Biz2Credit Does for Small Business Lending What Amazon Did for Online Shopping

Regardless of industry, size or location, all businesses need capital to grow. Many small business owners hesitate to approach banks directly, in part, because applying for a loan is time consuming, costly, and intimidating — with no guarantee of getting approved. Thus, entrepreneurs often resort to using personal credit cards, home equity lines, or their own savings to fund businesses. Biz2Credit helps connect entrepreneurs with small business loans, lines of credit, and other services they need to grow.
 Biz2Credit Does for Small Business Lending What Amazon Did for Online ShoppingBiz2Credit matches small businesses with credit solutions based on online profiles that can be completed in less than five minutes in a safe, efficient, price-transparent environment. Its network consists of 1.6 million users, 450+ lenders, credit rating agencies such as D&B and Equifax, brokers including BizBuySell and small business service providers such as American Express, Paychex, and HP.
Funders include large banks, regional and community banks, credit unions, Community Development Financial Institutions (CDFIs), micro lenders and asset-based financers. Types of funding include startup financing, SBA loans, 504 Loans (for fixed-assets such as land and buildings), micro loans, business lines of credit, and equipment financing.
Using their own savings, co-founders Rohit Arora and his brother, Ramit Arora, established the company in 2007,just before the “Credit Crunch” hit. The Indian natives originally focused their efforts on helping fellow members of the South Asian community and later realized that immigrant entrepreneurs of all backgrounds found the loan application process intimidating.
“Biz2Credit was able to secure a loan for me in 2009 when no one wanted to lend to small businesses,” said Nisha Khanna, owner of a Sweet & Sassy franchise in Old Bridge, NJ, who was rejected by several banks before turning to Biz2Credit for help. “Even though I already owned a successful company and had a solid business plan, it was very difficult to get a loan. They were able to secure $300,000 in financing and helped me get the business up and running.
“Small business owners, particularly those who were not born in the United States, have a difficult time overcoming language and cultural barriers. It can be intimidating to ask for money – especially if English is not your first language or if you come from a background in which borrowing money is frowned upon,” said Biz2Credit CEO Rohit Arora. “Many small business owners are too busy running their companies and may not have the time, knowledge or skill set to handle their finances. We simplify the process for them and demystify the loan application process and in many ways work as a quasi-CFO for entrepreneurs who might not otherwise be able to complete the loan application processes effectively on their own.
Ironically, as lenders tightened access to credit following the collapse of Lehman Brothers in 2008, Biz2Credit experienced growth and expanded beyond immigrant communities. Companies that previously would have encountered little difficulty in securing capital were finding that banks were no longer as willing to lend to them. Because of the credit crunch, small business owners were willing to take a chance by registering with Biz2Credit’s site to try to secure financing. The online platform has exposed entrepreneurs to the benefits of using technology to shop for business loans in the same way that Amazon introduced consumers to online shopping.
Since its founding nearly five years ago, Biz2Credit now has arranged more than $500 million in funding to small business owners and now processes more than 6,000 new loan applications each month. The company is widely recognized as the #1 online credit resource for small businesses. and publishes a monthly Biz2Credit Small Business Lending Index that tracks the success rates of companies that apply for funding at big banks, small banks, credit unions and other so-called alternative lenders.
Biz2Credit is a member of the Startup America Partnership, created by the White House in early 2011 to spur small business growth. Additionally, Rohit Arora has consulted with members of the President’s Council of Economic Advisors to report on trends in small business financing and suggest policies to ease credit for budding entrepreneurs. Rohit and Ramit Arora were named “Top Entrepreneurs of 2011″ by Crain’s New York Business magazine and are frequently quoted by Bloomberg, Reuters, The Wall St. Journal, Entrepreneur, American Banker, TheStreet.com, Credit Union Times and other media that cover small business financing.
Registration on Biz2Credit is free. However, the company also offers varying levels of subscription services that include phone support and case management to assist borrowers through the entire lending process starting with the initial application form and ending on the day the loan closes.
“It is not just mom-and-pop shops that come to us for financing,” says Ramit Arora. “Increasingly, we are getting funding requests from professionals such as CPAs, architects, attorneys and doctors who are looking to expand their practices and sometimes need millions of dollars worth of financing.”
Biz2Credit recently introduced its BizAnalyzer™ tool. Using information from credit ratings agencies D&B and Equifax, BizAnalyzer provides a free financial check-up for small business owners. It enables small business borrowers to download and review their credit scores and benchmarks the company’s risk against industry peers, as well as the lending criteria of the financial institutions in the Biz2Credit lending network. Factoring in the credit ratings that ultimately impact credit decisions by lenders, Biz2Credit then suggests the best loan options available.
“When asked if I would recommend Biz2Credit to other small businesses, my answer is a resounding ‘Yes!’,” said Dr. Michael Jackson, a Brooklyn-based dermatologist, who needed to expand his office to accommodate an increasing number of patient visits and cosmetic procedures. “In Biz2Credit, I found an advocate who did more than just their due diligence. They helped me get through the financial maze, streamlined everything and enabled me to get back to running my business, which is taking care of people.”

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