Biz2Credit Reviews: 6 Things the Ratings Do Not Tell You

Biz2Credit has a 4.7-star rating on Trustpilot, built on more than 15,600 reviews. Most of those reviews are positive, reporting that Biz2Credit made the business loan process easy, seamless and quick. Customer support representatives earned many mentions for their personal attention to applicants. The fact that it is very easy to get business financing quickly through the company does not necessarily mean that it is right for you. Understanding whether it was difficult or easy to get a loan through Biz2Credit only reveals part of the picture. A typical review rarely touches on the cost, and that’s the most important thing. Even if you get an absolutely flawless experience, it might not be worth the cost. A review also does not measure what happened in the next few months. Some customers did however note that they received slow replies from the company after they funded. Additionally, it is worth noting that reviews tend to overlook who actually lends the money, what the final price ends up being, and any potential collateral requirements. It is also important to keep in mind a recent 2024 settlement between Biz2Credit and the Federal Trade Commission.

1. Who actually lends

Knowing who actually lends the money is important because the lender has the final say over whether the loan goes through, what the terms are and what happens if you default on the loan. It also matters if the company giving you the loan is truly responsible for the rates, fees and loan features. Knowing who actually lends you the money helps you determine whether it’s a trustworthy company, whether it has your best interests in mind and whether the final product you receive is reliable. If the product is a term loan, it will either come through Biz2Credit’s lending subsidiary, Itria Ventures LLC, or through Cross River Bank. The other products, SBA loans, merchant cash advances and equipment financing, are simply routed through to partner lenders.

2. The price is missing

The one thing you would expect to see on a company’s website is the pricing of the products they offer. If you want a clear picture of what your loan would cost, even if you haven’t been approved, you need to at least see some initial rate, fee or cost ranges. Biz2Credit’s website lists none of the four products’ rates. Before you make an account, Biz2Credit gives you no way to tell whether it will be the cheapest option, even at a ballpark level. If you want an estimate from Biz2Credit, you can get one of its “Prequalification Estimates,” but this is explicitly not a business loan offer.

3. Revenue-based financing costs more

Biz2Credit’s revenue-based financing is not technically a bank loan or a line of credit. Rather, it’s a lump sum that is given for a percentage of your company’s estimated future receivables, and it is repaid at a factor rate plus fees. According to Biz2Credit itself, this funding option is generally more expensive than term loans or lines of credit. Some borrowers report that the costs of revenue-based financing can mount after they get their cash. The daily or weekly payments can strain cash flow in a pinch. In addition, an underwriting fee may hit you when you are low on funds.

Biz2Credit requires a minimum credit score of 575 for revenue-based financing, which is lower than the 650 minimum requirement for its term loans. Although this lower threshold may be helpful if you have been turned down by banks, make sure that the premium price you pay up front is worth the open door.

4. Liens and personal guarantees

Before a loan can be completed, you may need to agree to some measures that protect the lender’s investment. A UCC-1 lien gives the lender rights to assets of the company. With Biz2Credit’s term loans, the UCC lien applies to all assets of the company. With its revenue-based financing, the UCC lien is on your company’s receivables. For most products, you will need to personally guarantee the loan. With a personal guarantee, you are liable for the debt in case your business falls short.

5. The FTC settlement

In March 2024, Biz2Credit and its subsidiary Itria Ventures agreed to pay $33 million to settle FTC charges of deceptive Paycheck Protection Program marketing. Biz2Credit said it could process PPP loans in 10 to 14 business days, but its average actual processing time was well over a month. In addition, the FTC alleged Biz2Credit ignored repeated requests from applicants to withdraw their applications. The order now requires it to promptly let applicants withdraw their applications. Biz2Credit settled the charges without admitting wrongdoing. Settlements like this matter because you may rely on online reviews and the reputation of a lender to assess whether it’s trustworthy. The fact that a company has overwhelmingly positive reviews online does not necessarily mean it will deliver a high-quality product. You should not solely trust this information to determine whether you can trust a lender. Rather, you should place greater weight on a lender’s track record and how transparent it is with the public about its processes.

6. Get an APR in writing

An annual percentage rate (APR) combines all of the lender’s fees and charges. In contrast to the factor rate for Biz2Credit’s revenue-based financing, an APR accounts for all the cost of a loan. If you do not get an APR when you request a Biz2Credit loan, ask for it. Understanding the APR is a way of comparing funding offers that come with different costs, rates and terms. New York now requires commercial funders disclose the APR in a standardized way for deals up to $2.5 million. Many funders, including brokers, are required to show the all-in APR before they can offer you the financing. For a merchant cash advance, New York law requires providers to show the offer terms and include an estimated APR for the money.

Biz2Credit may not be bad. After all, some customers give it great reviews. But a lender’s reputation is not more important than your cost. If you are still considering Biz2Credit, get a loan estimate from it, calculate the estimated APR or ask for the APR in writing and compare it to offers from similar competitors.

A free contract review costs nothing and takes a day or two. Call (888) 837-7053, or send the agreements to Delancey Street for a straight read on your options.