Bizfi is a third party lender that works with alternative lenders rather than banks to provide small businesses with loans. Bizfi works with companies such as CAN Capital, OnDeck, Kabbage, and more. If you already know you want to work with one of these companies, we recommend borrowing directly from the lender. Bizfi may overcharge for loans to cover commission. Bizfi’s parent company, Merchant Cash and Capital (MCC), states it has provided over $1.3 billion in financing to over 26,000 companies since 2005. Bizfi can assist companies throughout the U.S. and it provides loans for many different industries, including food service, retail stores, construction firms, travel companies, doctors’ offices, and architectural and engineering firms.
Bizfi has branched out from the short-term funding its founding company MCC provided. In an interview with Crowdfund Insider in 2015, MCC and Bizfi founder Stephen Sheinbaum explained that the company has seen a 79% growth in funding provided to small businesses from the second quarter of 2015 versus the second quarter of 2014. The funding options Bizfi offers include lower interest options, such as SBA loans that are backed by the U.S. government. If businesses qualify for funding offers from more than one company, Bizfi shows applicants all of the funders and their funding terms, so business owners can compare payment options before selecting the loan they want.
You apply once for funding through Bizfi and you get a report of what types of funding are available for your business. You use Bizfi’s portal to download the funding contract and upload the documents you are required to provide. Once you are approved for funding, you can use Bizfi’s portal to view your payment terms, contact your assigned Bizfi funding specialist, and apply for additional funding.
Bizfi states you can be approved instantly and receive some types of funding in as little as 24 hours. Businesses can receive funding for medium-term loans in 1-2 weeks and for SBA loans in 2-4 weeks.
Bizfi can help you access some types of funding if you have been in business for as little as three months. The minimum monthly revenue you can have to locate funders on Bizfi is as low as $10,000 per month.
You do not have to have perfect credit to get funding through Bizfi. The company’s portal will locate funders for business owners who have credit scores of as low as 0 – 499.
Bizfi is not limited to providing funding to certain states. The company’s website also states it has located funding for nearly every type of industry since its parent company was founded in 2005.
Bizfi’s website does not contain much information about how much it will cost you to get a loan. The company does not list a range of interest rates or APRs for the various types of funding or include information about any fees lenders charge in addition to the interest rates. In an interview with Forbes, Sheinbaum said Bizfi charges a 3% commission for arranging funding, which is added to the cost of the financing, but the funding companies that partner with Bizfi may also charge fees. Bizfi also claims to partner applicants with a “funding concierge” who will assist them with selecting a financing option, but there is no information on Bizfi’s website about its staff, their level or education, or their experience in the small business financing arena, so business owners cannot be sure they are working with experienced and qualified personnel.
Here are areas where we think Bizfi can improve its service:
Better Information On Loans
Before they apply for a loan, customers should be able to access information about the rates and any fees they may be charged when applying for funding through Bizfi. With the scarce information the company includes on its site, it is not possible to determine if Bizfi provides affordable funding sources compared to other online funding marketplaces. Information the company should consider adding to its website includes:
- Interest Rates for each type of loan
- Requirements for credit score to qualify for a specific types of funding
- Prepayment penalties
- Fees (origination, closing, etc.)
Bizfi’s portal is a good place to include information about how and when businesses should use loans and other forms of credit. Bizfi’ could also educate business owners about how their personal credit scores and credit histories can impact their businesses’ ability to borrow.
No Better Business Bureau (BBB) Rating
Bizfi’s BBB rating was under review at the end of 2015 so the company’s rating could not be accessed and there was no information on the BBB’s website about positive or negative consumer reviews. As of the end of 2015, it is unknown if Bizfi is a BBB accredited business.
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