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

By

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.   

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

By

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

By

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.

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

By

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

By

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.

The Ultimate Tillful Review (+New Secured Credit Offer for Businesses)

By

Tillful review

Recently, I came across a Facebook post in a private group, announcing a new secured credit card for businesses — it’s perfect timing for an offer like this since Wells Fargo and Brex no longer offer secured business credit cards. So, naturally, I had to explore the offer. And, what I found was so much more than just a credit card. 

This complete Tillful review is a breakdown of everything I learned, and how you might use this offer to build business credit. 

Here’s what’s covered: 

Now, let’s get going! 

What is Tillful? 

Tillful is a fintech company that offers businesses a free credit score (which is different from a DUNS number and other traditional credit scores) that they use to match account holders with curated financial offers. To me, the business closely resembles a new Credit Karma for business. 

By connecting to users’ business bank accounts via Plaid, the platform is able to gain financial information about companies, which is delivered back to users to see how they stack up. 

Tillful also offers their own free, secured business credit card with 1.5% cash back, to help owners build business credit, an innovative and timely offer. 

Tillful Business Credit Score Overview

The folks at Tillful have created their own business health score, which ranges from 0-100 and is based partially — i.e. mostly — on a company’s cash reserves and industry, a measure of real-time financial performance. The Tillfull score is never shared with lenders and is meant to give users a fresh view of their company’s financial health. 

Tillful Business Health Score

I’m not confident that this scoring system will actually influence potential lenders outside Tillful’s platform, but it seems like a pretty clever and helpful tool. 

In addition, Tillful has partnered with Experian, who recently launched a machine-learned business credit score called Intelliscore Plus V3 (IPV3) — the new model is said to improve risk assessment for business lenders. Active Tillful account holders can request their free IPV3 business credit score at any time.

Experian IPV3 business credit score

However, Tillful users who want to see a full report will have to order it from Experian using a quick link in their Tillful account dashboard or by visiting Experian’s website directly. 

At least in part, the IPV3 score is based on a company’s tradeline payment history and ranges from 300-850. Rather than a 12-month model prediction, the IPV3 is based on the previous 24 months of credit history. 

Coming from Experian, I think this scoring system is going to stick and that continually more traditional lenders will use it to make funding decisions. 

Recommended: Nav Review: A Tool that Helps Build Up Your Business Credit Score 

Currently, Tillful has a 4-star rating on Trustpilot, which tells me they’re making users happy, for the most part. 

Tillful reviews

Most business owners typically don’t have all of the information they need to access business lines of credit — Tillful gives them a new way to establish business credit at no cost (other than a security deposit for the secured credit card). 

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

Partner Offers Overview

New businesses that show very low financial reserves won’t qualify for the Tillfull credit card, but will be directed to Biz2Credit for alternative funding. If you have multiple business bank accounts, consider connecting all of them to get more relevant offers. I caution against connecting bank accounts in poor standing. 

Tillful login

In addition to funding offers, Tillful might connect you with a new business banking or insurance offer. Especially since the company is fairly new, I assume they will continue to expand their partner offer — as of right now, it seems on par for a business just starting to build credit history (as long as you do your due diligence to make sure a better competitor offer doesn’t exist and pay your accounts responsibly). 

Business Credit Education Overview

Tillful is built to help companies improve their credit (and to earn from partner commissions), so the offer wouldn’t be complete without business credit education. Tillful’s blog is stacked with information about how to improve your credit score, streamline your cash flow, create an effective budget, and learn about COVID-19 financial relief. 

Tillful business credit resources

After browsing the blog, my official stance is that the information seems to be well-written, easy to digest, and helpful for businesses trying to build credit. 

The Tillful Credit Card

The Tillful business credit card is a secured card for legal entities. Like a charge card, the balance should be paid in full each month. Unlike other secured business credit cards, Tillful uses Plaid to connect to your business bank account, sizes up your cash flow and reserves, then makes an offer to apply if you are likely to qualify. 

Tillful card login

One highlight is that this card comes with 1.5% cash back rewards on all spending. If you read the fine print, this is a promotional rate, which means rewards could decrease over time. Next, there is no personal guarantee. Finally, there’s no hard pull to an applicant’s credit.  

Currently, the card reports payments to business credit bureaus to help build business credit scores. Tillful plans to report to Dun & Bradstreet in the near future.  

Since it is a secured card, you will be required to deposit funds into your account, and the minimum security deposit is $500.  

The Tillful App

If you didn’t already guess, Tillful also has an app available on the iOS App Stores. It has a 4.4-star rating on the platforms. So, users can conveniently monitor business credit and apply for funding from an Apple device. Thus far, there is no Tillful app in the Google Play store (you might just as easily log in using your mobile browser).  

Tillful app

Using the app, you can get your free business credit score and see financial product recommendations, including funding options. It’s pretty straightforward. 

Tillful Company Overview

Located in the San Francisco Bay area, Tillful was founded by Ken So in June 2020. Tillful is a subsidiary of Flowcast, which is a company that uses AI to help financial institutions make credit decisions (hence the fast friends situation with Experian). 

Tillful Crunchbase

Flowcast has been around since 2015, and has a five-star glassdoor rating. So, from what I can tell, they’re a great company to work for — in full disclosure, there are currently only two reviews, so this isn’t a particularly scientific sample to base opinions on. 

So, let’s talk about the founder, Ken So (also Flowcast’s CEO). Before all of this, So was the Director of Corporate Development at Ericsson and previously worked in the corporate dev department at Qualcomm – both very reputable companies. To me, this seems like a strong and trustworthy leader and makes me believe the offer is likely to be around for a while. 

According to Growjo.com, Tillful’s current annual revenue is estimated at $2.3 million. And, since they’re not reliant on external funding, they’re likely at an advantage over other newcomers in the business credit-building arena. 

Tillful valuation

Frequently Asked Questions

Here are the answers to the questions people are asking about Tillful:

Is Tillful free?

Yes, Tillful’s offer is completely free – users can access their credit score and secured credit card. However, any partner offers that Tillful recommends may charge fees and interest.  

Does Tillful do a hard inquiry?

No, Tillful does not do a hard pull on business or credit reports. Instead, credit card approval is based on other factors. 

Does Tillful report to credit bureaus?

Yes, Tillful reports payment history to business credit bureaus, as the credit card offer is intended to help entities build credit. 

Which credit bureaus does Tillful report to?

Currently, Tillful reports payments to Experian and Equifax Business. 

Does Tillful report to Dun & Bradstreet?

Unfortunately, no. As of October 2022, Tillful does not report on-time payments to D&B or Equifax Business. However, they plan to in the near future. 

Tillful Secured Credit Card Competitor Overview

Tillful is not the only secured business credit card on the market — a couple of veterans still exist: Bank of America (BoA) and First National Bank of Omaha (FNBO). See how these three secured business credit cards stack up next to one another.

Tillful competitors, Tillful vs BoA vs FNBO

The key tradeoff with the Tillful secured card is that you should pay your account in full each month, while the other available cards have revolving terms — you can make a monthly minimum payment if you choose, so there’s a bit more freedom with the old-timers. 

However, monthly minimums come with the risk of high fees and interest; with the Tillful secured business credit card, if you make your payments as agreed, you’ll avoid this. Now, if you pay a BoA or FNBO card in full each month, you will avoid interest charges, so these offers almost balance each other out, not factoring FNBO’s $39 annual fee.

Tillful is available with a smaller minimum credit line. So, businesses with less cash in reserves are more likely to qualify. Plus. Tillful does no hard pull to your credit and there is no personal guarantee (the business owner is not liable for repayment of the funds — the business is), which is not the case with BoA or FNBO. 

If I were going to use a secured credit card to establish business credit, I would choose Tillful over BoA or FNBO. 

The Verdict: Is Tillful the Real Deal? 

Of course, the question I was most interested in answering when I started down the Tillful rabbit hole is whether or not this is a good offer for building business credit. After some digging, it appears that this is a legitimate offer with a ton of potential. The offer is free, the company will help businesses improve credit (with on-time payments, anyway), and the brand is transparent about what they provide. 

Right now, the biggest downside to Tillful’s offer is that they do not report on-time payments to D&B. To report to D&B, companies need at least 300 active accounts. So, I think it is likely that Tillful will do this in the future, in which case I would probably give the offer a 5-star rating (when appropriately utilized). 

With that said, Tillful does currently report payments to Experian Business, and they claim that they will be reporting to Dun & Bradstreet as well as Equifax Business soon. Whether they deliver on that offer is yet to be seen, but do keep your eyes peeled.  

Note that as far as business credit monitoring platforms, I’m still a bigger fan of Nav — mostly because I have more trust in established companies (Plus Nav has an Android app). But, I do encourage you to check out both offers and see which one you like best.

I teach a seven-step process to get up to $100K in business credit in as few as 30 days by leveraging the right combination of offers and setting up your business the correct way. If you’re interested in learning exactly how it works, join Business Credit Workshop today.

Fundbox Review: Are These Lines of Credit Legit?

By

Fundbox review

When you’re in a pinch or you want to scale your business operations, you might turn to online lenders for working capital. Fundbox loans (which are actually revolving lines of credit) are a popular option right now. You may even be considering applying with the company. Before you do, read this. 

Here, you’ll learn everything you need to know before you make a critical business financial decision. This is what we’ll cover: 

Now, let’s get to it! 

What is Fundbox? 

Fundbox login

In a nutshell, Fundbox is a fintech company that extends working capital in the form of revolving credit lines to companies that make at least $50K per year. 

Frequently Asked Questions: 

When was Fundbox founded?

2013

Where is Fundbox located?

Fundbox headquarters are in San Fransisco, California. 

Who owns Fundbox?

Eyal Shinar is Fundbox’s founder and executive chairman, previously CEO. 

How big is Fundbox?

According to Crunchbase, Fundbox currently has 17 team members, 25 investors, and $453.5 million in funding as of September 2020. 

Where does Fundbox funding come from?

Lines of credit and loans are made directly by Fundbox and by First Electronic Bank. 

How much is Fundbox worth?

Fundbox valuation was estimated at $750 million in 2020, according to Forbes. 

How Does Fundbox Work? 

Fundbox uses predictive modeling to help small businesses and freelancers optimize their cash flow. Essentially, a company connects Fundbox to its accounting or invoicing platform and business bank account to prove cash flow. The system analyzes accounts, which takes a few minutes. After that, the business is automatically approved or denied access to funding through the platform. 

Quickbooks Fundbox review

While the database of supported online banking software is massive, not all banks are accessible through the platform. So, some users who do their business banking at very small community banks or credit unions may not have access to Fundbox’s financial services for this reason alone.  

Furthermore, only business bank accounts qualify. So, freelancers or contractors who use a personal checking account for both personal and business use will be unable to use the service (yet another reason why you must have a business checking account). 

Once you’re set up in the platform, you may qualify for business credit. Learn more about each offer below. 

1. Fundbox Credit 

After your account is set up, you may get an offer for a revolving credit line in hours or minutes. You can then draw funds directly from your Fundbox dashboard to your business checking account for a maximum of $50K on your first draw. These funds must then be repaid weekly within the set repayment period. 

Reddit Fundbox review

Repayment periods on Fundbox credit might be 12-24 weeks. And, if you repay early, you will save on interest, which starts at 4.66% for a 12-week plan and goes up from there. And, “revolving” means that once your funds are replenished, you can draw from your limit repeatedly. 

Periodic account reviews may increase or decrease your funding limit and/or interest rate over time. 

2. (Previously) Fundbox Pay Net Terms

Typically, net 30 vendors that report to business credit bureaus are one of the first stops when establishing business credit. With Fundbox Pay, businesses could apply to send or accept payments for products and services with net terms. 

Vendors who wanted to accept payments with net terms could apply as a merchant on the platform. Or, buyers could invite their vendors to the platform for the ability to buy now and pay later. It was a convenient funding option for businesses who were temporarily tight on cash. 

Unfortunately, as of about a month ago, Fundbox no longer offers a net terms product. 

3. (Previously) PPP Loans

While the application period for PPP loans, as outlined in the 2020 US stimulus, has passed, we should still acknowledge this offer. The reason it’s important to note is that if there is another round of similar financial offers in the future, Fundbox could be a potential funding source. 

Is Fundbox legit for PPP

Fundbox PPP loan reviews are pretty much unanimously positive. The only complaint that applicants seemed to have was that the process took awhile. But, while these applicants waited from a couple of weeks to a month for approval, we’ve all heard of others who waited even longer.  

Fundbox Line of Credit Requirements

As stated above, Fundbox borrowers must have a business checking account. In addition, the platform has other (relatively relaxed) requirements. If you have at least three months of business checking transactions that show activity that proves around $50K or more in annual revenue, a soft pull to your credit report that shows a minimum 500 personal credit score can qualify you. 

Trustpilot Fundbox review

In some cases, the platform may conduct a one-time hard pull. And, at least two months of history in a compatible accounting software might allow you to bypass the three-month banking history condition. But, if you connect the platform to a personal bank account, you will not be approved. 

Personal Guarantee Requirements

These loans/credit lines do not require a personal guarantee. So, if your business defaults, you will not be held personally responsible. However, the proprietary algorithm that makes funding approval decisions makes it unlikely that this will happen — only companies who show the likelihood of repaying the loan will be approved. 

Prohibited Businesses 

If you’re in a questionable line of business, you already know that some major platforms might reject you. And, that could be the case with Fundbox as well. 

Businesses in the following industries are prohibited: 

  • Adult services and entertainment
  • Weapons and firearms
  • Gambling and online gaming
  • Drugs, dispensaries, and paraphernalia 
  • Money service businesses 
  • Not-for-profit organizations 

Unfortunately, if your business falls under one of these umbrellas, you’ll need to look elsewhere for capital. 

Does Fundbox Report to Credit Bureaus? 

Business owners who receive funding might want to know if Fundbox reports to major credit bureaus. This is important because loans that are not reported will not have a positive impact on your business credit score.  

Unfortunately, at this time, Fundbox does not report to D&B or any other business credit bureaus. So, any payments you make toward funding will not have an impact on your business credit. 

Final Takeaway

So, yes, Fundbox loans and lines of credit are completely legit. The proprietary software can help businesses access working capital fast without too many hoops to jump through. But, there are some limitations that might lead business owners in another direction. If you’re interested in learning how to get $100K in business lines of credit in 30 days, sign up for Business Credit Workshop.

A Straightforward Kabbage Review: Everything You Need to Know …Without the Fluff

By

Kabbage Review

As one of this year’s SBA-approved PPP lenders, Kabbage has received an onslaught of poor reviews recently, essentially pulling their trust score down quite a bit in a very short time. Now, you’re probably asking if you should believe what you read. Is Kabbage a legitimate lender? And, should you leverage their financial services for your business? 

After you read this, you’ll be able to answer these questions with confidence. Here’s what’s in-store. 

What is Kabbage? 

While the platform is known for its small business funding, all Kabbage lending has been temporarily suspended for new and existing customers. While many companies across the globe were forced to close indefinitely in response to COVID-19, Kabbage chose to suspend their offer. 

Kabbage loans

So, if you can’t access their core funding offer, what are you doing here? Well, the brand now offers several other business financial services. Let’s explore what’s up with Kabbage’s checking, payments, and financial insights platforms (accessible from one dashboard).

Kabbage Checking

Where there once were lending opportunities, you’ll now find earning opportunities. 

Kabbage Checking offers FDIC-insured banking with 1.10% APY earned on funds, which they declare is the best deal you’ll find. I had my doubts about this claim, so I did some digging. Here’s how Kabbage compares to current checking account offers from some of the best business credit unions I know of. 

Kabbage Checking Competitors

To my surprise, Kabbage stacked-up well next to some of my favorite institutions. But, they don’t have the “best” offer. Consumer Credit Union, for example, offers nearly double APY or more on checking account balances up to $10K for those who use their debit card at least 12 times per month. 

So, while it’s a good deal, it’s not the best out there. But, APY earnings may balance out against the competition for some companies who don’t plan to use their business debit card often. 

Note: None of the above checking accounts demand monthly fees nor do they have minimum balance requirements. When you shop around for a business checking account, keep this in mind. 

Kabbage Payments

Next on the list of financial services to leverage here is an online payment platform. Invoicing with Kabbage Payments costs 2.9% + $0.25 per transaction, which is five cents less than major competitors.  

Kabbage Payments Invoicing Competitors

The invoicing cost is competitive. And, the platform offers email or web link billing. Also, you can leverage next-day deposits on eligible transactions. Any payments processed on the platform before 5 pm will be sent to your bank by the next business day at no additional cost. 

Another promoted service within the payments platform is a unique URL where you can sell gift certificates from $15 to $500. 

As with most online payment platforms, you will be asked to share your social security number when signing up (a sign that these financial services are not likely to help build your business credit). 

Kabbage Insights

I might compare Kabbage Insights to Quickbooks. While it does deliver visual reports, it’s basically an accounting platform. 

Kabbage login

Theoretically, you can see all of your accounts in one place and start to get a clear understanding of your cash flow and revenue. 

You do not need to use Kabbage checking or invoicing to use the insights feature, but I suspect you will receive more detailed insights if all of your accounts are connected.  

Easily, you can link the system to your bank account including various smaller credit unions and community banks. While the dashboard claims that Kabbage Insights can be connected with PayPal, I wasn’t able to do so. Nor could I connect with Stripe. 

These integrations aren’t necessary as long as all transactions are processed through your connected business bank or credit union accounts. But, it would be more convenient if they were to provide these options. 

The Resource Center

Kabbage’s Resource Center is essentially just a blog with financial advice for business owners. 

Kabbage com reviews

The articles here are pretty useful, easy-to-understand, and worth a look. Chances are, you’re likely to find helpful information here, whether a majority of Kabbage’s staff stays on furlough or not. 

Kabbage Yesterday, Today, and Tomorrow

Launched in 2009, Kabbage was founded as an automated lending platform. By 2017, the company had grown to a net worth of $200 million, establishing itself as a leader in the business working capital corner of fintech. 

Kabbage’s core offer included quick, easy loans with low credit requirements. The fees were transparent and small businesses could get approved for lines of credit up to $250K at a time. Most loans were extended within just a few days, making this a convenient option for companies that needed quick cash for their operations. 

On the downside, the fixed-rate fees could be pretty steep, ranging from 24-99% APR. Early repayment didn’t save borrowers on interest, long-term repayment options were unavailable, and only companies with online checking or PayPal were approved by verifying cash flow. 

With the onset of Coronavirus in March 2020, Kabbage furloughed workers and the situation looked bleak. Then, they began processing PPP loans, which ended up helping the company get back above water.  

Recently, it was announced that American Express acquired Kabbage whose loan funds used to come from Celtic Bank. If the brand does offer working capital in the future, it will most likely come directly from Amex itself. 

We’ll just have to wait around to see. 

Kabbage Business Loan Pricing

Despite the fact that business loans are the core offer that has been temporarily suspended, it’s pretty important to understand how Kabbage funding works. The key to deciding if a working capital option like this one is right for you is to understand repayment terms.

So, if a business gets a loan from Kabbage, they will repay the funds over 6, 12, or 18 month terms. These loans have APRs that range between 24% and 99%. Each month, the borrower will repay a portion of the principal owed plus an additional 1 to 10% of the total funds toward the interest.

As with most loans, the interest you pay will be higher during the first portion of repayment. For example, a six-month loan requires 10% interest in addition to the principal payment for the first few months. After that, the interest amount decreases. Sadly, borrowers do not get a break for early repayment.

PPP Loans via Kabbage

In response to the US Stimulus bills passed in 2020, Kabbage offered Paycheck Protection (PPP) loans. After August 8, 2020, the Small Business Association (SBA) is no longer accepting new applications. So, you can no longer apply for one of these loans with Kabbage or anyone else.

While the brand seemed to leave some small business applicants unsatisfied, let’s be fair — nobody knew what they were doing as this was an unprecedented time for everyone.  Furthermore, Kabbage was the second largest provider of PPP loans in the nation by application volume.

So, I would try to cut their reputation some slack. And, if there’s ever a similar round of funding offered, my guess is that the staff at Kabbage will know better than anyone else what not to do. 

Final Summary

Right now, Kabbage’s desktop web app and mobile app both seem a little wonky. I’m assuming this is because they’ve furloughed staff and cut back on their service offer for the time being. 

There’s no telling when and if they may offer their core loans again, as this will likely be dictated by the global economy as we rise back up from the effects of the Coronavirus. In the meantime, if it’s relevant for your operations, I would check out Kabbage Payments because the low transaction fees are great. 

As far as the business checking accounts and insights platform are concerned, I would recommend going with more established solutions — at least until Kabbage revamps their offer (I wouldn’t expect this to happen until at least winter or possibly even Spring, 2021). 

Kabbage is a legitimate FDIC-insured lender with an eleven-year track record of delivering convenient financial services to small businesses. If and when they reopen their doors for business funding, they are likely to come up with something fresh, unique, and trustworthy. 

In the meantime, explore your other options. And, if you’re interested in learning how to obtain up to $100K in business credit in as few as 30 days, start here!

Expert Weighs in on Credit Suite Reviews: Is the Service Worthwhile?

By

Since the onset of COVID-19, many businesses have been scrambling to access capital to keep their doors open. PPP loans and other Coronavirus relief can only get companies so far. More than ever, owners turn to creative ways to finance their operations. Now, Credit Suite is an increasingly popular option. So, can you trust all of the positive reviews? 

Credit Suite Reviews

As of August 2020, less than 1% of users on TrustPilot have reported bad service from the brand. And, it’s pretty much the same on BBB and SoTellUs. Now, Before you take other peoples’ word for it, let’s examine the offering, determine what you would get yourself into if you signed up, and compare the service to other options. 

This is what you’ll find here: 

So, let’s get to it… 

First, What is Credit Suite? 

Credit Suite is a system, powered by Finance Suite™ software, designed to help businesses build credit and obtain capital through lines of credit and loans. Via their Partner Program, they also offer the software as a white label solution for B2B companies to help get capital for their customers. 

In a nutshell, there are three services offered: 

  1. Business credit building consultation
  2. White label business credit software 
  3. Credit monitoring 

Learn more about the complete offer before you decide if it’s right for you. 

What Will the Service Help You Accomplish? 

The goal of leveraging the Credit Suite system is to build and obtain credit for your EIN that is not linked to your SSN (no personal guarantee/credit check). You will learn about a DUNS number, discover a few net 30 vendors, and the rest of the basics of business credit. 

Business Credit Building Framework

The system used is based on a simple, 4-step framework: 

  1. Build Business Credibility
  2. Establish Business Credit Reports
  3. Get Initial Business Credit
  4. Get revolving credit

Recommended: 7 most important steps of building your business credit profile so you can obtain business credit without showing financials!

By the end of your journey, the brand claims to help you get multiple revolving lines of credit from $5K to $50K each. And, their users seem to be pleased. Here are some of the features boasted by clients.  

  • Continuous contact from support via call, text, & email
  • Business credit education
  • An offer of $20K in personal credit 
  • A 5-month business credit program
  • Exceptional customer service

And, as far as resources go, the blog has some decent info for beginners who want to learn about expanding their business credit options. For example, one recent topic is “Crowdfunding Terms You Should Know in a Recession.” They also share content about trade references and NAICS and SIC codes.

How Much Does Credit Suite Cost? 

Credit Suite’s core offer to help you build business credit costs either $2,997 or 7 payments of $597 ($4,179). 

The Partner Program, on the other hand, is classified as an investment and will cost more. This offer is broken down into two tiers: 

  1. VIP: $4,497 or 8 payments of $697 ($5,576)
    1. Get business credit and financing
    2. Become a licensed partner (Finance Suite™ user) 
    3. Leverage direct funding for your customers
  2. Ultimate: $6,497 or 9 payments of $897 ($8,073)
    1. Everything above 
    2. Marketing funnels to boost your sales

Credit Suite’s Credit Monitoring Overview

If you’re only interested in seeing your business credit scores, the brand has a less expensive intro offer. Credit Suite’s credit monitoring software enables companies to monitor credit through D&B, Experian, and Equifax. 

Business Credit Building Software

As a standalone product, the software costs $24 per month after a 30-day free trial. So, let’s compare this choice to your other business credit monitoring service options. 

MonitoringServiceD&BReportExperian ReportEquifax ReportCost
Credit Suite YesYesYes$24/mo
NavYesYesYesFree to $49.99/mo
ExperianNoYesNoFree+
EquifaxNoNoYesFree+
D&BYesNoNoFree+
FunderaNoNoYesFree+

As the above comparison shows, you have several free options to pull business credit reports. While you can pay to upgrade with most of these services to see advanced insights, including your business credit scores, I don’t usually recommend it. If, however, you might have some negative history to clear up, it can be a good idea. 

The top competitor for Credit Suite’s credit monitoring solution is probably Nav. And, Nav’s paid monitoring services range from $30 to $50. While you might pay a few more dollars per month to access full reports and scores, you can see basic summaries at no cost. So, subscribe to Credit Suite’s monitoring service at your own risk.  

Recommended: 2020 Nav Review: A Tool to Build Your Business Credit Score

Now, Let’s Look at Credit Suite Complaints

While the system mostly seems to satisfy users, it is not free from grievances. The most dirt I could find on Credit Suite had to do with their refund policies. Users who were apparently speaking to the Partner Program (not the core business credit building services) complained of being overcharged and/or not receiving a refund when they believed they were entitled to one. 

Yet, in at least one case, a Credit Suite representative replied and claimed to have made an attempt to process the refund after all. So, this criticism should be taken with a grain of salt. All in all, the service maintains 4.5-4.8 out of 5 stars across the board. 

If you are interested in the white-label business financing software options, I recommend shopping around. Check out Funding CEO, Blue Street Capital, and Mulligan Funding just to get an idea of how many fish swim in this sea. 

And, How Does Credit Suite’s Core Offer Stack Up to the Key Competitors? 

To play the devil’s advocate here, I might argue that businesses could save themselves a couple thousand dollars by diligently researching their options. These business owners would make sure they have the right fit because there are several worthy Credit Suite competitors. For example, Fund&Grow, LenCred, and many others offer similar business credit acquisition solutions. 

CompanyFunding ClaimCost
Credit SuiteMultiple revolving lines from $5K to $50K$2,997 to $4,179
Fund&Grow$100K to $250K $3,997 or 9% of Funding Obtained 
LenCred$25K to $150K5 to 10% of Funding Obtained
Business Credit Builders$50K to $150K $3,500
One-Stop Funding Solutions$25K to $200K$99 to $3,950
Midwest Corporate CreditUp to $500K8% of Funding Obtained


Plus, some contenders have pretty amazing bonuses. Fund&Grow, for example, offers private getaways and vacations. So, I recommend studying the business credit building marketplace before you sign up. 

Final Takeaway

The answer you’ve been waiting for: Can you believe the positive Credit Suite reviews? Probably.

It sounds like users are happy with their results and that Credit Suite’s customer service is impressive. The service is legitimate and seems capable of coaching you to get large lines of business credit, as long as you work the program. Furthermore, the white label service is a standout feature not offered by direct competitors.

However, I wouldn’t recommend the credit monitoring software that Credit Suite offers — I say check out Nav instead. And, if you’re interested in the white label product, reach out and talk to some people who have purchased it because there are many comparable finance software products that could be a better fit. Now, if you’re looking to boost your business credit score and obtain large business lines of credit without paying high origination fees, learn how to obtain $100K in business credit in 30 days.

Should You Open a Navy Federal Credit Union Business Account?

By

Navy Federal Credit Union Review

Navy Federal Credit Union Business Solutions Review

If you’ve been in the military or you have a family member or friend who has, you’ve presumably heard of Navy Federal Credit Union. And, you probably already know that it’s a great organization. But, did you know that you don’t have to be active in the military to become a member? And, did you know you can open a business account to leverage the perks for your company?

It’s true. There are quite a few benefits your business can take advantage of with Navy Federal. In this Navy Federal business account review, you’ll find a summary of them. Read on to decide if a Business Solutions account is right for you. 

What is the Navy Federal Credit Union? 

Navy Federal Credit Union is an NCUA-insured financial institution exclusively operated for the military and their families. To qualify for membership, you or one of your family or household members must have ties to the armed forces, DoD, or National Guard.

And, What are the Benefits of a Navy Federal Membership? 

The institution offers powerful financial products and services with low rates, fees, and charges as well as convenient banking and home buying. Members can take advantage of exclusive special offers and discounts from various partners. 

Here are the Navy Federal Credit Union’s exclusive member partners and programs. 

  • Visa – Access discounts of up to 15% for card use with select retailers.
  • Geico – Leverage member discounts on auto insurance. 
  • RealtyPlus – Receive $4K to $8K cashback on a home purchase. 
  • Enterprise Rent-A-Car – Get elite member discounts off everyday low rates.
  • Hertz Rent-A-Car – Save up to 20% off car rentals. 
  • Auto Buying Program – Experience a hassle-free vehicle purchase process and exclusive savings.

Furthermore, Navy Federal is a portfolio lender, which means that they lend their own money. Because they’ve cut out the middle man, they are able to offer lower rates on loans and lines of credit than most lenders. So, this is a valuable company for a small business in need of banking or lending to work with. 

What Financial Services Can You Access with a Navy Federal Business Account? 

Business Solutions by Navy Federal is centered on delivering the most beneficial financial tools and resources available to small business members. What products and services can you leverage to help you meet your company goals? 

The program for qualified members with military ties offers several financial services for small businesses including loans, lines of credit, checking, and savings accounts. Learn more about each of them below. 

Business Loans

Navy Federal Credit Union business loans can help you improve business cash flow. Leverage real estate, vehicle, and term loans with low rates and fees. 

Real estate loans taken from the credit union can help you purchase residential rental properties, commercial real estate, multi-family dwellings, or pay for a property renovation. Pay for a new purchase, refinance, or remodel an existing building. 

Loan to value on real estate loans through Navy Federal ranges from 65% (remodel) to 80% (new purchase). There are fixed and variable rate options. And, you’ll experience no prepayment penalties. 

Vehicle and term loans give you access to permanent working capital, equipment, company cars, heavy-duty trucks, and more. Purchase or refinance your auto or equipment. Loan to value on these loans is 75% and there are no prepayment penalties. 

Business Lines of Credit

Navy Federal business credit card can elevate your business’ purchasing power. Apply for a Visa™ or MasterCard™ and pay an APR as low as the prime rate +5.9% with no annual fee. Earn Business Rewards of one point per $1 spent and redeem them for airline tickets and more. 

Navy Federal Credit Union Business Solutions Credit Cards

Here’s a taste of what you can earn through Navy Federal’s Business Rewards card.

  • Redeem 5K points for a $50 BestBuy gift card. 
  • Redeem 10K points for $100 cashback. 
  • Redeem 15K points for a $150 round-trip airline ticket. 
  • Redeem 50K points for a $500 round-trip airline ticket. 

Plus, Navy Federal Credit Union business lines of credit come with no foreign transaction fees or earning cap. The cards are great for business travel expenses. 

Business Checking and Savings

Navy Federal Credit union business checking and accounts provide essential financial building blocks for your business. The best part is that all accounts earn dividends. 

Business checking accounts include the first 30 transactions for free. Each transaction thereafter will cost 25 cents. There is no monthly service fee. These accounts are recommended for new businesses and those with limited cash flow activity. 

Business Plus checking accounts include the first 50 transactions for free. And, like the standard business checking account, each transaction thereafter will cost 25 cents. There is an $8 monthly service fee. These accounts are recommended for growing businesses with steady banking activity. 

Business Premium checking accounts include the first 100 transactions for free. And, each transaction thereafter, as with the standard and Business Plus accounts, will cost 25 cents. The monthly service fee will range from $0 to $20. These accounts are recommended for mature businesses with large transaction volumes and high deposit values. 

Business savings accounts come in three options at Navy Federal. 

  1. Money market savings accounts
  2. Jumbo money market savings accounts
  3. Certificates

Minimum deposits range from $100 to $100K. Market savings accounts come with no term restrictions. And, these accounts will typically earn more than a traditional savings account. 

How do You Open a Navy Federal Business Solutions Account? 

If you think you meet the Navy Federal business account requirements (LLC, Sole Proprietors, and Corporations), here are the steps to take to leverage Business Solutions. 

  1. Check your eligibility. If you are a military service member, Department of Defense civilian, or spouse, parent, grandparent, sibling, child, or grandchild of one, you may qualify for Navy Federal membership. 
  2. Become a Navy Federal Credit Union member. Apply for membership online through the organization’s website. Or, if you are not the service member, you will need to go into a branch to sign up. 
  3. Enroll in digital banking. Once your application has been approved, enroll in personal digital banking. 
  4. Complete a Navy Federal Credit Union business account application. Fill out the appropriate documents and submit them online or call 1-877-418-1462 to apply over the phone. 

Once you’ve been approved by the organization for a business account, you can access all of the services listed above. 

Related Answers: 

Can a business join a credit union?

Yes. Many credit unions provide financial solutions for both personal and business members. 

Can you join Navy Federal if you were not in the military?

Yes. Navy Federal was designed for veterans and active military, but you can apply for a membership if you have direct ties to someone who has served.   

What do I need to open a bank account with Navy Federal?

To open a bank account with Navy Federal, you must become a Navy Federal Credit Union Member. To qualify, you or someone in your household must have ties to the military. 

Does Navy Federal give small business loans?

Yes. Navy Federal Credit Union has several types of small business loans and lines of credit to extend to Business Solutions account holders. 

Does Navy Federal offer business credit cards?

Yes. Navy Federal Credit Union has several types of credit lines and small business loans to extend to Business Solutions account holders. 

Does Navy Federal check your credit?

Yes. When you apply for a line of credit or loan through Navy Federal, like most lenders, they will run a credit check. The institution may sometimes extend a credit line to someone with little to no credit history. 

Does Navy Federal have a minimum balance?

Yes. Navy Federal has a minimum $5 savings balance for members with a checking account, IRA, ESA, or certificate and $50 minimum balance for members with a standalone savings account. 

Does Navy Federal have Zelle?

Yes. Navy Federal members have free access to Zelle, a way to easily send money between US banking accounts within minutes. 

How do you build business credit?

To build business credit, you must apply for and make responsible payments on lines of credit extended to your business using your EIN or DUNS™ number. Learn more about credit for business via Business Credit Workshop.  

Final Thoughts

Navy Federal is a fantastic financial institution that doesn’t cost an arm and a leg to leverage. When you need to leverage working capital solutions or you want to open an account to build your business credit, this is an excellent channel to do so, if you can qualify. For more credit boosting advice, sign up for our free secrets to get $100K in business credit in 30 days. 

Business Credit Blog

· Recommended Resources
· Using 30 Day Net Vendors to Build Your Business Credit Score
· How to Create a Business Credit “Entity” – Tutorial

Recent Posts

· Sign Up for Business Credit Workshop Online!
· Login – Business Credit Workshop Online
· Forgot Password?

·Affiliates