The Palo Alto startup is launching a platform that helps small business owners get immediate payment for invoices regardless of when customers can pay
Startup company BlueVine, which helps small businesses manage and accelerate payment of their invoices, completed a $4 million financing round. The current funding round was led Lightspeed Venture Partners, Greylock IL, Correlation Ventures, Kreos Capital and Kima Ventures, along with several other angel investors.
How it handles accounts
One of the significant problems that small business owners deal with on a regular basis is payment. In most cases, the service provider or business itself issues invoices in a timely manner, and then they have to wait a long time before the money is transferred to their account.
BlueVine offers these service providers a way to speed up the receipt of payment for their various invoices. Their solution puts emphasis on several points: reducing the time gap between when the customer pays for the service and when the business issues an invoice, automating the process and placing the entire process online.
According to the company, opening an account takes just a few minutes and the platform merges with existing invoicing software. In practice, the company offers a type of loan based on various invoices and pays small businesses for the invoice.
In order to offer full transparency to its customers, the company shows different sales invoices ranging between $500 to $10,000 where BlueVine offers payment of up to 97 percent of an invoice. The invoice amount is transferred within one business day to the business.
The payment from the customers themselves, even if it comes late, “covers the debt” and completes the payment. BlueVine charges a fee based on the time it takes for the customer to transfer his payment, as well as on the amount of the payment itself.
It is important to note that despite the intervention of the company in the payment process, the client transfers the payment to the business itself. Clients do not come in contact with BlueVine and they aren’t made aware of the ‘behind the scenes’ workings. So, no need to worry about transferring money to the third party, who are not part of the original transaction. The company also states that due to the fact that it deals with business accounts, it also offers fraud detection and protection.
BlueVine was founded in 2013 by Eyal Lifshitz, Nir Klar and Moti Shatner and employs about 10 workers at their offices in Palo Alto, California. Along with the announcement of the current financing round, the company launched its beta service, with plans to offer it to its target audiences in about a month.
CEO Eyal Lifshitz, explained that many small businesses are missing out on growth opportunities and many of them have trouble paying bills because of the need to wait for payment for various invoices. Until now, businesses have had to deal with this problem on their own, but now with the help of BlueVine they can access funding and fund their growth, without taking loans.