Biz2Credit is onto something. The company plays matchmaker between loan seekers and financial institutions, but behind the scenes there’s much more happening. The company integrates Quickbooks – Intuit’s business accounting program – allowing Biz2Credit to sync a company’s entire financial history including debts, payments, and payroll runs and analyze that data on the go.
Since launching four and a half years ago, Biz2Credit has connected over 11,000 businesses with $650 million in funding. Even the SEC and Federal Reserve pull data from Biz2Credit for insights on the Small Business Index. The information they collect (anonymously) on payroll runs shows who’s hiring and who’s firing. And they’re working with AMEX to provide more accurate analytics to sharpen their targeting.
Biz2Credit’s main analytics center comes in the shape of an app, BizAnalyzer, that provides users and Biz2Credit with deeper analytics on businesses through the information provided. That’s where the credit matching company is getting a lot of attention. Rohit Arora, the company’s co-founder, says Biz2Credit can predict a Wall Street slowdown. With many of their users being restaurants based around the financial hub, a decreased cashflow on the books at those restaurants is generally a bad day on Wall Street.
Rohit Arora launched Biz2Credit four and a half years ago with the aim of providing stepping stones for small businesses on how to negotiate the murky field of securing credit. His primary audience (he thought) would be Indian and minority business startups. But after the financial crisis, several small businesses turned up at his door.
For Rohit, the most important point at Biz2Credit came after they had designed the online platform that takes in asynchronous content from several financial institutions while at the same time pulling information from potential credit seekers. All the info is matched together by Biz2Credit, flowing in from differing application standards with no benchmarks. Pulling that much fragmented data together was a massive feat, and the financial institutions wanted a way to pull potential customers from his platform to their service. But Rohit rejected. Instead, Biz2Credit handles all the processing of applications as well as the analytics on financial institutions and businesses within its system. This allows Biz2Credit to rank banks based on the aggressiveness of their lending, and continuously update that rank as lender’s attitudes changes.
Biz2Credit is finding that even now, larger banks aren’t the top lending, rather smaller institutions are the ones more likely to provide the credit. What Biz2Credit can do, for example, is pass by the banks that aren’t lending in a user’s area, and allow someone on the East Coast to apply for credit from a small active institution on the West Coast.
As well as their upcoming integration of MS Office, Biz2Credit is working to make their matchmaking engine more predictive. They’re also working on integrating information from the IRS (at the permission of borrowers) to make the approval process much faster.
With an average loan size of $140,000, and 90 percent of its applicants returning through their business’ lifecycle, Biz2Credit can see what’s happening in different industries and they’re quickly working to tailor their business for both faster turn around between application and credit approval, as well as pulling more indepth information on industries around the country.
[Image courtesy Omar Omar]