Credibly Business Loans 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
$15,000
Pros and cons of Credibly
| Pros | Cons |
|---|---|
| Low minimum credit score requirements Low minimum time in business requirements Speedy funding | 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 a wide array of small business loans and other lending 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 (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 difficult to compare costs across lenders. Calculate the total cost of borrowing when comparing lenders with different rate types. 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:
$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
Who is Credibly best for?
- 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. 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 as quickly as four hours or less 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 | Starting factor rate | Fees |
|---|---|---|---|---|
| Working capital loan | Up to $600,000 | 6 to 24 months | 1.11 | 2.50% origination fee |
| Merchant cash advance | Up 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 with automatic repayment on either a daily or weekly basis. Factor rates start at 1.11, and Credibly also charges an origination fee of 2.50% of the loan amount.
While working capital loans can be 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 as quickly as under four 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. But its MCAs are more expensive due to the $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 monthly revenue | $15,000 |
| Minimum time in business | 6 months |
| Minimum credit score | 500 |
Credibly’s minimum annual 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 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 | None | Approximately 580 |
| Loan products offered |
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| Time to funding | As soon as same day | As soon as same day | Within a few days |
| Starting interest rate | 1.11 factor rate | Not disclosed | Not disclosed |
| Maximum loan size | $600,000 | Term loans: $100,000 ($150,000 for repeat borrowers) Working capital: $200,000 ($300,000 for repeat borrowers) | $500,000 |
| Minimum annual revenue | $180,000 | Term loans: $33,300 Working capital: $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 for working capital loans 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.
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.
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 and higher minimum annual revenue requirements, business owners who are worried about qualifying for a loan may be better off with QuickBridge.
However, QuickBridge doesn’t disclose its rates, so it may be worth getting a quote from both lenders — and a few others — to find out which will offer the best rates.