[skideeppow]

So i have tried to sell Blue Vine's program and run into all types of issues.
1. They charge is.5%-1.5% weekly. That ends up being more than most MCA's
2. Qualification is very difficult.

So my question is, what is the selling point, besides that fact that you are only paying on what you use.

Thanks for any input.

[abfunders]

Simple interest on Bluevine's products are in the 24% range. That's a 1.24 amortized over 6 or sometimes 12 months.
The .5-1.5% rate is for factoring not the LOC. Those are pretty high rates for factoring, TBH, but the can "spot" factor.

Besides that, whatever they pay back, they can draw again.
https://www.abfunders.com/business-l...ine-of-credit/

[Kevin Henry-Seacoast]

Simple interest on Bluevine's products are in the 24% range. That's a 1.24 amortized over 6 or sometimes 12 months.
The .5-1.5% rate is for factoring not the LOC. Those are pretty high rates for factoring, TBH, but the can "spot" factor.

Besides that, whatever they pay back, they can draw again.
https://www.abfunders.com/business-l...ine-of-credit/

We don't spot factor or select factor. There are other groups out there that do with much better rates than BlueVine. 1.5%/week!!! Yikes!!!

[Kevin Henry-Seacoast]

We don't spot factor or select factor. There are other groups out there that do with much better rates than BlueVine. 1.5%/week!!! Yikes!!!

Correction-We will select factor if there is enough volume to make it worth our time. Example: I was approached by a company yesterday that does $50Mil/year in revenue and would like to factor 4 of their customers that account for 40% of revenue.

We have also done true sales.....not many have pulled those off efficiently.

[skideeppow]

Simple interest on Bluevine's products are in the 24% range. That's a 1.24 amortized over 6 or sometimes 12 months.
The .5-1.5% rate is for factoring not the LOC. Those are pretty high rates for factoring, TBH, but the can "spot" factor.

Besides that, whatever they pay back, they can draw again.
https://www.abfunders.com/business-l...ine-of-credit/

I am looking at their offerings right now, Flex 6 .35% to 1.5% per week 5-22% simple interest over 6 months
Flex 12 1.5-6.5% per month. 11-47% simple interest over 12.
i guess i was confused.

[AllDayMoney]

Who else does LOCs besides Kabbage, BluVine and FundBox?

[DTFdowntofund]

Who else does LOCs besides Kabbage, BluVine and FundBox?

On Deck

[mcaguru]

Lots of new companies in the pre-pop-out stage going to be offering LOC.

[Chargers]

Who else does LOCs besides Kabbage, BluVine and FundBox?

I keep hearing Breakout Capital does.

[matt.estes]

Warning: I work at BlueVine, so I'm a bit biased

Rates

- 12 month LOC: Simple interest of 8.7% - 47% (equivalent to a 1.09 - 1.47 factor rate over 12 months)

- 6 month LOC: Simple interest of 4.8% - 22% (equivalent to a 1.05 - 1.22 factor rate over 6 months)

- Factoring: 0.25% - 1.5% per week. This is a large range in price that allows us to work with a broad range of customers.


@skideeppow: The customer value proposition on the LOC is the following:

1) It's an interest rate, so there is no pre-payment penalty (like you see with a factor rate)
2) As the customer pays back the principle, they can re-draw those funds without the need for a "renewal" (it's an LOC after all!)
3) The LOC can co-exist with another loan or MCA; we don't require 1st position

Essentially, any customer who is optimizing for flexibility will prefer the LOC.

One other comment on pricing - on average, we tend to be much less expensive capital vs. other MCA and TL options for like-for-like customers.


@kevinhenry0527

These days, I mostly target customers with annual revenue of $5M - $50M. Considering we're a spot factor (i.e. don't lock customers into minimums & other fees) and that we're 100% online software-enabled, we tend to win many more deals than we lose.

We quote one weekly rate with NO hidden fees in long-term contracts. Once you add in the hidden fees that most factors pepper into contracts, we tend to beat those factors on price (i.e. least expensive cost of capital all in). CFOs of lower middle market are sophisticated to the point where they'll run that math on total cost of capital.


Matt Estes
Head of Originations
partners@bluevine.com

[FCG]

call blue vine and have them explain it to you instead of coming on daily funder lol

[Fundyman]

I just saw a Flex Line of Credit from Bluevine a few days ago:

Monthly rate: 2.75%
12 pmts
Simple interest rate: 18.76%
When I did the math from an example of total paid vs. net after the 1.60% draw fee, it was about 20% total interest paid.
you need a selling point? Here's one: There is NO COMPARISON between a simple interest loan & a cash advance. If you can get a simple interest loan, you grab that ASAP.

Another thing to consider is that a cash advance funder will usually approve for more than Bluevine will. It's just that the money is a lot more expensive.
Bluevine money, just like IOU, and whoever else does simple interest (Quarterspot..., etc...) make it that if you're able to pay early, you don't have to pay the entire interest.

On any cash advance, you're paying full payback, minus maybe 7% discount if you pay it back on full term or in 2 weeks. So that's your selling point right here. Simple interest on top of the fact that you have a true line of credit, no matter how expensive it may seem to be. I can't believe I'm still not signed up w/ Bluevine!

[DiamondBL]

It's a solid program if your client fits. The payout is pretty nice if the client keeps dipping in.
They can pay off and use as needed. (selling point)

[abfunders]

No COJ

Like I said in another string, Bluevine is not the product that "sales floors" sell to their clients, since it's residuals. Unless there's a W2 employee, a rep can't be paid 1-1.5 on every draw if they're only there for 6 months! Hard shoes to fill.

I for one personally love Bluevine. It's a product most don't offer because of this "problem" that they are selling money on the phone. Lenders (not just funders) deserve business, too!

It's good for me at least!

[Kdonnellon]

Who else does LOCs besides Kabbage, BluVine and FundBox?

Headway Capital (Enova)

[skideeppow]

Warning: I work at BlueVine, so I'm a bit biased

Rates

- 12 month LOC: Simple interest of 8.7% - 47% (equivalent to a 1.09 - 1.47 factor rate over 12 months)

- 6 month LOC: Simple interest of 4.8% - 22% (equivalent to a 1.05 - 1.22 factor rate over 6 months)

- Factoring: 0.25% - 1.5% per week. This is a large range in price that allows us to work with a broad range of customers.


@skideeppow: The customer value proposition on the LOC is the following:

1) It's an interest rate, so there is no pre-payment penalty (like you see with a factor rate)
2) As the customer pays back the principle, they can re-draw those funds without the need for a "renewal" (it's an LOC after all!)
3) The LOC can co-exist with another loan or MCA; we don't require 1st position

Essentially, any customer who is optimizing for flexibility will prefer the LOC.

One other comment on pricing - on average, we tend to be much less expensive capital vs. other MCA and TL options for like-for-like customers.


@kevinhenry0527

These days, I mostly target customers with annual revenue of $5M - $50M. Considering we're a spot factor (i.e. don't lock customers into minimums & other fees) and that we're 100% online software-enabled, we tend to win many more deals than we lose.

We quote one weekly rate with NO hidden fees in long-term contracts. Once you add in the hidden fees that most factors pepper into contracts, we tend to beat those factors on price (i.e. least expensive cost of capital all in). CFOs of lower middle market are sophisticated to the point where they'll run that math on total cost of capital.


Matt Estes
Head of Originations
partners@bluevine.com

to revisit, i have sent over 15-16 deals, not one approval. Dont know how you guys underwrite but it sure isnt working for me.

[Nunya]

Warning: I work at BlueVine, so I'm a bit biased

Rates

- 12 month LOC: Simple interest of 8.7% - 47% (equivalent to a 1.09 - 1.47 factor rate over 12 months)

- 6 month LOC: Simple interest of 4.8% - 22% (equivalent to a 1.05 - 1.22 factor rate over 6 months)

- Factoring: 0.25% - 1.5% per week. This is a large range in price that allows us to work with a broad range of customers.

[/email]

Walk me through that math, chief... 47% simple interest? that assumes balloon payment or payments throughout the term.

[paulypubco]

speak to NICHOLAS.ZORTEA@bluevine.com

[matt.estes]

Walk me through that math, chief... 47% simple interest? that assumes balloon payment or payments throughout the term.

The 12 month LOC is fully amortizing with a monthly payment. The 6 month LOC is fully amortizing with a weekly payment. We offer calculators that include their products' respective amortization schedules. Reach out to your rep if you'd like to see either Excel calculator.

Matt Estes
BlueVine
partnerinquiry@bluevine.com

[matt.estes]

to revisit, i have sent over 15-16 deals, not one approval. Dont know how you guys underwrite but it sure isnt working for me.

I'd like to help you, but would need to know who you are so I can look at your account. Send an email to 'partners@bluevine.com' if you'd like to discuss.

We can give you eligibility criteria (FICO, NSFs, TIB, monthly revenue, etc.) where we can fairly confidently predict you'll hit a 70%+ approval rate...


Matt Estes
BlueVine
partnerinquiry@bluevine.com