Credibly Business Loan Review: July 2023
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Table of Contents
Pros Explained
- Pre-qualify and apply online: Pre-qualifying only involves a soft credit inquiry and won’t hurt your credit score. If you decide to go through with the loan, you can apply online.
- Fast approval: Credibly says you can be approved in as little as four hours.
- Funding in less than 24 hours: Once approved, you’ll have quick access to funding.
- Low minimum credit score: You can access financing with a minimum 500 credit score.
Cons Explained
- Limited loan amounts: Compared to small business loans from traditional banks, Credibly offers relatively smaller loans. Unsecured loans are only available for up to $400,000.
- Short repayment periods: Unsecured loans must be repaid in under 24 months, sometimes with daily or weekly automated payments.
- Not all fees are disclosed online: Not having an accurate picture of the costs can make it harder to shop around.
Types of Business Loans Offered by Credibly
Credibly offers a few types of business loans and alternative financing to help businesses get the capital needed to meet short- and long-term needs.
- For everyday business expenses, working capital loans are available for up to $400,000 based on your working capital, e.g. the difference between your current assets and liabilities. Repayment terms range from three to 15 months and the factor rate, or borrowing cost, is as low as 1.11.
- For growth initiatives, the long-term business loan is available for up to $250,000 for an 18- or 24-month term. Rates aren’t disclosed until later in the process when you receive a loan agreement.
- To purchase tools, machinery, or other business assets, equipment financing is available for $10,000 up to $10 million. Factor rates are as low as 1.09.
Other Financing Options
- For bad credit borrowing, a merchant cash advance is available for up to $400,000. Merchant cash advances are charged a 2.5% underwriting fee and $50 monthly fee. Repayment is automatically deducted based on daily sales.
- For faster cash flow, invoice factoring allows you to borrow up to $400,000 in upfront working capital based on your outstanding invoices.
Some of Credibly’s financing options are offered through lending partners.
Time to Receive Funds
After you pre-qualify for a Credibly business loan, you’ll receive a call with the best financing options and loan terms. Once you apply and you’re approved—which can happen in as little as four hours—funds are available in 24 hours or less.
Funds can be automatically deposited into your business account the same day.
Borrower Requirements
While Credibly considers overall business health for loan approval, there are some minimum requirements that borrowers have to meet.
- Minimum 500 credit score
- At least six months in business
- At least $15,000 in monthly revenue
For SBA loans, which are offered through Credibly partners:
- Minimum 620 credit score
- 2 years in business
Customer Service
Credibly’s customer service is available by phone, email, or via web form submission.
Customer Satisfaction
Credibly has earned a 4.8 star rating on Trustpilot and 87% of customers give it a 5-star rating. Customers rate the lender highly for speed, transparency, and pricing.
Applying for a Credibly Business Loan
You can apply for a Credibly business loan online or by calling customer service. Here’s an overview of the process.
Pre-qualify by providing some basic business information. Pre-qualifying only requires a soft credit pull, so there’s no hit to your credit score.
Speak to a financing expert to discuss how much you need to borrow and the best financing option.
Send required documentation depending on the loan type. For instance, you may have to provide:
- A signed business loan agreement
- A business mortgage statement if you own your property, or a business lease agreement if you rent your property
- Government-issued photo ID for all owners
- Bank statements from business banking account (most recent three months)
- Your most recent business tax return (for loans over $100,000)
- Your business plan
Receive and accept a loan offer. Your loan agreement will include details about pricing and terms so you’ll know the cost of your loan and your repayment terms.
Get funded. If you accept the offer, Credibly says you can receive funding in as little as 24 hours after approval.
Alternative Business Loan Lenders
| Kapitus | OnDeck | Bluevine | |
|---|---|---|---|
| Loan or LOC Amount | Up to $250,000 | Up to $250,000 | Up to $250,000 |
| Loan Terms | 3–18 months | Up to 24 months | 6–12 months |
| Recommended Minimum Credit Score | 650 | 625 | 625 |
Final Verdict
Credibly is a solid option for businesses that want a streamlined application process, a quick approval decision, and fast funding. The company offers loans and alternative financing options for businesses with credit scores as low as 500—but brand new startups and businesses with low monthly income won’t qualify. Additionally, borrowing costs may be high, so it may not be the best option for businesses with strong credit profiles.
Is Credibly an SBA Lender?
While Credibly isn’t an SBA lender, it does offer SBA loans through partner lenders.
How Is Credibly Different From Other Lenders?
Unlike traditional lenders, Credibly provides quick approval and funding for businesses with low credit ratings. Credibly is a direct lender and has funding partners to help small businesses easily access the best financing available to them.
How to Get a Business Loan From Credibly With Bad Credit
Certain financing options are less dependent on credit and are easier to get approval with bad credit. Credibly’s options for bad credit include: merchant cash advance, invoice financing, or an equipment loan. Merchant cash advance and invoice financing are available based on your business’ sales, while equipment financing uses collateral—the equipment you’re purchasing—to help you get approved.
What to Consider When Applying for a Business Loan With Credibly
When you apply for a business loan with Credibly, consider your borrowing needs, repayment timeline, and the amount you can repay. If you have a low credit score, consider whether your business can afford higher borrowing costs. Some options require weekly or daily payments which can affect your cash flow.
