Credibly Reviews

Credibly stands out in the small business lending market for its clear terms and eligibility requirements. It caters well to small and medium-sized businesses, particularly those with at least six months in operation and a credit score of 500 or higher. But you’re also required to have at least $15,000 in monthly revenue, which might be challenging for smaller or newer businesses to meet.

For businesses that do meet these requirements, Credibly offers a straightforward and quick path to funding, with a variety of loan options to suit different needs.

As a direct lender, Credibly specializes in working capital loans and merchant cash advances. But it also partners with other lenders to provide a broader suite of services. This mix of direct lending and partnerships allows Credibly to offer tailored solutions to different businesses.

Like many small business lenders, Credibly uses a pricing model based on "factor rates" rather than the traditional annual percentage rate (APR). A factor rate is a straightforward way to represent the cost of borrowing. It's expressed as a decimal figure rather than a percentage.

Credibly mentions factor rates as low as 1.11 for many of its products. This means that for every dollar borrowed, you pay back $1.11. So, if you borrow $10,000 at a factor rate of 1.11, the total amount you'd repay is $11,100. This method differs from APR, which annualizes the total cost of borrowing, including both interest and other fees.

In addition to factor rates, Credibly also charges certain fees associated with its loan products. A 2.5% origination fee is common. It’s typically deducted from the total loan amount. So, if you receive a $10,000 loan with a 2.5% origination fee, the fee would be $250, and you'd actually receive $9,750 in funding.

Other fees may include a 2.5% underwriting fee for merchant cash advances and a $50 monthly admin fee. The exact fee structure can vary depending on the financial product you choose. Ask about all possible fees to understand the total cost of borrowing.

You can apply for a Credibly business loan online. The steps usually look like this:

1. Fill out a pre-qualification form on Credibly’s website. This process involves entering some basic information about your business.
2. Provide essential documents. This typically includes a signed business loan agreement, a mortgage statement or lease agreement for your business property, government-issued ID and recent bank statements. For loans over $100,000, your most recent business tax return is also required.
3. Receive approval. Credibly often approves loans in less than four hours. If you’re approved, a loan advisor will contact you to discuss your loan options.
4. Receive funding. Once your loan is finalized, the funds are deposited directly into your bank account, often available on the same day.

Specific requirements vary by loan product, but you generally need to meet these criteria for a Credibly business loan:

• At least six months in business
• 500-plus minimum credit score
• $15,000-plus in monthly revenue

Compared with some competitors, Credibly has a low credit score requirement but also short loan terms. Its loan amounts and required revenue fall somewhere in the median range. For example, here’s how Credibly’s working capital loans compare to two competitors, OnDeck and Quickbridge.

Credibly has established itself as a legitimate player in the small business lending space. Since its inception, when it was known as Retail Capital, the company has grown significantly in both scope and scale. Over the years, Credibly says it has serviced more than 30,000 businesses, extending over $2 billion in funding across 325 industries.