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Biz2Credit Review and Rates
Table of Contents
- Biz2Credit's starting rates for term loans are lower than those of many similar providers, which means you could pay less in total interest.
- The company connects you to funding sources that match your business needs.
- Biz2Credit's application process is fast and easy.
- Biz2Credit's minimum sales requirement of $250,000 may exclude many small businesses.
- The company's loan terms are shorter than some alternatives, so monthly payments could be higher.
- Term loans require a minimum of 18 months in business.
Biz2Credit is a top marketplace lender that offers a range of financing options to small business owners. You can access term loans up to $1 million, revenue-based financing of up to $2 million, and commercial real estate funding of up to $6 million. With an easy application process and excellent customer service, Biz2Credit quickly matches you with funding sources tailored to your specific needs.
Biz2Credit Editor's Rating:
8.8 / 10
- Collateral
- 8.8/10
- Fast funding
- 8/10
- Loan variety
- 9/10
- Easy approval
- 8.5/10
- Customer service
- 9.5/10
Why We Chose Biz2Credit as the Best Marketplace Lender
Biz2Credit is an online platform that connects small businesses with funding sources based on their unique profiles. This setup, known as marketplace lending, can be a great way to access multiple loan options without having to complete separate applications. However, not all marketplace lenders offer the same variety of options, customized offers and transparency.
We like that Biz2Credit matches borrowers with financial products that fit their unique needs instead of trying to shoehorn them into a one-size-fits-all solution. The application process is fast and easy, and the platform offers competitive starting rates and clear pricing.
Because of its streamlined user experience and tailored funding approach, Biz2Credit is our choice for the best business loan and financing option for businesses seeking a marketplace lender.
Loan Types and Rates
Because Biz2Credit is a marketplace lender, you have the option to shop your loan to a network of lenders, which isn’t something you can do with all small business funding providers. It can match you with several financing products, each with its own rates, terms and loan sizes.
Here’s an overview of Biz2Credit’s term loans, revenue-based financing and commercial real estate loans.
Term Loans
Term loans can help small business owners grow their operations, whether they want to open a new location, hire staff or buy equipment. Here are a few details to consider if you’re looking at a term loan from Biz2Credit:
- Rates: Biz2Credit’s current term loan rates are between 7.99% and 29.99%, depending on your credit score and other financial factors.
- Payments: These loans come with fixed payments, meaning your payment amount stays the same throughout the repayment period. (So, when it comes to term loans vs. lines of credit, term loans are often a more affordable alternative.)
- Eligibility requirements: To be eligible for a term loan, you must generate at least $250,000 in annual revenue, maintain a credit score of 650 or higher, and show that you’ve been in operation for at least 18 months.
- Fees: Biz2Credit charges a $250 to $400 underwriting fee if you get funded. Bank financing also may include a closing fee. Although these fees are likely small compared to monthly payments, some other providers, such as Noble Funding, charge no (or lower) fees. (Read our Noble Funding review to learn more.) On the other hand, there are no application fees or hidden charges.
- Loan size and terms: Biz2Credit term loans range from $25,000 to $1 million and have repayment terms of 12 to 36 months. Repayment is made on a weekly or biweekly basis, which can help keep payments more manageable.
Revenue-based financing
Revenue-based financing can be used for various short-term obligations and operations, including purchasing inventory, hiring employees, buying equipment and covering one-time expenses.
- Loan size: With Biz2Credit’s revenue-based financing, business borrowers can access up to $2 million in funding.
- Terms: Payment terms are based on your business receipts, with repayment typically scheduled daily, weekly or biweekly, depending on your revenue patterns.
- Approval speed: Biz2Credit can approve a revenue-based financing application in one day and fund the loan within 72 hours.
- Eligibility: To qualify for this type of loan, you need an annual revenue of at least $250,000, a credit score of 575 or higher and at least 12 months of business operations.
Commercial Real Estate Loans
Commercial real estate (CRE) loans allow you to borrow money using your business’s property as collateral. Generally, these loans help businesses acquire or develop commercial real estate.
- Loan size: Through Biz2Credit’s commercial real estate program, small business owners can borrow between $250,000 and $6 million.
- Rates and terms: The interest rates on these loans start at 10%. Terms on the loans range from 12 to 36 months.
- Approval speed: Business owners can be qualified and approved in 48 hours or less.
- Eligibility: To qualify for a CRE loan from Biz2Credit, you must have been in business for at least 18 months and already own commercial property. Additionally, you must have annual revenue of at least $250,000 and a credit score of 650 or higher.
Terms
As an alternative lender, we appreciate that Biz2Credit can provide business owners with more flexibility and support at different growth stages. With terms ranging from 12 to 36 months and a slightly lower starting rate, the total interest paid on Biz2Credit loans might be lower than what you’d pay with alternative providers offering longer-term loans.
Collateral
Biz2Credit business term loans are unsecured, which means you don’t need to provide collateral for the loan. However, the company does require a personal guarantee, which means you’re personally liable if your business doesn’t repay the loan. Other products, such as CRE loans, are backed by your business’s real estate holdings.
Special Documentation
Biz2Credit doesn’t specify which documents you need to apply for a term loan. Still, it’s a good idea to have your financial information — including business bank statements, tax information, proof of business ownership and a government-issued ID — ready to help speed along the process. If you’re already using one of the best accounting software platforms to track your company’s finances, getting some of these details together shouldn’t be too challenging.
Application Process
We appreciate that Biz2Credit makes the loan application process simple and straightforward, with clearly defined steps posted on the company’s website. You can become prequalified within minutes by answering three questions about:
- How much funding your business needs
- The general purpose of the funds
- How long you need the money
The actual application is a short questionnaire that you can easily complete by connecting your business’s bank account. Biz2Credit says this process takes about four minutes. You generally receive funding options within 24 hours. Once you choose an option and are approved, you can receive the funds in as little as two business days.
We were impressed that Biz2Credit offers access to funding specialists who can help you evaluate the best options for your business and walk you through any required documentation.
Customer Support
- Live assistance: Although Biz2Credit’s online platform can match you with a funding source automatically, many customers choose to speak with a funding specialist. Biz2Credit’s representatives are available by phone Monday to Friday from 9 a.m. to 6 p.m. ET.
- Online resources: The company’s website also has a knowledge center with a library of research reports, e-books, guides and links to Biz2Credit’s YouTube channel. You can also email Biz2Credit at info@biz2credit.com.
- Loan calculators: We also found Biz2Credit’s free online loan calculators to be particularly useful. These tools enable you to calculate loan payments in advance, allowing you to choose the option that best fits your budget.
We were pleased to note that Biz2Credit has garnered many positive customer reviews, with frequent praise for the platform’s support staff. Additionally, the company scores 4.7 out of 5 stars on user-generated review site Trustpilot. Out of more than 15,000 reviews, 83 percent of customers left a five-star rating, which is impressive compared to many alternative lenders.
Limitations
Biz2Credit is the top marketplace lender for small business owners, but there are some potential drawbacks to consider.
- Sales and credit requirements: To qualify for assistance, you must have annual sales exceeding $250,000. This requirement may exclude smaller businesses and many sole proprietors. Biz2Credit’s term loan also has a credit score requirement of 650. This affords eligible applicants a lower interest rate, but may shut out business owners with lower credit scores. If you have a lower credit score, check out our review of Fora Financial, which has more flexible underwriting requirements.
- Business experience requirements: Term loans require a minimum of 18 months in business, meaning startups and newer businesses are typically ineligible.
- Potentially high payments: Biz2Credit’s loan terms max out at 36 months, which means monthly payments will be higher than those for longer-term loans (although total financing costs are typically lower due to the shorter repayment period). Business owners who prioritize lower monthly payments should check out our Noble Funding review. This lender offers terms that can help reduce monthly obligations.
Methodology
When searching for the best business financing options on the market, we evaluated loan providers and their platforms based on key factors such as credit requirements, loan types, minimum sales requirements, required business duration, customer service availability and funding speed. We also assessed financial factors, including starting interest rates, loan terms and the loan sizes offered. To identify the top marketplace lender, we examined each company’s loan options and how easily each platform connected small business owners to the appropriate source of capital.
Biz2Credit FAQs
Bottom Line
We recommend Biz2Credit for …
- Business owners who prioritize lower overall financing costs rather than low monthly payments.
- Business owners seeking access to a range of lenders through a marketplace approach.
We don’t recommend Biz2Credit for …
- Startups with little operational history or small businesses that don’t meet the minimum sales requirements.
- Businesses that prioritize a longer repayment term and lower monthly payments.
Miranda Marquit contributed to this review.