June 8, 2023 | Last Updated on: September 8, 2023
With the advent of online lending early in the 21st century, many small business owners have found alternative online lenders a more viable resource to secure financing than traditional banks and financial institutions. Within the alternative lending landscape, a large number of these same entrepreneurs have found getting a business loan with Biz2Credit to be the answer to their financing and business needs.
Biz2Credit was founded in 2007 as a provider of business financing for small businesses. While the company changed its approach in 2013 to offer financing and loan options directly to its clients, Biz2Credit still maintains a network of lending partners that it can match with small business owners seeking funding options.
Biz2Credit maintains a lending partnership with banks such as Popular Bank, which uses its Biz2X platform to make loans to business owners. While Biz2Credit is an alternative online lender, Popular Bank is a traditional bank. The variety of financing options Biz2Credit offers can provide loan amounts from $25,000 to $6 million to small business owners. Specifically, Biz2Credit business funding can offer term loans of up to $250,000 and working capital financing of up to $2 million. In addition, a commercial real estate loan from Biz2Credit can be as large as $6 million. Repayment terms can range from 12 to 36 months.
Biz2Credit has received an average rating of 4.5 stars and above across four major review sites, including Google Reviews, Consumer Affairs, Trustpilot, and Best Company. On Trustpilot, a leading global platform that helps businesses collect customer reviews, the company has collected more than 1,600 positive reviews.
One of those positive reviews about Biz2Credit comes from Dev Pandey, who owns a chain of hotels in Phoenix, Arizona:
“I own a few hotels in Phoenix, Arizona. Our hotels have the perfect combination of the at-home feel without sacrificing any of the comforts. Keeping our rooms up–to–date is extremely important when it comes to keeping our customers happy. That’s why I partner with Biz2Credit.”
“See, when I needed to do a major improvement at one of my locations recently, I took out a business loan with Biz2Credit. They were able to fund me right away so I could get my project going. I always call Biz2Credit.”
Harry Singh of Lotus Marble and Granite in New Jersey also had a good experience with Biz2Credit:
“We are distributors of building materials for the past 25 years. We needed funding because the constant changes in the economy require us to have working capital on so many different levels. And we needed it quick to expand our fleet of trucks. So, my friends told me about Biz2Credit, and I decided to give them a call.”
“Biz2Credit was so much more personal than the banks. With my credit, I never thought that financing a new truck was a possibility. Biz2Credit made obtaining the new truck I had my eye on for years attainable and got it done quickly. Biz2Credit was more than able to provide us with our financing needs. They gave us the best tailor-made solution.”
“The process of doing business with Biz2Credit was extremely easy. They studied our operational cycle and finances very thoroughly. One thing that stood about Biz2Credit was that they were quick to respond and extremely patient. My revenue has gone up 100 percent since adding a new truck to my fleet. I would refer Biz2Credit to anybody who needs finding quickly and without any hassles.”
Despite its success, many small business owners may still wonder, “How do I get a business loan with Biz2Credit?” The answers are below.
As an alternative lender, Biz2Credit has arranged more than $7 billion in small business loans and business financing. Small business owners can get a Biz2Credit business loan in as little as 24 hours. No matter what industry a business may operate in, it can apply for a loan from Biz2Credit up to $5 million. Small business lending helps borrowers secure cash flow for expansion and other business needs.
To get a Biz2Credit loan, small business owners must first complete an online profile. This profile is the first step in the Biz2Credit loan application process. It asks for basic information about the business. According to Biz2Credit and its customers, the profile takes less than a minute to complete.
The next step is to upload the required documentation, such as bank statements, that Biz2Credit needs for the best loan to be approved. Biz2Credit estimates that this segment of the loan application process takes roughly four minutes. Biz2Credit loan specialists are available to work with small business owners to help submit their application and to get a decision regarding approval. This decision usually arrives within 24 hours. Applicants will also need to provide bank account information of where they will receive the funds.
With its streamlined application process, small business owners may ask, “Does Biz2Credit run your credit?” The answer is yes. Biz2Credit considers business credit scores when making decisions on whether or not to approve a loan application.
Biz2Credit does not charge application fees, and there are no hidden charges to apply for a loan. However, the company does charge a $250 origination fee, should a business be approved for a loan and receive small business financing.
Biz2Credit offers different interest rates for different loan types: term loans, working capital loans and CRE loan (commercial real estate loans). Term loans, for example, have simple interest rates. For small business owners who qualify for a term loan with Biz2Credit, this approach saves them money since interest is not compounded in a simple interest rate. This saves small business owners money by lowering the overall interest rate.
Biz2Credit term loan rates start at 8.99% and can differ depending on factors such as credit score. What credit score do you need for Biz2Credit? The minimum Biz2Credit loan requirements for a term loan are a business with a credit score of at least 660, produces at least $250,000 in annual revenue and has been operating for at least 18 months. Small business owners need at least a fair credit score, too, in order to qualify for financing in most cases. However, poor personal credit scores do not necessarily prevent a small business owner from getting approved for small business funding. The interest rates for term loans can differ depending on annual revenue and time in business, too.
Interest rates on working capital loans from Biz2Credit vary depending on the type or working capital loan. SBA (7A) loans, invoice factoring, merchant cash advances and working capital lines of credit are all examples of working capital loans. For a business line of credit, for instance, the average interest rates can range between 7% to 25%. In addition, the interest can be variable in many cases.
Small businesses can receive up to $2 million in small business funding through a working capital loan from Biz2Credit.
Merchant cash advances and invoice factoring are based on a factor rate, not an interest rate. Through its working capital loans, Biz2Credit allows small business owners to receive as much as $2 million in funding. Biz2Credit can also approve an application for a working capital loan in one day and deliver financing within 72 hours. Businesses need to have been in business for at least six months, annual revenue of at least $250,000, and a credit score of at least 575 to qualify for a working capital loan from Biz2Credit.
Interest rates for commercial real estate loans through Biz2Credit start at 10%. Small business owners can access funding anywhere from $25,000 to $6 million to buy real estate. Terms on these loans range from 12 to 36 months. Repayment terms can be weekly or bi-weekly. This is in contrast to other lenders, who may require a large lump sum on a monthly basis.
To qualify for a commercial real estate loan from Biz2Credit, small business owners need a credit score of at least 660, annual revenue of more than $250,000, must have been in business for at least 18 months and must also own commercial property. Once a small business meets these requirements, they can qualify for a commercial real estate loan in 48 hours.
Biz2Credit business term loans are unsecured business loans, which means that they do not require collateral to secure the loan. But Biz2Credit requires a personal guarantee from small business owners who are approved for funding. As such, business owners are personally liable for the loan if the business cannot pay it back.
While it may not be easy, it is entirely possible to get a business loan while in collections or with bad credit. Many alternative online lenders aren’t concerned with bad credit. They are open to the idea of giving loans to small businesses that, in the past, may not have stood a chance of being approved by a traditional bank or credit union.
Even better, a business loan to a small business with bad credit may have long-term benefits for the business, such as creating a positive credit history, improve FICO scores and raising its credit limits. This process can start by following a few basic tips secure business financing en route to improving credit over time.
Biz2Credit was an approved SBA lender for the Small Business Administration’s Paycheck Protection Program (PPP) during 2021. In fact, one of its subsidiaries – Itria Ventures – was the number three lender in dollar value in 2021, trailing only JP Morgan Chase and Company and Bank of America. In addition, Itria Ventures was the top lender of the first 15 lenders in total loans approved. Itria Ventures was the direct lender for 165,827 approved loans in 2021 worth a total of $4.76 billion.
During the pandemic, Biz2Credit also allowed traditional banks and other lenders to use its PPP lending platform to process small business loans to expediate loan approval.
One reason that Biz2Credit was a good fit for PPP was that most of its loans are approved for very small businesses that do not have an existing banking relationship. That is because these businesses are sole proprietorships or businesses with under 20 employees. When such small operations need financing, they are likely to find it more quickly through alternative online lenders than traditional bank loans.
In addition, the documentation, error codes and PPP program rules of the SBA proved to be problematic for banks during the Paycheck Protection Program. But, as a financial technology (Fintech) company, Biz2Credit and other Fintechs had little trouble rapidly adapting to the ever-evolving nature of the PPP. As a result, there is currently an effort being made to allow more fintech firms to become SBA lenders.
As was the case with all lenders involved in the Paycheck Protection Program, PPP loans provided by Biz2Credit were eligible for forgiveness if the business had spent its funding from the loan on eligible expenses within the eight to 24-week period following the loan disbursement. This period if otherwise known as the “covered period.” The PPP program has since ended, and no new PPP loans are being provided. No other Biz2Credit loans are subject to forgiveness.
Eligible expenses included:
Now that you have a good understanding of the top small business financing options from Biz2Credit and the requirements, we hope you’ll turn to Biz2Credit for assistance with your business financing needs when you’re ready. At Biz2Credit, our number one priority is helping small businesses across the United States. Whether through assisting small businesses with acquiring loans or providing them with timely and relevant news pertaining to their individual industries, we are here for small business owners.
