As I’ve reviewed business credit builders and fintech offers on the rise, I keep seeing Biz2Credit pop up. I’ve seen a lot of advertising, and, most recently, I noticed that prior to linking a bank account to Tillful, their user dashboard links out to funding options from Biz2Credit — this tells me that the brands have partnered. And, since I like Tillful’s secured card offer, I thought I might find something good here as well.
Now, before I give you the final verdict, it’s important for you to understand what makes me come to the conclusion I have. So, in the meantime, here’s everything you need to know:
- What Kind of Company is Biz2Credit?
- Company Overview
- How Does Biz2Credit Funding Work?
- Biz2Credit Loan Requirements & Terms
- BizAnalyzer Overview
- Biz2Credit’s Disaster Relief Hub
- Biz2Credit’s Referral Program
- Biz2Credit Partners
- Frequently Asked Questions
- Takeaway: Is This The Best Option for Small Business Funding?
Now, let’s get moving.
What Kind of Company is Biz2Credit?
Essentially, Biz2Credit is a business funding platform that helps small businesses get the cash they need (before they finish their cup of coffee). The goal is to provide owners with access to capital using technology to simplify the process.
Biz2Credit offers a range of services, including working capital, business term loans, ERTC loans, and commercial mortgages. Biz2Credit provides a direct lending option through a subsidiary and partners with third-party lenders, which means they act primarily as an online broker to provide businesses with targeted partner offers.
I know that one of the lending companies Biz2Credit worked with for PPP loans was Itria Ventures, which is a subsidiary of Biz2Credit. Beyond that, I didn’t find a lot of information about which partner lenders they work with regularly.
Next, it seems like most people who work for Biz2Credit would recommend a job at the company to a friend, and almost all employees approve of the CEO (according to Glassdoor). So, the company culture is likely great.
| Note: Biz2Credit’s offer seems pretty similar to Lendio’s, except that Lendio also provides access to credit cards and acquisition funding. |
Company Overview
Biz2Credit Inc was founded in NYC, in 2007, by Ramit and Rohit Arora. So, the company has been around for over a decade — in that time, they’ve received $387 million in funding. Most recently, in 2019, they raised $52 million in a series B funding round led by Westbridge Capital. This tells me that Biz2Credit is likely here to stay.
Ramit, the current company president, has ten-plus years of experience in risk management and has worked with notable companies like Citibank and Xerox. And, Rohit, the present CEO, has been a member of the Forbes finance council since 2017. They seem to me like a pair of trustworthy leaders.
Biz2Credit did receive a lot of poor reviews following PPP loan services, and there was at least one class action lawsuit filed (also re: PPP). But, to be fair, everyone was navigating new territory at that time, and the class action was recently dismissed.
Not to mention that, despite the onslaught of PPP complaints, the company still has a 4.6 Trustpilot rating, which is pretty difficult for any financial service to maintain.
You might also like: Torro Business Funding Review: Is This “Zero Hassle” Offer Legit?
How Does Biz2Credit Funding Work?
The first thing you can expect, if you decide to apply for funding through Biz2Credit is to “apply, which starts by you creating an account on the platform. You don’t have to move through the application process to create a user dashboard on the account. You do not have to share your social security number to create an account, but a hard inquiry is likely if you choose to follow through with a funding application.
Biz2Credit also offers both iOS and Google Play apps, but neither have been updated in the past couple of years, so I would recommend keeping the application process online or via phone.
Biz2Credit enables applicants to submit information online or to apply over the phone by calling 800-200-5678. Once an application is submitted and approved, and your bank account is connected via Yodlee, your funds should be deposited directly within 72 hours (or less — many applicants say they got their funds in a day).
Funding requirements seem to be based on a blend of business revenue and your personal credit score, and any financing offer you receive will fall into one of four categories.
Biz2Credit Loan Requirements & Terms
Requirements vary by funding type, but if your annual revenue is lower than $250K or your personal credit score is lower than 575 for working capital, or 660 for all other loans, you will not qualify.
If you’re unqualified based on your personal credit score, learn how to get business credit with just an EIN. But, if you think you may qualify, read on. Below is a quick overview of the terms and requirements for each type of Biz2Credit funding.
1. Working Capital
Working capital loans (for financing day-to-day expenses) from Biz2Credit start at $25K and go up to $2M+. These loans can be paid back daily, weekly, or bi-weekly, as a percentage of your business receipts.
Requirements:
- Greater than $250K annual revenue
- Credit score of at least 575
- 6 months+ in business
2. Term Loans
Biz2Credit offers term loans from $25K to $500K to grow your business or free-up cash flow; terms range from 12-36 months and interest rates start at 7.99%. These loans can be repaid weekly or bi-weekly.
Requirements:
- Greater than $250K annual revenue
- Credit score of at least 660
- 18 months+ in business
3. ERTC Loans
The Employee Retention Tax Credit (ERTC) is a refundable credit that companies can claim on their taxes for qualifying wages, insurance, and employee costs in response to COVID-19. Biz2Credit offers loans that can be repaid upon receipt of the credit in amounts of up to 65% of the amount of the upcoming IRS payment.
These are interest-only loans for the first 12 months. What this means is that your payments will be lower at the beginning, since you will not pay toward the loan principal.
Requirements:
- Pending payment of IRS credit of $100K or more
- Credit score of at least 660
- Must have been in business in February 2020 and still operating
If a payment is not received from the IRS, Biz2Credit’s ERTC loans will roll over into term loans for up to 24 months.
| Note: the ERTC deadline is May 12, 2023. So, these loans are likely to end at that time. |
4. Commercial Real Estate Loans
Finally, Biz2Credit offers commercial real estate loans (CREs), ranging from $250K to $6M with interest rates starting at 10%. These can be used to purchase, renovate, cash out, or refinance real estate. CRE terms range from 12 to 36 months and are repaid monthly. And, some applicants can qualify for interest-only payments for a portion of the loan.
Requirements:
- Greater than $250K annual revenue
- Credit score of at least 660
- 18 months+ in business
- Must be a commercial real estate owner
BizAnalyzer Overview
Biz2Credit doesn’t only offer to fund — they also have a sort of business credit score called BizAnalyzer, which companies can use as a “virtual CFO.” This platform sort of combines factors like revenue, personal credit score, time in business, and debt to income, to come to a determination.
The platform could be super helpful for some companies and can give you an idea of where you stand in your industry/what you might need to improve.
What I dislike about BizAnalyzer is that it’s based on the owner’s personal credit score — I’m a fan of building business credit that has no impact on personal credit and building a business credit score with the three major credit bureaus.
Recommended: Everything You Need to Know About a DUNS Number
Biz2Credit’s Disaster Relief Hub
Another highlighted feature on the Biz2Credit website is the disaster relief hub. At one point, this was primarily used to guide applicants on how to obtain COVID-related business funding and forgivable loans. Now, the company shares resources related to current natural disasters, as declared by the U.S. Small Business Administration (SBA).
Biz2Credit’s Referral Program
Most financial companies offer referral rewards for account holders. And, Biz2Credit’s offer isn’t bad at all — for every applicant you refer to Biz2Credit, you can earn a $200 Amazon gift card.
However, there are some limitations to the referral offer: To receive your gift card, the borrower that you refer must make it all the way through the application process and obtain funding through the platform. And, you’re capped at five referrals.
If you wanted to refer more than five people/businesses, it would be more appropriate to join Biz2Credit’s affiliate program.
Biz2Credit Partners
While their terms and conditions are very clear, most people don’t read the fine print on every offer they sign up for. So, it’s important to note that Biz2Credit partners with B2B financial companies like TaxAct, The Hartford, lenders, and more. This means that when you apply for funding, you may receive solicitations from partners.
Frequently Asked Questions
Is Biz2Credit a direct lender?
Yes and no; Biz2Credit offers some direct funding through a subsidiary, but also works with partners to secure funding for account holders based on business revenue and the owner’s personal credit score.
Who is the lender for Biz2Credit?
Intria Ventures LLC is a subsidiary of Biz2Credit Inc. and is the primary lender used for PPP loans through the platform.
Does Biz2Credit check your credit score?
Yes, Biz2Credit will inquire about the business owner’s personal credit score when making a determination about creditworthiness for business funding. However, you do not need to share your social security number to apply for an account and access the Biz2Credit dashboard.
Is a Biz2Credit loan forgivable?
If you received PPP funding through Biz2Credit, yes, it is forgivable under federal law. However, Biz2Credit doesn’t currently offer forgivable business funding.
How do you apply for loan forgiveness through Biz2Credit?
For PPP loans obtained through Biz2Credit, forgiveness must be applied for through the SBA’s PPP loan forgiveness program.
Is Biz2Credit still funding?
Biz2Credit still provides working capital, term loans, ERTC loans, and commercial mortgages through its platform. The company is no longer servicing PPP loans, since the program ended on May 31, 2021.
Takeaway: Is This The Best Option for Small Business Funding?
If you’re wondering if Biz2Credit is legitimate, the answer is yes — they’re an established company, and they’ve helped many small businesses obtain funding. They’re not the only broker in the business funding market, but their offer is definitely competitive.
Businesses looking for certain types of funding might find what they’re looking for here. However, Biz2Credit’s options are somewhat limited. For example, in some cases, it might be best to work directly with the lender you want to apply with. And, supposing you need a credit card or other funding not offered by Biz2Credit, you’ll have to keep looking.
There are plenty of other lenders out there that offer business credit based on your business credit score. Subscribe to this blog to stay in the loop about the best (and the worst) business funding offers. If you want to learn how to build business credit so you can obtain up to $100K in funding in 30 days, enroll in Business Credit Workshop today.