When you need a business loan, you are often faced with steep requirements. Time in business and credit score requirements can be hard to meet. But there are some alternatives that offer decent rates as well. One of those alternatives is Biz2Credit. So, let’s go over the Biz2Credit requirements and see if they have an offer for you.
What Is Biz2Credit?
Biz2Credit is an older, more experienced online business lender. The company has been around since 2007. During their time in business, Biz2Credit has arranged over $2 billion in funding to over 100,000 small businesses.
The idea behind Biz2Credit is connecting businesses with business financing quickly and securely. But more recently, they switched to direct lending services. Despite that, they’ve retained their low minimum requirements and 4-minute application process. So, if you need fast approval on business funding up to $6 million, Biz2Credit is worth looking into.
What Are The Biz2Credit Requirements?
To access the Biz2Credit platform, all you need is a stable business income. There are no stated minimum revenue or time-in-business requirements.
Meeting the bare minimum requirements doesn’t guarantee that Biz2Credit will approve your loan applications. But if you have a credit score of at least 560, you should have access to at least a few of their loans. The thing is that they don’t state minimum requirements, but they will ask you for information on:
- Your time in business
- Your revenue
- The purpose of your funding
While lower qualifications will get you rejected with many lenders, with Biz2Credit they will often just offer you higher rates.
What Kinds Of Loans Can You Find?
You can find many business loan types on Biz2Credit. The requirements for these loans vary widely.
SBA Loans
Small Business Administration (SBA) loans offer the best rates and terms of all the loan types you’ll find on Biz2Credit. These loans are only available to the most qualified businesses. There are multiple requirements you need to meet to access SBA loans.
SBA loans are available to business borrowers with:
- FICO SBSS scores of 140 or more
- At least 2 years in business
- At least $50,000 in annual revenue
Not all SBA loans are the same, but you can get your foot in the door with these qualifications. Your personal FICO credit score will also be taken into account when you apply for an SBA loan.
Merchant Cash Advances
Merchant cash advances (MCAs) are business advances. They are provided very quickly in exchange for a portion of your future credit card sales. So, they come with:
- Fast approval times
- Potentially high funding
- High factor rates
- Shorter repayment terms
The good thing about MCAs is that they have very low requirements. If you have a credit score of at least 560 and stable monthly revenues of at least $5000, you should qualify for one with Biz2Credit. But keep in mind that MCAs work differently from other business financing options. Make sure you understand the terms you are offered before taking one.
Commercial Real Estate Loans
Commercial real estate (CRE) loans are quite different from residential real estate loans. But they can be used to finance purchases of any property meant for business purposes. Residential properties are excluded, but income-producing businesses including hotels can use CRE loans.
You can get CRE loans through the SBA 504 loan program. The requirements will be similar to any other SBA loan’s requirements.
Working Capital Loans
Working capital loans can be taken out for any working capital expenses. These expenses include any day-to-day expenses necessary to keep your business operating. Those expenses include:
- Payroll
- Rent
- Bills
The qualifications for working capital loans vary widely.
Business Term Loans & Lines Of Credit
Lastly, Biz2Credit offers business term loans and lines of credit. If you meet Biz2Credit’s minimum requirements, you should qualify for one of these simple loans.
Alternative lenders often offer term loans and lines of credit to bad-credit borrowers. So, you should qualify for one of these loans if you have:
- A minimum credit score of 560
- At least 3 months in business
- Annual revenues of at least $50,000
But if you only meet these base requirements, you can’t expect good rates. The higher your credit score and revenues are, the better the rates you’ll be offered. Higher revenues will also get you access to larger loans.
What Else Do I Need To Know About Biz2Credit Requirements?
Biz2Credit can give you with loans of $6,000 to $6,000,000. To gain access to the higher loan sums, you will need higher revenues.
While we’ve gone over the basic requirements for Biz2Credit loans, the Biz2Credit requirements cannot be easily defined beyond that. Many of their partners will have higher standards than the ones listed here.
Fortunately, it’s easy for you to find out what you qualify for. You can simply sign up with Biz2Credit and look into the loans they can offer you.
