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Credibly Review: Is It a Good Business Lender?

Credibly was founded in 2010 with the goal of offering business loans faster, cheaper, and with more variety than its competitors. It’s a direct lender that’s supported borrowers to the tune of $1 billion across more than 19,000 businesses.

Credibly review
Startup Business Loans Best for
4 /5
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$ 500 /mo
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    Financially Reviewed by Gordon Scott CMT, 6.1.2021

    Credibly is an established lender that’s been providing loans to small and medium-sized businesses since 2010. It has a solid reputation as one of the most reliable lenders in the industry and is known for being able to disburse funds quickly. 

    In addition, you’ll find fairly lenient eligibility requirements, with minimum credit scores starting from just 500. The platform is on a mission to open up funding opportunities to as wide a range of customers as possible. 

    What Is Credibly?

    Credibly is a Michigan-based online lender that provides small business loans across all 50 states. You’ll find an impressive range of seven different loan types on offer, borrowing limits up to $400,000 for short-term loans and up to $5,000,000 for longer-term loans. These are often accompanied by generous repayment terms. You’ll even find some specialist lending options that are aimed specifically at business expansion, and the Credibly customer service team is on hand to help you every step of the way.

    Credibly review

    Advantages and Disadvantages of a Credibly Business Loan

    Credibly Advantages

    • Simple application process - It’s incredibly easy to apply for loans here, and most applications can be completed in no time at all
    • Bad credit is welcome - Anyone with a credit score above 500 is welcome to apply here making it a good choice for those rejected by other lenders
    • Multiple loans on offer - With seven types of Credibly funding to choose from you have a lot of flexible options open to you
    • Open to high-risk industries - Unlike a lot of other lenders, Credibly is open to industries like doctor’s surgeries, lawyers and real estate companies
    • High borrowing limits - You can borrow up to $400,000 which should be more than enough to cover just about any small business requirements

    Credibly Disadvantages

    • High-interest rates - Rates and charges can be a little high, starting at a factor rate of 1.15 on the most popular loan type
    • Origination fees - Additional fees are charged on almost all loan types, adding to your repayment costs
    • Daily and weekly payments - A lot of loans have either daily or weekly repayments. This can be a challenge for some businesses to pay, especially those with cash flow issues

    Credibly Loan Options

    Credibly small business loans come in seven different varieties. Its most popular option is a working capital loan that operates a little differently from a standard term loan. Rather than apply an interest rate, you’ll instead be charged a lump sum as a total percentage of the loan, making it a little easier to budget for. 

    The platform has plenty of flexible options too, such as a line of credit and a merchant cash advance. Credit requirements are low, but you might find that rates and fees can be a little high on some products. 

    Credibly has quite an impressive pedigree of reviews and articles under its belt, being praised in Entrepreneur magazine, Bloomberg and INC. 500. In addition, it’s got an A+ rating at the Better Business Bureau meaning your loan is going to be in safe hands. 

    Working Capital Loan

    For short-term lending needs Credibly offers a working capital loan. Instead of being charged interest, a factor rate will be applied to your lending as a lump sum of the total payment. For example, if you have a factor rate of 1.15 and you borrow $10,000, your total payment will be $11,500 over the lifetime of the loan. Plus, you’ll be paying this back either weekly or daily so make sure you’ve got the cash flow to cover it. 

    Loan Type

    Working capital loan

    Term length

    6 to 18 months

    Repayment period

    Daily or weekly

    APR range

    Factor rates from 1.15

    Min - Max amount

    Up to $400,000

    Long-Term Business Expansion Loan

    These loans are offered over a longer period and usually have lower rates. They’re used specifically for business expansion so you’ll need to include a business plan as part of your application. Plus, it’s unlikely newer businesses will qualify and you’ll need to have a little experience under your belt. 

    Loan Type

    Long-term business expansion loan

    Term length

    3 to 10 years. 

    Repayment period

    Monthly

    APR range

    Between 8% - 25%

    Min - Max amount

    $150,000 - $5,000,000

    Line of Credit

    A line of credit is a very flexible type of lending that works by allowing you to draw on an agreed designated lending limit. You only ever pay interest on the money you withdraw, although you’ll be charged fees every time you dip into it. 

    Loan Type

    Line of credit

    Term length

    Not disclosed

    Repayment period

    Not disclosed

    APR range

    From 4.6%

    Min - Max amount

    Not disclosed

    SBA Loans

    Backed by the government an SBA loan usually has quite favorable terms, but will often require more documentation to apply.

    Loan Type

    SBA loan

    Term length

    2 - 25 years

    Repayment period

    Monthly

    APR range

    Starting from 6.99%

    Min - Max amount

    Not disclosed

    Merchant Cash Advance

    With this type of lending, you’re promising to repay a percentage of your credit and debit card sales. Terms are usually short-term and interest rates higher.

    Loan Type

    Merchant cash advance

    Term length

    3 - 18 months

    Repayment period

    Daily

    APR range

    Factor rates from 1.15

    Min - Max amount

    Up to $400,000

    Equipment Financing

    Used to purchase a specific item of machinery that will be used as collateral for the loan. This can often mean lower rates. 

    Loan Type

    Equipment financing

    Term length

    The working life of the asset

    Repayment period

    Monthly

    APR range

    Not disclosed

    Min - Max amount

    Not disclosed

    Invoice Factoring

    If you’ve got cash flow issues you might want to consider invoice factoring. Here, you’re borrowing against your unpaid invoices and will repay the loan once your customers have paid you. 

    Loan Type

    Invoice factoring

    Term length

    Usually one month

    Repayment period

    When you receive payment from your customers

    APR range

    Not disclosed

    Min - Max amount

    Not disclosed

    Credibly Interest Rates and Fees

    With so many Credibly small business loans available, you’ll find a wide range of rates and fees. Generally, an origination fee of 2.5% will be charged regardless of the type of borrowing you choose, while other fees can vary. The platform doesn’t disclose all charges before you apply and you may need to get in touch directly to learn more. 

    Loan type

    Working capital loan

    Origination fees

    2.5%

    Prepayment fees

    Zero

    Late payment fees

    Not disclosed

    Maintenance fees

    Not disclosed

    Interest rates

    Between 8% - 25%

    How to Qualify for a Credibly Loan?

    Qualification criteria are quite lenient, especially when compared to other online lenders. The lowest credit score accepted is 500, you’ll need an average of $15,000 per month in gross sales and to have been in business for at least six months. However, there are some slight variations for each loan type that we’ve outlined below.

    Working Capital Loan

    Criteria

    Working capital loan

    Minimum credit score

    500+

    Minimum annual revenue

    $180,000

    Minimum time in business

    Six months

    Long-Term Business Expansion Loan

    Criteria

    Long term business expansion loan

    Minimum credit score

    Not disclosed

    Minimum annual revenue

    Not disclosed

    Minimum time in business

    Not disclosed

    Line of Credit

    Criteria

    Line of credit

    Minimum credit score

    560+

    Minimum annual revenue

    $50,000

    Minimum time in business

    Six months

    SBA Loans

    Criteria

    SBA loans

    Minimum credit score

    620+

    Minimum annual revenue

    Not disclosed

    Minimum time in business

    Two years

    Merchant Cash Advance

    Criteria

    Merchant cash advance

    Minimum credit score

    500+

    Minimum annual revenue

    $180,000

    Minimum time in business

    Six months

    Equipment Financing

    Criteria

    Equipment financing

    Minimum credit score

    Not disclosed

    Minimum annual revenue

    Not disclosed

    Minimum time in business

    Not disclosed

    Invoice Factoring

    Criteria

    Invoice factoring

    Minimum credit score

    Not disclosed

    Minimum annual revenue

    Not disclosed

    Minimum time in business

    Not disclosed

    The Credibly Loan Application Process?

    Every application begins by filling in an online form which should only take about 10 minutes to complete. A loan officer will usually be in touch within four to six business hours to let you know if you’ve been accepted and to discuss various loan options with you, or to let you know if additional documents are required. 

    If approved, you can review and sign the contract on the same day you apply, and funding typically takes a day or two to land in your account. Documentation requirements are a little different across different types of Credibly funding, but for most applications, you’ll need the following:

    • Government-issued photo ID
    • Bank statements from the previous three months
    • Your most recent tax return
    • Your business mortgage statement if you own property

    How Does Credibly Determine the Loan Amount? 

    Your loan amount will primarily be decided by your credit score. Although your business performance and profit and loss statement will play a key role too. Beyond this, Credibly doesn’t give much away about its assessment method so you might want to get in touch directly if you have questions. 

    Credibly Customer Support

    Credibly is praised across the board for its excellent customer service. You can reach out over the phone, email or live chat via the website. What’s more, the lender is active across multiple social media accounts and inquiries are encouraged. 

    Plus, you’ll find a range of blogs and guides on the website covering topics like debt refinancing, dealing with poor credit and asset-based lending

    Credibly Loan Reviews

    Credibly has an excellent rating on Trustpilot with an average score of 4.6 out of 5 from 675 reviews. Over on Consumer Affairs, it only has a three out of five rating, though there are significantly fewer reviews there. 

    Customers tend to praise the professional service given alongside the fast and convenient application process. In many instances, individual service agents are named for their top-notch customer service. In addition, users noted that it was very easy to understand the different loan types and get advice on the best options. 

    In some instances of criticism, customers remarked that charges could be a little steep, applications were rejected without adequate reasons being given and some applications took longer than expected. 

    Positive Reviews

    Negative Reviews

    Incredibly attentive customer service

    High fees

    Fast application process

    Rejected with no reasons given

    Easy-to-understand loan options

    Some lengthy applications

    Final Thoughts

    Credibly is a solid service provider when it comes to small business loans. With reasonable rates, high borrowing limits, flexible options and respectable lending terms, there’s an excellent chance you’ll find what you need here. Plus, it’s very welcoming to those with poor credit, and it doesn’t hurt your score to check if you’re eligible as only a soft credit check is run. 

    For some, rates might be a little high here, and there are a few fees to contend with, but overall we’d highly recommend the platform.