TL;DR
Biz2Credit's term loan product is fine, APR 7.99-29.99%, real eligibility requirements, transparent pricing. Their revenue-based financing product, which is what most of their customers actually use, is closer to a merchant cash advance: factor rates of 1.5-3.5% per month, daily or weekly withdrawals, undisclosed total cost. They have a B rating with the BBB and a $33M FTC settlement from March 2024 for deceptive PPP loan promises. Frank gets you to traditional bank financing, vanilla, transparent, significantly cheaper, and we never broker MCAs or RBF products.
Side by side
$120K ($10K/month)
$250K
$0 Fees. Always
Frank charges you nothing. We only broker traditional bank loans.
Biz2Credit charges $250-$450 in underwriting fees plus 0-8% origination on revenue-based financing, a product structurally similar to an MCA. Frank only works with banks. We don't broker MCAs, RBF, factor-rate products, or anything dressed up to look like a loan that isn't one. Our incentive is closing real bank loans at real bank rates.
Biz2Credit, founded in 2007, has provided more than $8 billion in small business financing for over 200,000 US companies. There's real scale here. Where they execute, they execute.
The term loan product is reasonable. APR 7.99%-29.99% with 12-36 month terms, transparent pricing, monthly payments, and a $250-$450 underwriting fee. For a strong borrower (650+ FICO, 18+ months in business, $250K+ revenue), Biz2Credit's term loan can be competitive on the low end of their range.
Multiple product lines. Term loans up to $1M, revenue-based financing up to $6M, commercial real estate loans up to $6M.
Fast decisions on smaller deals. 24-hour application decisions. Funding within 72 hours.
4.7 stars on Trustpilot. Customer reviews lean positive on responsiveness and process speed.
Lower credit threshold for revenue-based financing. A 575 FICO is unusually accessible for an SBA-adjacent product — though the pricing reflects that.
The cleaner term loan product gets the marketing. The revenue-based financing — which Biz2Credit explicitly says "most of [our] customers use" — is where the issues are.
Revenue-based financing is structurally an MCA. Factor rates of 1.5-3.5% per month sound small. They're not. A 3% monthly factor rate translates to roughly 36% effective annual cost, but because RBF is paid back through daily or weekly withdrawals tied to a percentage of revenue, the actual effective APR depends on how fast you pay it back — operators paying it back faster than expected end up at effective APRs north of 60%. Compounded by 0-8% origination on top.
The pricing is undisclosed on Biz2Credit's website for RBF. You don't see your factor rate, total cost, or repayment terms until you've already applied and submitted documents. This is the same pattern used by MCA lenders. Real banks publish their rate ranges.
Daily and weekly withdrawals from your business checking account. Like MCAs, RBF takes payments out of your account multiple times per week. For a seasonal trade business, landscaping, HVAC, roofing, those daily debits don't pause when revenue dips, which is when operators most need their cash flow.
The $33M FTC settlement. In March 2024, the Federal Trade Commission took action against Biz2Credit for making deceptive loan promises related to the PPP program during COVID. Biz2Credit settled, agreeing to pay $33 million in damages to the small businesses affected. This is on the public record.
B BBB rating, not A+. Most major lenders in this category are A+ rated. Biz2Credit is B. The BBB has not accredited the company. That's a yellow flag worth understanding.
Term loan eligibility shuts out a lot of operators. Their term loan requires $250K+ annual revenue, 18+ months in business, and a 650+ FICO. Their revenue-based financing has lower thresholds — and significantly higher cost. The operator who wants the term loan but doesn't qualify often gets steered into the RBF instead.
When Frank is the better fit
Frank's positioning here is straightforward: we don't broker revenue-based financing or MCAs. Period.
You qualify for traditional bank financing. If you have $120K+ in revenue and 640+ FICO — accessible to many more operators than Biz2Credit's $250K/650 term loan threshold — you qualify for bank financing through Frank. Banks underwrite the same data. The difference is rate. A bank term loan from 6% APR vs. Biz2Credit's term loan APR up to 30%. On a $250K loan over 36 months, that delta is $40,000-$80,000 in interest.
You don't want daily withdrawals from your account. RBF and MCA products debit your account daily or weekly because they're structured around your revenue stream, not around predictable monthly amortization. Bank loans have monthly payments aligned with how operators actually budget. Frank only brokers loans with monthly repayments.
You want transparent pricing before you apply. Banks publish their rate ranges. SBA lenders publish their fee schedules. Frank shows you what bank financing actually costs in your profile before you commit. RBF and MCA providers don't, and that opacity is by design.
You're a trade or services operator who needs real growth capital. Buying a building, financing a fleet upgrade, acquiring a competitor, building out a second location — these are bank-financing situations, not RBF situations. Frank specializes in trade-business growth capital.
You need real estate financing. Biz2Credit's CRE product caps at $6M with rates from 10% over 12-36 month terms. SBA 504 — which Frank brokers from 5% APR with up to 25-year terms — is dramatically better for owner-occupied commercial property. If you're buying your shop or yard, SBA 504 is the right product.
You need invoice financing. Biz2Credit doesn't offer it. Frank brokers it from 1% per period — vastly cheaper than RBF for most B2B/B2G trade businesses.
You want to avoid the regulatory gray area entirely. The FTC's 2024 action against Biz2Credit was specifically about deceptive practices around PPP loans. Frank works with traditional banks under traditional banking regulation.
How to decide
Do you have $250K+ revenue, 650+ FICO, and 18+ months in business, and you're considering Biz2Credit's term loan? → You qualify for bank financing too. Apply with Frank first, bank rates from 6% APR, Biz2Credit's term loan goes to ~30%. The savings are substantial.
Are you considering Biz2Credit's revenue-based financing because you don't qualify for the term loan? → Stop. Apply with Frank first. Many operators who think they don't qualify for bank financing actually do, especially in trades. If we can't get you bank financing, we'll tell you honestly. We won't sell you an MCA dressed up in different vocabulary.
Do you need real estate financing or business acquisition financing? → Frank routes these to SBA 504 (real estate from 5%) or SBA 7(a) (acquisition from 9.75%). Dramatically better than Biz2Credit's CRE product.
FAQ
What's the difference between revenue-based financing and a merchant cash advance? Functionally, very little. Both are paid back as a percentage of future revenue. Both use factor rates instead of APR. Both withdraw funds daily or weekly. The main distinction is regulatory framing. From the operator's cash flow perspective, the differences are minor.
How does the factor rate math work? A factor rate of 1.5-3.5% per month sounds modest. But that's per month, not per year. A 3% monthly factor rate compounds to approximately 36% annually before any origination fees. With Biz2Credit's 0-8% origination fee added on top, total cost can hit 40-60% effective APR.
What was the FTC settlement about? In March 2024, the FTC alleged Biz2Credit made deceptive promises to small businesses about Paycheck Protection Program loans during COVID. Biz2Credit settled and paid $33 million in damages. The settlement is on public record.
Is Biz2Credit's commercial real estate loan competitive? Their CRE product caps at $6M with 12-36 month terms and rates starting at 10%. For comparison, an SBA 504 loan for owner-occupied commercial real estate goes up to $5.5M with terms up to 25 years and rates from 5%. If you're buying your shop or yard, SBA 504 through a bank (which Frank brokers) is almost always the better path.
Why does Biz2Credit have a B rating with BBB? The BBB scores companies based on complaint volume, response history, and other factors. Biz2Credit is not BBB-accredited and holds a B rating. Competitors like OnDeck, Bluevine, Lendio, and Funding Circle all hold A+ ratings.
Can I refinance a Biz2Credit RBF into a bank loan? Often, yes — and we recommend it for operators stuck in expensive RBF or MCA debt. A bank term loan can buy out an RBF balance and replace it with a much lower monthly payment. Apply and we'll tell you if you qualify.
Bank financing exists. You probably qualify. Don't pay 30%+ APR for capital you can get for 6%.
Frank pre-qualifies your business in 3 minutes and shows you what real bank financing looks like in your profile. If we can't get you a bank loan, we'll tell you. We don't broker MCAs, RBFs, or anything dressed up to look like one. $0 fees, ever.
Let's talk