Credibly Business Loan Review
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Factor rates starting at 1.11
$5,000 to $600,000
6 months
$180,000
Pros and cons of Credibly
| Pros | Cons |
|---|---|
| Low minimum credit score requirements Low minimum time in business requirement Speedy funding | High annual 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 a wide array of small business loans and other ending products.
Most of the products Credibly offers actually come from its third-party partners; 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.
- Businesses with healthy revenues. Credibly requires average monthly revenue greater than $15,000 ($180,000 annually).
- Business owners with 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, although you aren’t likely to qualify for the starting factor rate with a score that low.
- Businesses with pressing financial needs. Credibly’s direct-funded products aren’t for long-term needs like commercial real estate or equipment. With approvals in less than four hours and same-day funding, they’re best for short-term business needs like meeting payroll and covering unexpected expenses.
Credibly small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Working capital loans | Up to $600,000 | 6 to 24 months | Starting at 1.11 | 2.50% origination fee |
| Merchant cash advances | Up to $600,000 | 3 to 24 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 like buying inventory or covering payroll. Credibly offers working capital loans with terms ranging from 6 to 24 months with automatic 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 $10,000 loan:
Credibly also charges an origination fee of 2.50% of the loan amount. So, let’s say your loan term was six months and you made daily payments. If you converted all the costs into an APR, it would be around 47.85%.
While working capital loans are expensive, they’re helpful for business owners with past credit problems because they typically come with lower credit score requirements than traditional term loans. They also have quick turnaround times to receive funding. In fact, Credibly states it can approve a working capital loan in under four hours and 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. But its MCAs are more expensive because of the additional $50 monthly administrative fee in addition to the 2.50% underwriting fee.
Instead of making daily or weekly payments, you 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 24 months, that timeline may vary depending on your sales and the percentage allocated toward repayment. Remember, the longer it takes to pay off your merchant cash advance, the more you’ll pay in monthly administrative fees.
Credibly borrower requirements
| Minimum annual revenue | $180,000 |
| Minimum time in business | 6 months |
| Minimum credit score | 500+ |
Credibly’s minimum annual revenue requirement of $180,000 per year — or $15,000 per month — 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 six months. The minimum credit score is 500, so if you’re new in business and already generating healthy revenues, Credibly may work with you even if you’ve made past credit mistakes.
Required documents
Credibly doesn’t burden applicants with an oppressive list of required loan documents. However, you will want to be prepared with:
- Valid government-issued photo ID for all business owners
- Recent business bank statements
Alternatives to Credibly
| Credibly | PayPal | QuickBridge | |
|---|---|---|---|
| Minimum credit score | 500 | N/A | 580+ |
| Loan products offered |
|
| Working capital loan |
| Time to funding | As soon as same day | In minutes | Within a few days |
| Starting APR | 1.11 factor rate | Not disclosed | 1.11 factor rate |
| Maximum loan size | $600,000 | $200,000 ($300,000 for repeat borrowers) | $500,000 |
| Minimum annual revenue | $180,000 | $15,000 in PayPal sales within the last 12 months | $250,000 |
Credibly vs. PayPal
If you’ve been in business for less than six months (but at least 90 days) and have at least $15,000 in PayPal sales per month, you might qualify for a PayPal working capital loan. PayPal doesn’t have a minimum credit score or minimum annual revenue requirements because approval is based on your PayPal account history.
You can only borrow 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.
Credibly vs. QuickBridge
QuickBridge is another option for working capital loans. With a slightly higher minimum credit score, slower time to funding, lower maximum loan size, higher minimum annual revenue requirements and the same starting factor rate, there’s really no reason to recommend QuickBridge over Credibly. However, it’s always a good idea to shop around and compare terms from multiple lenders to ensure you’re getting the best deal.