BlueVine, an online business lender based in Palo Alto, Calif., is branching into unsecured lending.
The two-year-old company got its start by offering credit lines to small businesses that want to receive payment on their invoices more rapidly — a form of financing known as factoring. On Thursday, BlueVine announced that unsecured lines of credit are now part of its product mix.
"We already know how to do this. The only difference is, there's not going to be an invoice on the other end," said Eyal Lifshitz, BlueVine's CEO.
BlueVine's unsecured line of credit, known as Flex Credit, is slightly more expensive than its original product. The unsecured line carries annual percentage rates between 18.2% and 60%, according to Lifshitz.
Businesses can apply for unsecured lines of between $5,000 and $30,000, which they are required to repay in fixed weekly installments over six months. Borrowers can receive the funding in as little as 24 hours, the company stated.
BlueVine has not disclosed its origination volume, but says it is on track to fund more than $200 million in working capital this year.
The firm announced in January that it had raised equity and debt funding totaling $40 million.