Service and Support8.8/10
- Business tools on the site are free.
- Checking your rates won’t affect credit score (soft checks).
- The Biz2Credit Small Business Lending Index informs of changes in credit environments.
- Options range from SBA and traditional business loans to startup loans and MCAs.
- Funding in as fast as 24 hours.
- Do not provide accounts receivable factoring.
- Personal credit scores are an important metric in Biz2Credit platform.
- Some funding may require personal guarantees.
· Headquarters: NYC, New York
· In Business Since: 2007
· Funding Category: Fintech Marketplace
· Total Amount Funded: $2 billion+
· Primary Financing Method: Unsecured Business Loans
Biz2Credit is a marketplace for small business funding located in Manhattan, New York City, and Noida, India. The company matches small businesses in need of net working capital with an appropriate lender based on the business’ credit, operating history, industry, profitability and asset mix. They utilize financial technology, fintech, to facilitate the funding in a matter of hours and days- not weeks or months.
The company was founded in 2007 and has reportedly helped fund over $2 billion in operating capital for over 100,000 small businesses. These companies would not have qualified for traditional bank financing.
Because they are a marketplace, Biz2Credit has partnerships with a wide variety of capital sources including banks, alternative lenders, private equity and venture capital (Nexus Venture Capital backs Biz2Credit). As such, they are able to facilitate a wide variety of financing options:
Funding Options Include:
· SBA Loans
· Traditional Bank Business Loans
· Equipment Financing
· Unsecured Business Loans
· Business Capital Advances
· Startup Loans
· Business Acquisition Loans
· Franchise Loans
· Real Estate Financing
They also offer programs for minority business loans, small business credit cards and refinances. However, we found no invoice factoring options. Many small business owners prefer factoring receivables for funding instead of incurring debt or sacrificing equity in their business.
The site is very transparent with their fees. Biz2Credit charges an origination/closing fee of $250-$400 upon funding. We would have liked to see them share more on their lending partners.
How is Biz2Credit Different from Factoring Companies?
Factoring companies advance a portion of a business’ unpaid invoices to provide funding. This is done for businesses who offer credit terms to other businesses, known as B2B. Such companies typically operate in the transportation, manufacturing and construction industries.
Unlike most invoice finance companies, Biz2Credit services business-to-consumer, B2C, operations. They offer funding for the following businesses, often avoided by factors:
· Gas Stations
· Hair and Nail Salons
· Liquor Stores
· Veterinary Centers
· Professional Services-Doctors, Attorneys and CPAs1
Further, Biz2Credit is a financial technology company (similar to Ondeck Capital, Bluevine, Fundbox, Lendio etc.) not a traditional factoring company. Biz2Credit’s platform offers an innovative way to assess the prospective business’ creditworthiness. Check our Lendio reviews, Ondeck reviews, Bluevine Reviews, Fundbox Reviews and Fundera reviews to see how the scores compare to our Biz2Credit reviews.
Their proprietary ‘Bizanalyzer’ tool harnesses the power of big data to provide a business credit score. They equate this to a FICO score for small businesses. They use this data to determine which lender matches your risk profile and what the financing terms will be. The business metrics included in their score include:
· Owner’s Personal Credit Score
· Time in Business
· Industry Risk
· Corporate Risk
· Cash Flow
· Annual Revenue
Biz2 Credit Pros and Cons
In addition to the Biz2Credit reviews above, we reiterate these key pros and cons:
· Business tools on the site are free.
· Checking your rates won’t affect credit score (soft checks)
· The Biz2Credit Small Business Lending Index informs of changes in credit environments.
· Options range from SBA and traditional business loans to startup loans and MCAs
· Funding in as fast as 24 hours.
· Do not provide accounts receivable factoring
· Personal credit scores are an important metric in Biz2Credit platform.
· Some funding may require personal guarantees.
For more information on Biz2Credit:
Who Uses Biz2Credit?
Where does their funding come from?
Do they offer specialty financing options?