Need help finding a lender?
- Date Established
- New York, NY
- Borrower qualifications are lower than going through banks
- Multiple types of financing available
- Long-term financing options available
- The application process is fast and easy
- Website advertising is clear and informative
- Funds are disbursed quickly
- Rates can be expensive
- Some additional fees are charged
Biz2Credit is a New York-based alternative lending platform that offers multiple types of financing to small businesses. This company is a direct funder, but if its products don’t work for you, Biz2Credit can also match you up with a financing product from its network of partner lenders. Through Biz2Credit, you might be eligible for a variety of funding options, such as working capital loans, SBA loans, lines of credit, or traditional business term loans. This company also offers a free financial assistant called BizAnalyzer and multiple funding calculators to help you understand your business financials.
To qualify for financing, you’ll need to have at least six months in business and solid revenue. While startups will have to look elsewhere for financing, Biz2Credit is a viable option for many young businesses. That said, as always, you’ll want to comparison shop before committing to any kind of alternative loan. Our short-term funding comparison chart can give you a head start.
If you’re not scared away by fees, short on time, and have a business that’s at least six months old with solid revenue, you may find Biz2Credit to be a useful service. However, readers with somewhat established businesses should know that you might be able to find better rates and fees elsewhere.
Table of Contents
Biz2Credit offers four types of financing:
- Term Loans: Term loans grant the borrower a lump sum. In exchange, the borrower must repay the amount borrowed plus interest and/or fees over an agreed-upon amount of time. Payments may be daily, weekly, or monthly, depending on the loan.
- Merchant Cash Advances: Merchant cash advances (MCAs) involve the purchasing of future credit card receivables for a lump sum. The funder then collects the agreed-upon percentage of your card-based sales each day until they’ve recovered the amount they advanced plus a flat fee.
- SBA Loans: SBA loans are partially guaranteed by the federal Small Business Administration. While the SBA has slower and more involved application processes, it also has better rates and terms than many businesses would otherwise be able to access.
- Commercial Real Estate Loans: These are high-amount term loans with long terms used to acquire property for development.
Additionally, it offers lines of credit via its network of partners.
To qualify for financing through Biz2Credit or one of its partners, you’ll generally need to be in business at least six months and have solid revenue. Biz2Credit will also look at your credit score, but a poor score will not necessarily disqualify you from funding.
In addition to offering business financing for all merchants, Biz2Credit offers programs specifically to help women and minorities receive funding.
Terms & Fees
Because Biz2Credit offers many types of financing products, some in-house and some from lending partners, your rates and fees will vary, depending on the financial products you qualify for.
Biz2Credit might be able to set you up with daily, weekly, or monthly repayments (depending on the financial product and the needs of the business). Repayments might be automatically deducted from your bank account or credit card sales. Check out our list of common fees for a more detailed breakdown of fees you might encounter.
In addition to interest or a factor rate, you might also have to pay an underwriting fee, closing fee, or origination fee, depending on the type of financing you are accepting. Biz2Credit does not charge application or submission fees — you won’t have to pay anything unless you accept financing.
Merchant Cash Advances
Here’s what you can expect from Biz2Credit’s MCAs:
|Effective APR:||Learn more|
As described earlier, merchant cash advances are not loans, but they do fill a very similar niche. You don’t technically owe the money you’ve received. Instead, the funder has purchased a specific amount of your future credit card and debit sales. To find out how much of your future profits that the funder is going to be collecting, multiply the amount you received by the factor rate you’ve been assessed. So if you’ve received a $10,000 advance at a factor rate of 1.26, your funder will collect a total of $12,600 from you.
Each business day, a percentage of your card-based sales will be held back and collected by the funder. Since your sales probably fluctuate from day to day, the amount of time it takes to satisfy the terms of your advance may vary. Most last for less than a year, however.
Unsecured Business Loans
Here’s what you can expect from Biz2Credit’s unsecured business loans:
|Borrowing Amount:||Up to $100K|
|Other Fees:||1%-6% origination fee|
An unsecured business loan simply means it does not require collateral in the traditional sense. You will, however, be asked to sign a personal guarantee, which is a promise that you’ll be personally responsible for any debts that your business is unable to pay. So keep that in mind when you’re dealing with unsecured loans.
Otherwise, Biz2Credit offers what amounts to a pretty traditional term loan. You’ll receive a lump sum, minus the origination fee, While not explicitly stated, the lengthier term strongly implies that payments are expected monthly.
SBA loans come in a number of different forms, the most popular being the 7(a) and 504 versions. The SBA establishes SBA loan rates — the loans don’t vary much between the lenders who originate them.
Check out the current SBA loan rates if you want to see what these products look like.
Extended Network Products
Here’s a quick rundown of the products Biz2Credit might be able to set you up with:
- Commercial Real Estate Loans: Loans used to build, purchase, or update a business’s commercial space.
- Lines Of Credit: Lines of credit establish a credit limit that you can borrow against for the duration your account is open. You can draw on your line of credit as often as you want so long as the total amount you’ve borrowed doesn’t exceed your credit limit.
The major convenience offered by Biz2Credit is its quick and easy application process. You can find out how much you can borrow by submitting information about the amount you’re seeking, your time in business, your annual revenue, and your credit score. The application generally takes about four minutes.
If you’d like some help, you can also begin the process through the site’s chat feature. Spend more than a few moments there, and you’ll be pinged by a representative who can answer your questions and take your information.
Biz2Credit will then match you to one of its funding products. If you’re given multiple options, you can choose the product that best suits your needs. After that, your experience will differ, depending on the financing product you choose. Biz2Credit may ask you to submit additional documentation at that time.
In best-case scenarios, you can secure funding within 24 hours.
Sales & Advertising Transparency
Biz2Credit does a fairly decent job of disclosing the fees and terms of its service, especially through its FAQ and knowledge center. Just keep in mind that you won’t know too much about the financing product you’ll receive until much further down the line. The company also maintains accounts on Facebook, Twitter, G+, LinkedIn, and YouTube.
Customer Service & Technical Support
Biz2Credit provides several different methods of contact, including by phone, email, contact form, or through the site’s integrated LiveChat. The LiveChat can be a little aggressive, but it’s an easy way to ask questions.
Negative Reviews & Complaints
Biz2Credit has an A+ rating with the BBB, but it isn’t formally accredited. There are six complaints on record from the last three years. Negative factors associated with the company include:
- Communication Issues: Numerous complaints center around customer confusion about application processes, credit checks, and fees.
- Hard Pulls On Credit: Biz2Credit eventually requires a hard pull on your credit, which several customers found to be burdensome.
- Expensive: Combined with the direct cost of the loans, you will be paying a premium for Biz2Credit’s assistance.
Positive Reviews & Testimonials
Biz2Credit’s reviews are overwhelmingly positive on Trustpilot. User reviews praised:
- Customer Service: The vast majority of reviews praised the customer service. Most found it to be fast, flexible, and headache-saving.
- Breadth Of Products: Biz2Credit works with a variety of different types of lenders, granting access to a wide variety of financial products.
- Speed: Many customers were pleased with how quickly they received their funding.
If you’re 1) not scared away by the fees, 2) short on time, and 3) have a business that’s at least six months old with solid revenue, you may find Biz2Credit to be a useful service. Some borrowers might receive somewhat high terms and fees (in comparison to low-cost financing options, such as a bank loan), depending on what financial products they qualify for. However, if you don’t qualify for lower-cost financing, or you need a loan fast, Biz2Credit offers an easy-to-use service, and most businesses will find something that suits their financial needs.