May 23, 2024
Biz2Credit Review

A marketplace lender called Biz2Credit provides entrepreneurs with a range of financial choices. You have access to working capital finance of up to $2 million, term loans of up to $500,000, and funding for commercial real estate of up to $6 million. Our pick for the best marketplace lender is Biz2Credit, which has a simple application procedure, excellent customer service, and promptly matches you to finance sources depending on your needs.

How do Biz2Credit Loan products work?

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The fact that Biz2Credit’s lending marketplace offers a variety of funding possibilities is one of its advantages. Although its fully owned subsidiary Itria Ventures LLC is a licensed lender, Biz2Credit is not a direct lender.

Biz2Credit obtains financing from either Itria Ventures or one of its networked lending partners. The variety of funding options enables Biz2Credit to find the best loan for the applicant’s company.

Although it just takes six minutes to complete the application, loans above $100,000 sometimes have more stringent restrictions. Depending on the type of loan, approval and financing times might differ. Different Biz2Credit loan products have various workings.

What are the costs of Biz2Credit?

costs of Biz2Credit
Costs of Biz2Credit

The conditions and interest rates of Biz2Credit’s loans are openly disclosed. Rates for term loans begin at 8.99%, however they might increase based on your credit score. This lender requires a credit score of at least 660 to be authorized for a term loan, which is greater than what other lenders, including Balboa Capital, want. Biz2Credit does, however, maintain reduced interest rates.

We like that Biz2Credit charges simple interest, which doesn’t compound and is thus less expensive over the course of the loan. One of the few lenders we investigated, Biz2Credit, provides loans with simple interest.

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There is also a $250 origination fee. But similar to Fund box’s offer, you may earn a discount by connecting your company checking account throughout the application process. This allows Biz2Credit to take a deeper look at your company’s finances to make sure you will be able to repay the loan.

Applying for a Loan

Among the loan choices provided by Biz2Credit are working capital, term, and commercial real estate loans. The online loan application for Biz2Credit may be completed in about a minute. After that, you are invited to add your supporting documents and submit your application. A decision is often made within 24 hours, and financing follows in around three days.

You need to have been in business for at least 18 months, have annual sales of at least $250,000, and have a credit score of 660 or above in order to be accepted for a Biz2Credit term loan. This lender is not for you if you are just starting out or have yearly sales of less than $250,000.

You just need to be in operation for six months to be eligible for a working capital loan from Biz2Credit, but you still need yearly sales of at least $250,000 to qualify. A term loan has a lower credit score minimum of 575 than that. The prerequisites for a commercial real estate loan include being in operation for at least 18 months, having a credit score of at least 660, and making at least $200,000 in yearly sales.

Access to loan experts at Biz2Credit will enable you to choose the best loan option for your needs. Having this kind of information may be quite helpful for small company owners that need financing since there are so many loan possibilities to choose from.

Loan Terms

Loans from Biz2Credit have terms of 12 to 36 months and vary in size from $25,000 to $250,000.

You are not required to put up any security for Biz2Credit business term loans since they are unsecured. This lender does, however, demand a personal guarantee, which makes you personally accountable in the event that your company fails to repay the loan.

Working capital loans from Biz2Credit might include daily, monthly, or biweekly payments that are deducted from your company’s sales. A working capital loan application may be approved by Biz2Credit in 24 hours and funded in 72 hours.

The amount you may borrow with this lender’s commercial real estate loans ranges from $250,000 to $6 million. This kind of loan’s proceeds must be utilized to buy real estate. Business owners may qualify for these loans in 48 hours, with interest rates starting at 10%. The loans have terms ranging from 12 to 36 months.

Helpful Tips

Although the Biz2Credit website doesn’t explicitly indicate what documentation is needed to apply for a loan, it’s a good idea to have company bank records, tax papers, evidence of business ownership, and a government-issued ID on hand.

You may pick the best loan package using one of the many online tools and resources provided by Biz2Credit, which also includes calculators. Additionally, Biz2Credit offers a Virtual CFO tool that examines your financial information and offers useful suggestions. This is a good feature that the other online lenders we studied do not give.

What are the advantages of Biz2Credit?

The advantages of Biz2Credit loans for small business owners are numerous. The lending market offers a variety of loan kinds to assist you get the best finance for your company.

The organization offers commercial real estate financing up to $6 million, which is one of the key advantages. Its costs and interest rates are competitive with those of other lenders.

Additionally, the business offers specialized loan specialists to provide a personal touch to the financing procedure. Your demands can be met with the ideal loan structure according to their professionals.

Application for Biz2Credit is quick and easy to do. By linking your company checking account to your profile, you receive a discount. Loan applications are typically accepted in 24 hours, and funds is made accessible in 48 hours. Small enterprises in need of quick cash benefit from the application procedure and quick funding turnaround.

The fact that Biz2Credit welcomes companies from many sectors is another important benefit. Many lenders prohibit high-risk sectors like the gambling industry, but the corporation will take on riskier and more unpredictable enterprises due to its lending network.

What are the disadvantages of Biz2Credit?

Before applying, you should be informed of the disadvantages of Biz2Credit. The short payback durations of their lending products are one of their biggest drawbacks. You will have a larger monthly payment because the maximum loan duration is only 36 months, especially if you need a significant commercial real estate loan. For example, SBA loans for commercial real estate have periods of 25 years.

You will still pay more than you would with conventional bank loans, despite the charges being lower than those of other short-term lenders. The pricing structure for the loan market is also not as transparent as it may be.

The loan eligibility standards are stricter than those of other alternative lenders. The minimum credit score needed for the term loan, CRE loan, and ERTC loan is 660. The minimum annual revenue requirement for all products, including the working capital loan, is $250,000. Many small firms will be turned away by these restrictions.

Only a few states—North Dakota, South Dakota, Nevada, Rhode Island, and Vermont—allow the company’s goods. While applying for smaller loans is quick and simple, you might need to submit more documentation and documents for loans exceeding $100,000.

The company’s numerous unfavourable reviews and D rating with the Better Business Bureau (BBB) are a serious cause for concern. It’s important to emphasize that many concerns relate to the complex PPP loans, which are no longer available.

Biz2Credit Features

Biz2Credit Features
Biz2Credit Features

Variety of Loan Amounts

Working capital, term, and commercial real estate loans from $25,000 to $6 million are all available through Biz2Credit. It’s wonderful to have this kind of flexibility since it provides you plenty of alternatives and guarantees you can acquire the finest loan for your requirements.

Transparent Pricing

We like that Biz2Credit utilizes simple interest, which is less expensive than compound interest, and is extremely upfront about its pricing. To get a decent indication of how much your loan will cost, Biz2Credit also offers an online calculator where you can enter the financing alternatives, interest rates, and payback periods.

Competitive Rates

Biz2Credit not only has affordable rates, but it also gives you a discount on your loan if you connect your bank account when submitting your application.

Customer Service

During regular business hours, you may contact the Biz2Credit customer service staff via phone and email. The company’s website also offers a tonne of materials, including a page dedicated to managing the COVID-19 epidemic. With an A+ rating from the Better Business Bureau, Biz2Credit has a solid reputation in the sector. Additionally, it has more than 1,600 favourable comments on Trust pilot.

Drawbacks

For the majority of small company owners, Biz2Credit is an excellent term loan choice, but it has certain disadvantages as well. First off, some company owners won’t be able to apply for a loan with Biz2Credit because of the criteria of $250,000 in yearly sales and a credit score of at least 660.

The loan’s maximum period of 36 months may also cause some company owners to second-guess themselves, particularly if they plan to spend the money for a costly item and wish to stretch out payments.

We also wish Biz2Credit would be more transparent about the paperwork needed for the loan on its website. Making a phone call in order to get this information is an additional step for many small company owners who are juggling many tasks.

Biz2Credit Pros & Cons

Pros:

  • Quick and simple application with quick funding and approval turnaround.
  • Up to $6 million in commercial real estate loans are available.
  • A variety of lending solutions to suit your company’s needs.
  • offers devoted funding experts for a personalized touch.
  • accepts companies in all sectors.
  • Pricing that is competitive with other short-term lenders.

Cons:

  • The longest loan periods are only 36 months.
  • more pricey than standard business loans.
  • greater eligibility standards than other short-term lenders.
  • Some states might not provide lending products.
  • For loans exceeding $100,000, there is more paperwork and a longer procedure.
  • possesses a poor BBB rating.

What We Like About Biz2Credit

  • Because Biz2Credit’s term loan beginning rates are a little lower than those of comparable lenders, you can end up paying less in total interest.
  • The company puts you in touch with financial sources that are a good fit for your company.

What We Don’t Like About Biz2Credit

  • Numerous small firms are disqualified by the $250,000 minimum sales criterion of Biz2Credit.
  • As compared to other options, the company’s loan periods are shorter, which might result in higher monthly payments.

Conclusion

We looked into loan providers and their platforms to find the finest business financing choices available, taking into account things like credit standards, loan kinds, minimum sales criteria, minimum time in company requirements, customer service accessibility, and funding timeliness. We also evaluated monetary aspects such beginning interest rates, lending periods, and loan sizes available. We evaluated the loan alternatives offered by each firm and the ease with which each platform linked small business owners to the best source of funding in order to determine the top marketplace lender.

FAQs

Is Biz2Credit legit?

Yes, Biz2Credit is a trustworthy loan marketplace. The business has been in operation since 2007 and is situated in New York. The business has a poor BBB rating but mostly positive reviews elsewhere.

What types of loans can you get on Biz2Credit?

You may obtain term loans, working capital loans, CRE loans, and ERTC loans through Biz2Credit. The experts at Biz2Credit can also assist you in obtaining standard bank loans, credit lines, Small Business Administration (SBA) loans, and other types of financing.

Is Biz2Credit a direct lender?

No, as a lending marketplace, Biz2Credit receives its money from one of the lenders in its network. Itria Ventures LLC, a completely owned company, is one of the principal lenders.

Does Biz2Credit offer SBA loans?

Yes, Biz2Credit has a network of SBA funding sources that it can link you with.

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