP loans from this lender.
Can You Trust BlueVine to Help Your Business?
BlueVine stands out on the alternative financing market as a trustworthy and efficient lender. However, it offers fairly expensive loans. Therefore, if you do have a chance to avoid getting into debt, you should always take it.
Sadly, this chance is only available to lucky few in this time of global recession. Therefore, BlueLine draws attention as a flexible lender that offers different types of support. The versatility of options definitely makes this company a worthy choice.
But you shouldn’t forget that nothing is perfect. As such, BlueVine’s services come at a high cost. You can be confident that there won’t be any unexpected or hidden fees in your loan’s terms and conditions. However, be sure to calculate all your fees and interest before taking the money. You have to keep your eyes wide open when you get the loan.