Online Marketplace Lender Biz2Credit Adds Third Payment Partner
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Small business alternative lender Biz2Credit has added Fortis Payments to its roster of payment partners.
Through this partnership, companies that use Fortis merchant payment processing services will gain access to Biz2Credits online small business lending marketplace. Biz2Credit already has partnerships with payment firms iPayment and Flagship Merchant Services.
Biz2Credit will use data from Fortis to better evaluate the creditworthiness of business borrowers, in addition to its own metrics.
The addition of new data sources improves Biz2Credits ability to assess borrowers, the company says. Over time it gets deeper and deeper, longer and longer [term] data," Rohit Arora, co-founder and chief executive officer of Biz2Credit said in an interview. "The whole idea is that we are making it very data rich."
Arora also believes the data mined from those payments will lead to fewer defaults. Biz2Credit monitors payment data, including seasonal trends, to allow for greater flexibility on payback installments. Arora said that as of last month the platform's default rate is 0.7%. Borrowers will also have the ability to pull payment records from the platform free of charge for IRS filings; Arora wants to create a one-stop shop for small business financial services.
"We are not just a transactional platform where you come to get money," Arora said. "At the end of the day we're acting like a virtual CFO."