Othership sits down with Byzfunder CEO Ilya Fridman to talk about community, trust, and why steady revenue deserves a closer look from funders.
Byzfunder has provided over $1.7 billion in total funding to more than 30,000 small businesses across the U.S. Incorporated in New York and funding businesses nationwide, Byzfunder offers merchant cash advances from $5,000 to $500,000, along with ByzFlex, which acts like a business line of credit, but structured as revenue-based financing. Rather than looking at balance sheets alone, the team pays close attention to how a business actually earns: its revenue, its deposits, and its track record over time.
At Othership, we built a social bathhouse around a simple idea: people need places to connect without their phones. As we've grown from Toronto to New York, we've learned that our members do real homework before they commit. They read reviews, ask friends, and usually try a single class before signing up for a membership. Byzfunder's customers go through a similar process, just with higher stakes, since they're handing over bank statements before they ever see an offer. Both of our businesses also run on the same engine: revenue built by customers who come back again and again.
That shared engine is what this conversation is about. We asked Ilya how a business's community and customer loyalty show up in its finances, what owners should look for before trusting a funder, and how predictable revenue can become a real advantage when it's time to grow. The lessons apply to any business built on repeat customers, whether that's a bathhouse, a restaurant, a medical practice, or a manufacturing shop.
Building a community, not just a customer base
Othership: Our mission is to combat the loneliness epidemic and foster community in a sober, device-free space, so almost everything we say comes back to belonging. A lot of the owners you work with face a different kind of exclusion. Their customers are their biggest asset, but a bank often wants to see property or equipment first. How do you talk to an owner who's been judged only by their balance sheet?
Ilya Fridman: I start by asking how the business actually earns its money, because for most small businesses, that's where the value lives. A bank statement that shows steady deposits month after month often tells us more about how a business runs than a list of assets does. That's why our public criteria for a merchant cash advance focus on things an owner can see in their own accounts: at least a year in business, $20,000 or more in monthly revenue, and a credit score of 525 or higher. Your members show up week after week, and that same pattern of repeat revenue is exactly what we want to understand about the businesses we fund.
Othership: Most people try Othership with a single class before they commit to a multi-pack or membership. That first visit has to earn their trust, especially if they've never done a cold plunge. A funding application asks for even more trust, since owners are sharing bank statements with a company they may have just found online. What should an owner see before they hand over their financials?
Ilya Fridman: They should see the terms in writing before they sign anything: the amount, the total cost, how often payments come out, and how long the term runs. California and New York require funders to share these details in a standardized disclosure, and an owner in any state can ask for that same level of clarity. It's also worth reading reviews from other business owners and checking whether a company publishes its qualification criteria, because a funder that hides its requirements is asking for trust without earning it. It's the same reason you let people try one class first: the proof should come before the commitment.
Othership: Our sessions are led by trained facilitators, and that human element drives a lot of our press and social content. People understand what we do because someone walks them through it. Funding usually gets explained in fine print instead. How do you explain how revenue-based financing works, especially how payments are scheduled?
Ilya Fridman: I explain it in terms of what happens to the owner's cash. With a merchant cash advance, we purchase a portion of a business's future receivables, and the owner makes daily or weekly payments over a term of 3 to 15 months. ByzFlex works differently: an owner is approved for an amount, requests funds when they need them, and makes weekly payments on what they've requested. The question I want every owner to answer before signing is simple: in my slowest month, can I comfortably make this payment? Your guides do something similar in every session, making sure people know what's coming next so nothing feels like a surprise.
Othership: Our membership model encourages shorter, more frequent visits as part of a weekly routine, and that gives us steady revenue we can plan around. I know revenue is one of the main factors Byzfunder considers, alongside credit score and time in business. How should an owner with a loyal customer base think about that predictability when they're looking for funding?
Ilya Fridman: Recurring revenue shows up in bank statements as consistency: deposits that land on a regular rhythm and very few days when the balance dips below zero. That pattern matters to us, because it shows a business can handle a payment schedule without strain. It doesn't replace credit score or time in business, but it gives an owner a much stronger story than a thin balance sheet would suggest on its own. The businesses that come back to us for their next stage of growth often look a lot like your members: they built a routine, and the revenue followed.
Othership: We're expanding, with an Upper East Side location planned for 2027 that's expected to mirror our existing programming. Keeping quality consistent as we grow takes a lot of work our members never see. Funding has its own hidden layer, like underwriting and document review. What should a funder make visible so owners feel confident after they apply?
Ilya Fridman: Three things: the criteria, the timeline, and the terms. Our minimums are public, so an owner can check whether they qualify before spending time on an application. Our underwriting team works from 8:30 a.m. to 8:30 p.m. Eastern, which means an approved business can often receive funding the same day. And once an offer is ready, an owner should have the chance to ask about every number before signing. You protect quality by training your guides, and we protect it by making sure nothing about the process stays hidden.
Financing 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.