Credibly Business Loan Review
Janet Schaaf is a freelance writer, editor and proofreader who considers reader advocacy to be her calling. After taking a few roads less traveled, Janet completed a bachelor’s degree in English Literature from the University of Missouri-Kansas City, with English Department Honors. She has been correcting grammar and checking facts since she could string a sentence together. For the past three years, Janet has focused on making personal finance topics understandable and relatable. Loan terms and credit card agreements can look overwhelming, but understanding what you’re agreeing to is paramount in grasping the impact debt can have on your life.
 | Starting factor rate: 1.11 Best for: Owners of new businesses with high revenue but a rocky credit history |
Pros and cons of Credibly
| Pros | Cons |
|---|---|
Low minimum credit score requirement Low minimum time-in-business requirement Speedy funding | High annual revenue requirements Relatively small maximum loan amounts considering annual revenue requirements Credibly only directly finances expensive lending products |
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Credibly small business loans review
Credibly is an online lender that connects small business owners with a wide array of lending products. Most of those products are offered by Credibly’s third-party partners, though. Credibly itself only directly funds two products: working capital loans and merchant cash advances. These are expensive ways to borrow, but can be a last-resort solution under the right circumstances.
Who is Credibly for?
- Businesses with high revenue. Annual revenue requirements are $180,000.
- Business owners with a less-than-perfect credit history. If you’re searching for a bad credit business loan, you could qualify for funding from Credibly with a credit score of just 500, but you aren’t likely to qualify for the starting factor rate if your score is that low.
- Those with pressing financial needs. Credibly’s direct-funded products aren’t for long-term needs like commercial real estate or equipment you’re investing in for the long term. Instead, they’re for short-term business needs — like meeting payroll or a one-off marketing campaign.
Credibly small business financing at a glance
| Product | Loan amounts | Repayment term | Factor rate range | Fees |
|---|---|---|---|---|
| Working capital loans | Up to $400,000 | 3 to 15 months | Starting at 1.11 | 2.50% origination fee |
| Merchant cash advances | Up to $400,000 | 3 to 15 months | Starting at 1.11 | 2.50% underwriting fee $50 monthly administrative fee |
Working capital loan
Working capital loans are meant for short-term needs, such as financing inventory or payroll loans. At Credibly, you can get a working capital loan for terms of 3 to 15 months with repayment on either a daily or weekly basis. Working capital loans usually come with a factor rate rather than an annual percentage rate (APR).
Factor rates tend to be a more expensive way to borrow. For example, here’s what Credibly’s starting factor rate of 1.11 would mean for your total loan repayment on a loan of $10,000:
There would also be a $250 origination fee because Credibly charges 2.50% of the loan amount. Let’s say your term was six months, and you made payments on a daily basis. At the end of the day, if you converted all the costs into an APR, it would be somewhere around 47.85% APR.
Even though they’re expensive, some business owners will take out working capital loans because they typically come with lower credit score requirements than traditional term loans. They also have quicker turnaround times to funding. With Credibly, you can get your loan funded as soon as the same day you apply. This speed can solve immediate cash flow problems so you don’t have to shut down operations while you’re waiting for the next big 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 $400,000. The starting factor rate is 1.11, but MCAs are still a little more expensive than working capital loans. That’s because there is a 2.50% underwriting fee, plus an additional $50 monthly administrative fee.
Instead of making daily or weekly payments, you will automatically repay Credibly through a percentage of your daily debit or credit card sales. While the average Credibly merchant cash advance is repaid within 3 to 15 months, that timeline may vary depending on merchant sales and the percentage being allocated toward repayment. Remember — the longer it takes to pay off your merchant cash advance, the more you’ll pay in monthly administrative fees.
Additional business loan products
In addition to the two products it funds directly, Credibly can also connect you with other lenders in its network. You can use Credibly to find the following business lending products:
Credibly borrower requirements
| Minimum annual revenue | $180,000 |
| Minimum time in business | 3 months |
| Minimum credit score | 500 |
Credibly’s minimum annual revenue requirement of $180,000 per year — or $15,000 per month — is quite 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 incredibly short at just three months. The minimum credit score is a mere 500, so if you have a new business already earning high revenue but you’ve made past credit mistakes, Credibly is a lender that could be tailor-made for you.
Required documents
Perhaps because the time-in-business minimum is so short, the paperwork burden with Credibly’s business loan requirements isn’t oppressively heavy. You will want to be prepared with:
- Valid government-issued photo ID for all business owners
- Business mortgage statement or lease agreement
- Most recent three months of business banking statements
- Most recent business tax return if you’re borrowing more than $100,000
If you’re applying for an MCA, you’ll also need to provide a signed receivables purchase agreement. Working capital loans require a signed business loan agreement.
Alternatives to Credibly
| Credibly | Fora Financial | PayPal Working Capital | |
|---|---|---|---|
| Minimum credit score | 500 | 500 | No credit check |
| Loan products offered |
|
| Working capital loan |
| Time to funding | As soon as same day | Within 3 days | Within minutes |
| Starting factor rate | 1.11 | 1.10 | Not disclosed |
| Maximum loan size | $400,000 | $1,500,000 | $250,000 |
| Minimum annual revenue | $180,000 | $180,000 |
|
Credibly vs. Fora Financial
If you want to borrow a large amount and can stand to wait a few days, Fora Financial may be a better match for your business needs. If you only need a small loan, but need it quickly, Credibly may be the better option. Even though the two lenders have nearly identical basic underwriting requirements, Fora Financial lends amounts of $5,000 to $1,500,000, while Credibly only lends out a max of $400,000. In some instances, you may be able to get funding the same day with Credibly, but Fora Financial’s larger loans can sometimes take up to three days to fund.
Credibly vs. PayPal Working Capital
Credibly’s lending products are available to those with a relatively low credit score of 500, but if yours is lower, you may want to look at PayPal Working Capital loans. It doesn’t check your credit score at all. PayPal Working Capital may also be a more feasible choice if you aren’t bringing in six figures every year. The minimum revenue requirements are a mere $15,000 per year if you’re a PayPal Business member, or $20,000 per year if you’re Premier member. That revenue does have to come only from PayPal sales, though, and you’ll only be able to borrow $1,000 to $250,000.