Novo Bank Review: First-Rate Small Business Banking or Scam?

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Novo Bank Review

Novo Bank is touted, by some, for having one of the best bank accounts for small businesses, while others say it’s a scam — that it isn’t really a legit bank. So, which group is right? Let’s investigate through this comprehensive Novo Bank review! 

In this post, I cover the details of Novo’s offer in full. After that, I answer some FAQs, then give you my final verdict on whether this is a “scam” or not. 

Here’s what’s in store: 

Now, let’s go!

Novo Bank Company Overview

Novo Platform Inc (Novo Bank’s parent company) was founded in 2016, by Michael Rangel and Tyler Mcintyre. The company’s home base is in the Miami, Florida area. Since the company’s launch, it’s received $170.5 million in equity funding and is considered an “emerging unicorn” in the financial space. 

Prior to starting Novo, Rangel was the Lead Trade Administrator at Fairholme Capital Management, where he worked for half a decade. While I couldn’t find much about Mcintyre’s career history, he is an accredited ACH and Payments Risk Professional who attended the University of Miami and Wharton School where he studied Entrepreneurship, Business Administration, and Management.   

While the founding duo doesn’t have the strongest financial backgrounds, as far as bank founders are concerned, their history seems like a good fit for an offer like this. I see no glaring issues that would make the company seem untrustworthy. 

Novo Bank is partnered with Middlesex Federal Savings, an FDIC-insured bank to offer small business checking. 

Novo’s Customer Service

Before you sign up for a business checking account, you need to know if you’re going to be able to speak with someone to resolve any future issues that may arise — it’s unlikely that you would have no problems with any checking offer. 

At Novo Bank, the customer service team works Monday through Friday, from 8 am to 7 pm Eastern Standard Time. These hours are beyond traditional 9 to 5, Monday through Friday banking hours. Some banks do offer 24/7 support, and there are offers everywhere in between. So, you should be able to get in touch with a real person — via email or through the app, anyway — during business hours on weekdays. 

Novo currently has a cumulative 4-Star rating on Trustpilot, with lots of 5-star reviews, which are mostly pretty “general,” yet enthusiastic. For example, see Julie’s review below. She claims she hasn’t had a single issue with her Novo account and boasts about her satisfaction with the Stripe integration.  

novo Bank reviews bbb

On the same day as Julie’s cheerful comments, however, another user, Paystub Hero, had nothing nice to say. Several 1-star Trustpilot reviews such as this one serve as a sort of public service announcement warning others against Novo. A common complaint is that customer service is sorely lacking. 

novo bank problems

Now, Novo does not currently publish a phone number on their website, which is at least a yellow flag. Today, you can only reach out to Novo by emailing support@novo.co or through the Novo app. 

While I can’t speak for every user’s experience, I did reach out to Novo via email asking for more information about their offer, and they replied within about 15 minutes. I didn’t see any signs that the response was written by a bot. So, this may be a case where you have to take every review you read with a grain of salt. 

Novo Business Banking Overview

For the amount of hype that Novo generates as an innovative banking solution, I was surprised to find that they currently offer no savings or interest-bearing accounts, no cash deposits, no chatbot or phone number, and no business financing. 

Novo does not offer loans or credit lines and instead recommends SBA’s Lender Match program. If you go this route for funding, you can get matched by the U.S. Small Business Administration with approved lenders that might be able to help you get any financing you might need. Note that these are typically traditional term loans for small businesses or the individuals who own them. 

With that said, according to one rep, Novo does plan to offer lending in the future. So, if a lack of lending offers is what’s keeping you from banking with the brand, you might want to check back in on Novo’s website periodically to check for future offers. 

Having said that, Novo does offer some interesting benefits, which I outline below.  

Business Checking Account Features

Applying for an account with Novo apparently takes minutes, and you can do it from the comfort of your home. This is an “online checking account,” so there’s no need to go into a branch to open an account. 

Along with the ease you would expect from online banking, Novo business checking accounts come with a range of features: 

  • Free small business checking
  • No monthly fees or minimums
  • Unlimited ATM refunds
  • Immediate access to virtual cards
  • A physical debit card
  • Free, unlimited invoicing
  • ACH payment transactions 
  • Profit-first accounting 
  • Multiple budgets with Novo Reserves
  • Integration with Stripe, Square, and Paypal

Again, cash deposits aren’t accommodated by Novo Bank. So, while you can use ATMs to withdraw cash, and the Novo app to deposit checks, there is no way to make a traditional cash deposit into an account. 

But, let’s explore what else you can do. 

What is Profit-First Accounting? 

What kind of bank is Novo?

If you’re not familiar with profit-first, it’s an accounting type and business mindset that enables owners to focus on the profitability of their operations. 

In short, it looks like this: sales – profit = expenses and is an alternative to traditional accounting (sales – expenses = profit). 

Companies that adhere to this philosophy budget for expenses after they reach their profit goals for each period, whether it be weekly, monthly, or quarterly. Profit-first essentially forces business owners to reach their revenue goals, so the idea is that it should boost cash flow.  

Novo business checking accounts are set up to help businesses implement profit-first accounting through Novo Reserves. 

What is Novo Reserves? 

Novo Reserves is a budgeting feature built-in with Novo small business checking accounts that automatically allocate funds into “reserves” or “envelopes” based on cash flow percentages to simplify budgeting. 

Novo reserves can accommodate up to ten budgets per account. The idea is that account holders can use Reserves to manage accounts with more flexibility and with financial goals in mind. 

Moreover, Novo shares resources that explain the profit-first method and the benefits of Reserves on their blog, which is a nice touch — the entire small business checking offer seems to be built around this method of accounting.   

Novo Software Integrations

Best business banking app

Novo’s website shows off their Stripe integration above all, but the platform is built to integrate effortlessly with 15+ everyday eCommerce and financial apps. This makes Novo a top consideration for small and medium online merchants.

When managing your money, with a Novo account, you would no longer need to bounce back and forth between multiple platforms where you receive funds to access your money. When you get a deposit in Stripe, for example, you would have instant access to the funds in your Novo account. Plus, you’ll get different perks across some of these payment platforms for being a Novo member. 

Novo Boost Summary

Another interesting feature that comes with a small business checking account is Novo Boost, developed to work with Stripe, which is worthwhile if you process most of your payments through the platform. The key benefit of Novo Boost is that you can get your Stripe payments within hours rather than days. 

Obviously, quick access to cash flow is a nice option. 

Please know that Novo Boost allows Novo users to access their automatic payouts from Stripe up to 2 business days early, completely free of charge. Please note that  Novo Boost is neither a loan nor a purchase of any receivables.

Recommended: Could a Stripe Capital Loan Get Your Business Through a Rough Patch? 

Accountholder Perks

Novo bank app

Novo account holders can access up to $4K in savings across some of Novo’s partners. Savings are divvied out like so: 

  • Constant Contact – $150 in savings via a 6-month, 50% discount on the Plus plan
  • Stripe – $125 in savings via $5K (transaction total) in fee-free processing
  • Google Cloud – $2K worth of Google Cloud credits
  • Gusto – $100 in savings via 1 free month of Gusto 
  • Quickbooks – $150 in savings via a 6-month, 30% discount on any plan
  • Hubspot – $1.4K in savings (per seat) via 30% off first-year subscription and 15% off following years
  • Google Ads – $500 in savings via $500 in Ads credit when you spend $500

The above companies often offer promotional savings, but they’re not always easy to access. So, if you use or would like to take advantage of any of the offers above, and the discounts would make it worthwhile, a Novo account might be a good opportunity (I mean, it’s free 🤷).

Business Formation Tools

Novo bank login

Novo seems to also have a partnership with Legal Zoom, offering individuals the chance to incorporate or upgrade their business or nonprofit through the legal platform with 20% off. 

With that said, Novo doesn’t offer business formation internally. However, this is a good idea for a starter-type business banking establishment, since some people need to incorporate their business before they apply, and don’t always know where to start. 

Recommended: How to Create a Business Credit “Entity” 

Frequently Asked Questions

Who is Novo Bank owned by?

Novo Bank was founded by Michael Rangel and Tyler Mcintyre and has received equity funding from several investors. The banking platform is FDIC-insured via Middlesex Federal Savings, United States. 

Who regulates Novo Bank?

Under Middlesex Federal Savings, Novo Bank is regulated by the Federal Deposit Insurance Corporation (FDIC), which ensures all of its small business checking accounts. 

Can I withdraw money from Novo?

As a Novo account holder, you can withdraw up to $1K per day from your checking account at any ATM. 

Where can I withdraw money from Novo?

Middlesex Federal Savings’ ATM network is limited to the Boston area, but you can withdraw funds from any ATM across the U.S. All ATM fees will be refunded at the end of each monthly cycle. 

Does Novo work with Zelle?

No. Novo checking accounts are not yet compatible with Zelle. 

The Verdict: Is Novo a Legit Bank

Is Novo bank trustworthy? Yeah, I think so. While they do not offer some of the features that we’ve come to expect from business checking, and they’re a no-go for cash businesses, Novo Bank has a fairly robust feature offer. 

As with all checking accounts, it’s best to weigh the pros and cons to make sure that the product meets your needs. If you need a savings account, loans, or anything else that the platform lacks, Novo isn’t the right fit for you. 

But, if you’re looking for a debit card, virtual cards, budgeting, and invoicing that integrates seamlessly with Stripe and other financial tools, then this might be a fantastic company to bank with. 

Personally, I prefer small community banks and credit unions for small business banking, but these institutions don’t always work for everyone. For example, if you relocate every year, smaller banks might not have all of the features you need. In this case, I might recommend you check out Bluevine’s offer. 

 If you’d like to learn how to obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today.

Y Combinator: Fast Track to Success or Waste of Time?

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Y Combinator

Y Combinator is one of the most well-known startup accelerators in the world, with a reputation for propelling companies like Dropbox, Airbnb, and Stripe to incredible success. But, is the program really worth it? 

In this post, I’ll give you a closer look at the pros and cons of joining Y Combinator and explore whether applying for their program is the right choice for your business.

Note: I don’t intend to promote or discredit the program. Instead, I want to provide an overview of the potential benefits and drawbacks. I encourage you to always weigh the pros and cons of any financial offer before applying.

Here’s what’s in store: 

What is a Startup Accelerator

Startup accelerators provide early to growth-stage startups with business education, mentorship, and funding. Seasoned business investors are typically behind acceleration offers — they tend to have the knowledge to help point founders in the right direction for growth. And, they have a vested interest, since they will have the opportunity to invest in businesses that show potential for high profitability. 

What do startup accelerators really do? — a lot! Accelerators provide companies with expert, one-on-one mentorship, education, and pitch deck guidance. They help connect founders with investors. In a nutshell, they give businesses a springboard for massive growth.  

Acceleration programs don’t have an upfront cost for founders, but the services and funds are provided in exchange for equity in the company. Investors will eventually own a portion of the company, and the founder will give up some level of control over their operations. 

Why is Y Combinator So Famous? 

Y Combinator was founded in 2005 and is a sub-organization of Utopia Communities, a Las Vegas-based real estate investment trust, brokerage, and venture company. Since then (As of January 2023), they’ve funded over 3.5K startups that now have a combined valuation of over $1 trillion — We’re talking about companies like Stripe, Brex, Coinbase, and Reddit. 

What does Y Combinator do?

Twice a year, in Summer and Winter, Y Combinator hosts a 12-week accelerator for the founders who make it through the rigorous vetting program and into the program. 

In the past, Alex Cercei, founder of WayDev applied 13 times before he was accepted to Y Combinator. Kathryn Cross of Anja Health got in on her second try and left with a $4.5 million investment. Useproof’s founder, Dave Rogenmoser, got into the program on his second try and left the three-month program with $175K MRR — up from $4K when he first applied and $75K at the time of his second application — and $2 million in seed funding.  

Today, the funding structure is different than it was in the past. Y Combinator currently offers $500K per accepted company in a larger number of startups. This change might suggest that the competition isn’t as fierce as it once was, but I wouldn’t assume that just anyone can enter. The program is prestigious and will need to continue to live up to its reputation. 

In addition to the $500K you get for participation, Y Combinator founders have the opportunity, at the end of the accelerator program, to present their pitch decks to a carefully-selected, invite-only audience of investors.  Startups and nonprofits can apply. 

Benefits of Y Combinator

Why would you want to join Y Combinator? How can it impact your business positively? 

First, you’ll get high-level access to funding and business resources. If you’re accepted, you’re all but guaranteed $500K to invest in business growth. And, there is no ceiling on the funding you might raise after you present your pitch deck at the end of the program. 

Next, there are unparalleled networking opportunities with successful entrepreneurs and investors. Y Combinator connects startup founders with seasoned professionals who can spell out how to take a company from “tons of potential” to “wildly successful.”

Finally, equity funding gives you expert mentorship and guidance from experienced industry professionals. Y Combinator investors want their investments to gain profit, and they’re willing to put in more than money to make sure it happens.  

Drawbacks of Y Combinator

Why would you not want to join Y Combinator? What might you not like about it? 

First, you’re up against Intense competition for funding and resources. If you’re having a hard time clarifying your offer, you don’t have something innovative to present, or you’re just hoping to get a quick $500K, Y Combinator probably isn’t for you. 

Next, there will be high expectations and pressure to perform. When networking within Y Combinator, you don’t meet your new best friends — instead, you meet gurus who are going to be straightforward and cold. 

These people are busy, and they are going to tell you what you need to hear to move in the optimal direction for profitability (think high intellect and low EQ) — they’re not going to tell you what you want to hear to boost your confidence.  

Finally, equity funding limits flexibility and control over your company’s direction. If you want to maintain control over your operations without input from a new board of directors or quiet investor, Y Combinator won’t be a good fit for business funding. 

Factors to Consider Before You Apply

Some successful founders say that they had an established company, revenue, website, and customers before they were accepted into the Y Combinator program. So, you shouldn’t expect to make it if you’re all ideas and no follow-through. 

90% of the companies that make it through Y Combinator have co-founders, but they do absolutely accept solo founders. If you’re a solopreneur, consider whether enlisting a co-founder might add value to your offer. 

Throughout the 12-week accelerator, there will be one day a week that you’ll commit to the program — the rest of the time, you’ll work on implementing the new ideas that are laid out for you. 

During COVID, the process was virtual. In 2022, there were three days in the beginning, and at the end of the program that required in-person attendance, and founders did not need to be in the San Fransisco Bay area during the rest of the duration. 

Now, the program is remote-friendly, but Y Combinator encourages founders who are accepted to relocate to the area, at least during the three-month accelerator.  

Now, before you apply, consider the stage and goals of your startup, your team’s experience and capabilities, and the potential benefits and drawbacks of the program for your specific business. If you still like what you’re hearing, read on! 

Y Combinator Application Questions

When you apply, Y Combinator asks about your company, contacts, founders, business progress, idea, equity, and other ideas you might have. Interestingly, often when the program provides funding, it’s not for business listed in the main application, but something that founders list in the other ideas section. 

Y Combinator Application Example

With that said, you’ll have to think outside the box to stand out. Here are a couple of questions Y Combinator asks that you might not expect to see on a funding application. 

  • Please enter the URL of a 1-minute YouTube video introducing the founder(s),
  • Why did you pick this idea to work on? Do you have domain experience in this area? How do you know people need what you’re making? 

The top issue founders seem to have with the application process is a lack of clarity in their idea. And, more than half of the companies that make it through the application process totally blow their interview. 

So, if you’re going to apply, think about seeking help from a professional copywriter, interview coach, and/or others who have made it through the vetting process. Make sure to show them Y Combinator’s up-to-date guidelines (at the very least, read them yourself). 

The Famous Y Combinator Interview

If you are selected for an interview, don’t be the person who goofs it up. To make it this far proves that you have an idea with serious potential. Y Combinator’s interview only lasts about ten minutes, but the questions aren’t simple. 

When Dave Rogenmoser of Useproof was interviewed, the first question they asked was, “This is cool, but how does this become a billion-dollar company?” As you probably guessed by the fact that Rogenmoser had to come back again six months later (see above), he flopped his answer — he had never thought about this before.  

If you get an interview, you’re going to be asked about the science or technology behind your company or idea, what you think about your potential market size, and what motivates you as a founder. 

While you don’t necessarily need to have a billion-dollar company, you should have a billion-dollar mindset. Your value proposition should be on-point, and you need to fully understand your market and the competition. Without these things, you’re not likely to make it through the interview. 

But, I want to say that I think an interview like this would be great for nearly any company, even if you don’t expect to move to the next stage — it would force an owner to develop a higher growth mindset. 

Y Combinator Startup School

Is Y Combinator Startup School free?

Startup school is a free, online course for founders. The course is designed to give business owners all of the information they need to get a company off the ground. 

Startup School provides a user dashboard with curriculum modules, weekly updates, and a co-founder match tool, and deals. It’s like a mini accelerator that anyone can access at no cost. 

The Curriculum

Is Startup School free?

Modules are broken into X sections: 

  1. Deciding to start a startup
  2. Getting and evaluating startup ideas
  3. Building your founding team
  4. Planning an MVP
  5. Launching
  6. Growing and monetizing
  7. Fundraising and company building 
  8. Stories from great founders

The founder stories in Startup School’s course include Facebook and 23andMe — I didn’t realize either of these companies was connected to Y Combinator, so I peeked down that rabbit hole and found that Facebook teamed up with Y Combinator in 2010 🧐

Weekly Updates

Startup School: Y Combinator education

Each week, Startup School students are encouraged to submit a progress update. If you submit the update, you’re eligible to sign up for a group session for that week. For those having a hard time tracking metrics, there’s a video lecture: How to Set KPIs and Goals.

Co-Founder Match

Co-founder matching was launched in 2021, likely in response to the virtual shift. 

Once your profile is complete and approved by a Startup School admin, you will be eligible to sign up for co-founder matching. This feature connects course participants who are looking for co-founders with others who have similar interests and adjacent skill sets. Co-founding can help companies create a strong founding team for their business.  

Member Deals

Y Combinator Perks

Startup School participants can apply for access to exclusive deals from companies like Stripe, HubSpot, and DigitalOcean. These deals are from Y Combinator partners and past program participants. 

A few of these deals include: 

  • 30% off Hubspot marketing, sales, & service software
  • $500 in Brex cash and $5K toward AWS services
  • $5K Stripe fees waiver for new users
  • $10K USD Freshworks credits 
  • $1K worth of DigitalOcean cloud credits for 12 months

If you can qualify, these offers could be invaluable. 

Frequently Asked Questions

How many interviews does Y Combinator do?

If you make it through the application process and land an interview, there will only be one, ten-minute interview. If YC decides to move forward, you’ll be invited to participate in their accelerator. 

What percentage of equity does Y Combinator take?

Y Combinator will invest $500K into companies that make it through the application and interview process for 7% equity in your company. 

What is the YC acceptance rate?

Every 6 months, Y Combinator usually has a 1.5-2% acceptance rate for founders who apply for the accelerator. 

Can I apply to Y Combinator with just an idea?

You can apply to YC with an idea, yes. Sometimes, Y Combinator will select a founder based on an idea-stage business over an established company. However, successful applicants tend to say that they had to get their revenue up before they were accepted to the YC accelerator. 

Does YC Have an age limit?

There is no age limit, though, the youngest accepted applicant to the Y Combinator accelerator was 22, and only a few people over age 38 have made it into the program. 

Y Combinator Alternatives

Y Combinator is not the only startup accelerator you might be interested in (thought, they do have the biggest name). Here’s a list of other programs you may want to check out. 

  • 500 Startups – CreditKarma, Canva, Intercom, Gitlab, +more
  • Sequoia –  Doordash, Zoom, Apple, 23andMe, +more
  • Techstars – ClassPass, DigitalOcean, Remitly, SendGrid, +more
  • Plug and Play –  Zoosk, Dropbox, Honey, Shippo, +more

Keep in mind that if you’re pre-revenue, there are other places to start. 

For example, Anja Health’s founder, Kathryn Cross, spent a lot of time in a coworking environment warming up her business muscles before she applied to join YC (and was denied the first time). 

Sometimes, local non-profits offer regional business acceleration services. The SBA offers an annual growth accelerator fund, which is distributed across the country to serve rural and suburban small businesses. 

And, of course, there’s always business credit, which lets you maintain control of your business in every sense. Debt financing can be used to transform your life — some financial gurus like Robert Kiyosaki swear by it.   

Conclusion

Is YC still worth it? That depends!

Y Combinator is not a one-size-fits-all solution for startups, and it’s important to weigh the pros and cons before applying. Ultimately, the decision of whether or not to join YC depends on the unique needs and goals of your business.

Are you willing to give up equity in your company for a chance at growth? If so, Y Combinator might be your fast track to success… if you can make it through the stringent vetting process. 

I will say that any early-stage business founder or owner could benefit from the free Startup School. However, you should get what you can from it while seeing it for what it is: an insanely value-packed lead magnet. 

All paths from the Startup School funnel lead to Y Combinator offers (this isn’t a bad thing, but it’s good to know when you’re looking at an advertising offer).   

If you’re interested in learning how to get your company “credit-ready,” to obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today.   

The Ultimate Business Credit Deep Dive: 130+ Statistics & FAQs (2023)

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business credit

We work one-on-one with thousands of business owners (and interact with tens of thousands online) to help people build business credit and improve their credit scores so they can obtain substantial lines of credit to grow their companies.

Over the years, we’ve answered and kept records of the top questions people ask when embarking on their business credit-building journey. Today, we’ve decided to share our exclusive insights here, so anyone can access them. 

First, we will share the most interesting takeaways from 3,988 surveyed business owners, and explain how we respond to their queries. We’ll answer the top questions entrepreneurs have about business credit. Keep in mind, we always recommend that you consult with an attorney and a CPA before making legal or financial decisions regarding your business.

Here’s your in-depth exploration into the realm of business credit: 

Now, let’s dive in!

What Motivates People to Seek Out Business Credit Education? 

The top 8 motivators to learn about business credit are credit score issues, lack of knowledge, funding offers, leisure/expertise, specific funding types, business challenges, increasing credit lines, and credit piggybacking

Credit is a crucial factor that lenders, suppliers, and other businesses consider when evaluating a company’s creditworthiness and financial stability. A strong business credit score can help a small business or larger company secure favorable loan terms, negotiate better payment terms with suppliers, and potentially even attract new customers. On the other hand, a poor credit score can make it difficult for a business to secure the funding it needs to operate and grow.

While each situation is unique, business owners have various reasons for seeking business credit education that I’ve broken down into eight categories: credit scores, general business credit knowledge, interest in current offers, curiosity, information about specific funding types, business-related challenges, increasing existing credit lines, and even selling credit. 

Here, we examine the top questions people have about business credit, then read answers to those queries. 

1. Most Business Owners Need Help With Their Credit Scores

The most common credit score issues business owners face are low credit score, too few or no accounts reporting, no idea how to manage their business credit score, and a lack of no-PG funding options.

The top reason people come to us is for help with their credit scores. Sometimes this pertains to business credit, while other times there are issues with personal FICO scores. 34.4% of business owners need help with their credit scores when they begin their business credit-building journey. Whether it’s personal or business credit that people need to build or repair, credit score queries are our number one issue. This topic is where we exert most of our energy. 

First of all, there are things you can do to improve your credit score: 

  • Pay your bills on time to prevent negative marks on your report
  • Keep your credit utilization below 30% to optimize your credit score
  • Don’t open too many new accounts at one time to minimize the negative impact of credit inquiries 
  • Monitor your credit score so you can catch and dispute errors right away
  • Focus on one area at a time, so as not to overwhelm yourself (sometimes, patience is key)

Here are answers to common questions about general credit score issues: 

What is the fastest way to fix your credit score?

The quickest way to fix your credit score is to pay off any outstanding debts right away, to make sure that all of your accounts are current. Moreover, you can try to dispute any errors or inaccuracies on your credit report, as these can negatively impact your credit score. I recommend the Credit Secrets system to anyone with a low credit score. 

Who can I talk to to help me with my credit score?

For help with your credit score, you can talk to a financial advisor, credit counselor, or credit coach for help with improving your credit score. They can provide you with advice and resources to help you pay off your debts and manage your finances in a way that will positively impact your score. In some circumstances, you may also be able to find free or low-cost credit counseling services through non-profit organizations or your local government.

Can I pay someone to clean up my credit report?

I generally advise against paying someone to “clean up” your credit report. The truth is, companies that offer services like this are generally expensive while the industry is flooded with scammers. If you do decide to pay for a service like this, check with the Better Business Bureau, read company reviews, and do your due diligence before you proceed, as paid credit clean-up is a high-risk solution for poor credit. 

Is it easier to qualify for a business credit card?

A business credit card is not easier to qualify for than a personal credit card because it requires that the applicant submit business financial documents, sometimes in addition to personal credit information. However, if they take the right steps, a business may be able to build credit faster than an individual. 

Relative to general credit score challenges, a number of people we interact with have problems specifically related to business credit. Of those that need help with their business credit scores, ⅓ of them have an existing, low business credit score or negative items on their report that they want to clean up. These issues need to be handled on a case-by-case basis since there are so many possibilities, and what works for someone with too many inquiries won’t work for someone whose utilization is too high. 

In many ways, business credit is similar to personal credit, and some of the same strategies that help boost an individual’s FICO score can help increase a company’s Paydex score and other business credit scores. 

Let’s look at the usual queries people have about business credit problems: 

How can I fix my business credit score?

To fix your business credit, you can start by paying all bills and debts on time, as agreed. Next, keep your balances low on credit cards and lines of credit. Furthermore, you should regularly review your credit reports for errors. In some cases, it can also be helpful to build a positive credit history by taking out small loans or credit cards and using them responsibly.

How do I remove negative items from my business credit?

To remove negative items from your business credit, you can try disputing the errors with the credit bureaus or negotiating with the creditor to have the item removed in exchange for payment. It is also a good idea to regularly review your credit reports and address any errors or issues as soon as possible. You may also try a goodwill request for the deletion of valid negative marks on your report.

What is a goodwill request for deletion?

A goodwill request for deletion is a letter or email that you can send to a creditor (not a credit bureau), asking them to remove a negative item from your credit report as a gesture of “goodwill.” These requests are typically made when the negative item on your credit report is the result of a one-time mistake or misunderstanding, and you have an otherwise good credit history.

Do goodwill deletion letters work?

Yes, goodwill deletion letters can work to mitigate accurate, negative marks on a credit report, though usually only when the individual or entity making the request has a history of otherwise positive records.

Much of the time, credit score problems are based on a scarce number of accounts on a business credit report. 26.1% of the businesses with credit score issues report too few or no accounts listed on their business credit report. This can occur when the company utilizes tradelines that don’t report to D&B, a new credit line hasn’t been reported yet, or when the business hasn’t applied for credit. Again, these problems need to be resolved on a case-by-case basis. 

Having a limited credit history can make it difficult for businesses to establish a strong credit score, which is based on a variety of factors, including payment history, credit utilization, and the length of credit history. If a business has a limited credit history, it is impossible for any credit scoring algorithm to accurately assess a business’s creditworthiness and financial stability.

Here’s what business owners want to know about a limited number of accounts on a business credit report: 

How many business credit accounts should I have?

Prior to applying for business funding, you should establish tradeline accounts to establish credit. You first need to set up your business so that it’s optimized for obtaining business credit. To build credit fast, you need a minimum of three tradelines reporting to business credit bureaus, before your score is adequate for lenders; A perfect score requires more.

Can I self-report business credit?

As an individual or entity, you cannot simply report your payments to business credit bureaus. However, there are steps you can take to have certain bills reported. For example, eCredable has options to link utility payments to users’ accounts to have them reported. And, you can apply for certain types of funding that report on-time payments to business credit bureaus.

Why does my business credit card not show on my credit report?

Many business credit cards report on the cardholders’ personal credit reports, not the business credit reports. In a case where you know that your business credit card should be reporting, you may have to wait, as it takes some lenders longer to report than others.

How long does it take business credit to report?

The length of time it takes lenders to send payment activity to business credit bureaus varies from bank to bank. In many cases, it can take over 30 days before payment history shows on a report. Some lenders do not report until after the second billing cycle.

Does Amex report to Dun & Bradstreet?

As a rule, Amex reports all business credit history to the Small Business Financial Exchange (SBFE). Only negative payment activity is reported by Amex to Dun & Bradstreet.

Does Chase report to Dun & Bradstreet?

Yes. Chase does report business credit payment history to Dun & Bradstreet. 

In the segment of those whose credit score motivates them to seek more information, 26.1% of business owners express that their personal credit prohibits them from obtaining business credit. From this, I gather that these people are in need of personal credit repair. When a FICO score requires a lot of work, it can take a while to repair it. In the meantime, these individuals might not be quite ready to build business credit. 

Nonetheless, we are here to answer everyone’s questions, and try to help them get where they need to be to obtain substantial lines of business credit. Personal credit, after all, can have an impact on business creditworthiness.   

See the answers to the most frequently asked questions people have when their personal credit holds them back from obtaining business credit: 

Can personal credit affect business credit?

Yes. For most lenders, personal guarantees are required for business loans and business credit cards. This means that your personal credit will usually be considered when you apply for business credit.

Does personal credit affect LLC credit?

Personal credit may impact an LLC’s credit score. On the contrary, an LLC’s credit score will not impact the owner’s personal credit score.

What is the minimum credit score for a small business loan?

Underwriting terms for all banks vary. This means that each bank looks at personal credit scores differently. Still, to obtain business credit, the owner should have a FICO score of at least 640 as a rule.

Do all banks check personal credit for business credit funding?

No. While banks that do not require a personal guarantee for business credit funding are rare, they do exist. With that said, most corporate cards do not require a personal guarantee since they are backed by a business’ revenue as opposed to its credit score.

Of those that come to us with credit score issues, 14.8% of business owners just want to learn how to manage their business credit score. Some business owners need to clean up their personal credit reports, while others want to know how to find and manage their DUNS number or find a business credit monitoring solution. 

For these people, we offer education about the major business credit bureaus, credit scores, and credit monitoring tools. While there are a plethora of business credit services out there, we only recommend those that we have vetted and that we know will impact credit decisions from legitimate lenders. 

Here are answers to the business credit score management questions we hear most: 

What credit bureau is used for business loans?

There are three major business credit bureaus that we recommend business owners keep an eye on: Dun & Bradstreet, Experian Business, Equifax Small Business. CreditSafe, LexisNexis Risk Solutions, and other specialty bureaus are also used by some lenders to determine a company’s creditworthiness. 

Where can I check my business credit score?

There are tons of credit monitoring tools available to business owners, the most trusted being Nav. The platform is free to use and helps businesses manage and get more from their financial data. 

How do I access my company DUNS number?

Any business can look up their DUNS number by visiting Dun & Bradstreet’s website and searching for their business. For established businesses, the owner can claim an existing profile to access their DUNS number. In some cases, a business owner may need to add their business to the directory to establish a profile. 

Is a DUNS number the same as an EIN?

No, a DUNS number is not an EIN. A DUNS number is assigned by Dun & Bradstreet, which is a business credit bureau. An EIN is assigned by the United States Internal Revenue Service (IRS) and is designated for tax purposes. 

What is a DUNS number used for?

A DUNS number distinguishes businesses from one another and is used by lenders to look up a company’s PAYDEX score (D&B business credit score). The PAYDEX score is used by lenders to determine a company’s creditworthiness. 

Does my LLC have a credit score?

If you have established business credit through tradelines, business loans, or business lines of credit that are reported to business credit bureaus, your LLC likely has a credit score. But, if you have no business credit, your company may not have an established profile with any bureaus. 

Relative to personal credit scores, 12.5% of business owners sought funding that requires no personal guarantee (No PG). While such funding is scarce, it does exist. We do our best to help people understand that this type of funding is rare, but that it does exist (and how to get it if they so choose). 

It’s very possible — though not always ideal — to obtain loans and credit cards without sharing a social security number. On our blog and in our workshops, we’ve explained how to get business credit with no personal guarantee, which is essentially what this group wants to know.  

Most often, people who want to know about “no PG” funding have the following queries:

Can I get a business loan without using my personal credit?

Most business credit is backed by a personal guarantee, which requires you to use your social security number to obtain funding. There are some lenders and loans that do not require personal guarantees, the most common type of funding being merchant cash advances (these usually come with excessively high interest rates).

Can I use my EIN to get a credit card?

In most cases, business credit cards and lines of credit require a personal guarantee, which means that, even if you apply using an EIN, your social security number is also required. With that said, yes, there are ways that you can obtain credit with just an EIN. 

Can I use my EIN to get a loan?

As with credit cards, most lenders require a personal guarantee. In this case, even with an EIN, you will still need to share your social security number. But, in limited scenarios, you can get a loan with just an EIN.

2. Many People Have a General Lack of Business Credit Knowledge

People want to brush up on their business credit knowledge to learn the first steps of the process, learn where to start, discover why they get rejections, or to find out more so they can help others.

After those with credit score issues, the next most common reason people come to us is that they simply don’t have a strong understanding of business credit. We help people who want to move into the first phase of building business credit, those who have no idea what they need, others who want to know why they’re getting rejections, and even some who want to learn so they can help others. 

31.6% of business people have a general lack of business credit knowledge that drives their decision to learn about the subject. In a nutshell, our core offer is business credit education. Those with a lack of understanding are in the right place when they stumble onto our materials. Some of them want to know why they keep getting denied, how to qualify for substantial credit lines, or just want to learn as much as they can so they can help others. 

We have a five-step process that is especially helpful for this group: 

  1. Form your company in a way that optimizes your business credit potential
  2. Take the steps to get your company “business credit-ready”
  3. Network with local banks to understand underwriting requirements
  4. Set up your business credit profiles with the three main bureaus
  5. Build your first, small tradelines (lines of credit) to officially establish your credit score

Our advanced process is available to business credit workshop coaching students. 

From this segment, here are the top questions we’ve been asked: 

How do I obtain business credit as a beginner?

The very first step you must take to obtain business credit is to establish a business in a way that it is likely to be worthy of business credit: Choose a neutral name and business category. The same company name over a long period shows dependability. You can get your articles of organization from your Secretary of State. 

How do you explain business credit?

Business credit is your company’s ability to borrow from banks and other lenders. In most cases, your business credit score is central to a bank’s perception of your company’s creditworthiness.

What can I use business credit for?

You can use business credit for almost anything you need to grow and scale your company. Business credit can be used to replace or repair equipment, make investments, and pay vendors or utilities. You can even use business credit to pay rent. 

Does my EIN have a credit score?

In a word, no. An EIN assignment does not automatically establish a business in any credit bureau databases. However, there are credit scores attached to EINs separately from SSNs.

Why is my business credit card on my personal credit report?

If your SSN was used to obtain a credit card, then it will report to consumer credit bureaus. The same credit card may or may not report to business credit bureaus. 

Will a business credit card build my credit score?

With responsible payment history, a business credit card can serve to boost a business credit score. However, aside from secured credit accounts, most business credit cards require some sort of credit history before a company is considered creditworthy. 

Should I pay off my business credit card in full?

Paying off your business credit card in full each billing cycle will help you avoid interest accrual. In most cases, yes, this would be beneficial and the cost of using the card would be less.  

Most of those who with a lack of business credit knowledge just want to know where to start. 44.4% of business owners with a lack of knowledge specifically seek how to establish business credit or want to know the first steps of the process. Once they get the early training, many of them are surprised that the way they establish their business itself plays a major role in obtaining business credit. Sometimes, people need to make changes to their business structure through their state or establish a new business. 

In a nutshell, you need to incorporate your business, establish an EIN, register with the right state and local government agencies, and open a business bank account before you can move on to what people tend to think of as the early steps. 

For those who want to learn how to navigate the early stage of establishing business credit, here are the most common questions we answer: 

How long do you have to have an LLC to get business credit?

Banks look at your time in business to determine creditworthiness, but not all banks are the same. Since some lenders will extend credit to new businesses when they can show a certain amount of revenue. To determine your odds of qualifying for credit, check the bank’s underwriter for the time in business requirements.

Do you need an EIN to build business credit?

Yes. To obtain business credit that is based on your business credit score, your company must have an EIN.

What is an EIN?

An EIN is a nine-digit employer identification number, assigned by the IRS that acts as a tax ID for a business. An EIN is required to establish a business bank account. 

How do I find my EIN?

Your business is not automatically assigned an EIN when it is established. You need to apply for an EIN with the IRS. Note: if you accidentally apply for a state tax ID instead of an EIN, and you do not have employees, your state may send undue tax invoices throughout the year. So, be sure to apply for your EIN on the IRS website. 

Of those who lack business credit knowledge, many of them are clueless when they begin. 32% of individuals don’t know where to begin or what they’re looking for. For this group, I lay out the basics of building credit. Again, this involves establishing your business the right way. Before we explore that, this group requires a more fundamental understanding. 

In general, these people are asking broad questions, which usually requires that we start asking questions about their business so that we can steer them in the right direction. For the most part, this group is the most eager to learn. 

Here are the questions we hear most from those who don’t know where to begin: 

How do small business owners build credit?

First, small business owners looking to build credit should establish their business in such a way that their company is likely to be considered creditworthy. They then need to network with local banks to learn about business credit requirements and establish an EIN and a business bank account. Finally, they must establish their first tradelines or net 30 accounts. 

What is the minimum business credit score?

Business credit scores range from 0 to 100. Most business credit lenders require a minimum business credit score of 70 to deem a company creditworthy. 

What should I look for when building business credit?

Depending on whether or not your business is properly established to obtain business credit, you may need to look at your business structure and whether or not your company name and category are neutral. Next, you should research the underwriting requirements of the banks you would like to obtain funding from. 

From the group with little business credit understanding, some of them need to understand what factors lead to business credit denials from banks. 16% of people who cite a lack of business credit knowledge have no idea why they get rejections from lenders. This fact reinforces the significance of learning as much as you can about business credit before applying for new credit lines. 

There are a variety of reasons that a business might be denied credit. A lack of credit history, poor credit history, insufficient collateral or income, and excessive debt might lead to the inability to obtain business credit. 

Here’s what this group tends to ask, and how we generally respond: 

Why do I keep getting denied business credit?

Requirements for any type of credit vary from lender to lender. You might be denied business credit when you have a poor credit history or a low personal or business credit score, not enough collateral or revenue, a lack of time in business, or limited financial resources among other things.

How many times can you apply for business credit?

There is no set limit to the number of times you can apply for business credit. With that said, hard inquiries on your credit report can have a negative, albeit temporary impact on your personal and/or business credit score. So, too many applications in a short timeframe can damage your capacity to qualify for business credit.

How long after being refused business credit can I reapply?

There is no set limit to the time you should wait before reapplying for business credit. However, you should take enough time to find out why you were denied, assess your creditworthiness, and remedy any issues with your credit before you file a consecutive business credit application. 

Does it hurt your business credit score if you are denied a line of credit?

A turndown for funding is not damaging to your business credit score, but a hard inquiry for business credit can lead to a slight, temporary decline in your credit score. Depending on which credit reports are pulled during the application process, applying can affect your personal and business credit scores. 

What rights do you have when you are denied credit?

 When you are denied a line of credit, you have the right to receive a notice of the action taken, to request a free copy of your credit report that was provided to the lender, to dispute incorrect information, and to file a complaint with the Consumer Financial Protection Bureau (CFPB). 

Maybe the most intriguing statistic from these findings — for me anyway — is the fact that 7.4% of people seeking business credit knowledge want it so that they can help others. Some of them even cited spiritual reasons for learning more about the topic. While I have always genuinely been driven to help others by teaching business credit topics, before these instances I had never considered the opportunities might be considered sacred to some people.   

The group that wants to learn so they can help people is highly inquisitive and asks questions all over the board. They tend to ask almost every query on this page, and we love it! 

3. More Than One Out of Ten Want to Locate Business Credit Offers

People looking for specific business credit offers want to find the best banks and lenders, discover which vendors report to business credit bureaus, or learn how to spot a financial scam.

Many people want to stay in the loop about legitimate banks and lenders, tradelines that report to business credit bureaus, and weed out scammers. 11.3% of business leaders want to know more about the business credit offers that are currently available. Though not the majority, there are many people who come to me because they want to know more about banks and lenders that offer the right of financing for their needs. More than one out of ten people who come to Business Credit Workshop are interested in learning about specific business credit offers!  

The most common general questions about business credit offers are below: 

What is the best business credit card?

The “best” credit card for a business depends on the company’s financial status, its credit standing, and its funding goals. We don’t have a favorite business credit card, but the offer that we most often refer business owners to is Divvy. 

What bank is best for a business account?

In general, for a business bank account, we recommend business owners research local community banks and credit unions to see what offers are available for business. This way, they can determine which is best suited to their needs. We continually review banks and business credit offers on our website and YouTube channel to try to keep people informed. 

What is the best credit union for a small business?

We recommend that business owners first turn to their local community banks and credit unions when starting on the business credit-building journey. We do have a list of our favorite nationwide credit unions that we sometimes refer people to. 

While anyone can do the research online to see relevant offers for their business, it’s not always easy to find, especially when you don’t know exactly what you’re looking for. Of the business leaders who want to find out about specific offers, 65.5% are looking to find out which lenders and banks offer the best funding options. We regularly cover the most popular business credit offers on our blog and our YouTube channel. 

One-on-one, here are the top questions people ask us about banks and funding options: 

What bank has the best business credit offers?

Of course, offers from Amex, Discover, Chase, and the like are legitimate. Most major banks have a plethora of business credit offers. However, we recommend a local community bank or credit union for the highest business credit limits and best interest rates — this is the core of what we teach. 

Is it better for a business to bank with a credit union?

While it’s impossible to answer this question for every possible scenario, at Business Credit Workshop, we do typically recommend small community banks and credit unions over traditional, big banks for small business owners. 

What is the safest bank to do business with?

Most banks in the United States are FDIC insured, which covers deposits, dollar-for-dollar, and any accrued interest. So, they’re pretty safe. One bank that comes up (a lot) as a servicer for some of our favorite business credit offers is Celtic Bank. And, we often recommend people look into offers from Navy Federal Credit Union. 

Is Chase a good bank for a small business?

For business owners who want a traditional offer from a big bank, yes, Chase has a full suite of options for business owners. They provide robust online banking features, credit cards, loans, and lines of credit. But, our general advice is to check with local credit unions and community banks to learn what’s available for small businesses. 

One of the early steps to building business credit is to establish tradelines that report on-time payments to business credit bureaus. Without net 30 vendors and gas cards, the path to a substantial business credit line is long and difficult. 27.6% of entrepreneurs in this group are seeking a list of vendors or tradelines to establish their reporting accounts. We cover tradelines all the time on our blog and YouTube channel and share a list of 30+ reporting vendors to Business Credit Workshop participants. 

The following tradeline-related questions are commonplace: 

What is the best tradeline for a small business building credit?

You should choose a tradeline that offers something you actually need and reports payment history to business credit bureaus. A couple of vendors that we often recommend are Summa Office Supplies and Crown Office Supplies, though many others also report. 

How many tradelines do I need to build business credit?

After your business credit profiles are established, you should have a minimum of three tradelines reporting, and more for a perfect business credit score (which you need to obtain substantial credit lines).

Which net 30 vendors report to business credit bureaus?

Quill, Lowe’s, Uline, and SupplyWorks are just a few of the many net 30 vendors that report on-time payments to business credit vendors. Business fuel cards can also be a great option for business credit. 

What is the easiest business gas card to get?

Business fuel cards are not difficult to get, because they typically have net terms (you pay in full as you spend). This means that a credit score is not required to obtain a card. Most recently, we reviewed AtoB’s gas card offer, and we pretty much love it. 

With so many ads coming at us from all directions, it’s smart to be aware of fraud. I was not at all surprised to learn that fear of scammers kept 6.9% of these business owners from applying for business funding. People want to know that they’re not being scammed before they sign up for an offer, especially when it involves their business. 

Here’s what people want to know about business funding scams: 

How do you know if something is a financial scam?

Most of the time, if something seems too good to be true, it is. If a so-called business pressures you to make a decision quickly, this is a huge red flag. And, in most cases, a legitimate financial offer won’t require money upfront to apply. Before you sign up for any offer, do your due diligence: read reviews and make sure funding offers are upfront about the banks backing them. 

Can you get money back from a fraudulent funding offer?

If you can catch the scammer, you may be able to get your money back. But, in most cases, fake funding offers are gone before you know what hit you. If you use your credit card or debit card to pay for any upfront fees, the bank may be able to help you recover what you’ve lost. 

Is business credit a real thing?

Yes! Business credit is real, and it doesn’t impact your personal credit. In general, business lines of credit are typically larger than personal lines of credit, and you can build business credit in as few as 30 days. 

4. Plenty of Entrepreneurs Simply Enjoy Honing Their Expertise

Those who learn for leisure usually report no pending business credit problems, and some want to make sure their understanding is up to date.

Of the thousands of people who came to us to learn about business credit education, hundreds were just learning for leisure or to sharpen their mastery. 10.2% of small business entrepreneurs reported that they enjoy brushing up on the subject of business credit. Some of the people who were casually learning are credit repair specialists (of course, not all of them told us so). Whether they had no problems or just wanted to make sure they were up-to-date, they signed on to find out just what we were teaching — their questions were mostly procedural and unrelated to what we teach. 

Of the leisurely learners, 76.9% of people in this segment cited no problems with or questions about business credit. I gather that they were either just learning for leisure, or they were researching for a personal or professional project. As you might guess, they weren’t super inquisitive about the process. 

However, they weren’t the only ones enjoying themselves while learning, and the other portion of this segment wasn’t so quiet. 23.1% of the business owners in this group admitted that they already knew about business credit, but were updating their understanding. And, they wanted to ask about … 

Here are the queries we heard most from those who wanted the skinny on modern business credit concepts: 

What’s the fastest way to build credit for an LLC? 

The fastest tactic for building business credit, after your business is established in an optimal way, is to use tradelines and gas cards that report to business credit cards. Of course, you need to pay these accounts as agreed to avoid negative marks on your business credit report. 

How can I get a business credit card for a new business?

The first step is to establish your business the right way.  There are many factors that contribute to a company’s creditworthiness. Many people who obtained business credit on behalf a prior, established company don’t realize that, in the past, their tradelines reported to business credit bureaus, which boosted their business credit score.

Should I use my SSN for business credit?

Most business credit cards are backed by a personal guarantee (PG), so yes, it’s most likely that you will include your social security number in a business credit application. However, no PG business credit lines do exist.

What gas card can I get with a 600 credit score?

You can get most gas cards with a 600 credit score. In fact, fuel cards usually come with net terms, which means that you pay in full each billing cycle. So, most of these offers are not based on FICO scores at all.

What credit score do you need to get a gas card for your business?

You do not need a certain credit score to qualify for a gas card. Because most gas cards have net terms, you pay in full each billing cycle. The credit lines for a fuel card are based on income, not credit scores — increased spending limits are usually offered over time.

5. Some Business Owners Want Help Obtaining Specific Types of Funding

Business owners looking for certain types of funding usually want cash flow to launch a new business. Some seek business loans or mortgages. Others are looking for standard business loans.

While they’re not the majority, there are quite a few people who ask us about funding for specific uses. 5.9% of business owners want to learn how to find and obtain a specific type of business credit or funding. They might ask about startup funds, real estate loans & mortgages, or business loans. 

In general, here’s how we address this group’s top issues:

Can I get a business loan without business credit?

There are types of funding that business owners can get using their personal credit. And, there are income-based business lines of credit. Aside from corporate cards, however, business funding for a company with no credit score tends to come with high-interest rates.  

What are the main types of credit businesses can get?

 Businesses can obtain secured and unsecured credit cards, term loans, SBA loans, equipment loans, corporate cards, mortgages & real estate lines of credit, gas cards, as well as invoice factoring & merchant cash advances (not recommended).

Within this segment, most often, individuals seek startup funds. In most cases, they’re looking for a way to fund and launch a new business idea. In fact, 40% of individuals looking for a specific type of business funding want startup funds. Some of them are under the wrong impression — they tend to think that there might be a way to get funding with no revenue or positive credit history to back it. This group benefits tremendously from learning the fundamentals.  

Here’s what they ask: 

How much can I get for a startup business loan?

That number ranges from $0 to $500K but depends on what you have to prove your creditworthiness. In a nutshell, you need a credit score and some proof of your ability to repay the funds. We teach businesses how to obtain up to $100K in business credit, which they can use as startup funds or for any other business purpose. 

How do I get startup credit for my business?

The first step is to incorporate your business. Next, you must apply for an EIN and set up business banking. You’ll need to get your business set up in such a way that it appears trustworthy to lenders and open a business credit file. Then, you need to establish a number of tradelines that report on-time payments to business credit bureaus. 

What is your business credit score when you first start?

If you have not established any tradelines, your business credit score starts at zero. 

Is business credit better than private funding?

Many people would say that they prefer business credit over VC and private equity funding because they do not want investors in control of their business operations. Others would prefer private capital because they are interested in expert guidance, and eventually exiting their business for a profit.

Of those who seek a specific type of funding, 33.3% want business real estate loans or mortgages. While we don’t focus a ton on mortgage options, we do share what we know — We share information about various commercial mortgages and the BRRRR method of real estate investing, as well as alternative options for purchasing homes and real estate. 

These are the questions we most commonly answer: 

What is a mortgage for a business called? 

A business mortgage is called a commercial mortgage. Another type of funding that businesses can consider when purchasing property is a real estate investor line of credit. In some cases, business owners have paid for homes with credit cards or revolving lines of credit. 

Can a business get a 30-year mortgage?

Business property loans typically have 7-20 year terms rather than 30. And, the amortization period for a commercial mortgage can last up to 30 years, which means that payments may still be required after the terms are up.

Are business mortgages cheaper?

As a rule, no. The APR is typically higher on a business mortgage than on a consumer mortgage. However, businesses have some funding options that are not available to individuals.

Of the group looking for a specific type of funding when they come to us, 26.6% want a business loan. These people are pretty quick to the gun, ready to do what they need to get funding. 

Most often, here are their queries: 

What do I need to get a business loan?

You’ll need a business that has been established properly, an EIN, good personal and business credit, a number of tradelines reporting on your business credit report, substantial business revenue (this will vary based on the credit line you want), and documentation to provide lenders.  

What is the minimum income for a business loan?

There is no minimum income required for a business loan because offers vary from lender to lender. For a smaller line of credit, $5K or less monthly income may suffice. For larger business loans, there may be higher income requirements, but there are banks with underwriting requirements that are easier to meet. 

What is the best loan for a business?

The best loan for a business can vary tremendously based on the company’s needs. We often share in-depth reviews for popular and recommended business loans and credit cards after learning more about an individual’s goals and requirements. 

6. Numerous People Want Business Credit to Solve Work-Related Challenges

Most people who want to use commercial credit to solve business challenges don't feel they earn enough revenue. Others either don't have trackable income or think that their line of work holds them back.

Whether it’s their occupation or industry, the fact that they run a cash business, or a lack of revenue, 4.7% of business owners have a business-related challenge they need to learn how to overcome when they seek out business credit knowledge. Establishing business credit can give this group a way to access financing, secure loans, and get better terms on credit offers. The funds that they obtain can then help them grow their business. 

In general, we answer the following for this segment: 

How can I use credit to grow my business?

Once you establish a strong credit profile, you can obtain substantial credit lines. If you use your funding responsibly, you can make investments that improve your profitability. 

How fast does business credit grow?

If you make all the right moves, you can have an established business credit profile with an excellent credit score in as little as one billing cycle, or as soon as your accounts are reported to business credit bureaus. 

In the group with work-related challenges, 83.3% of business owners say that they don’t generate enough revenue. They might be looking for an income-generating investment: equipment, staff, advertising, you name it. And, those who are serious about implementing our training can find new ways to boost profits. 

Here’s what they tend to ask us: 

How do you use credit to generate income?

You can leverage your credit to make investments that are profitable. It’s as simple as that. Some people invest in inventory, real property, or business equipment. Others might opt for something less tangible like digital assets. Though, all investments come with some risk. If you do use your credit to generate income, always be sure that your profit is higher than your account interest and fees. 

Can I use a credit card to invest?

Yes. Technically, you can use a credit card to invest in stocks or bonds. When you use credit for investing, it’s probably smarter to look at assets with less risk like business equipment, advertising, or retail inventory. 

Does credit funding count as income?

No. Credit funding is debt. It does not count as income and can not be taxed as such. 

Can you use a credit card to invest in Bitcoin?

Yes, some of the bigger crypto exchanges allow users to invest using credit cards. Though, we don’t generally advise beyond that on the crypto market or investments in general.  

Another work-related problem is that 8.3% believe that their cash business is holding them back from obtaining business credit. It’s actually pretty common for a company to do business using cash. Luckily, this problem has a simple solution (as long as you’re not trying to hide your money from the mafia). Really, you just need to use your bank account.  

This is what we most often address with this crowd: 

Can I get a business credit card with a cash business?

Yes, you can obtain business credit, even if your income is cash. However, you will need to first make sure that your business is legally established and “credit-ready.” And, you will most likely need to have your money in a business bank account. 

Can I get a business credit card with no money in the bank?

In most cases, no. You can not get a business credit card without traceable money. If you are going to apply for business credit, you will need money in a business bank account. 

What business funding can I get with a cash-only business?

If you run a cash business, and you refuse to keep all of your money in a business bank account, your funding options will likely be limited to bootstrapping (owner-funding), private investing, and crowdfunding. 

Akin to undocumented revenue, another 8.3% say that they believe their occupation or industry keeps them from being able to obtain credit. For example, freelancers and independent contractors have had a particularly hard time, and attribute their type of work to their inability to get funding. The truth is that any business can get funded — they just need to establish their company properly. 

For the most part, here’s what this group is asking: 

Can I get a business credit card with a 1099? 

Yes, you can get a business credit card, even if all of your income is from contract work. To do so, you will need to establish your business properly and account for your financials in a way that makes you appear creditworthy to lenders. 

Can I get a business credit card if I am self-employed? 

Yes. Self-employed businesses are no less creditworthy than businesses with employees. As with all businesses, you will first need to establish your business properly and get it “credit ready” before you can obtain funding.  

Can freelancers get business credit cards? 

Yes. Freelancers are self-employed businesses. The thing is, you just need to have your ducks in a row before you apply: Incorporate your business and get it “credit ready.”

Can I get a loan being an independent contractor? 

Yes. Independent contractors can get business credit, as long as they set the proper foundation. You will need to incorporate your business, get an EIN and business bank account, and establish your business profiles before anything else.

7. Those Who Want to Increase Their Existing Credit Lines Are a Minority

While not the smallest group, there are not many people who want to grow business credit lines that they’ve already obtained. Only 1.2% of business leaders who seek business credit education want to increase their existing credit lines. Looking at this, I think it’s safe to assume that most people who already have business lines of credit are not super likely to be actively learning about the topic. But, they do have some specific inquiries. 

Here, you have the typical questions that this group asks:  

How can I get my line of credit increased?

Credit card issuers ultimately want to earn profit from credit card interest. When a cardholder shows that they make payments on time, as agreed, this can lead to an increased credit line. However, making minimum monthly payments is usually insufficient. Paying an account in full while the card is still in regular use is sometimes the fastest way to show worthiness for a credit limit increase. 

Why is it so hard to get a credit line increased?

The final determination for a credit limit increase, for any bank, is based on the profitability forecast for the account. Most banks have private underwriting terms, which makes it difficult for many people to determine what will make their account eligible for an increased spending limit. 

Will requesting an increase in credit line harm my business credit?

Some banks may conduct a hard pull to your personal or business credit report when you request a credit limit increase. While a hard inquiry does impact your account, the impact is typically low and is always temporary.  

When should you ask for a credit line increase?

The best time to request a credit line increase is when you actually need it. But, you should consider your payment history over the past few months, and be sure that your account usage is not nearing your existing credit limit when you do so. 

What’s a good credit limit on a business loan?

We often see business term loans in the amount of $20K-100K. The best amount would be whatever you need to grow your business and ultimately improve profitability.  

Does canceling a business credit card hurt your credit score?

If you cancel a business credit card, it would decrease your credit limit; this could increase your utilization. You should try to keep your total credit utilization below 30% to optimize your credit score. 

8. A Handful of People Are Curious About “Credit Piggybacking”

When they first come to us, 0.7% of small business entrepreneurs are interested in learning how to earn money by allowing others to “piggyback” on their credit. This is the smallest group. And, honestly, I was taken aback when the first person came to us looking to sell business credit since this isn’t a service that we offer. Still, I take everyone’s interests into account. In fact, I reviewed one of the most highly-rated tradeline brokers some time back. 

Note: I try not to censor anything I share with Business Credit Workshop readers and coaching students (even when it is controversial). While I don’t endorse tradeline brokering, I have several coaching students who partake in the practice, and I see even more in the online groups I’m part of. Tradeline brokerages can absolutely be legitimate businesses, and — although there are considerable risks — there is potential to earn money for those with an abundance of credit.  

So, here’s the skinny on the credit piggybacking questions we most often hear: 

Is piggybacking credit legal?

Yes, adding an authorized user to a credit account is legal. Though, it is meant for family and close associates who actually intend to share an account. Many lenders prohibit cardholders from adding strangers to their accounts or using tradeline brokers.  

Does adding someone as an authorized user hurt my credit?

No, adding a new user to a credit account does not harm your credit score. However, if the authorized user uses the account irresponsibly, it can negatively impact your credit. 

Can piggybacking hurt credit?

Yes, adding an authorized user to an account can hurt credit if the authorized user uses the credit card or line of credit irresponsibly. Simply adding multiple users has no negative impact on a credit score. 

What are the disadvantages of credit piggybacking?

Credit piggybacking, as advertised through tradeline brokers may be prohibited by your lender. This means that if the lender found out that you participated, they might close your account. Another risk is that an authorized user who has access to your line of credit may spend irresponsibly, which has the potential to ruin your credit. 

What is a tradeline broker?

A tradeline broker is a middleman between a credit account holder and a client who wants to “buy” (more appropriately, “rent”) an account, or be added as an authorized user. Clients are willing to pay for the chance to temporarily show an increased credit line prior to applying for a mortgage or other high-limit financing. 

How much can I sell my tradeline for?

Depending on which tradeline broker you were to go with, you could earn from $50 to $2K per month to participate in credit piggybacking. 

Final Takeaway

There are several motivations that drive people to seek out education on business credit. The most common reason is the need for help with their credit scores. Many people also have a general lack of knowledge about business credit, and more than one in ten are interested in locating specific business credit offers.

Moreover, some entrepreneurs enjoy learning more about various financial topics, while others want help obtaining specific types of funding or want to use business credit to solve business-related challenges. A small minority of business owners are interested in increasing their existing credit lines, and a handful of people are curious about “credit piggybacking.”

We have assisted thousands of business owners in building business credit and improving their credit scores, enabling them to obtain lines of credit to grow their companies. This post contains the top questions asked by entrepreneurs about business credit. These are our exclusive insights and responses to these queries based on our experiences working with these business owners. 

Do you want to learn how to obtain up to $100K in business credit in as few as 30 days? If so, join Business Credit Workshop today.

What is the Best Bank of America Business Credit Card for Your Needs? 

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Best Bank of America Business Credit Card

Recently, we shared an overview of Bank of America’s corporate card offer, which comes with some pretty robust benefits. And, while putting that together, we realized that we hadn’t covered their small business credit cards yet. Currently, BoA is promoting seven business credit cards, each with its own set of pros and cons. This might leave you scratching your head, wondering which card is best for your situation. 

Well, I’m going to break each BoA business credit card offer down for you. At the end of each section, you’ll find a quick overview of who that card would be best for. 

Here’s what’s in store: 

Let’s get moving. 

Bank of America Company Overview

Bank of America was founded in 1998 in San Francisco, California. Since then, they’ve grown to become one of the largest and most well-known banks in the country, if not the world. In fact, they’re a household name. 

The bank has a traditional offer, providing almost every financial service under the Sun, from personal banking to business finance management (and beyond). The company is a publicly traded, for-profit investment bank. With these credentials, it’s safe to label them as trustworthy.

Bank of America’s current CEO, Brian Moynihan, was promoted to this position in 2009 and still leads a team of nearly 200K staff members.  

Bank of America Business Credit Card Requirements

Bank of America Business Credit Card Application

Nearly any business structure can apply for a Bank of America business card, including corporations, LLCs, sole proprietors, and freelancers. 

To apply for a business credit card with them, you’ll need to have the usual information handy: 

  • Legal and preferred business names
  • Type of business
  • Business address
  • EIN or SSN (for sole proprietors & freelancers)
  • Articles of organization 
  • Business contact information
  • Years in business
  • Annual revenue and expenses

A good FICO credit score can be important for new business owners, since Bank of America may elect to look at applicants’ personal credit history when making a decision. For cases in which an applicant’s credit isn’t great, though, they do offer secured cards. 

The Business Credit Card Offers

6 out of 7 of the Bank of America cards below are Mastercard,™ which means that cardholders can take advantage of the perks that come along with that. Mastercard standard benefits include zero-liability protection, theft protection, and emergency assistance. 

Note: Visa™  cards also come with some advantages of their own, such as discounts on partner offers.  

These cards are designed for businesses and report on-time payments to Equifax Small Business, so they can have an impact on your business credit score.  

Now, we’ll take a look at Bank of America’s business credit cards, one-by-one. 

1. Business Advantage Customized Cash Rewards Credit Card

Bank of America Credit Card: Customized Cash Rewards

The first card we’ll look at is the Bank of America Business Cash Advantage Customized Cash Rewards Card. In this case, “customized” means that you can earn 3% cash back on the category with the highest spending. For example, you might choose to use your card primarily for fuel purchases, in which case you could earn 3¢ for every dollar spent at a gas station. 

To take advantage of the 3% cash back, cardholders must select their own “choice” category, which is managed in the app or cardholder dashboard. 

This card also comes with 2% cash back on dining and 1% on everything else. No matter what, you’re earning at least 1¢ per dollar spent. You can redeem cash rewards as statement credit, a paper check, or have it deposited directly into a Bank of America checking or savings account.   

There is no annual fee with the Customized Cash Rewards card, and you can increase the amount of interest earned if you bank with Bank of America. 

Currently, there’s an introductory offer with this card, which promises a $300 statement credit if you use your card to spend at least $3K in the first 90 days and 0% interest for the first 9 billing cycles (after that, it’s ≤25.99%). 

Who is this card good for? 

The Business Advantage Customized Cash Rewards Mastercard™ from Bank of America is best for business owners who like to take advantage of cash rewards and are pretty organized with their spending. While you can earn 1% cash back on all spending, you would want to use this card if you plan to spend primarily in one category to maximize your rewards. 

You should also have a good business and personal credit score since it’s an unsecured card with a competitive interest rate from a traditional lender. 

2. Business Advantage Unlimited Cash Rewards Credit Card

Bank of America Business Account: Unlimited Cash Rewards Card

Next, let’s take a peek at the Business Advantage Unlimited Cash rewards card. “Unlimited” implies that you will earn on all spending. The standard cashback rate for this card is 1.5%. So, you will earn at least 1.5¢ with every dollar you spend — it’s a pretty simple offer.  

Like the Customized Cash Back card above, you can earn more if you’re a Bank of America business banking member (if you qualify for the Preferred Rewards Business Tier). And, there is no annual fee. 

The Unlimited Cash Back card also has an intro offer of $300 statement credit with $3K spending in the first 90 days and 0% interest for the first 9 billing cycles ( and ≤25.99% thereafter).  

Who is this card good for? 

The Business Advantage Unlimited Cash Rewards Mastercard™ from Bank of America is structured for someone who is looking for a simple rewards card. You can earn on all spending without prioritizing a specific category. Bank of America banking members may see even more benefits. 

You should have a good credit score. Again, we’re looking at a traditional lender’s unsecured credit card with competitive rates, so they need to see proof that you will pay as agreed.  

3. Business Advantage Travel Rewards Credit Card

Bank of America Business Advantage Credit Card Reviews: Travel Rewards

Now, let’s explore the Business Advantage Travel Rewards credit card. Instead of cashback, with this card, you will earn points (though the math usually comes out about the same with points as it does cash) at a rate of 1.5 points per dollar spent. 

Points can be redeemed as statement credit, gift cards, or toward offsetting travel or dining purchases. And, cardholders who make travel purchases through the Bank of America Travel Center can book hotels (from 200K+ brands) and flights (from 200+ airlines) with no blackout dates. 

The current online introductory offer can get you 30K bonus points with $3K in spending in the first 90 days. As with the other Business Advantage credit cards’ intro offers, this can also be redeemed as a $300 statement credit but is limited to use toward travel or dining purchases. As of now, you can also take advantage of 0% APR for the first 9 billing cycles (≤25.99%  after that).  

Who is this card good for? 

The Business Advantage Travel Rewards Mastercard™ is designed for business owners who want to earn travel or dining rewards with their credit card spending. This might be the right card for you if you would find benefit in redeeming 

Not to sound like a broken record, but you should have a good credit score — Bank of America tends to follow conventional standards with their underwriting for unsecured credit cards. 

You Might Also Like: Marriott Bonvoy Business Credit Card Review & Comparison 

4. Alaska Airlines Visa® Business Credit Card

Bank of America Credit Card: Alaska Airlines Business

Now, we have the Alaska Airlines Business Credit Card. Unlike other credit cards from Bank of America, this is a Visa. And, you can earn “miles” rather than cash back or points. The benefits of this card come at a cost of $50 per year, but you can earn 3 miles per dollar with spending at Alaska Airlines and 1 mile per dollar on all other spending. 

Since miles usually convert the same as points, this card has triple the rewards potential of the Business Advantage Travel card (if you use it solely for purchases with the airline).

Miles can be redeemed with oneworld™ Alliance and Bank of America’s Global Partners. Some airlines include:

  • Alaska Airlines
  • American Airlines
  • British Airways
  • Cathay Pacific
  • Finnair +more

In addition, if you get this card, you will get Alaska’s famous companion fare every year on your account birthday. This will enable you to purchase one round-trip, coach ticket for a traveling companion for just $121 — companion tickets must be purchased at the same time as the base ticket and on the same itinerary. 

Furthermore, you will get one free checked bag for yourself and up to six guests traveling with you; the value is $60 per bag. Plus, while traveling, you can enjoy 20% off in-flight purchases when you pay with your card. 

The latest introductory offer is 40K bonus miles with $2K in spending in the first 90 days. 

Note that the APR is ≤27.74% variable. 

Who is this card good for? 

The BoA Alaska Airlines Business Visa is suited, first, for any business owner who will take advantage of the companion fare yearly. With redemption, the $50 annual fee will pay for itself instantly. And, the high miles rewards offer makes this a natural choice for business travelers who frequent Alaska airlines will reap the most rewards. 

All others will earn only 1 mile per dollar and would probably be better off applying for one of the Business Advantage cards instead.  

Finally, you will almost certainly need a high FICO score of 700 or better to qualify. 

5. Platinum Plus® Business Credit Card

Bank of America credit card limit: Platinum Plus Business Mastercard

While there are no rewards offered, the interest rates with the Platinum Plus Business Credit Card are lower than with other unsecured business credit cards from Bank of America (≤24.99%).  

This card has no annual fee — it’s comparable to the Business Advantage cards in that way. And, you can take advantage of many of Bank of America’s free financial tools such as unlimited employee cards and automatic bill pay. 

There is an ongoing intro offer, right now, for 0% APR for the first 7 billing cycles and $300 statement credit with $3K spending in the first 90 days.  

Who is this card good for? 

The Bank of America Platinum Plus Business Mastercard™ is great for a business owner who wants a simple business credit card with a lower interest rate. If you’re not interested in rewards, and you just want to be able to leverage the buy now, pay later features of a revolving card, this could be your best bet. 

Once more, you’ll need good credit to qualify. 

6. Business Advantage Unlimited Cash Rewards Secured Card

Bank of America Business credit card application status: Cash Rewards Secured Mastercard

The Business Advantage Unlimited Cash Rewards Secured Credit Card is very similar to the unsecured Unlimited card (see above). 

Here’s how the two cards are the same: 

  • ≤25.99% standard APR
  • $0 annual fee
  • 1.5% cash back rewards
  • Rewards redemption options:
    • Statement credit
    • BoA checking or savings deposit
    • Paper check 

What’s different about the secured card is that it’s intended to help you build business credit. So, if your credit scores are lower, this card provides a solution. 

A $1K minimum deposit is required to open an account, and payments are reported to credit bureaus. 

Who is this card good for? 

The Bank of America Business Advantage Unlimited Cash Rewards Secured Mastercard™  is designed for business owners who might want to apply for the unsecured Unlimted Cash Rewards card.  

With a secured card, there’s no need for excellent credit, because you will use your own funds to build credit. 

7. Bank of America Executive Explorer Card

Bank of America Business credit card login: Executive Explorer Mastercard

Finally, the Executive Explorer card is another offer you might want to consider. With this card, there is a $375 annual fee. While that’s a bit steep, if you take advantage of everything the card offers, it more than makes up for the fee. 

For example, you can get a $600 Lounge Access credit every year and $100 Airport Fast Track credit every four years, just for having the card. Then, you can access the Benefits on Us and Dinova Rewards programs, which are covered in our Bank of America corporate card review

The catch is that this isn’t a revolving credit line. Instead, it’s essentially a charge card that you must pay in full. You must be an executive or owner of your company to join the program. 

Who is this card good for? 

The Bank of America Executive Explorer Mastercard™ is great for business owners and executives who want discounts on the occasional airport lounge experience and Airport Fast Track. Anyone who might like to leverage dining and culture rewards (and thinks they’ll make the $375 annual fee worthwhile) should contact the sales team at Bank of America to discuss details in full. 

Recommended: Bank of America Corporate Cards: A Complete, Uncut Review

Final Thoughts

Bank of America seems to have a credit card for every type of business owner. Whether you’re a corporate executive spending hundreds on Lounge Access for business travel, or you simply need to build your business credit, one of the above cards could be right for you. 

Keep in mind, though, they’re not the only cards out there. Explore some of our previous business credit card reviews to make sure you’re applying for the right card. 

Bank of America does require a personal guarantee, so their business credit cards can affect your personal credit score. 

If you want to learn how to obtain up to $100K in business credit (that won’t affect your personal credit) in as few as 30 days, join Business Credit Workshop today.

Bank of America Corporate Cards: A Complete, Uncut Review

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Bank of America Corporate Card

Bank of America is one of the largest banks in the United States, with robust financial offers for consumers and businesses. One popular business product from Bank of America is their corporate cards — here, we examine this offer in full (note: we’re not talking about the small business credit cards). 

We’ll look at the benefits and the downsides of BoA’s corporate cards, and, by the time you’re done reading, you’ll know whether it’s right for you (or if you should explore other offers). 

Here’s what’s covered: 

Now, let’s begin. 

What is a Corporate Card? 

Before we dig into Bank of America’s offer, how do corporate cards work? 

Typically, businesses with substantial revenue can obtain corporate cards to improve cash flow and track spending. With corporate cards, credit lines are issued to a corporation or business entity, not the business owner. 

Not just any business can get a corporate card, though. The requirements are typically strict, based on revenue (usually in the millions) and expenses (typically in the hundreds of thousands), creditworthiness (credit score), and sometimes require several cardholders to qualify. 

Recommended: Using 30-Day Net Vendors to Build Your Business Credit Score 

In many ways, corporate cards are like other credit cards. Businesses might need a corporate card in order to keep track of expenses and employee spending, and/or to get quick or easy access to funds to grow or maintain operations. 

Corporate cards vary from personal cards in the way that the business, not the individual is responsible to maintain the account and pay the balance. And, corporate card terms often require that the balance is paid in full each billing cycle, whereas most traditional personal credit cards have revolving terms. 

When corporate card payments are reported to credit bureaus, corporate credit cards can impact the business’ credit score, for better or worse. On-time payments on a corporate card typically help increase the company’s business credit score(s). 

Finally, corporate cards should typically not be used for personal expenses. While using a business card to pay a personal expense is not always illegal, there can be tax implications and it could be a violation of the cardholder’s fiduciary duty to the company. 

Now, let’s look specifically at Bank of America’s corporate card offer. 

What is the Bank of America Corporate Card? 

Bank of America services several business credit cards — a handful of small business credit cards and a commercial prepaid credit card. The commercial prepaid card is the most similar to a typical corporate card, but it is not really a line of credit. Cash must be deposited to the card before the funds can be accessed.  

You may have received a pre-approval offer from BoA for a business credit card, which is how you ended up here. In this case, note that we’re exploring an entirely different offer. 

Bank of America Business Credit Card Preapproval

The idea behind prepaid is that businesses can leverage digital payments for purchases anywhere Mastercard or Visa cards are accepted, withdraw cash at ATMs, and go about their day without carrying large amounts of cash while protected from fraudulent financial activity via BoA’s zero liability policy.  

Bank of America’s prepaid cards are widely used in government programs like unemployment and child support, and the fees are a little steep. The bank tends to charge $2-5 per transaction, which is determined on a case-by-case basis, depending on your account needs. 

Unlike some corporate card programs, prepaid card use is not reported to credit bureaus, so if you opt to join the BoA commercial prepaid program, there will be no impact on your business’ credit score. 

Recommended: Brex Card Review: Is This Corporate Card Too Good to be True? 

Benefits of BoA’s Commercial Prepaid Cards

If you have to pay in advance, and payments aren’t reported to business credit bureaus, why would you want to take advantage of a commercial prepaid card system? BoA offers more than a handful of benefits for companies and staff cardholders with its prepaid cards. Like corporate credit cards, BoA’s prepaid cards are intended to help you manage cash flow and come with other perks. 

If you choose to leverage BoA for this purpose, here’s what you’ll get. 

The business benefits: 

  • Comprehensive payables – Business owners who use Bank of America’s prepaid cards can utilize automation for their payables system, to save time. In turn, this feature can save companies a lot of money. 
  • Secure, fast purchases on the go – Take advantage of secure purchases using your mobile wallet platform with Bank of America prepaid cards to make in-person payments throughout North America, Europe, and Asia Pacific. 
  • Virtual travel cards – Virtual cards can be used with cardholders’ mobile wallets and make it easier for travel coordinators to implement spending limits and access travel data for accounting and reports. 
  • Complete accounts payable – Members also get access to Bank of America Complete AP, which automates the entire accounts payable cycle, from invoicing and receipts to payment processing. The platform can be integrated into your enterprise resource planning system to help reduce paper and manual processes.  

If your business involves travel, especially for multiple staff members, you can see how these cards might be a great idea, even if they come with no traditional line of credit. 

The cardholder benefits: 

  • Global card access – Cardholders get visibility, convenience, and control with Bank of America’s Global Card Access, and can manage their prepaid cards from anywhere they can connect to the internet. 
  • Contactless payments – When it comes time to pay for goods and services, BoA prepaid cards can be used with any functioning contactless payment system — these systems continue to grow in demand and implementation. 
  • Executive Explorer Card – For an additional $375 per year, executives at your company can leverage advanced card perks, including $600 Lounge Access credit and $100 Airport Fast Track credit per year. 
  • Dining and entertainment perks – The “Benefits on Us” (just a catchy title) gives BoA commercial cardholders free access to over 225 cultural institutions across the US, and rebates on in-network dining via Dinova.™ 

The most notable perks seem to be dining and entertainment, so let’s explore those a bit further. 

Accounts Payable Automation Overview

Bank of America Complete AP

Bank of America’s “Complete AP” launched in April 2021, and is included with commercial prepaid accounts. According to BoA, the platform can easily be integrated with “nearly any” existing enterprise technology. 

I know for sure that the platform integrates with Quicken, Quickbooks, and MyPortfolio. If you use another technology, you might have to reach out to a sales rep to make sure that your platform will integrate easily. 

Next, with Complete AP as a standalone system, you have several automation options: 

  • Capture and digitize supplier invoices
  • Route invoices for coding and approval
  • Visibility & control of invoices & payments
  • Organized payment queues 
  • Payment approval alerts & audits 
  • Automated payments (via supplier’s preferred payment method)
  • Communication with suppliers
    • Account validation
    • Network enrollment
    • Payment preference controls
    • Payment research & support
  • Currency exchange
  • Cross-border payment tracking 

And, as of August 2022, Bank of America was scouting a new software integration developer. This tells me that the company is definitely building out its technology offer, and there will be more automation features and integrations to come.  

Lounge Access Overview

Bank of America Business Debit Card benefits

Many business travelers stop in at airport lounges for more comfortable layovers, including snacks, beverages, and showers (some of them even have swimming pools, massage, and fitness centers). Lounge Access with a BoA Executive Explorer Card is limited, but the lounges that credit may be spent on are some of the most popular: 

  1. Admiral’s Club by American Airlines
  2. Alaska Lounge by Alaska Airlines
  3. Delta Sky Club by Delta Airlines
  4. United Club by United Airlines 

If your executives utilize any of the above lounges, and individual spending is in excess of $375 per calendar year, you could save hundreds by taking advantage of the Explorer Card offer alone. 

Airport Fast Track Credit Overview 

BoA Business Advantage Credit Card perks

The $100 Fast Track statement credit per Executive Explorer card, per year can be used for a few different airport purposes.

  1. TSA Precheck
  2. Global Entry  
  3. Nexus
  4. Registered Traveler

Again, this perk is only available with the Executive Explorer card, which costs $375 per year — it is not included with every business prepaid card from BoA. So, while it’s a great perk to offer, it is best leveraged by individual staff members who will also take advantage of Lounge Access credits. 

Arts & Culture Benefits Overview

Global Access Card Bank of America Benefits

Available with all BoA prepaid cards, Arts & Culture benefits are fun for anyone who might find interest in visiting museums on pitstops while traveling for business. With a BoA, cardholders get complimentary access to hundreds of museums and cultural centers in the United States. 

For a full, updated list of participating organizations, visit BoA’s Museums on Us participant roster. 

Note that this perk can be leveraged by any BoA cardholder during operating hours and can only be used during certain weeks each month — you’ll have to check with the facility to find out if your travel aligns with the dates and times that you can cash in on the perk. 

Dinova™  Rebates Program Overview

Bank of America Global Access Card Login benefits

There are over 20K restaurants in Dinova’s network. And, with BoA prepaid cards, businesses earn rebates on all in-network cardholder spending, and cardholders can earn individual points that can be exchanged for gift cards. 

There’s no need to offer incentives to staff to take advantage of these perks, since BoA does that for you through their individual rewards program. And, Executive Explorer cardholders (owners and executives) get 2X points. 

Bank of America Business Credit Cards

At this point, if you’re not interested in a prepaid card, you might find what you’re looking for with one of BoA’s business credit cards. Here’s a quick summary of what’s available. 

APRAnnual FeeRewardsIntro Offer
15.99 to 25.99%$01.75% to 5.25%0% APR for 9 mos$300 bonus
15.99 to 25.99%$01.5% unlimited0% APR for 9 mos$300 bonus
15.99 to 25.99%$01.5 points per $130K bonus points
19.74% to 27.74%$50 +$25 per card$121 Companion Fare™ Free checked bag3 miles per $140K bonus miles

For even more options, see the full list of BoA small business credit cards. 

Frequently Asked Questions

Is it hard to get a Bank of America card?

Generally, a BoA credit card account requires a credit score of 750 or higher. However, there are quite a few perks to be leveraged with prepaid or “corporate” cards, which have no credit score requirements. Of course, you must be at least 18 years old and have a valid SSN or ITIN. 

Which FICO score does Bank of America use?

Typically, BoA uses Experian to pull credit but can get some information from Equifax and Transunion as well.  

What credit score is needed for a Bank of America business card?

A personal credit score of 750 may be required, even for a business credit card. However, corporate prepaid cards have no strict credit score requirements. 

Final Thoughts

Bank of America has quite a few options for business owners looking to optimize their corporate cash flow. If you’re a high-revenue company, interested in perks related to travel, arts & culture, or dining, they may have a corporate offer for you by way of their prepaid cards system. If you’re looking for lines of credit, there might be a BoA business credit card that would be great for you. 

BoA’s business offer is pretty traditional, but there’s nothing boring about it. If you liked what you learned here, and saw something that would be beneficial for you, I recommend you chat with a BoA sales rep to find out what might be best for you at this time. I can’t knock the offer. 

But, if you are interested in a corporate card offer that’s more innovative — maybe something with more tech perks — I’ve done a handful of reviews of other corporate cards that you may want to see: 

And, if you want to learn how to obtain up to $100K in business credit (won’t affect your personal credit) in as few as 30 days, join business credit workshop today.

Which BMO Business Credit Card Should You Apply for (if Any)? 

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BMO Business Credit Card

BMO Harris offers a handful of business credit cards that are ever-increasing in popularity. Of course, they’re not the only business credit cards in the marketplace, but let’s take a look at the bank and its offers, side-by-side, and see which card looks like it might be your best option. Then, we’ll answer some of the most common questions asked about these cards. In the end, I’ll give you my general view on their business offers. 

Here’s what you’ll find: 

Now, let’s fire away! 

BMO Company Overview

Before we explore the cards, let’s take a look at the Bank behind these offers. By assets, BMO is the 8th largest bank in North America with over 600 branches across the United States (though they aren’t located in all 50 states). They provide personal and business banking, global markets, and investment banking. 

BMO business credit card application

The company was founded by Norman Walt Harris in 1882 as Harris Bank and has been owned by BMO Financial Group since 1984. The company is a private equity firm based in Chicago.

All in all, I can say that this is a very well-established, trusted organization. However, their customers might not always say the same. There have been some complaints about BMO’s customer service (though, this is pretty normal with any financial offer). 

BMO business credit card activation

In response, I will say that you can’t always trust what you read in online reviews because it’s more likely that people will write a review when they’re dissatisfied than when they’re satisfied with a company. 

Recommended: 3 Best Credit Unions for Small Business Banking

BMO Business Credit Cards

Now, it’s time to take a look at the cards. BMO offers four business credit cards: 

  1. Cashback Business Mastercard
  2. World Elite Business Mastercard
  3. Air Miles World Elite Business Mastercard
  4. Air Miles No-Fee Business Mastercard

BMO Business Mastercards Compared

Naturally, each BMO credit card comes with its own set of features and benefits. For your ease, here’s a simple breakdown. 

Cashback BusinessRewards BusinessAir Miles Business Air Miles No-Fee 
Intro Offer3 Months of 10% Cashback on Eligible Spending70K Bonus Points and No Annual Fee for 1 Year3K Bonus Air Miles1K Bonus Air Miles
APR18.99%17.99%19.99%19.99%
Annual Fee$0$149$149$0
Points/Cahsback0.75 to 1.75%1.5 to 4 Points Per $1 Spent1 to 4 Miles Per $12 Spent1 to 1.25 Miles Per $20 Spent

BMO’s credit lines for business can reach up to $120K per line. Cash advances cost 22.99% across the board. And, the cards do come with World Elite Mastercard perks. 

You can get up to two owner cards and as many as 22 cards for your employees. In a nutshell, with any of these cards, you can potentially earn on spending, whether it be cashback, points, or air miles. 

BMO Business Credit Card login

So, the best BMO business credit card for your business depends on the benefits you are most interested in, your needs, and how you will use the card. As with most credit cards, if you don’t make payments on time and in full, the APR payments will overshadow anything you might earn with these cards. 

Of all these BMO credit cards, the cashback offer seems the most beneficial. But, if you’re looking for travel rewards, I recommend you take a look at the Marriott Bonvoy Business card before you make a commitment to BMO Harris. 

Recommended: This is How to Leverage Business Credit to Transform Your Life 

Frequently Asked Questions

What credit score do I need to get a BMO credit card?

BMO cards are designed for business owners with fair credit and require a minimum credit score of 600. 

What credit bureau does BMO use?

When you apply for a credit card, BMO will typically pull your personal and business reports from Equifax. 

Does BMO have instant approval?

Yes. You can apply quickly and easily online for a BMO line of credit. And, in most cases, you’ll know in just a few minutes or less if you’ve been approved. 

How long does it take to receive your BMO credit card?

After you apply and are approved, BMO Harris Bank will send your card in the mail, which usually takes six to eight days for arrival within the continental United States. 

How accurate is BMO's credit score?

BMO cardholders can check their Transunion credit score online through their account dashboard. Since this is one of the three major credit bureaus, the score is accurate, though it will vary from how Experian or Equifax might view your credit history. 

Final Thoughts

Again, BMO Harris is a well-established institution with a trusted name. The bank has been around since the late 1800s, and they’re still kickin’… in the same industry, even. Not a lot of companies can say that they’ve been around this long. 

Despite the business’ age, the business credit cards from BMO aren’t outdated and serve business owners with fair to high credit very well. Now, they won’t be an option if you are a business owner with lower credit. But, that doesn’t mean that you can’t find another offer that is. 

For example, if your revenue meets the requirements, you might want to check out a corporate credit card from Amazon, Stripe, Brex, Ramp, or Divvy. Most of these alternative offers are free (yes, actually free), and they come with various perks for cardholders. So, check ‘em out! 

And, if you want to learn how to obtain up to $100K in business credit with no impact on your personal credit, join Business Credit Workshop today.

Bluevine Review: Free, High Yield Small Business Checking! Are They Serious?

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Bluevine Business Checking Review

I’ve been really excited to review Bluevine since so many people have asked me about it. This is a free small business checking account offer that earns 50X the national average interest with no monthly fees or minimum deposits. Of course, they can’t possibly cater to every business owner… Can they?

That’s what we’ll explore here.   

Now, let’s fire away!

Bluevine Business Checking Overview

Bluevine offers free, single-user business checking accounts that can earn 2% interest on up to $100K with qualifying activity. There are no minimum deposits or NSF fees, which is incredible. 

One standout feature that Bluevine doesn’t seem to advertise much is the ability to give your bookkeeper access to your account without sharing your dedicated login information — this can come in handy!

Bluevine login

To qualify for interest accrual, account holders must meet at least one of the following requirements: 

  • Spend $500 with your Bluevine debit card in a calendar month OR
  • Receive or deposit $2.5K via ACH, mobile deposit, wire transfer, or via a merchant payment processor (not ATM). 

Bluevine uses the MoneyPass ATM network, with 37K locations nationwide. So, if you’re super rural, you may not be able to access a surcharge-free ATM. In this case, you would pay $2.50 for every ATM transaction. 

While most services are free online and within the MoneyPass network, Bluevine charges $4.95 for all cash deposits made at an ATM. This might be steep for a business that makes multiple cash deposits, but online businesses wouldn’t be affected much. 

There are no limits to the number of transactions that can be made in a Bluevine account, but cash transfers are limited to $1.5K per transaction, $2K per day, and $7.5K per month.  

ProsCons
Free checking with no monthly feesNo joint accounts
2% interest on balances up to $100KMinimum requirements to collect interest
No minimum deposits$7.5K maximum monthly cash transfers
Sub-accounts with dedicated account numbers$2.50 fee for out-of-network ATMs
Unlimited, fee-free transactionsNo branch access (ATM-only)
No NSF fees$4.95 fee for cash deposits

So, a Bluevine checking account seems like a fantastic option for certain businesses. The offer seems to be catered to accountants, bookkeepers, freelancers, and other service businesses that primarily conduct digital transactions. 

Bluevine review Reddit

Naturally, there are businesses that Bluevine isn’t going to work well for. 

For one, partnerships might not be a great fit, since only one account holder is permitted for each account. Next, super rural businesses without easy access to MoneyPass ATMs might end up paying quite a bit in surcharges (assuming you would need ATM access).  Finally, this offer is simply not well-suited for businesses that need to deposit more than $7.5K in cash monthly, as that’s where Bluevine maxes out. 

Fun Fact: Bluevine checking is powered by Coastal Community Bank, which is also the servicer for the X1 credit card. 

Bluevine’s Line of Credit

Bluevine offers lines of revolving credit up to $250K, with rates as low as 4.8%, serviced by Celtic Bank.  Once approved, you can get access to funds quickly. Note that the advertised interest rate is “simple interest,” which means compounding isn’t accounted for, and the low 4.8% is based on a 26-week repayment plan. 

Bluevine loan

You can apply for a line of credit online in minutes. Bluevine uses Plaid to connect to your bank account and analyze cash flow. To qualify, you must have been in business in the U.S. for at least 6 months, have at least $10K in monthly revenue, and have a personal FICO score of 625 or higher. 

Bluevine reviews

According to at least one satisfied lendee, you cannot apply for a Bluevine loan using your Bluevine checking account, which seems a little wonky. Hopefully, they will update their lending platform to work with their own bank at some point in the future. But, as of now, there doesn’t seem to be a workaround. 

If you apply and are approved for a Bluevine line of credit, you can choose to wire transfer funds for access within a few hours and a fee of $15. Alternatively, you can choose an ACH deposit, which can get your funds to you as soon as the next business day (however, in some cases this can take a few days). 

Recommended: Meet Celtic Bank: A Humble Brand With an Enormous Reach 

Bluevine’s Bill Pay

If you have the banking information for your payees, you can add them manually in your Bluevine account dashboard. I feel like online check services like Checkbook.io might be easier to use, since you only need an email address and name to deliver payments. But, bill pay is a nice feature for any bank account. 

Moreover, you can connect Bluevine to Quickbooks to view income and expenses from your checking account dashboard. 

Bluevine Bank

Bill pay funds are held by Silicon Valley Bank, a trusted FDIC-insured institution. All-in-all, I think Bluevine’s bill pay options are competitive. 

Bluevine Company Overview

Bluevine Inc. was co-founded in July 2013 by Eyal Lifshitz, Moti Shatner, and Nir Klar in Redwood City, California. The company started as an invoice factoring company, offering capital loans from $5K to $50K with “cash in as fast as 1 day.” They exited the factoring game and announced their free checking account offer in early 2020.  

I found this gem from 2014 in the Wayback Machine: 

Bluevine capital

Frequently Asked Questions

What happened to Bluevine?

There are a few rumors floating around that Bluevine is not accepting new applications. This is not the case — Bluevine is accepting new applications for lines of credit and new bank accounts. The rumor that they were closed may have started when PPP funding ended, as Bluevine was an approved lender for the Paycheck Protection Program. 

Is Bluevine accepting new applications?

Yes! Despite the hearsay, Bluevine is currently accepting applicants for business checking accounts and lines of credit. 

Does Bluevine run a credit check?

Yes, Bluevine runs a credit check for applicants looking for a line of credit. For approval, applicants must have a FICO score of 625 or higher. 

Does Bluevine do a hard pull?

For businesses organized as an LLC, Bluevine does not do a hard pull, so applicants’ credit will not be negatively impacted. 

What bureau does Bluevine pull from?

Bluevine has a partnership with Experian, Equifax, and Dun and Bradstreet, and reports on-time payments to all three. 

Does Bluevine affect credit score?

Since they report payments to business credit bureaus, on-time payments to Bluevine will have a positive impact on your credit score.  

Does Bluevine charge a fee?

The only fees Bluevine charges for checking accounts are ATM fees for cash deposits. Most ATMs within the MoneyPass network are surcharge-free for Bluevine account holders. 

How much can I withdraw from Bluevine?

The maximum amount you can withdraw from Bluevine is $1,500 per transaction, $2,000 per day, and $7,500 per month

Is Bluevine a direct lender?

No. Bluevine’s lines of credit are serviced through Celtic Bank. 

Who owns Bluevine?

Bluevine was founded by Eyal Lifshitz, Moti Shatner, and Nir Klar, who still currently own and operate the company. 

What credit score does Bluevine use?

Bluevine uses applicants’ FICO scores to determine creditworthiness. 

Is Bluevine FDIC insured?

Bluevine checking accounts, loans, and bill pay funds are FDIC insured through the respective banks that service these offers (Coastal Community Bank, Celtic Bank, and Silicon Valley Bank).  

How many customers does Bluevine have?

As of February 2022, Bluevine had 450K customers. 

The Verdict: Is Bluevine Legit? 

Yep! This business checking offer is legit, and I would go as far as to say that I recommend it… for some business owners, namely accountants, freelancers, and other entities that conduct mostly digital banking. However, if you move a lot of cash through your company, or you have more than one owner, Bluevine probably isn’t your best option. 

As far as Bluevine’s line of credit, I do trust offers from Celtic Bank, but I’m not the biggest fan of these fast-cash-type offers that use the owner’s personal FICO score to determine creditworthiness. Instead, I like to teach business owners to obtain credit using their business credit. What I do like is that Bluevine reports payments to D&B. So, with responsible payments, a Bluevine loan can help you build business credit.  

If you’d like to learn how to obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today.

A Full OnDeck Review: All You Need to Know About This Business Funding Offer 

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OnDeck Review

In the past, we’ve reviewed business funding offers from Fundbox, Lendio, and Kabbage. Until now, OnDeck (a company with a similar offer) has somehow slipped through the cracks. It’s vital for business owners who seek funding to know about all of their options. So, I want to provide a breakdown of OnDeck’s business lines of credit and term loans. 

Here, I’ll share everything you need to know about the offers from OnDeck so that you can decide if this is the right option for your business funding needs. 

Here’s what’s “in the hole:” 

Now, batter up! 

What is OnDeck? 

OnDeck is a small business lending company that promises to make the process fast and easy. The company has an A+ BBB rating, and has funded $14 billion to small business owners in the U.S., and they have a 4.8 TrustScore on TrustPilot. In a nutshell, they provide what seem like trusted term loans and lines of credit. 

So, are they legit? Let’s find out!

OnDeck Term Loans

OnDeck’s core offer is a term loan for small businesses. Term loans are set-amount, fixed-rate, loans with specific repayment schedules.

Here, you can get $5K to $250K loans with up to 24-month repayment terms. Automatic payments for an OnDeck term loan will be made daily or weekly. 

OnDeck Lines of Credit

The secondary offer from OnDeck is a line of credit. Lines of credit are a pre-set borrowing limit with revolving terms that can be used at any time. 

Here, you can get $6K to $100K lines of credit with 12-month repayment terms. Automatic payments for an OnDeck line of credit will be made weekly. 

OnDeck Requirements

As with most business funding options, you will need to meet minimum requirements to successfully obtain funding. With OnDeck, you must have at least one year in business, a consumer FICO score of at least 625, $100K annual business revenue, and a business bank account. 

Next, you must also operate outside of OnDeck’s list of restricted industries. Any business in the following industries are prohibited from obtaining funding through the platform:

  • Adult entertainment
  • Drug dispensaries
  • Firearms vendors
  • Government  
  • Non-profit and civic organizations 
  • Public administration
  • Horoscopes and fortune telling
  • Lotteries, casinos, and gambling
  • Gaming
  • Money service businesses
  • Rooming and boarding houses

Finally, funding through OnDeck is unavailable in Nevada, North Dakota, or South Dakota. 

When the minimum requirements are not met, anyone who applies through the platform will be referred out to OnDeck’s Trusted Lending Partner team. 

OnDeck.com login

OnDeck Interest Rates & Fees

I have said this before, but I can’t say it enough. ALWAYS read the fine print. 

OnDeck Interest Rates

The average rate for OnDeck’s term loans is 62.1% APR and 48.9% APR for lines of credit (ouch!). This means that if you carry a balance, you’ll be paying a ton of interest, and could get yourself into trouble if you’re not careful. 

OnDeck reviews Reddit

Let me break this down assuming 50% interest on a $100K, 12-month OnDeck loan: Your monthly payment would be approximately $10,309.82 and your total interest would be $23,717.90 at the end of the year. 

This is without considering fees, which, according to several sources, are not disclosed until closing, and can run in the thousands of dollars. 

OnDeck costs and loan fees

I think that if you have the revenue to qualify, you would be much better off looking into a free corporate credit card from Stripe, Torpago, Ramp, Divy, or Brex. And, if you aren’t there yet, you would do well to build your business credit. 

Recommended: 41 Companies That Help Build Business Credit

What to Expect When You Apply with OnDeck

If you choose to apply for funding with OnDeck, the first thing you’ll be asked is how much funding you think you need. If your needs fall within the $5K to $250K range, there might be an offer for you here. 

Next, they want to know how soon you need the funding. If you have 72 hours or you are looking for funding a month out, this will help determine how the company proceeds with your application. 

Then, they need to know what you need the money for. You’ll be provided with a space to describe how you will use any funds you obtain. 

From there, you’ll share your contact information with OnDeck and choose a password to create an account. You may be asked to enter a referral code (this will ensure that the person who referred you gets any bonus or incentive that they’re entitled to). So far in the process, the application process is simple. 

After that, you will need to share information about your business: legal entity name, address, phone number, EIN, gross annual revenue, and average bank balance. Finally, you will be asked to enter identifiable info about yourself, including your social security number (which lets me know they may do a hard pull to your personal credit. Update: We have been told by OnDeck that they do soft pulls, even after approval, but please verify this information). 

When you submit your application, OnDeck will immediately analyze the information you submitted, and attempt to make a pre-approval decision. 

OnDeck reviews

Once pre-approved, be prepared to submit documentation to complete the loan process. Then, you can receive your funds or credit line within as few as 24 hours. Then, after 6 months or so of on-time payments, you may be able to refinance your loan for a lower rate. 

And, if you run into financial troubles, you will be required to pay your loan, possibly without much flexibility (this should be expected with most business financial offers, though some lenders will give you some grace). 

OnDeck reviews BBB

OnDeck Partners

The OnDeck Trusted Lending Partner team can be reached via email at tlp@ondeck.com at any time. But, an unsuccessful applicant will be contacted within 48 hours with offers from partners. OnDeck promises that they do not share your information with partners before asking for your consent. 

So, who is in the partner lineup? 

OnDeck has two types of partners: editorial and financial. 

Editorial partners are essentially affiliates. Anyone with a captive small business audience that might benefit from OnDeck’s offer may inquire. 

Financial partners are sales organizations or direct lenders who want to receive customer referrals from OnDeck. In exchange, OnDeck receives a referral fee. Lending partners must have been in business for at least two years, offer at least $1M in monthly business funding, have a functional, encrypted website, active business insurance, and be based in the United States.

Currently, OnDeck is referring applicants whose businesses are too young for internal financing to BitttyAdvance, who works with businesses as young as 6 months. They do require at least 3 months of business bank statements, a personal credit score of 450 or higher, and at least $5K in monthly business revenue.

OnDeck Partner Offer: BittyAdvance

BittyAdvance offers instant approval and next-day funding, and they have a good TrustPilot score. Before you apply, please do your due diligence — I haven’t had the chance to fully explore this offer yet, and can’t say whether or not I recommend it.

Note: OnDeck also has programs in Australia and Canada.   

OnDeck Company Overview

Originally located in the greater New York area, OnDeck Capital Inc. was founded in 2006 by Mitch Jacobs, the founder and current CEO of Plink. 

In July 2020, the OnDeck was acquired by Enova International, the company that purchased Pangea Monay Transfer in 2021. OnDeck’s home base is now in Chicago. The current CEO is Joe Coughlin. 

OnDeck is a publicly-traded company, and they’ve received a total of $1.2 billion in funding since launch. I would say they are here to stay. 

Frequently Asked Questions

Is OnDeck still in business?

Yes, OnDeck was acquired in 2020, and they are still very much in business. 

Who owns OnDeck?

OnDeck is now owned by Enova International and is publicly traded. 

Is there a minimum credit score for OnDeck?

Yes, OnDeck requires a minimum FICO score of 625.

What is the maximum amount you can borrow from OnDeck?

The most you can borrow from OnDeck at one time is $250K, in the form of a term loan. 

What type of loan is OnDeck?

OnDeck offers both term loans and lines of revolving credit. 

What are the terms for OnDeck?

OnDeck’s lines of credit should be paid in full within 12 months, while their term loans vary with repayment terms of up to 24 months. 

How does OnDeck make their money?

OnDeck makes money by charging loan fees and interest, with early rates in the 50% range. 

For a borrower, what are the benefits of choosing OnDeck?

OnDeck offers fast cash, with funds received within 24 hours. The catch is in the cost. 

Does OnDeck conduct credit checks?

Yes, OnDeck asks for a social security number in the loan application and requires a minimum personal FICO score (625) to approve funding. 

Does OnDeck require a personal guarantee?

Yes, OnDeck required a personal guarantee. Both the business and the owner are liable for any debts incurred. 

Does OnDeck use Plaid?

Yes, OnDeck uses Plaid for read-only access to business bank account information. 

The Verdict

Is OnDeck the home run you’re looking for? 

To be fair here, OnDeck is a legitimate company that seems to have a ton of happy borrowers — in fact, I know some of them personally. They are transparent with their offer, and they seem to be honest lenders (that in itself is a breath of fresh air). I am not one to turn people away from an offer like this… unless something better is available — in this case, better options might be available.  

However, if you won’t qualify for other, more feature-rich business funding options, OnDeck could be exactly what you need to get fast cash flow that helps you grow your business. Just make sure to explore competitors. And, no matter which platform you choose to obtain funding, be sure to do the math before you apply (i.e. How much will a loan actually cost, and can you afford it?).

If you’re interested in learning how you can obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today.  

Is Biz2Credit Legit? A Complete Review

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Biz2Credit Review

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: 

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.  

Biz2Credit reviews Trustpilot
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. 

Biz2Credit Reviews BBB

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. 

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 Login

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 app

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.  

Biz2Credit Credit Score

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. 

Biz2Credit Reviews Reddit

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.

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