Biz2Credit Review

Why Biz2Credit Is Best for Marketplace Lending

Biz2Credit is our best pick for marketplace lending because it offers several sought-after loan types, most notably term loans and commercial real estate (CRE) loans. While Biz2Credit is not a direct lender, the marketplace lender matches small businesses with the lenders in the network to meet their financing needs. We found the pricing on these loans to be transparent and the rates competitive. Biz2Credit also offers a discount for linking your bank account during the application process, further lowering your costs as you explore loan options. Additionally, the application process and funding times are both quick, meaning you’ll get access to funding faster than with other marketplace lending options. After analyzing Biz2Credit, we think the lender is a great choice if you’ve narrowed your potential loan options to just a few.

Borrowing Costs

Biz2Credit is transparent about the rates and terms of its loans. Term loan rates start at 7.99% but can go higher depending on your credit score. We like that Biz2Credit charges simple interest instead of compounding interest, which reduces the overall cost of the loan. Biz2Credit is one of the few lenders we reviewed that offer simple-interest loans.

One additional cost you should expect with Biz2Credit is an underwriting fee of $250 to $450, as well as an origination fee that varies by loan. However, you can get a discount on your loan by linking your business checking account during the application process, which is similar to the discount Fundbox offers. This gives Biz2Credit a closer look at your business’s finances to ensure you will be in a good position to pay back the loan.

Applying for a Loan

Biz2Credit offers a variety of loan options, including working capital, term loans, ERTC loans and commercial real estate loans. In our experience testing the service, Biz2Credit’s online loan application takes at most four minutes to complete. You’re then prompted to upload your documentation and submit your application. You usually get a decision within 24 hours and funding in about three days.

To get approved for a Biz2Credit term loan, you need to have been up and running for at least 18 months, annual sales of at least $250,000, and a credit score of 660 or above. If you are just starting out or have less than $250,000 in annual sales, this lender isn’t for you.

The commercial real estate loan requirements include being in business for at least 18 months, a credit score of at least 660 and annual sales of at least $250,000. The ERTC loan requirements include a pending IRS credit of at least $100,000 and a credit score of at least 660. Additionally, your time in business must have started no later than February 2020.

For Biz2Credit’s working capital loan, you need to have been in business for only six months, but you still need annual sales of at least $250,000. The business credit score requirement of 575 is lower than that for a term loan and CRE loan.

Biz2Credit offers access to loan specialists who can help you choose the right loan product for you. With so many loan options to choose from, we found that having this type of guidance can be very beneficial to small business owners who need capital.

Applying for a loan from Biz2Credit is a simple four-step process. Source: Biz2Credit

Loan Types

You can obtain four types of loans through Biz2Credit:

• Term loans: These are what you traditionally think of when you think of loans. This type of funding must be repaid in monthly installments plus interest. You can use Biz2Credit’s term loans for many business needs, though Fora Financial, our top pick for short-term loans, is more flexible on this front. Read our Fora Financial review to learn more.
• CRE loans: These are term loans you can use only for buying or renovating commercial property. Their amounts and rates are higher than those of standard term loans.
• Working capital: You can use this funding for inventory, hiring, one-time business purchases, equipment, expansion and operational costs. You can repay it daily or biweekly.
• ERTC loans: This is Biz2Credit’s newest loan product. You can take out these loans if your business is waiting for a tax credit through the Employee Retention Tax Credit. Through this loan, you get the same amount of money that would come from your credit, and you repay your loan once your credit arrives.

Biz2Credit offers working capital, term and real estate loans. Source: Biz2Credit

Loan Terms

Terms on Biz2Credit loans differ by loan type. Here’s a closer look at each loan type Biz2Credit offers and what to expect.

Term Loans

For term loans, the repayment period can be up to 36 months on amounts of $25,000 to $500,000. Biz2Credit business term loans are unsecured loans, which means you don’t have to provide business collateral. However, this lender does require a personal guarantee, which means you’re personally liable if your business defaults on the loan. Not all lenders we reviewed require a personal guarantee; Fora Financial, for example, requires neither a personal guarantee nor collateral.

CRE Loans

For commercial real estate loans, you’ll enjoy an initial three-year interest-free period before starting to repay your principal. With this lender’s commercial real estate loans, you can borrow between $250,000 and $6 million. Money from this type of loan is primarily used for real estate purchases. The interest rates on these loans start at 10%, and business owners can qualify in 48 hours. Interest-only repayment periods on these loans range from 12 months to 36 months.

Working Capital Loans

Working capital funding repayment periods are based entirely on your business receipts. Payments for Biz2Credit’s working capital loans can be daily, weekly or biweekly, and they come from your business receipts. Biz2Credit can approve a working capital loan application in 24 hours and fund the loan within 72 hours. The same periods apply for ERTC loan application and funding.

ERTC Loans

Biz2Credit offers ERTC loans up to 65% of the credit owed by the IRS, with a cap of $500,000. Borrowers can expect approval within 24 hours of filling out an application and funding within 72 hours of approval. ERTC loans offer monthly interest-only payments for as long as the first year or standard monthly payments over three years.

Helpful Tips

We noticed the Biz2Credit website doesn’t list the documents that are required to apply for a loan, but it’s smart to have your paperwork at the ready, including business bank statements, tax information, proof of business ownership and a government-issued ID.

Biz2Credit has a plethora of online tools and resources, including calculators, to help you choose the right loan product. Biz2Credit also has a tool called BizAnalyzer that analyzes your financial data to provide actionable advice; it’s a nice feature that the other online lenders we reviewed don’t offer.

Biz2Credit Features

Variety of Loan Amounts

Biz2Credit offers working capital, term loans, ERTC loans and commercial real estate loans ranging from $25,000 to $6 million. This type of flexibility is nice because it gives you numerous options and ensures you can get the best loan for your needs, however some competitors we reviewed offered even more types of loans than Biz2Credit.

Transparent Pricing

We like that Biz2Credit is very transparent about its pricing and uses simple interest, which is cheaper than industry-standard compounding interest. In addition, Biz2Credit has an online calculator that allows you to set funding options, interest rates and repayment terms to get a good idea of how much your loan will cost.

Competitive Rates

The starting rates on Biz2Credit’s term loans and commercial real estate loans are competitive at 7.99% and 10%, respectively. In addition to its competitive rates, Biz2Credit offers a discount on your loan if you link your business bank account during the application process.

Customer Service

You can reach the Biz2Credit customer support team via email and phone from 9 a.m. to 6 p.m. ET Monday through Friday. In addition, you can find a ton of resources on the company’s website, including webinars and e-books.

Biz2Credit’s TrustPilot rating is 4.6 out of 5 stars across more than 14,000 reviews. The most recent reviews are overwhelmingly positive. However, Biz2Credit’s Better Business Bureau (BBB) reviews are alarmingly and overwhelmingly negative, and the company’s BBB rating is a D. Most of our other picks for the best business loans all boast A or A+ ratings. And unlike these other lenders, Biz2Credit lacks BBB accreditation.

The BBB has noted that an uptick in Biz2Credit customer complaints began in February 2021, mostly pertaining to the now-closed Paycheck Protection Program. In October 2021, the BBB noted a slowdown in complaints. Since then, the company has nevertheless continued receiving complaints about loan application processing delays, as well as slow funding disbursement and company response times.

Drawbacks

Biz2Credit is a great term loan option for most small business owners, but it does have some drawbacks. First, the requirements to have $250,000 in annual sales and a credit score of at least 660 will preclude some business owners from getting a loan with Biz2Credit. Other competitors we reviewed had more lenient requirements.

In addition, the repayment periods for term loans max out at 36 months, which may give some business owners pause, especially if they are using the money for an expensive asset and want to spread out payments over a longer period of time.

We were also concerned with Biz2Credit’s highly negative customer reviews on the Better Business Bureau website. Several of our other top business lender picks lack negative reviews and have long been BBB-accredited. That said, Biz2Credit’s TrustPilot reviews are highly positive and far greater in number than on the BBB website.

Methodology

To find the best marketplace lender, we assessed several prominent lenders’ offerings. We looked at each lender’s loan amounts, interest rates and repayment periods. We also prioritized lenders with a mission to help borrowers find the right loans. Biz2Credit emerged as our top pick given its four loan options and competitive, transparent pricing for each, not to mention its borrower discounts. If you’re considering a few types of loan products, Biz2Credit is a great lender for making the right choice.

Overall Value

After viewing the company, we found that Biz2Credit’s wide range of loan amounts, flexible terms and transparent pricing is our best pick for marketplace lender.

We recommend Biz2Credit for …

• Businesses with a solid credit score and robust annual sales who want several choices for loan products and terms.
• Borrowers seeking low-interest term loans.
• Borrowers looking for easy ways to discount their total loan costs.

We don’t recommend Biz2Credit for …

• Business owners with a credit score below 660 or less than $250,000 in sales.
• Business owners who want to consider more than four types of loan products.
• Business owners concerned about a lender’s poor customer reviews.