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Biz2Credit Small Business Loans: 2023 Review

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Susan Guillory
Susan GuilloryUpdated January 12, 2023

Overview of Biz2Credit

Biz2Credit is an alternative online lender offering term loans, commercial real estate-secured loans, and working capital loans (which function like merchant cash advances) to small businesses. Biz2Credit offers high borrowing amounts and excels at delivering funds fast. Qualified borrowers can fill out a simple online application, be approved within 24 hours, and receive funds within 72 hours. However, rates and fees can run much higher than bank loans.The Takeaway: Biz2Credit is ideal for young small businesses with solid revenue and fair credit who are looking to borrow between $25k and $2 million quickly. More established businesses, however, may find better rates and fees elsewhere.

Pros and Cons of Biz2Credit

No matter what lender you choose, there are pros and cons to small business financing. Here’s a look at the advantages and disadvantages of getting funding through Biz2Credit.

Types of Small Business Loans Offered by Biz2Credit 

Biz2Credit offers three types of small business financing:
  • Working capital loans
  • Term loans
  • Commercial real estate loans

Working Capital Funding

Biz2Credit provides working capital loans of $25k to $2 million-plus that can be used for many purposes, including one-time business expenses, hiring staff, buying equipment, paying down operational costs, and purchasing inventory. Though it’s called working capital funding, this financing product functions more like a merchant cash advance, You receive a lump sum up front in return for a portion of a business’s future sales. You repay Biz2Credit’s working capital funding daily, weekly, or biweekly from your business receipts. There’s no set term length; how long it takes you to repay your loan will depend on how much you make in sales.According to Biz2Credit, most qualifying applicants for their working capital funding will meet the following minimum requirements: Biz2Credit offers three types of small business financing:
  • Working capital loans
  • Term loans
  • Commercial real estate loans

Working Capital Funding

Biz2Credit provides working capital loans of $25k to $2 million-plus that can be used for many purposes, including one-time business expenses, hiring staff, buying equipment, paying down operational costs, and purchasing inventory. Though it’s called working capital funding, this financing product functions more like a merchant cash advance, You receive a lump sum up front in return for a portion of a business’s future sales. You repay Biz2Credit’s working capital funding daily, weekly, or biweekly from your business receipts. There’s no set term length; how long it takes you to repay your loan will depend on how much you make in sales.According to Biz2Credit, most qualifying applicants for their working capital funding will meet the following minimum requirements:Credit Score: 575Annual Revenue: $250kTime in Business: 6 months

Term Loans

Biz2Credit also offers term loans of $25k to $500k that can be used to cover business expenses, free up operational cash flow, or grow your business. Interest on business term loans is typically tax-deductible.Unlike most term loans, which are paid back in monthly installments, you’ll need to make weekly or biweekly payments with a Biz2Credit term loan. This can be a positive or a negative, depending on whether smaller, more frequent payments do or don’t work well with your budget.According to Biz2Credit, most qualifying applicants for their small business term loans will meet the following minimum requirements:Credit Score: 660Annual Revenue: $250KTime In Business: 18 months

Commercial Real Estate Loans

Biz2Credit also offers commercial real estate-secured loans of $250k to $6 million. With these loans, you use your existing commercial property as collateral to secure the loan, and, thus, qualify for a higher borrowing amount.The proceeds of this loan can be used for many purposes, including acquiring a new business, funding a renovation project, and refinancing an existing business loan.Loan terms are 12 to 36 months, with monthly payments and interest-only payment options.According to Biz2Credit, most qualifying applicants for their working capital funding will meet the following minimum requirements:Credit Score: 660Annual Revenue: $250KTime In Business: 6 monthsOther: Already own commercial propertyBiz2Credit is a digital product available to eligible businesses in all 50 U.S. states except for Nevada, North Dakota, and South Dakota.

Biz2Credit Small Business Loan Terms, Rates, and Fees

Information accurate as of Jan. 12, 2023.

Who May a Biz2Credit Small Business Loan Be Right For?

Applying for a small business loan through Biz2Credit may be right for:
  • A business that’s at least six months old with solid revenue. To apply for financing through Biz2Credit, your business will need a minimum annual revenue of $250,000, regardless of which product you’re applying for. This is high compared with other lenders and will exclude a lot of smaller businesses.
  • A small business that won’t qualify for a bank loan. Qualification criteria is lower than would be offered by a bank, though rates and fees will typically be higher.
  • A young business looking for a high loan amount.Some online lenders limit how much you can borrow to $100k or so, but Biz2Credit has loan limits of $2 million or more.
  • A business looking for fast funding.Bank and SBA loans are known for taking weeks to months to process and fund, and some businesses can’t afford to wait that long. Biz2Credit funds loans in as little as 72 hours.

Who Biz2Credit May Not Be Right For

Here’s who may not want to apply with Biz2Credit:
  • A business owner with bad credit. Biz2Credit generally requires business owners to have a personal credit score of at least 575.
  • A startup. Biz2Credit generally only works with companies that have been in business for six months or more.
  •  An established business with excellent credit. These businesses can likely get better rates and terms from a bank or Small Business Administration (SBA) lending partner.
 

Biz2Credit Loan Fee Structure

Biz2Credit does not charge an application fee. However, for most Biz2Credit financing products, you will pay an underwriting fee (typically $250-$400 depending on deal size), payable at the closing of the transaction.You may also have to pay a closing or origination fee at closing. The amount will depend on the size and type of the loan.Biz2Credit does not publish a range for their interest rates, only that rates start at 7.99% for term loans and at 10% for commercial real estate-secured loans. They also do not disclose the factor rate for their working capital funding (which is technically not a loan, but a merchant cash advance).

Biz2Credit Loan Repayment

Depending on the funding product and your company’s needs, you may have up to 36 months for loan repayment. Biz2Credit might be able to set you up with daily, weekly, bi-weekly, or monthly repayments, which may be automatically deducted from your bank account or credit card sales.

Biz2Credit Funding Eligibility Requirements

Here’s a quick snapshot of what it takes to qualify for a loan through Biz2Credit.
  • Annual revenue: $250k+
  • Credit score
    • Term loan: 660+
    • Working capital: 575+
    • Real estate: 660+
  • Time in business
    • Term loan: 18 months
    • Working capital: 6 months
    • Real estate: 18 months

Applying for a Biz2Credit Small Business Loan

Interested in a loan from Biz2Credit? Here’s the four-step process.

1. Create a Profile

This takes just a few minutes and requires some basic business information about your business and personal finances, such as annual revenues, time in business, and credit scores. You’ll be asked how much you want to borrow, what you’ll use the funds for, and how long you’ll need it.

2. Submit Your Application

Once you’ve provided all the details required, you may be asked for additional documentation, including bank statements or account information.

3. Connect with a Funding Specialist

Someone from Biz2Credit will then reach out to you to go over your application, ask for any additional documents or information they need, and to make sure you’re applying for the right financing.

4. Get a Decision

Typically, you’ll be notified within a day whether you’ve been approved. If you are, you’ll likely need to confirm your bank account details to make sure the money is deposited in the right place.

5. Receive Funding

You’ll most likely see the money deposited into your account as soon as 48 hours after approval.

Biz2Credit Alternatives to Consider

Other lenders that offer short-term business loans, including Lendio, Bluevine, and Fundera. Here’s how they compare to Biz2Credit:
  • Lendio: Lendio offers a wider range of financing options, from SBA loans to cash advances. Its term loans start at $10k, whereas Biz2Credit’s start at $25k.
  • Fundera: With Fundera , you can access a wide variety of different types of business loans (including SBA loans, term loans, lines of credit, and invoice financing) through a single application. 
  • Bluevine: If you’re looking for a smaller, more flexible type of loan, you might check out Bluevine, which offers a business line of credit up to $250k.
  • Lantern by SoFi: Lantern by SoFi’s lending platform gives you access to a variety of small business loans offered by different lenders (including Biz2Credit, Lendio, and Fundera) all in one place. Loans up to $2 million are available.
Let Lantern by SoFi connect you with the right lender for your small business financing needs.

Frequently Asked Questions

Is Biz2Credit legitimate?
Is Biz2Credit SBA approved?
Is Biz2Credit a direct lender?

About the Author

Susan Guillory
Susan GuillorySu Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
Tax: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Brand names: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
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