Biz2Credit Review [Is Biz2Credit Legit? 2021]

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Biz2Credit Review

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Biz2Credit Review

Biz2Credit is an online lending platform for small businesses connecting borrowers with eligible lenders. Biz2Credit has a fast application process and a diverse range of services for small business, but may not be suitable for startups.

Apart from business funding, Biz2Credit also offers various business support services, including bookkeeping, payroll support, answering services, and business advisory. 

Onto our Biz2Credit review!

Services Offered

The types of loans offered by Biz2Credit can be categorized by loan type or by industry type. The website has a long list of loans categorized into the following:

  • Term Loans – Unsecured
  • Merchant Cash Advances
  • SBA Loans
  • Lines Of Credit
  • Equipment Financing

How Does Biz2Credit Work?

The Biz2Credit platform acts as a loan marketplace and matches small businesses with the best loans for each companies’ needs.

Biz2Credit offers access to many different lenders and gives small business owners the option to choose from several different funding quotes.

How Does Biz2Credit Work?
How Does Biz2Credit Work?

Minority Loans For Business

Biz2Credit has a special stream that allows female entrepreneurs and minority groups to gain easy access to the above-mentioned funding sources. 

Small Business Loans For Minority Owners

Biz2Credit Requirements – Eligibility Criteria

Because Biz2Credit connects borrowers with lenders there are no set eligibility criteria. Each lender has its own eligibility criteria.

Generally, the applicant must be operating the business for at least 6 months with decent revenue, although, any lower limit for revenue has not been specified.

A good credit score will increase the chances of approval, but it hasn’t been explicitly stated anywhere that applicants with a low credit score will be turned down. 

Biz2Credit Funding: Biz2Credit Business Loans

Get funding for you small business with the Biz2Credit matchmaking platform online. Choose from a wide range of funding types, from several different lenders, depending on your unique requirements.

Terms and Rates

The Biz2Credit terms and rates are as follows:

Term Loan – Unsecured 

  • Borrowing Limit: Up to $100,000
  • Interest/Factor Rate: 1.14 – 1.45
  • Term Length: Variable
  • Other Fees: 1% – 6% origination fee
  • Effective APR: 4% – 36%
  • Collateral: Personal guarantee

Term loans are unsecured loans that do not require any collateral, but they do require a personal guarantee by the borrower.

Merchant Cash Advances

The Merchant Cash Advance is not technically a loan. When a borrower signs up for a merchant cash advance, the lender purchases the future sales of the borrower.

A quick way to find out how much of the future sales have been sold in return for funds, simply multiply the funds received by the factor rate that has been given. 

  • Borrowing Limit: $2,500 – $250,000
  • Interest/Factor Rate: 1.14 – 1.45
  • Term Length: Variable
  • Other Fees: (Underwriting Fee, Closing Fee, Origination Fee): $250 – $400
  • Application Fee: Not Applicable
  • Collateral: Unknown

Repayments are made each day with a certain percentage of card-based sales deducted by the lender. Because daily sales are not expected to be uniform, the repayment term may vary and go up to a year. 

SBA Loans

  • Borrowing Limit: $5000 – $5000,000
  • Interest/Factor Rate: Starting at 6.5%
  • Term Length: 5 – 25 years
  • Collateral: Unknown

Some of the most common SBA loans available through Biz2Credit are SBA 7(A) and SBA 504 loans. The terms and rates on SBA loans are the domain of SBA, and therefore not something that Biz2Credit can control. Terms and rates will therefore vary on a case by case basis. 

Business Lines of Credit 

  • Borrowing Limit: $10,000 – $1000,000
  • Interest/Factor Rate: 7% – 25%
  • Term Length: 6 months to 5 years

Business lines of credit offered by Biz2Credit are revolving or replenishing lines of credit, where interest is only charged on the amount that is withdrawn, and once it is paid back, the full withdrawal limit is restored. Business lines of credit can be used to temporarily fund working capital requirements. 

Equipment Financing

  • Borrowing Limit: Up to 100% of the equipment value
  • Interest/Factor Rate: 8% to 30%
  • Term Length: Estimated useful life of the asset

Equipment financing allows borrowers to purchase equipment for their business. The principal and interest are paid over the term length, which is usually the estimated useful life of the equipment. 

Business Acquisition Loan

  • Borrowing Limit: Up to $5,000,000
  • Interest/Factor Rate: 3% to 10%, fixed or variable
  • Term Length: Up to 25 years

Business acquisition loans allow borrowers to buy out a business, expand existing business or buy a franchise. The interest rate on this loan can be fixed or variable, depending on the case. 

Application Process

The Biz2Credit application process is very fast and convenient. The official site claims that it takes just 4 minutes to find out how much an applicant can borrow by completing out an online application that generally asks about:

  • Option being sought
  • Time in business
  • Annual revenue
  • Credit score

Alternatively, applicants can have their applications filled in by a representative of Biz2Credit through a live chat feature.

Once the information has been submitted, the site will match the applicant with eligible lenders, after which applicants will be presented with multiple options that suit their requirements. 

Once the final offer has been chosen, applicants may be required to submit additional information. If this is not required, then the loan will stand approved, and the funds will be transferred within 24 to 48 hours. 

Customer Service

Biz2Credit can be contacted via:

  • Phone
  • Email
  • Contact form on site
  • Live chat

Applicants can have their application forms filled out via the Biz2Credit live chat. a feature which is not offered by a lot of other online lenders. The representatives are generally seen as informative and helpful, so applicants can use the live chat feature to have their queries answered.

Apart from this, the website is loaded with information on different services offered by Biz2Credit, which makes it very transparent.

The terms and rates however depend on the individual borrowers, their borrowing needs, and urgency.  

Is Biz2Credit A Legitimate Company?

Is Biz2Credit legit? Biz2Credit has been around since 2007 and has to date arranged over $2 billion in small business loans in the USA.

Biz2Credit Reviews

Reviews for Biz2Credit are generally positive. Users like the speed and convenience the most, followed by the helpful and understanding customer service.

There are a few negative reviews that focus on confusing terms and rates. Some customers complain that the rates are high, which is understandable because the rates of the lenders are topped up by a premium charged by Biz2Credit for their assistance. 

Biz2Credit Pros and Cons

Pros

  • Fast application process
  • Excellent customer service
  • Wide range of lenders
  • Diverse products
  • Special focus on women entrepreneurs

Cons

  • Slightly expensive
  • Additional fees

Biz2Credit Review: Final Thoughts

Biz2Credit is a lending matchmaker making it an ideal option for business owners who do not have the time to look for lending options or those who are just confused after looking at all the options in the market.

The products and services are diverse, with a quick application process, and top of the line customer service. Biz2Credit charges a premium for its matchmaking services, which is built within the cost of loans, making it a good option for businesses. But, if you are strapped for cash, you may find a cheaper option if you just search around a bit. 

Get A Quote

Find out how much you qualify for

Enjoy our Biz2Credit review?

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