Biz2Credit Review: Detailed Breakdown, Pros & Cons

Its efficiency in application processing, rapid funding turnaround, and personalized customer service have garnered a reputation among small business owners as a reliable resource for financial support. Marketplace lender reviews often highlight the simplicity and speed of the Biz2Credit platform. A lender review might echo the experience of customers like Marlon Wells who described partnerings with Biz2Credit as one of the most seamless, efficient, and customer-friendly experiences he’s ever had with a lending institution.

Beyond its lending services, Biz2Credit offers valuable financial tools and educational resources to help businesses optimize their financial health. Entrepreneurs gain an edge with features like loan comparison capabilities, robust business credit score monitoring, and effective cash flow management tools, designed to empower them with strategic financial insights. Lauded for its holistic service model, Biz2Credit stands out for its transparency and unwavering commitment to propelling the prosperity of the small business community.

This digital-centric approach simplifies the submission of financial information and documentation, facilitating a faster lending process where applicants can receive approval and funding within days, thus making it a quick solution for urgent financial needs such as making payroll or managing business receipts.

Once approved, businesses have the liberty to use the funds for myriad purposes such as expanding operations, purchasing inventory, or strategically managing cash flow. Payment transactions can be configured according to the cash flow patterns delineated by your business receipts, with terms that can be daily, weekly, or biweekly. The repayment terms and interest rates are tailored to each loan product and the borrower’s credit profile, making business transactions smooth and predictable. Biz2Credit also offers the security of revenue-based financing that doesn't always require collateral, although some loan types might request it, such as commercial real estate (CRE) loans, which use your business's property as collateral.

With Biz2Credit's personalized support, businesses receive guidance to help navigate the lending process and select the financing option that best fits their unique needs. In summary, Biz2Credit’s loan products are commended for their ease of use, fast approval times, and tailored financial solutions that cater to the specific demands of small businesses.

Revenue Based Funding (Merchant Cash Advance)

Biz2Credit's Revenue-Based Funding offers flexible financing options where repayments are tied to a percentage of the business's monthly revenues, making it a suitable choice for businesses with fluctuating incomes.

• Funding amount: Up to $2,000,000
• Interest Rates: Factor Rates range from 1.5% to 3.5% per month, with origination fees ranging from 0% to 8%
• Terms: No fixed term as repayment is attached to future sales but typically set for up to 18 months based on revenue levels at time of application
• Repayment Schedule; Daily, weekly or Bi-weekly convenience auto-ACH payments
• Fees: Origination fees from 0% to 8% of funded amount
• States Available: May be restricted in North Dakota, South Dakota, Nevada, Rhode Island and Vermont
• Paperwork: 1-page application, 3 to 4 months bank statements

Term Loan

A business term loan is a lump-sum amount of capital provided to a business, which is repaid over a fixed period with regular, scheduled payments that include interest.

• Loan Amount: $25,000 to $500,000
• Interest Rate (APR): Does not disclose on Website
• Terms: 6 to 36 months
• Payment Frequency: Weekly, Bi-Weekly payments
• Origination Fees: 0% to 8%
• States Available: May be restricted in North Dakota, South Dakota, Nevada, Rhode Island and Vermont

Commercial Real Estate Loan

Biz2Credit Commercial Real Estate Loan provides businesses with financing solutions for purchasing, refinancing, or renovating commercial properties, offering competitive rates and flexible terms. Utilizing the commercial property itself as collateral, our CRE loans enable businesses to leverage their assets effectively.

• Loan amount:$250,000 to $6,000,000
• Interest Rate (APR):Starts at 10% to 18% APR
• Terms:12 to 36 Months
• Payment Frequency: Monthly
• Availability: May be restricted in North Dakota, South Dakota, Nevada, Rhode Island, and Vermont

What are the Qualifications and/or Requirements to Apply with Biz2Credit

Revenue-Based Financing (Merchant Cash Advance)

• Annual Revenue Greater than $250k
• 575 Credit Score and Above
• At least 6 months in business

Term Loan

• Annual Revenue Greater than $250,000
• 650 Credit or Above
• At least 18 months in Business

Commercial Real Estate Loan

• Annual Revenue Greater than $250,000
• 650 Credit Score or Above
• Already have Equity in Commercial Property
• At least 18 months in business

What are Biz2Credit Interest Rates and or Fees? How do they compare?

Biz2Credit offers competitive interest rates and fees across its various loan products, tailored to meet the needs of small businesses. By striking a balance between affordability and manageability, Biz2Credit ensures that the overall financing cost remains a top consideration, with transparency around pricing clearly communicated to prospective borrowers.

• Revenue Based Funding: Factor Rates typically range from 1.5% to 3.5% per month, with origination fees ranging from 0% to 8%, offering versatility in pricing to suit different revenue models.
• Term Loan: Interest rates start at 7.99% APR, with origination fees between 1% and 5% of the loan amount. Given a maximum term of 36 months, choosing a Term Loan might result in higher monthly payments, but the financial accuracy behind this choice lies in its ability to minimize the total financing cost.
• Commercial Real Estate Loan: Interest rates range from 10% to 18% APR, with closing costs and fees averaging 2% to 5% of the loan amount. For qualified borrowers, Biz2Credit might offer a discount on closing costs, enhancing affordability.

Overall, Biz2Credit's interest rates, originating fees, and underwriting fees are competitive, with term loans generally offering lower rates than revenue-based funding and commercial real estate loans. Business owners looking to prioritize lower overall financing costs should consider the details of Biz2Credit's offerings closely, and refer to our Loans Rating & Review Methodology for more insights.

How to apply for a Business Loan with Biz2Credit

Applying for a business loan with Biz2Credit is a straightforward process designed to be quick and user-friendly. Business owners start by creating an account, then submit their application with necessary financial information and documentation. Biz2Credit’s platform then matches them with the best-fit funding solutions, and upon accepting a funding offer, businesses receive their funds promptly.

Post-Funding Services

After funding, Biz2Credit provides ongoing support, including access to financial tools and resources to help manage your loan and business finances effectively. They also offer customer service to assist with any questions or issues that may arise.

What are the Pro's and Con's of using Biz2Credit

Biz2Credit offers several advantages and disadvantages for small business owners seeking financing, providing a comprehensive understanding of its benefits and potential drawbacks.

Pros:

• Quick Funding: Fast approval and funding process, often within a few days.
• High Approval Rates: Flexible qualifications to get approved
• User-Friendly Platform: Streamlined application and matching process with personalized support.

Cons:

• Higher Rates for Some Products: Interest rates can be higher for certain loan types, like revenue-based funding.
• Limited Product offerings: Biz2Credit only offers Revenue-Based Funding, Term Loans and Comercial Real Estate Loan. Does not offer SBA Loans or Business Line of Credit according to the website.
• Potential Fees: Origination and other fees can add to the cost of borrowing.

Key Time Frames:

• Application Submission: Online application takes about 5 minutes to complete.
• Approval Process: Approval can take from same day to 24 to 36 hours after submitting all necessary documents depending on product.
• Funding: Funds are typically deposited within 1 to 2 business days after approval.

• User-Friendly Interface: The Easy-to-navigate platform simplifies the loan application process and provides a secure portal for the transmission of sensitive customer data.
• Quick Response Times: Not only is fast approval and funding typical—often within a few days—but customers can stay informed through timely updates via the efficient Biz2Credit newsletter.
• Knowledgeable Assistance: Experienced loan specialists offer personalized support and guidance throughout the application process, ensuring that every customer query sent through email is promptly addressed.

Biz2Credit’s dedication to delivering exceptional service is a cornerstone of their success, helping them maintain a valuable relationship with the small business community.

• Review Feedback: Understand why your application was declined; it's essential for eligibility and address any related issues.
• Improve Financial Health: Work on improving your business’s financials, such as increasing revenue or reducing debt, which are key to employee compensation structures.
• Explore Alternatives: Look into other financing options, including ERTC (employee retention tax credit) loans, different lenders, or types of loans.
• Enhance Creditworthiness: Take steps to improve your business and personal credit scores, as this factor influences your loan filing acceptance rate.
• Adjust Business Plan: Make necessary changes to your business strategy to strengthen future loan applications and potentially streamline forgiveness if applicable.

What are the Alternatives to Biz2Credit?

For businesses seeking alternatives to Biz2Credit, several other lenders offer competitive financing options, each with its own set of terms and requirements. OnDeck, Funding Circle, Bluevine, American Express Business Blueprint Business Line of Credit, and National Funding are notable options, providing various loan products tailored to different business needs. These lenders vary in their credit limits, interest rates, term lengths, and qualification criteria, making it important for businesses to compare their offerings to find the best fit.

OnDeck

• Credit Limits: Up to $250,000
• Interest Rates: Starting at 35% APR
• Term Lengths: 3 to 24 months
• Time in Business: Minimum of 1 year
• Minimum Annual Revenue: $100,000
• Minimum Personal Credit Score: 600

Funding Circle

• Credit Limits: $25,000 to $500,000
• Interest Rates: 4.99% to 27.79% APR
• Term Lengths: 6 months to 5 years
• Time in Business: Minimum of 2 years
• Minimum Annual Revenue: $120,000
• Minimum Personal Credit Score: 660

Bluevine

• Credit Limits: Up to $250,000
• Interest Rates: Starting at 6.2% APR
• Term Lengths: 6 or 12 months
• Time in Business: Minimum of 6 months
• Minimum Annual Revenue: $120,000
• Minimum Personal Credit Score: 625

American Express Business Blueprint Business Line of Credit

• Credit Limits: $2,000 to $250,000
• Interest Rates: Starting at 3.75% monthly fee
• Term Lengths: 6, 12, or 18 months
• Time in Business: Minimum of 1 year
• Minimum Annual Revenue: $200,000
• Minimum Personal Credit Score: 660

National Funding

• Credit Limits: $5,000 to $500,000
• Interest Rates: Factor rates starting at 1.10
• Term Lengths: 4 months to 2 years
• Time in Business: Minimum of 6 months
• Minimum Annual Revenue: $250,000
• Minimum Personal Credit Score: 600

3^rd Party Reviews

Better Business Bureau-Not BBB Accredited

CURRENT ALERTS FOR THIS BUSINESS

Government Action: BBB reports on known government actions involving business’ marketplace conduct:

FTC Takes Action Against Biz2Credit for Making Deceptive Pandemic Loan Promises and Fines Them $33 Million in Damages

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On March 18, 2024, the Federal Trade Commission (FTC) announced it has taken action against Biz2Credit and charged that they made false promises to small businesses seeking to take part in the Paycheck Protection Program (PPP), delaying and sometimes preventing them from obtaining funds they needed to keep their businesses afloat during the COVID-19 pandemic.The company has agreed to settle the FTC’s charges. Biz2Credit will pay $33 million to the FTC for small businesses harmed by their deceptive conduct. These are some of the largest damages amounts ever secured by the agency under Section 19 of the FTC Act, and include money consumers lost because of the companies’ conduct, even if consumers made no payments directly to the companies. These cases are part of the FTC’s continuing work to protect small businesses from deceptive and unfair practices in the marketplace.

In addition to these cases, the FTC recently revised the Telemarketing Sales Rule to extend protections to businesses that are targeted with illegal telemarketing.Biz2Credit, Inc., and its subsidiary, Itria Ventures, have agreed to pay $33 million in damages to settle the Federal Trade Commission’s charges that they deceptively advertised that consumers’ emergency PPP loan applications would be processed in an average of 10-14 business days when, in reality, the average processing took well over a month.The FTC’s complaint that Biz2Credit’s application processing was riddled with delays, and the average processing time was double what the defendants claimed, with tens of thousands of consumers waiting more than two months for a final determination. Even though they were aware of these delays, the defendants continued to make their false timing claims to consumers until nearly the end of the program. Biz2Credit’s promises of fast processing times were critical because the PPP was extraordinarily time-sensitive, providing loans on a first-come, first-served basis. When the program ran out of funds in May 2021, the government stopped accepting new PPP loan applications, leaving some Biz2Credit consumers without any funds. Even the consumers who eventually obtained loans were deprived for a time of funds they needed immediately.

The FTC’s complaint also says that Biz2Credit unfairly ignored many consumers’ repeated and urgent pleas to withdraw their loan applications. As a result, the defendants delayed and sometimes even prevented these consumers from obtaining PPP funds elsewhere. The complaint also alleges that the defendants designed their application process to lock in as many consumers as possible before underwriting these loans, restricting these consumers from submitting additional applications to other PPP lenders. In addition to the $33 million monetary judgment, the settlement with Biz2Credit also prohibits the defendants from misrepresenting key information about loan applications or any material fact about a government benefit. The proposed order also prohibits Biz2Credit from failing to allow consumers to promptly withdraw their applications.

TrustPilot

Marlon wells | Date of experience: May 09, 2024

Partnering with Biz2Credit was one of the most seamless, efficient and customer-friendly experiences I've ever had with a lender. I have been in business for 5 years and pursued/received funding from various lenders and I can't say enough great things about Biz2Credit. Thank you for the partnership and the assistance in promoting our corporate growth.

Luis Lopez-Alvarado | Date of experience: April 29, 2024

It was easy and simple process they help me out though out the process the only thing I didn’t like was that their long they offered me I have to pay it pack in 6 months and with a very high interest only because it’s a first time I took it because I need to expand my company.

The Bottom Line: Biz2Credit Summary Review

From my personal experience, Biz2Credit stands out as a reliable and efficient platform for securing small business financing. The application process was straightforward, and I appreciated the quick turnaround from submission to funding. The variety of loan options available, including term loans and revenue-based funding, provided flexibility to choose what best fit my business needs. Customer service was responsive and helpful, guiding me through the process and addressing my concerns.

• Pros:
• Simple and quick application process
• Fast approval and funding times
• Responsive and supportive customer service
• Cons:
• Lacks product diversity to suit all business needs
• Some loan products have higher interest rates than traditional business funding.
• Additional fees may increase the overall cost of borrowing

Overall, my experience with Biz2Credit was positive, and I found it to be a valuable resource for obtaining business financing. The platform's efficiency, coupled with a wide range of loan products and solid customer support, makes it a strong choice for small business owners. Despite some higher rates and limited products, Biz2Credit's benefits significantly outweigh the drawbacks, providing a trustworthy option for those in need of business loans and don’t qualify for traditional business loans or lines of credit.