Expert Interview: Ilya Fridman on Why Speed and AI Underwriting Are Reshaping Small Business Funding

Today we're speaking with Ilya Fridman, CEO at Byzfunder, a New York incorporated direct lender founded on AI-powered underwriting that delivers fast, flexible capital to small businesses traditional banks routinely turn away. Byzfunder has deployed over $1.7 billion to more than 27,000 businesses across the U.S., with merchant cash advance funding from $5,000 to $500,000 and an application that runs on real bank and revenue data rather than a stack of paperwork, moving qualifying businesses from approval to funded capital the same day.

We Lend is a nationwide private real estate lender built by real estate investors, funding fix and flip, DSCR, ground-up construction, and bridge deals in 46 states with the kind of speed our own clients expect when a property or a contract will not wait. A large share of the contractors, property services firms, and independent investors in our network run lean, revenue-driven operations that do not always fit a bank's underwriting box. We were eager to speak with Ilya about how Byzfunder's AI underwriting evaluates those businesses on real performance instead of paperwork, what the path from application to funded capital actually looks like, and why speed and sound underwriting do not have to be a trade-off.

Q1: We Lend's clients are used to fast-closing real estate deals, so they're often surprised at how slowly banks move on working capital. Why are traditional banks failing small businesses and real estate professionals who need capital quickly?

Ilya: Banks underwrite backward: tax returns, committee approval, a static credit file. That process was never built for a contractor bridging a stalled payment schedule or a property services firm covering payroll before a client pays. Every day of delay is a day of lost opportunity, whether that is a supplier discount, an equipment repair, or a contract that goes to a faster competitor.

That gap is why Byzfunder exists. Our AI underwriting evaluates real cash flow and revenue performance instead of a credit score and a folder of documents, which is how we have deployed over $1.7 billion to more than 27,000 small businesses, most of whom a bank would have made wait or turned away outright.

Q2: For a We Lend client used to bank timelines on a real estate loan, how does Byzfunder's AI underwriting actually work, and how fast is the difference?

Ilya: A bank looks at where a business has been. Our model looks at where it is now: revenue trends, deposit activity, repayment behavior, continuously learning from outcomes across our portfolio, so it gets sharper with every business we fund rather than just more conservative.

That lets us confidently approve businesses a rules-based bank model cannot read accurately: seasonal operators, businesses with uneven bank statements, owners whose personal credit does not reflect their company's health. Because underwriting is automated end to end, qualified businesses move from application to funded capital the same day. It is working: we reported 40% year-over-year growth in 2025, with ByzFlex alone driving 20% of total originations, from underwriting more accurately, not more loosely.

Q3: We Lend clients often need to move on a property before a competitor does. How does Byzfunder mirror that urgency when a real estate firm or contractor suddenly needs working capital to scale or handle an emergency?

Ilya: A contractor who cannot cover materials because a client payment is thirty days out is not a credit risk, they are a timing problem. We evaluate revenue and job volume rather than treating irregular, large-installment income as a disqualifier, which is the norm in construction and real estate services.

For a defined, one-time need, our merchant cash advance, a purchase of future receivables, provides a lump sum against future revenue. For ongoing access, ByzFlex, which acts like a business line of credit but is structured as revenue-based financing, lets approved businesses request funds as needs arise instead of reapplying. Either way, qualified applicants move from approval to funded capital the same day, often the difference between winning a deal and watching it go to a faster-moving investor.

Q4: For a We Lend client weighing a single large expense against ongoing working capital needs, how should they think about Byzfunder's merchant cash advance versus ByzFlex?

Ilya: Our merchant cash advance is a purchase of future receivables, not a loan: a lump sum against an agreed share of future revenue, funded from $5,000 to $500,000, with qualification based on performance rather than a rigid score, generally in business 1+ year, $20,000 or more in monthly revenue, and a credit score of 525 or higher. It suits a defined, one-time need.

ByzFlex acts like a business line of credit but is structured as revenue-based financing: once approved, a business requests funds as needs come up instead of taking one lump sum, and availability replenishes as the balance is repaid. It's sized for steadier businesses, generally in business 1+ year with $250,000 or more in annual revenue and a credit score of 550 or higher, funding from $7,500 up to $250,000. The choice comes down to a single defined problem versus ongoing, recurring capital needs.

Q5: Looking ahead, where do you see AI underwriting and revenue-based financing heading for real estate-adjacent businesses like the contractors and investors We Lend serves?

Ilya: The gap between what banks can underwrite and what these businesses actually need is widening, not closing. Byzfunder closed its inaugural $170 million asset-backed securitization on June 8, 2026, rated by KBRA and roughly three times oversubscribed. That's a strong signal that Byzfunder has the capability and infrastructure to scale with real confidence, backed directly from the financial district.

For contractors, property services firms, and independent investors, I expect the products to keep converging toward flexibility: less one-size-fits-all lending, more capital that moves the way these businesses actually earn. We are building toward a fully proprietary platform that automates that entire process end to end. Speed only matters if the underwriting behind it is sound, and that is the part we have spent six years getting right.

Required Disclosure

Byzfunder is incorporated in New York and provides funding nationwide. Products described here include merchant cash advances (MCAs). An MCA is the purchase of a portion of future receivables at a discount. It is not a loan. Approval, funding amounts, factor rates, and terms vary based on business qualifications and are not guaranteed. The metrics, thresholds, and examples in this guide are educational and illustrative; they are not financial, legal, or tax advice, and individual results will differ. Where required, the applicable California and New York commercial financing disclosures are provided with each specific funding offer.