Biz2Credit Review and Rates

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.

Biz2Credit operates as a hybrid: it matches borrowers with lenders in its network, and it also originates some financing itself through its subsidiary Itria Ventures and its bank partner Cross River Bank. We think that combination works in borrowers’ favor, since a product that doesn’t fit the network can still be funded in-house.

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. The revenue floor for term loans and revenue-based financing is $100,000, and the term loan tenure requirement is 12 months.

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, line of credit 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 percent and 29.99 percent, 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 $100,000 in annual revenue, maintain a credit score of 650 or higher, and show that you’ve been in operation for at least 12 months. Those thresholds are lower than they were in the past, when Biz2Credit asked for $250,000 in revenue and 18 months of history.
• 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. On the other hand, there are no application fees or hidden charges.
• Loan size and terms: Biz2Credit term loans range from $25,000 to $2 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 between $25,000 and $2 million or more 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 $100,000, a credit score of 575 or higher and at least 12 months of business operations.

Line of credit

Biz2Credit added a revolving line of credit to its lineup, which fills an obvious gap for business owners who want funds on standby rather than a lump sum. We like that it rounds out the product mix, though the eligibility bar sits higher than the term loan’s.

• Credit limit: Approved businesses can access up to $500,000.
• Terms: The credit line runs for 12 months, after which your business is reassessed for renewal. Biz2Credit requires a minimum draw when the line is originated, and you can request additional draws at any point up to the final five days of the term.
• Eligibility: You need a 650 or higher credit score, at least $250,000 in average annual revenue based on your last six months, and 12 months in business. Higher revenue thresholds apply in a handful of states.
• Availability: This is the one real catch. The line of credit isn’t offered in many states, including Texas, Florida, Ohio, Pennsylvania and North Carolina, so a sizable share of the country is shut out.

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

To apply for a loan, expect to provide basic business details, six months of business bank statements, your credit score, tax returns and supporting legal documents such as articles of incorporation, and an explanation of how you plan to use the money. If you’re already using one of the best accounting software platforms to track your company’s finances, pulling 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 start by creating a Biz2Credit account with a few basic business details, which the company says is enough to generate prequalified offers in about 60 seconds.

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 8 a.m. to 7 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. The company scores 4.6 out of 5 stars on user-generated review site Trustpilot across more than 15,000 reviews, which is a strong showing for an alternative lender. Reviewers repeatedly single out individual funding specialists by name and describe the process as quicker and less painful than they expected; the complaints we read clustered around communication during underwriting rather than the cost of the money.

Limitations

Biz2Credit is the top marketplace lender for small business owners, but there are some potential drawbacks to consider.

• Uneven requirements across products: Commercial real estate loans require $250,000 in annual revenue, a 650 credit score and 18 months in business, and the line of credit asks for $250,000 in revenue as well. So the products most useful to a smaller or younger business are the flexible ones, not the real estate financing. If you have a lower credit score, check out our review of Fora Financial, which has more flexible underwriting requirements.
• Line of credit availability: Biz2Credit’s newest product isn’t offered in many states, with Texas, Florida, Pennsylvania and Ohio among them. That’s a lot of the country left out, and it’s worth confirming your state qualifies before you plan around a credit line.
• 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 Noble Funding. 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.

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 …

• Businesses in their first year of operation, which won’t meet the 12-month minimum for any product.
• Businesses that prioritize a longer repayment term and lower monthly payments.

Miranda Marquit contributed to the reporting and writing in this review.