At a Glance
Rating Breakdown
About BizFi
Founded in 2005 and headquartered in New York City, BizFi operates as both a direct merchant cash advance funder and an online lending marketplace, a dual model that gives it flexibility most competitors lack. The company has moved over $2 billion in funding to small businesses across the United States through a combination of direct balance-sheet funding and connections to a network of third-party lending partners. Originally operating as 1st Merchant Funding, the company rebranded to BizFi as it expanded from pure direct funding into the marketplace model. BizFi's marketplace model is its primary differentiator and the reason a business might choose them over applying to a single direct funder. When you apply through BizFi, your application is simultaneously analyzed against BizFi's own underwriting criteria and submitted to their network of lending partners. Within hours, you receive multiple competing offers from different funding sources, each with their own factor rates, advance amounts, and repayment structures. This competitive bidding dynamic can drive rates down because funders are competing for your business rather than making a take-it-or-leave-it offer. BizFi assigns a dedicated financing advisor who walks you through each offer, explains the differences, and helps you select the option that best fits your situation. Through the marketplace, BizFi can connect businesses with MCAs, term loans, lines of credit, SBA loans, invoice factoring, and equipment financing. The downsides are transparency and cost. Because BizFi operates as a marketplace, your application data is shared with multiple third-party funders, which raises privacy considerations that direct-to-lender applications do not. Factor rates through the marketplace can vary widely (1.10 to 1.50) depending on which funder wins your business, and the marketplace model introduces intermediary costs that may not be present when going directly to a funder. BizFi's B+ BBB rating is lower than top-tier competitors like OnDeck (A+) or Kapitus (A+), which suggests mixed customer experiences. However, for businesses that have been declined by individual funders or want to comparison-shop without submitting separate applications to a dozen companies, BizFi's one-application-multiple-offers model saves significant time and often surfaces funding options the business would not have found on its own.
Key Features
Marketplace Model
One application is submitted to multiple lenders simultaneously, generating competing offers that allow you to compare rates and terms before committing.
Direct Funding Available
BizFi also funds advances directly from its own balance sheet, giving it the flexibility to fund deals that its marketplace partners may decline.
Wide Range of Products
Through its marketplace, BizFi connects businesses with MCAs, term loans, lines of credit, SBA loans, invoice factoring, and equipment financing.
Business Financing Advisor
Each applicant works with a dedicated financing advisor who helps evaluate offers, explain terms, and guide the selection process.
How It Works
Single Application
Complete one online application that is shared across BizFi's direct funding arm and its network of lending partners.
Multiple Offers
Receive competing offers from multiple funding sources, allowing you to compare factor rates, advance amounts, and repayment structures.
Advisor Consultation
Work with a BizFi financing advisor who explains each offer, highlights the differences, and helps you select the best option.
Choose & Fund
Select the offer that best fits your needs, sign electronically, and receive funds within 1-3 business days.
What They Do
- Merchant Cash Advance
- Term Loans
- Line of Credit
- SBA Loans
- Invoice Factoring
- Equipment Financing
Debt Types They Take On
- Merchant Cash Advance
- Short-Term Loan
- Revenue-Based Financing
- Working Capital
- Invoice Factoring
- Equipment Financing
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Clothing Retailer Seasonal Inventory After Two Declines
A clothing retailer in the Bronx doing \$48K/month in revenue with seasonal spikes to \$85K in November-December needed \$75K for fall inventory. Two direct MCA funders had declined the deal because the monthly revenue fluctuated between \$32K (summer lows) and \$85K (holiday highs), and their automated underwriting systems flagged the inconsistency as high risk.
Trucking Company Equipment Financing Match
A small trucking company in northern New Jersey with 4 trucks generating \$110K/month needed \$250K to purchase two additional Freightliner Cascadias. The company had been quoted 1.35 to 1.42 factor rates by MCA providers, but the owner wanted to explore equipment financing where the trucks themselves could serve as collateral to reduce cost.
Pros & Cons
Pros
- One application generates multiple competing offers from different funders, saving the time of applying separately to each
- Dual model provides both direct BizFi funding and third-party marketplace matches, increasing the odds of approval even after individual declines
- Wide range of financing products beyond MCAs including term loans, SBA loans, invoice factoring, and equipment financing through marketplace partners
- Dedicated financing advisors walk you through each offer and explain the differences, which is valuable for first-time borrowers
- Competitive bidding among funders can drive factor rates lower than you would receive from a single direct application
Cons
- Marketplace factor rates can range as high as 1.50, meaning the worst offers through BizFi may be more expensive than going to a competitive direct funder
- B+ BBB rating is lower than top-tier competitors like OnDeck (A+) or Kapitus (A+), suggesting mixed customer satisfaction
- Application data is shared with multiple third-party funders, raising privacy considerations that do not exist with direct-to-lender applications
- Marketplace intermediation may add broker fees or commissions that are not always transparently disclosed to the borrower
User Reviews (30)
fast funding, fair rates, no complaints
Easy process, funded $40,000 for my boutique. Factor rate 1.22 is fair for what it is. Daily ACH of $244 is manageable.
post-funding support is basically nonexistent
The approval process with BizFi was fine. What happened after funding was the problem. I needed to adjust my daily payment by like $50 during my slow month and they completely stonewalled me. Zero flexibility. It's all smiles and helpfulness until you sign the contract, then good luck getting anyone to work with you. Got $20,000 at 1.44 -- the rate was fine, the post-funding experience was not.
reliable but not the cheapest option
BizFi approved me for $10,000 with a 610 credit score which was honestly surprising. Factor rate was 1.25 so total repayment is $12,500. It's a lot of money in fees but I needed capital and banks weren't an option. The money went to rent during slow season and ROI has been positive. Would use again but plan to shop harder next time.
would recommend to any small biz owner
BEST DECISION I MADE THIS YEAR was going with BizFi instead of the broker who was trying to get me to stack two advances from different companies. Got $35,000 in one clean position at 1.26. Repaying $221/day which is about 6% of my daily deposits. Clean and simple. My accountant said this was the least predatory MCA contract he's reviewed.
exactly what they promised, nothing hidden
Got $175,000 from BizFi for my e-commerce store. The whole process was honestly smoother than I expected -- applied on a Monday, had the money in my account by within 24 hours. Factor rate was 1.23 which tbh is way better than the 1.27 I was quoted by Capytal. Daily ACH is $1,076 which is manageable on my $18K/month. Already halfway through repayment and zero issues. Would 100% use them again.
the daily ACH will bankrupt you
Filed a complaint with the BBB after my experience with BizFi. Took $40,000 at 1.32, daily ACH $264. When I had a family emergency and needed to defer payments for a week they refused. When I asked them to release the UCC lien after payoff they dragged their feet for 6 weeks. Every interaction after funding felt adversarial. Their whole business model depends on you being desperate enough to accept bad terms.
honestly couldn't be happier with the experience
BEST DECISION I MADE THIS YEAR was going with BizFi instead of the broker who was trying to get me to stack two advances from different companies. Got $50,000 in one clean position at 1.16. Repaying $290/day which is about 17% of my daily deposits. Clean and simple. My accountant said this was the least predatory MCA contract he's reviewed.
third time using them, keeps getting better
tbh I was skeptical about MCAs after hearing horror stories but BizFi has been completely legit. $200,000 at 1.22 factor rate, $1,220/day in payments. They were upfront about everything -- total cost, payment schedule, the UCC lien filing. No surprises. Used the money for an HVAC system replacement and it's already paying for itself. Solid experience overall.
reliable but not the cheapest option
Used BizFi for $8,000 to cover a catering van. Factor rate of 1.20 is competitive -- I shopped around and Capytal quoted me 1.10 for the same amount. The process was straightforward and my rep was helpful. My only gripe is the UCC lien took 3 weeks to get removed after I paid off in full. Had to call twice about it.
they did what they said, but so does everyone
fwiw BizFi did what they said they'd do. $50,000 funded in the next business day, factor rate 1.33, daily debits of $333. Nothing was hidden. But idk... paying back $66,500 on a $50,000 advance just hurts when you see it all laid out. This industry needs more regulation tbh. Not BizFi's fault specifically but MCA pricing in general is rough.
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Important Merchant Cash Advance Disclaimers
- A merchant cash advance is not a loan. It is a purchase of future receivables at a discount. Factor rates, not APRs, are used to express the cost of capital. Effective APRs on merchant cash advances can range from 40% to over 350% depending on the term and factor rate.
- Repayment is typically collected daily or weekly via automatic ACH debits or a percentage of credit card sales. This means your repayment amount fluctuates with revenue but withdrawals occur every business day, which can strain cash flow during slow periods.
- Most MCA agreements require a personal guarantee from the business owner. In the event of default, the MCA provider may pursue the owner's personal assets, including bank accounts and property.
- MCA providers commonly file UCC-1 liens against your business assets. This lien may prevent you from obtaining additional financing until the advance is fully repaid and the lien is released.
- Merchant cash advances are not regulated by federal lending laws such as the Truth in Lending Act (TILA). State regulations vary widely, and some states have limited consumer protections for MCA products.
- Stacking multiple merchant cash advances (taking a second advance before the first is repaid) significantly increases the risk of default and can lead to aggressive collection actions including confessions of judgment in some jurisdictions.
- Zogby does not provide merchant cash advances or business financing. We are an independent comparison service. We do not fund advances, process applications, or guarantee approval on your behalf.
This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.
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