Biz2Credit 2024 Review
Biz2Credit Business Loan Review - Pros, Cons and Options
Thanks to top alternative lenders such as Biz2Credit, more small businesses are able to have access to the financing they need to meet their business goals.
Each business is different, which means your cash flow is unique, which means a one size product doesn't work. With Biz2Credit's flexible terms, you determine your repayment schedule (daily, weekly, monthly, etc.) and you can mix and match products. For example, you could take a cash advance for running payroll while also applying for a long-term funding to open a new location at the same time.
Whether you select a more traditional funding method or go for quick cash, Biz2Credit's more flexible lending requirements and lower minimum credit scores give wider access to crucial funding to those businesses that otherwise may not be able to find it.
Biz2Credit additionally offers risk-based pricing, meaning that you can gain better loan rates if you have collateral or a stronger business profile (even regardless of your personal credit profile).
Biz2Credit Business Loans: What You Need to Know
Biz2Credit is an alternative small business lender that provides access to funding for those who might otherwise not qualify for funding from traditional banks or other alternative lenders. Financing solutions from $5,000 to $6 million are available through Biz2Credit.
Biz2Credit offers a variety of small business financing options, but they're not suited for true startups.
Your business must be operational for at least six months and have solid cash flow ($100,000+ of annual business revenue recommended) in order to qualify for funding through Biz2Credit.
They also offer BizAnalyzer Virtual CFO, a free financing tool, to help you better understand your business’s financials so you can plan for your future.
How Do Biz2Credit Business Loans Work?
When you fill out an application for funding through Biz2Credit, your information goes directly to Biz2Credit's underwriting team, who will then advise you on the best financial options available for your business.
Unlike business loans marketplaces who shop and sell your data to numerous other companies, your information stays safe and secure with Biz2Credit.
As a rule, Biz2Credit says the products its lenders offer are a match for those businesses that have been in business for at least six months and who have at least $8,000 of monthly revenue.
Biz2Credit offers loans from $5,000 to $6 million and has serviced more than $2.2 billion in small business loans since its founding in 2007.
Some types of loans directly available through Biz2Credit:
- Working capital funding
- Commercial real estate loans
- Term loans
- Loans for women business owners
- Loans for veteran-owned businesses
- Loans for minority business owners
- SBA loans
- Real estate financing
- Disaster recovery loans
- Franchise loans
- Business acquisition loans
- Unsecured loans
Loans are available to businesses servicing a wide variety of industries.
Where Is Biz2Credit Available?
Biz2Credit is available to businesses in all 50 states, though some types of loans may only be available in certain states.
How Much Does Biz2Credit Cost?
It doesn’t cost anything to apply for loans from Biz2Credit, but you will pay interest rates and possibly some other fees if you qualify for a loan.
How much you will pay for financing through Biz2Credit will vary based on the type of funding you choose, how much you borrow, and your individual qualifications when applying for the loan.
Biz2Credit provides tailored loan offerings and potentially lower rates depending on borrowers' ability to repay and on business performance.
While Biz2Credit’s interest rates and fees may be higher than you typically find from a traditional bank lender, they’re about on par or lower than those you’d find in selecting another alternative small business lender.
What Does Biz2Credit Offer?
Biz2Credit directly offers a wide variety of small business financing options.
Some of the financing options available with Biz2Credit include:
Working Capital Loans
Sometimes, your business comes up short on the money you need to maintain day-to-day operations such as purchasing supplies and stock, paying your workers, or paying rent. For those times, a working capital loan can give you the cash you need to keep your business running.
These loans are usually short-term, meaning you have to pay them back over less time than a traditional loan, and are designed to give you funding to get over a financial hump.
Merchant Cash Advances
Rather than getting a loan to cover the daily expenses you need, a merchant cash advance allows you to receive funding based on your future credit card processing projections.
If you take credit cards as payment, you can receive funding based on your expected future receipts, and pay the financing back out of your daily credit card processing.
Merchant cash advances are usually paid back on a much more frequent schedule than other loans, often daily or weekly, and can come with higher fees if your credit card processing is lower than anticipated.
The Small Business Administration offers long-term loans at lower interest rates to businesses looking to grow their operations. These loans are among the most coveted in the industry, as they are usually less expensive and offer longer repayment terms.
However, there usually is a lot of paperwork that needs to be completed and SBA loans can take longer to receive a decision on than many other types of financing. This makes them an undesirable choice for those small businesses that need their funding quickly to cover an unexpected expense or a sudden opportunity.
Commercial Real Estate (CRE) Loans
If you’re looking to build, purchase, or update your commercial space, Biz2Credit can help you secure a commercial real estate loan to cover this expense.
In addition, commercial real estate (CRE) loans can often be converted to SBA loans after an initial term (interest-only in most cases), and Biz2Credit will handle all of the paperwork and help shepherd the loan conversion on behalf of the client. This is a huge time/effort savings and a big advantage of working with Biz2Credit.
Depending on your individual needs and qualifications, Biz2Credit offers both short-term and long-term loans.
Short-term loans are typically repaid over a shorter period of time, usually under three years. Because of the short-term nature of these loans, the interest rates are higher than for a longer-term loan since they’re seen as more of a risk for lenders.
If you need a piece of equipment to run your business, such as a tractor, forklift, truck, or even computer, Biz2Credit can help you finance that purchase. Some equipment financing is available up to 100 percent of the purchase price of the equipment.
Equipment financing works in a similar manner to consumer vehicle loans: Your lender pays the person selling the equipment the purchase price (less any down payment you may have), and you then pay the lender for that loan amount plus interest.
For business owners looking to open up a new franchise or to make a new franchise acquisition, funding is available to help you purchase the franchise.
You borrow the money necessary to buy the franchise on a term, then pay the loan back to the lender. This allows business owners to expand their business opportunities or open up new potential revenue streams without having to pay the entire franchise fee out-of-pocket.
Disaster Recovery Loans
Sometimes, weather emergencies, fires, or other disasters can cost a small business big. For these times, Biz2Credit offers disaster recovery loans.
These loans are designed specifically for businesses that have experienced some kind of disaster and need to replace equipment, rebuild or remodel facilities, or replenish lost stock.
When getting a loan from a traditional lender, many borrowers are required to secure that loan with collateral. This can be real estate, expensive equipment, or other personal or business assets that the lender can repossess in the event that the borrower defaults on the loan.
Biz2Credit offers funding options for those business owners who may not have high-dollar assets to use as collateral by providing unsecured loans. These loans don’t require any collateral when you take out the loan. However, because they’re seen as a higher risk to lenders, they often come with higher interest rates than many other types of loans.
Loans for Women, Minorities, and Veterans
Biz2Credit and its partner lenders offer a variety of special lending programs available to women business owners, businesses owned by minorities, and veteran-owned businesses.
The exact types of loans available through these programs vary depending on the individual lender, but many of these special loans are term loans that come with lower interest rates in an effort to support women, minority, and veteran business owners.
Biz2Credit Business Loan Features
- Originally founded in 2007
- Serviced more than $2.2 billion in small business loans
- More flexible borrower requirements
- Wide variety of borrowing options to meet most business needs
- Quick and easy online application, usually under five minutes
- Some funding available in as little as 24 hours
- No application or submission fees
- Funding available from $65,000 to $6 million
- BizAnalyzer and funding calculators offer additional business financial tools
Pros and Cons of Biz2Credit Business Loans
Here are some of the pros and cons of choosing Biz2Credit for your small business loan:
- Great customer reputation
- Easy online application that only takes a few minutes
- More flexible borrower requirements means greater access to loans
- No application or submission fees
- Wide variety of borrowing options, including term loans, working capital, and commercial real estate loans
- BizAnalyzer and other free funding calculators allow you to learn more about your business finances
- Reputation for exceptional customer service (4.9 score on Trustpilot over 1500+ reviews as of January 22, 2020)
- Funding available from $6,000 to $6 million
- Some funding may be available to you within 24 hours of approval
- Higher interest rates and fees than traditional bank lenders
- Not available to startups under 6 mos. in business
- Final approval requires a hard pull on your credit
- Some types of funding may have additional origination fees or other fees
Biz2Credit Business Loan Customer Reviews
In its more than a decade in operation, Biz2Credit has accumulated a fair number of positive customer reviews, with many pointing to the easy online application process and great customer service as their favorite parts.
Biz2Credit has more than 1,500 reviews on TrustPilot, with an average star rating of 4.9 out of 5.
Here’s what some of Biz2Credit’s customers are saying about them:
“Kevin and James were very responsive and flexible during the loan process and were able to arrange the best terms and funding amount out of the 3 lenders I worked with. My business has only been established for 4 months and my options were VERY slim as it pertains to lenders! Biz2credit went above and beyond to cater to my business loan request and have won my wholehearted support!” - Cal W.
“Biz2Credit is an amazing resource. They helped us keep our business on track in our slow season. The agent Rony was very helpful in explaining all the procedures clearly. I recommend Biz2Credit for all your business needs. THANKS again.” - Lee
“Revathi is the most amazing funding specialist. When there was a technical error with our Yodlee account, she was diligent about resolving the issue to get our funding expedited quickly. From start to finish, she was extremely pleasant and successfully got the job done. I will definitely refer her services to my friends and family who are seeking funding.” - Carmine
How to Apply for Biz2Credit Business Loans
Applying for a small business loan through Biz2Credit or its partner lenders is fast and easy online.
- Visit Biz2Credit's official site.
- In the popup form on the right side of the screen, enter the amount of time you’ve been in business, your annual revenue range, your credit score, and the amount of money you want to borrow. Click “Get Funded Now.”
- You will be asked to enter some basic contact information, including your name and email address.
- You may be asked to provide further details about yourself and your business, and this information may be collected by a representative from Biz2Credit.
- If you are approved for a loan through Biz2Credit, you will complete the approval process through the company.
How to Contact Biz2Credit
Address: 1 Penn Plaza 45th Floor, New York, NY 10119
Customer Service: (888) 959-0580
Email Support: [email protected]
Does Biz2Credit Offer Other Loans?
Biz2Credit only offers loans to small business owners.
Finding financing as a small business owner can be difficult. Traditional lenders don't want to work with you because you haven’t been in business long enough, you don’t make enough money, or you have a spotty credit history.
With the advent of alternative lenders such as Biz2Credit, getting financing as a small business owner has gotten easier than ever before.
Biz2Credit offers a wide variety of quality business financing options, and its lending requirements are more flexible than traditional banks and lenders. Whether you need quick cash to repair your business roof or you want to take advantage of an expansion opportunity, Biz2Credit and their direct funding options can help match you with the best solution.
Although the fees and interest rates charged for borrowing from Biz2Credit may be higher than those of traditional lenders, their fees and interest rates are similar to those you’ll find at other alternative small business lenders.
If you’re looking for a variety of lending options with flexible requirements, Biz2Credit may be a great fit.
Frequently Asked Questions
Does it cost anything to check funding offers from Biz2Credit?
It does not cost you anything to receive multiple no-obligation funding quotes from Biz2Credit. You will pay interest rates and other fees directly to Biz2Credit if you receive funding.
How much funding could I get approved for from Biz2Credit?
Biz2Credit considers a wide range of factors, but typically you will receive 75% to 125% of your business's monthly deposits (as seen in bank statements).
So, if you're regularly depositing $100,000/month and your other business fundamentals have no issues then you could potentially be funded for amounts ranging from $75,000 to $125,000.
How long does it take to get funding through Biz2Credit?
Getting financing can take as little as 24 hours or up to four weeks, according to Biz2Credit. The length of time depends on the type of funding you’ve applied for and whether any additional documentation is required to complete the approval process.
How does Biz2Credit calculate their interest rates for funding?
The 4 biggest determining factors are credit, industry, time in business, and cash flow.
Biz2Credit's cost of capital calculation is based on a range of factors, from business type to cash flow. As an illustration, a restaurant that has been in business for 5 years and has consistently had $200,000 in annual sales, with the owner's credit score at 650, is much more likely to get a lower rate than a construction business that's only 1 year old with occasional revenues.
Is Biz2Credit a broker or marketplace?
No, Biz2Credit is a direct lender.
Biz2Credit provides funding at affordable/attractive rates (all under a single roof), thanks to strong financial backing and world-class technology that gives Biz2Credit the ability to fund promising businesses that are deserving of extra capital.
By working with a trusted direct lender like Biz2Credit, you avoid getting your information and data sold to other companies (and then potentially bombarded with phone calls).
Is Biz2Credit a stable business to work with?
Biz2Credit has been in the alternative small business lending industry since 2007, longer than most of the newer players in the industry. Biz2Credit has successfully funded over $2.2+ billion to over 20,000 small businesses, and is there for you every step of the way with flexible funding options and cutting edge tools like BizAnalyzer Virtual CFO.
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