The storm restoration business is by turns, extremely gratifying and extremely frustrating. Gratifying in that you know you’ve made a real difference in communities that have been turned upside down by nature. And frustrating because you often find yourself holding on for your financial life in the aftermath of a big job.
That’s because being on the road for days and weeks at a time is incredibly expensive. If you’ve ever done it, you know it’s not unusual to return home after a hurricane or such events to a bank account empty of working capital. BlueVine says they can help in such situations. We say Payost is your best bet. Let’s take a look at both and see who’s right.
What is BlueVine and What do They Offer?
BlueVine offers invoice factoring for clients large and small. They’ve been getting a lot of attention from financial websites lately for both good and bad reasons. The good is that they offer fairly easy terms. The bad thing is that their interest rates are often jaw-dropping. And not in a good way.
How Does BlueVine Work?
BlueVine works by paying off a majority of your outstanding invoice. This is common practice for all factoring companies (and there are a lot of them around). Typically they provide cash equal to about 85% of the value of the invoice.
A lot of storm restoration companies find this model attractive because it allows them to obtain much-needed capital. They can then use that money to perform equipment maintenance and upgrades, meet other obligations, and prepare themselves for the next job.
However, working with BlueVine is not as smooth sailing as you might think, especially because of their soaring interest rates. But that’s not the only thing about BlueVine that should raise red flags.
BlueVine Qualification Requirements
As an invoice factoring company, BlueVine is going to take a good long look at both you and your company before deciding whether to work with you. Factors typically used to determine eligibility for the BlueVine program include:
- Your business cash flow
- Your personal credit score
- The so-called “strength” of your customers
- How long you’ve been in business
- How many employees you have
- And much more...
Your personal credit score is important in determining if BlueVine will accept you as a customer and, if they do, what interest rate they will charge you. In order to determine that, they’re going to do a credit check on you which could negatively affect your credit score so be aware.
All of this is in contrast to Payost invoice financing. At Payost, we don’t perform a credit check because we’re not in the business of lending money. If you have unpaid invoices with AAA credit rated companies, we pay those invoices for you.
The BlueVine Application Process
The BlueVine application process begins by going to their website. There, you’ll find the application page but you’ll need to set up an account first. To do this, you’ll be required to enter information regarding:
- Your first and last name
- How much money you’re applying for
- Your business phone number
- Your email address
Once you’ve set up your account, you’ll then be taken to the application page. There, you’lll need to enter more detailed information, including:
- Details about your business
- Address and Tax ID of your business
- Your social security number
- Copies of your 3 most recent bank statements
Keep in mind too that BlueVine will want to see a personal credit score of at least 530 for you to be able to take advantage of their invoice factoring service.
Compare that to the Payost invoice financing application process and the difference becomes clear. With Payost, all you need is:
- Your company name
- The name of the utility that has signed off on your invoices
- Or the name of the GC who has billed the utility for work you performed
- A copy of the invoice being held by the utility
Once you submit that information to Payost, we provide you with an online dashboard through which you can upload your qualifying unpaid invoices. Once received, we typically pay off the invoice within 24 hours.
That’s it. No credit check. No invasive questions about your company or personal life. No need for a personal guarantee and no need for any collateral.
BlueVine Pros and Cons
Before we go any further, let’s take a big picture look at the pros and cons of using the BlueVine invoice factoring service.
Our review of OnDeck begins and ends with whether or not this is an option you need to explore. Especially if you have unpaid invoices being held by a utility or other AAA credit rated company. If you do apply for one of their loans or lines of credit, you need to make sure the money is going to return more than it costs you to borrow. And at 40 to 100% interest rate, that’s a very tall order.
Payost offers invoice financing on any outstanding invoice with a AAA credit rated company. We don’t float you a loan or set up a line of credit that you need to start paying off as soon as you get it. We pay your invoice–plain and simple. You get the cash you need to pay your staff, maintain equipment, and prepare for the next job.
A review of BlueVine reveals more cons for a storm restoration company than pros. The fact that they often perform hard credit pulls means that your credit score is likely to take a hit. In addition, the fact that they buy the invoice and inform the utility that you sold the invoice can paint your company in an unflattering light.
BlueVine vs Payost
BlueVine may have something to offer certain types of companies. But if you have outstanding invoices with a AAA rated utility, selling those invoices to BlueVine makes no sense whatsoever. Not when Payost will pay them off for you even faster with no negative effects on you and your company’s reputation.
Where BlueVine bases their decision on your credit rating, we base ours on the creditworthiness of the utility. Where BlueVine will likely conduct a hard pull credit check that can damage your credit score, we don’t check your credit at all. Ever.
With BlueVine, the utility will learn your invoice got bought but with Payost, they’ll never learn that you did business with Payost. Payost is not a line of credit or a loan. We’re simply the best advance funding option available for storm restoration companies that need to bring order and stability to their cash flow.
“Simple can be harder than complex. But it's worth it in the end.”—Steve Jobs
Bottom Line: Should you try Payost?
Companies whose unpaid invoices are being held by less reputable companies may well be able to gain some measure of assistance from BlueVine. But if your unpaid invoices are being held by a AAA rated utility, Payost is the only advance funding option that makes sense.
We’re less intrusive, less expensive, and we pay your invoices fast and in full. Don’t be fooled by the invoice factoring marketing blizzard. If you want to get paid now for the work you performed instead of waiting 90 to 120 days, Payost is, by far, your best choice!