BlueVine and GovQuote team up to fund SMEs
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, David Penn at Finovate.
“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 says. “It’s that simple.”
GovQuote is a free public procurement marketplace that helps connect the state, local, and education government agencies that comprise the US 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 says. 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 says, underscoring the cash flow challenges that are a major obstacle for many SMEs that could otherwise compete in this market.
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.