PROS / You can receive a rebate if you repay your advance early.
CONS / You may have to pay an origination fee.
VERDICT / Bizfi offers up to $500,000 in cash advances per location, so this is a good choice if you have multiple business locations and you need money for each spot.
Bizfi, formerly known as Merchant Cash & Capital, extends merchant and business cash advances, from $5,000 up to $500,000 per business location. Founded in 2005, it has provided more than $1.7 billion in financing to over 30,000 small businesses in the United States. It works with multiple industries as well as sizes and has some programs especially geared toward the medical industry.
Although the lender doesn't require repayment minimums to be considered current on your advance and there is no application cost, you may have to pay an origination fee, which could cost up to $500.
This is unsecured alternative business funding, which means you aren't required to back the loan with collateral. You're also not required to provide a personal guarantee. This is one of just four lenders we evaluated that offer a discount if you repay your advance ahead of schedule, which makes it a worthwhile option if you're planning to repay your loan quickly.
Bizfi expects you to meet a few requirements for eligibility. You need to have been in business for at least three months and process at least $10,000 in credit and debit card sales. Along with your application, you need to submit your four most recent months of business bank account statements and credit card processing statements. Like most lenders, this company checks your personal credit. You can find the lender's minimum requirements on its website. You can apply online and could receive funding as soon as one day after approval.
If a merchant cash advance does not work for your business, Bizfi offers other financing options, such as medium-term loans and special financing for equipment, franchises and medical equipment. Thus, you may still be able to work with the company to get the funding you need.
During our testing, we reached out to Bizfi. The representatives we spoke to were forthcoming with information and replied to our queries in a timely manner. If you have questions about Bizfi or the application process, you can reach a customer representative via live chat as well as phone or email. It does not provide phone quotes, however. You can also find success stories online.
You have a few options for repaying your merchant loans. If you choose to repay the money you earn daily through your business as a percentage of your credit card sales, discuss the hold back rate with the representative, as these vary according to the deal you set. Bizfi works with 15 credit card processors, but if your current credit card processor isn't compatible with the lender, you may be required to switch your processor or choose the business cash advance repayment option, which is a set daily repayment the lender withdraws from your business bank account instead of the daily percentage repayment option.
Repayment terms are between three and 15 months, and there's no penalty if it takes longer than anticipated to repay your merchant cash advance. However, if you pay off the advance early, you may qualify for a discount.
A working capital loan for small businesses from Bizfi is a good solution if you're planning to repay it quickly and qualify to receive the early repayment discount. Even though the rates are average, the high end is at 30 percent. Also, it may charge you an origination fee, which could be up to $500. The repayment terms are flexible, and you can repay the advance as either a daily percentage of your credit card sales or a daily set amount that the lender withdraws from your business banking account.