To learn more about Biz2Credit and decide if it’s right for your needs, please continue reading:
Biz2Credit is an alternative lending marketplace that provides several loan offerings to meet your small business needs. In particular, the company specializes in commercial real estate loans.
The lending marketplace is known for its quick application and fast funding times. But with so many small business lenders available today, it can be difficult to know which is the right one for your business.
This lender review will cover how Biz2Credit works, the available products, and the pros and cons so you can make an informed decision before applying. Specifically, we’ll answer these questions and more:
Biz2Credit is an online lending marketplace offering small business owners a quick application and fast funding. The company was established in 2007 and has since facilitated over $7 billion in funding to over 200,000 small businesses.
2024 Update: In March 2024, the Federal Trade Commission (FTC) reached a $33 million settlement with Biz2Credit over allegations of deceptive practices related to Paycheck Protection Program (PPP) loans. The lawsuit claimed the company misled small business owners by making false promises on funding times and unfairly withholding refunds from applicants who were denied. As part of the settlement, Biz2Credit agreed to compensate affected businesses and revise its marketing and refund policies.
The lending marketplace provides loans ranging from $25k – $6 million. Its small business financing options primarily focus on short-term financing, as the maximum term is 36 months. Biz2Credit offers four loan products:
One of the benefits of Biz2Credit is that the lending marketplace provides multiple funding options. Biz2Credit is not a direct lender, but its wholly-owned subsidiary Itria Ventures LLC., is a licensed lender.
Biz2Credit secures funding through either Itria Ventures or one of its lending partners in its network. The flexibility in funding sources helps Biz2Credit secure the appropriate loan for the applicant’s business.
The application only takes 6 minutes to complete, but loans over $100,000 often have additional requirements. Approval and funding time vary by loan type. Each Biz2Credit loan product functions differently.
When most people think of a business loan, they think of term loans. It’s the most traditional business loan structure. Biz2Credit offers term business loans ranging from $25,000 to $500,000. Business owners receive 12-, 18-, 24-, or 36-month terms depending on the borrowing amount and their credit history. Biz2Credit approves term loan applications within 24 hours.
Repayment schedules are weekly or bimonthly. Borrowers can use the funds for various operational needs or to free up cash flow. The interest paid on terms loans is potentially eligible for a tax deduction. Consult with your accountant or tax pro to determine when term loan interest is tax deductible.
The company’s largest funding amounts available are for CRE loans. You can get anywhere from $250,000 to $6 million to fund a commercial real estate acquisition, upgrade, or refinance a previous commercial real estate loan. It’s possible to receive approval and funding within 3 days, but it could take up to 30 days if there’s additional information required.
The terms for CRE loans only go up to 36 months. It’s possible to make interest-only payments for the first 12 months to keep your payment low and free up cash flow. However, this often leads to balloon payments at the end of the loan to cover the principal.
Biz2Credit offers revenue-based financing with repayments tied to a percentage of monthly revenues.. This flexible funding option ties repayment directly to your business’s revenue, eliminating fixed terms and allowing payment amounts to adjust based on a percentage of future receivables. This structure is particularly advantageous for businesses seeking adaptable payment arrangements.
Applications can be prequalified in as little as 60 seconds, and each client is paired with a dedicated funding specialist to guide them through the process. Common uses for RBF include expanding operations, funding marketing campaigns, managing inventory, and hiring staff. It’s important to note that while RBF offers flexibility, it may come with higher overall costs compared to traditional loans and requires a steady, recurring revenue stream for approval.
Biz2Credit charges both interest and fees for its loan products. Understanding these financing costs is essential to making your decision.
The interest rate you’ll receive largely depends on your credit history. Here are the starting interest rates for Biz2Credit loans.
Cost-Saving Feature: You can get a discount on your loan costs by connecting your business checking account to your profile during the application process.
Depending on the loan type, Biz2Credit has higher qualifications than similar lenders and lending products. Biz2Credit requires a personal guarantee from one or more business owners for its loans. Biz2Credit does not charge application fees or hidden charges for loans.
For both the Term Loan and Commercial Real Estate Loan, the business owner needs the following:
In addition, you must already own commercial property to qualify for the CRE loan.
Qualifications for revenue-based financing include:
Biz2Credit does not publish which documents you must supply when applying, but it would be best if you prepare the following:
After you prepare your documents, follow these steps to complete a loan application.
You’ll need to create a business profile on the Biz2Credit website. The profile setup requires basic information about you and your business. Connecting your business bank account to the profile helps Biz2Credit analyze your financials when making a credit decision. In addition, you can get a discount when you connect your account.
Once you create your profile, you’ll upload any required documents to complete the application process. If applying for a CRE loan, you might need to include information about the property you hope to finance. For the ERTC loan, you must provide the IRS Form 941 and Form 941-X for all quarters included in your ERTC filing.
This step is required for the CRE loan as you must speak with a commercial real estate loan expert.
You’ll get notified within 24 hours if you’re approved or not. You might need to confirm bank details if approved to ensure the money goes where it should.
You’ll most likely receive the funds in your account within 48 hours after approval. Biz2Credit can approve working capital loans in one day and fund them within 72 hours. CRE loans may take longer.
Biz2Credit loans offer several benefits for small business owners. The lending marketplace provides several loan types to help match you to the right funding for your business.
One of the main benefits is that the company provides commercial real estate mortgages of up to $6 million. Its interest rates and fees are competitive with similar lenders.
The company also provides dedicated loan specialists for a personal touch to the lending process. Their experts can help you find the best loan structure for your needs.
Signing up and applying for Biz2Credit is simple and quick. You get a discount for connecting your business checking account to your profile. Loan requests are usually approved within 24 hours, and funding is available within 48 hours of approval. The application process and fast funding time help small businesses in need of urgent funding.
Another significant advantage is that Biz2Credit accepts businesses from all industries. Many lenders restrict high-risk industries like gambling businesses, but because of the company’s lending network, it will take on riskier and more volatile businesses.
You should be aware of the drawbacks to Biz2Credit before you apply. One of the most significant disadvantages of their loan products is the short repayment terms. The maximum loan term is only 36 months, so you’ll have a higher monthly payment, especially for a large commercial real estate loan. SBA loans, for example, have terms of 25 years for CRE loans.
While the costs are lower than those of similar short-term lenders, you will still pay more than you would with traditional bank loans. In addition, the lending marketplace’s fee structure is less transparent than it could be.
The loan qualification requirements are higher than other alternative lenders. The term loan, CRE loan, and ERTC loan require a minimum credit score of 660. All products, including the working capital loan, require at least $250,000 in annual revenue. These requirements will exclude many small businesses.
The company’s products are limited in North Dakota, South Dakota, Nevada, Rhode Island, and Vermont. While the application process is quick and easy for smaller loans, you might need to provide additional paperwork and documents for loans over $100,000.
Another major concern is that the company has many negative reviews and a D rating with the Better Business Bureau (BBB). We should note that many complaints have to do with the complicated PPP loans, which are no longer in effect.
Pros:
Cons:
Yes, Biz2Credit is a legitimate lending platform. The company is based in New York and has been operating since 2007. While it has a low rating on BBB, the company is mostly well-reviewed on other sites.
The company’s online reviews and reputation are something of a mixed bag. While it is not accredited with the BBB, where it has a B rating, Biz2Credit has a 4.4 out of 5 rating on Consumer Affairs. Biz2Credit is rated “Excellent” with 4.7 out of 5 on Trustpilot. 83 percent of customers rated Biz2Credit with a five-star review.
Positive reviews praise customer service and call out funding specialists by name. Many customer reviews highlight the efficiency of Biz2Credit’s application process.
Other clients commented that communication reminders helped them to stay on top of payments. Many customers stated they felt taken care of when working with the company, which helped them with their business. Customers appreciate the user-friendly interface of Biz2Credit’s platform.
Negative reviews, especially on BBB, mentioned processing delays, and some customers complained they had to wait longer to receive approval. A significant concern is that several customers complained of funding delays and inadequate customer service to handle complaints and funding delay issues.
As we mentioned, the negative reviews spiked during the PPP loan program. There has been a significant reduction in complaints since October 2021, but there are still processing delay complaints since then.
No, Biz2Credit is a lending marketplace, meaning the funding comes from one of the lenders in its network. However, one of the primary lenders is its wholly-owned subsidiary Itria Ventures LLC. The application process can be completed in about four minutes by answering a few questions.
Yes, Biz2Credit reports your business loan account activity to Equifax, Experian, and Transunion. Funding with Biz2Credit can be designed to meet urgent business needs, such as making payroll.
There are several reasons why Biz2Credit might reject a loan application. The company has high qualification standards, so your loan will be rejected if you don’t meet their credit score, time in business, or annual revenue requirements.
Another reason it might turn down a loan application is if you don’t have the cash flow to support repayment. If you applied and are rejected, the denial letter should explain why. If not, or you need more information, you can call them to discuss.
Don’t worry; plenty of lenders are available to meet your needs. OnDeck provides various loans tailored to different business needs as an alternative to Biz2Credit. Funding Circle offers competitive financing options for small businesses. American Express Business Blueprint provides a business line of credit for small businesses. National Funding is another lender that offers various financing products for small businesses.
Many offer term loans and working capital loans with lower qualification requirements. Other small business loans to consider include:
Biz2Credit is best for established businesses with strong revenue and high credit scores who are willing to pay more for fast funding. While the costs are lower than those of other short-term lenders, you’ll still pay more than a traditional loan. However, those loans often take longer to obtain – sometimes weeks longer than the 72-hour funding available with Biz2Credit.
If you don’t have a good credit score, your business earns less than $250k, or you can afford to wait for funding, Biz2Credit isn’t the best option. We rate Biz2Credit at 4 out of 5 based on its loan products, costs, and user reviews.
Disclaimer: The Biz2Credit trademark is owned by Biz2Credit Inc. and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from Biz2Credit Inc.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
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