Reported by: banking|Updated: August 3, 2018
With more than 1.1 million users, mostly SMEs, Biz2Credit, founded in 2007, is counted as one of the most trusted online credit resources in the US having arranged funding of more than $2 billion. It is described as a hub that connects small business owners with lenders and service providers and its network today consists of 1.6 million users, credit rating agencies and small business service providers including CPAs and lawyers. It has raised funding of over $1.4 billion in financing. The company had launched its India operations specifically targeting SMEs. Biz2Credit is founded by 2 Indians, Rohit Arora and Ramit Arora.
Ramit Arora tells Banking Frontiers in an interaction: “What really makes Biz2Credit so different is that we’re an end-to-end funding and technology provider. Unlike many financing companies, we’re truly built to cover every aspect of the funding process from origination to underwriting to closing to servicing and monitoring. Even more impressively, we’ve managed to automate a huge amount of the process at every step along the way. Business owners are finding us organically or through our large ecosystem of partner products and services. They’re filling out a simple application form which gives them a result in minutes, not weeks. Our underwriting process is without equal – we have developed such a level of expertise in assessing risk through our algorithmic underwriting standards that we have major banks now coming to us and asking us if we can implement the same technology for them as well. Compared to our competitors, we have the lowest default rates in the industry. Whereas most funders in alternative finance see defaults around 8% of gross, we average a 2% default rate on unsecured lending products,” he adds.