SME online financier BlueVine is collaborating with GovQuote to help small businesses that serve state, local, and education (SLED) government agencies get the working capital they need.
“Our mission is to bring liquidity to the entire government procurement ecosystem, making it efficient and transparent, through the use of technology,” founder and CEO of GovQuote Jeff Rubenstein said. “It’s that simple.”
GovQuote is a free public procurement marketplace that helps connect the 90l000 state, local, and education government agencies that comprise the U.S. SLED market with small business vendors. The company’s platform provides an easy virtual environment where SLED agencies can get quotes from a database of thousands of SMEs competing for their business. Agencies can take advantage of GovQuote’s technology to get quotes in less than 60 seconds and a complete digital record for compliance.
The market for SLED agencies is sizable, but it is often a challenging one for SMEs. The procurement process can be long – with businesses waiting more than 90 days for payment on government-ordered goods and services. By providing funding for inventory, to hire additional staff, or to cover potential cash flow issues, BlueVine’s line of credit and invoice factoring offerings give SMEs options that allow them to compete confidently for SLED clients.
GovQuote’s partnership with BlueVine will be especially helpful for SMEs that have traditionally struggled to secure financing, Rubenstein said. Together, BlueVine and GovQuote will give these entrepreneurs what he called “the power to level the playing field in the government market and quickly get access to tailored funding solutions.”
BlueVine enables small business owners to get up to 95% of their invoice payment immediately, with weekly financing rates as low as 0.25%. Eligible borrowers can get advances of up to $5 million, with no funding minimums, and no cancellation or sign-up fees.
“The government and education market is growing, presenting many growth opportunities to small businesses,” BlueVine CEO and founder Eyal Lifshitz said. Underscoring the cash flow challenges that are a major obstacle for many SMEs that could otherwise compete in this market, he explained how BlueVine’s line of credit and invoice factoring offerings can make a difference.
“By combining the power and simplicity of GovQuote’s platform with on-demand financing options provided by BlueVine, we’re leveling the playing field for small business owners that serve state, local, and education agencies,” Lifshitz said.
BlueVine demonstrated its small business financing platform at FinovateFall 2014. The company made fintech headlines at the beginning of the year with news of its partnership with Bullhorn to help finance staffing companies. Headquartered in Redwood City, California, BlueVine has raised $590 million in funding, and includes Lightspeed Venture Partners, Menlo Ventures, 83 North, Credit Suisse, and M12 among its investors.
Online invoice factoring innovator BlueVine has teamed up with recruitment industry software provider Bullhorn to give the company’s SME customers better financing options. Bullhorn is a cloud computing firm that specializes in helping staffing and recruiting companies better serve SMEs. This new partnership will provide yet another way for the company to support the business growth of its clients.
“With BlueVine, firms can receive fast and flexible access to financing that can help them power their next phase of growth,” explained Bullhorn VP of Alliances and Business Development, Nina Eigerman. “At Bullhorn, our overwhelming focus is on helping our customers and providing them with an incredible experience as their long-term growth partners. This initiative delivers on that vision.”
BlueVine CEO Eyal Lifshitz said that the partnership with Bullhorn supports the company’s dedication to “providing working capital financing to business owners looking to simplify their cash flow and grow.” A challenge for staffing firms is that, after placing candidates, they are often required to cover payroll expenses for 30-60 days. To fund this requirement, staffing companies traditionally have relied on an array of banks, factoring companies, and payroll financing firms. This process can be expensive, time-consuming, and cumbersome.
In contrast, BlueVine offers factoring lines of credit up to $5 million, rates as low as 0.25% per week, swift approval of 24-48 hours typically, and the flexibility to choose which invoices are funded. No sign-up fees, monthly minimums or cancellation fees are required.
Mike Smith, Chief Talent Officer for CleverTerra, which uses both technologies, praised BlueVine and Bullhorn’s “streamlined solution.” He said, “I turned to BlueVine and quickly secured funds to cover payroll, smooth cash flow, and evolve my practice.” Smith called BlueVine “a great compliment to Bullhorn, which I rely on to effectively manage my day-to-day operations.”
Bullhorn was founded in 1999, and is based in Boston, Massachusetts. With more than 900 employees, the company works with more than 8,000+ staffing firms via its cloud-based platform. Art Papas is founder and CEO.
Headquartered in Redwood City, California, BlueVine demonstrated its platform at FinovateFall 2014. Last summer, the company picked up a $12 million investment from Microsoft’s venture fund, M12, and the venture arm of insurance and financial services firm, Nationwide. BlueVine has delivered more than $1 billion in funds to 10,000+ small business owners since the company’s inception in 2013.
Small business financing specialist BlueVine has raised $12 million in new funding. Combined with the $60 million investment the company picked up last month, BlueVine’s Series E amounts to $72 million, and takes the company’s total funding to $590 million. Of this amount, $185 million represents equity financing.
This week’s investment comes from Microsoft’s venture fund, M12, and the venture arm of insurance and financial services company, Nationwide. M12 partner Elliott Robinson praised BlueVine’s “market traction to date,” while Nationwide Ventures’ Erik Ross highlighted the funding as emblematic of Nationwide’s commitment to serving SMEs. “This investment aligns with our strategy to co-create value for our members to help them protect what’s most important and to plan for a secure financial future,” Ross said.
BlueVine provides working capital to small and medium-sized businesses, offering lines of credit up to $250,000 and invoice factoring up to $5 million. With rates as low as 4.8% and approvals as quick as 20 minutes, the company recently surpassed $1 billion in total funding volume.
“We had very limited resources when we began and we were up against bigger and more established competitors,” said BlueVine CEO and founder Eyal Lifshitz, who reflected on the company’s fifth anniversary as well as this week’s funding. He credited the company’s “cutting edge technology and product innovation” for its success and added, “these new investments will help us offer more financing to even more entrepreneurs.”
Founded in 2013 and headquartered in Palo Alto, California, BlueVine demonstrated its SME online lending platform at FinovateFall 2014. This spring, BlueVine partnered with cross-border payments specialist, Veem, to make the process easier and less expensive for SMEs. Named one of the top 360 entrepreneurial companies in the U.S. by Entrepreneur, BlueVine addedWomen in Fintech Powerlist member Ana Sirbu as its new Chief Financial Officer at the beginning of the year.