ByzFunder Merchant Cash Advance Review 2023
Loan Amount
Factor Rate
Terms
Min Credit
Time to Fund
Company Profile
ByzFunder is a financial institution that provides alternative lending solutions to small and medium-sized businesses. The company has a strong track record, having provided over $350 million in total financing to over 7,000 businesses. The team at ByzFunder has a collective total of more than 100 years of industry experience, which they leverage to provide tailored financial solutions to their clients. The company operates in all 50 states in the USA.
The company prides itself on its customer-centric approach, offering superior customer service and a dedicated underwriting team. They aim to provide flexible rates, terms, and repayment options to allow for the continued growth of their clients' businesses. ByzFunder also boasts a high approval rate and the ability to provide funding in as little as 24 hours.
Products & Services
ByzFunder offers a range of business funding programs. These include short-term financing, which operates like a term loan but with a repayment period typically ranging from three to 18 months. They also offer merchant cash advances, which are cash advances paid back with a specified percentage of daily credit card sales. Additionally, ByzFunder provides bridge financing, an interim financing option used until a long-term financing solution becomes available.
The company offers financing amounts ranging from $5,000 to $500,000 based on business qualifications and needs. The rate is determined by various factors, including business profile, business revenue, cash flow, industry type, and credit profile. The application process is streamlined and quick, with many clients experiencing same-day funding.
Pros and Cons
Pros:
1. High approval rate: ByzFunder boasts a high approval rate for their financing options.
2. Quick funding: The company can provide funding in as little as 24 hours.
3. Flexible terms: ByzFunder offers flexible rates, terms, and repayment options.
4. Customer service: The company prides itself on its superior customer service and dedicated underwriting team.
5. Wide range of financing options: ByzFunder offers a variety of financing options to suit different business needs.
Cons:
1. Short-term financing: The repayment period for short-term financing is typically much shorter than a regular term loan, which may not suit all businesses.
2. Merchant cash advances: These are tied to daily credit card sales, which may fluctuate and impact repayment.
3. Limited to businesses in the USA: ByzFunder only services businesses based in the USA.
4. Minimum requirements: Businesses must be at least six months in operation and have at least $10k a month in revenue to qualify.
5. Lack of transparency: The rate is determined by various factors, which may not be fully transparent to the applicant.
Ideal Customer
The right type of customer for ByzFunder's services is a small to medium-sized business based in the USA that has been in operation for at least six months and generates a minimum of $10,000 in monthly revenue. These businesses should be looking for flexible, quick, and tailored financing solutions to support their growth and operational needs. They should also be comfortable with the repayment terms associated with the financing options offered by ByzFunder.
Required Documentation
To apply for funding with ByzFunder, businesses need to complete a quick online form and attach three months' worth of banking statements. Unlike traditional banks and credit unions, ByzFunder does not require a business plan, tax returns, details about any current and past business loans, or copies of applicable business licenses and legal documents. This streamlined application process makes it easier and quicker for businesses to secure the financing they need.
Industries and Restrictions
ByzFunder works with a wide range of industries, providing tailored financing solutions to meet their unique needs. However, some industries may not receive loans or financing from ByzFunder due to strict compliance laws. For example, high-risk industries like the cannabis industry may not be eligible for financing solutions from ByzFunder.
State of Operations
ByzFunder services businesses in all 50 states in the USA. There are no specific state restrictions mentioned, suggesting that as long as a business is based in the USA, it can apply for and receive financing from ByzFunder.
Basic Qualifications
To qualify for ByzFunder’s alternative lending, businesses must have been in operation for at least six months, generate a minimum of $10,000 in monthly revenue, and be based in the USA. The company does not conduct a hard credit pull, suggesting that the credit profile of the business may not be a significant factor in the approval process.
Collateral or Guarantees
The information provided does not specify whether collateral or guarantees are required for ByzFunder's products. However, it is noted that approval rates are high and that the company does not conduct a hard credit pull, suggesting that the financing options may not require significant collateral or guarantees.
Alternatives
While ByzFunder offers a range of financing options, businesses may also consider traditional banks and credit unions for their financing needs. These institutions often offer a range of small business loans, including those backed by the Small Business Administration (SBA). However, they often have tighter borrowing standards and require more documentation for the application process. Online alternative lenders may also be a viable option, offering more flexible borrower qualifications and potentially higher approval rates.