Credibly Business Loans Review
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Pros and cons of Credibly
Pros
- Low minimum credit score requirements
- Low minimum time in business requirements
- Speedy funding
Cons
- High monthly revenue requirements
- Relatively small maximum loan amounts compared to annual revenue requirements
- Potentially higher interest rates
Credibly small business loans review
Credibly is an online lender that connects small business owners with an array of small business loans and other lending products.
Most of the products Credibly offers actually come from third-party partners. Credibly itself only directly funds two products: working capital loans and merchant cash advances (MCAs). A merchant cash advance can be an expensive way to borrow, but it can also be a helpful last-resort solution under the right circumstances.
Credibly charges a factor rate instead of an interest rate, which can make it more challenging to compare costs between lenders. To compare traditional banks, credit unions and online lenders with different rate types, you’ll want to calculate the total cost of borrowing.
For example, here’s what Credibly’s starting factor rate of 1.11 would mean for your total loan repayment on a $10,000 merchant cash advance repaid over three months:
Amount borrowed = $10,000
$10,000 x 1.11 factor rate = $1,100 in factor fees
$10,000 x 2.50% origination fee = $250 in origination fees
$50 monthly fee x 3 months = $150 in monthly fees
Total amount to repay: $11,500
- Businesses with healthy revenues. Credibly requires an average monthly revenue of at least $15,000 ($180,000 annually).
- Business owners with less-than-perfect credit history. You can qualify for funding from Credibly with a credit score of just 500, though you aren’t likely to qualify for the starting rate with a score that low. Make sure to compare multiple bad credit business loan options before committing.
- Businesses with pressing financial needs. Credibly’s direct-funded products aren’t for long-term needs like commercial real estate or equipment. With fast approvals and potential same-day funding, they’re best for short-term business needs, like meeting payroll and covering emergency expenses.
Credibly small business financing at a glance
| Product | Loan amounts | Repayment term | Starting factor rate | Fees |
|---|---|---|---|---|
| Working capital loan | $25,000 to $600,000 | 6 to 24 months | 1.11 | 2.50% origination fee |
| Merchant cash advance | $5,000 to $600,000 | 3 to 24 months | 1.11 | 2.50% underwriting fee$50 monthly administrative fee |
Working capital loan
Working capital loans are meant for short-term needs, like buying inventory or covering payroll. Credibly offers working capital loans with terms ranging from 6 to 24 months and automatic daily or weekly payments. Factor rates start at 1.11, which equates to a simple interest rate of 11.00%. Credibly also charges an origination fee of 2.50% of the loan amount.
Credibly states it can approve a working capital loan in as little as two hours and may be able to transfer the funds to your bank account on the same day. This speed can solve pressing cash-flow problems so business owners don’t have to suspend operations while waiting to collect on outstanding receivables or for another business deal to come through.
Merchant cash advance
Merchant cash advances (MCAs) are similar to working capital loans, but the fee and repayment structures are a little different. Credibly offers merchant cash advances up to $600,000 with a starting factor rate of 1.11, like its working capital loans. However, MCAs are more expensive due to the $50 monthly administrative fee that’s charged in addition to the one-time 2.50% underwriting fee.
Instead of making manual payments, you automatically repay Credibly through a percentage of your daily or weekly card sales. While the average Credibly merchant cash advance is repaid within 3 to 24 months, that timeline may vary depending on your sales. Remember: The longer it takes to pay off your merchant cash advance, the more you’ll pay in monthly administrative fees. If you’re able to repay your MCA ahead of schedule, you can save on some of those fees — and you may also qualify for an early payoff discount.
Credibly borrower requirements
| Minimum monthly revenue | $15,000 |
| Minimum time in business | 6 months |
| Minimum credit score | 500 |
Credibly’s minimum revenue requirement of $15,000 per month — or $180,000 per year — is relatively high compared to other lenders. However, the other requirements to get a business loan aren’t nearly as restrictive.
The minimum time in business requirement is short at just 6 months months, making this a viable option for startup financing. The minimum credit score is especially low at 500, so if your business is generating a healthy amount of revenue, Credibly may be willing to work with you even if you’ve made past credit mistakes.
Required documents
Credibly doesn’t disclose the full list of documents required to get a business loan or cash advance. However, it states that you can begin your online application with the following:
- Valid government-issued photo ID for all business owners
- Recent business bank statements
Alternatives to Credibly
| Credibly | PayPal | Fora Financial | |
|---|---|---|---|
| Minimum credit score | 500 |
| 570 |
| Loan products offered |
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| Time to funding | As soon as same day | As soon as same day | 24 to 48 hours |
| Starting APR | 1.11 factor rate | Not disclosed | 1.13 factor rate |
| Maximum loan size | $600,000 |
| $1,500,000 |
| Minimum annual revenue | $180,000 |
| $240,000 |
Credibly vs. PayPal
If you’ve been in business for at least 90 days with a minimum of $15,000 in PayPal revenue within the last year, you might qualify for a PayPal working capital loan. PayPal doesn’t set minimum credit score or annual revenue requirements for working capital loans because approval is based on your PayPal account history.
You can borrow only up to $200,000 with a PayPal working capital loan — $300,000 if you’re a repeat borrower — which is less than Credibly’s maximum loan size of $600,000. But if you’re approved, PayPal can fund your loan within minutes.
PayPal also offers business term loans, though you’ll need at least $33,300 in annual revenue and nine months of business history to qualify. A credit check is required for term loans, though eligibility is based on the full picture of the business.
Read our full PayPal review.
Credibly vs. Fora Financial
Much like Credibly, Fora Financial offers two types of business financing: loans and advances. Though the criteria to qualify is slightly higher across the board, Fora is still a flexible lender that is willing to work with startups and bad credit borrowers — and qualifying businesses can borrow up to $1,500,000.
That said, factor rates are slightly higher. And if your business isn’t generating enough revenue to meet the minimum requirements with Credibly, you won’t qualify with Fora Financial, which requires even more.
Read our full Fora Financial review.