Credibility Capital Review
- Rates tend to be inexpensive
- No prepayment penalties
- The application process is fast and easy
- Funds get disbursed quickly
- Financing isn’t available in some states
- High credit score requirements
- A blanket lien is required
Credibility Capital Overview
Credibility Capital, which launched in April of 2015, offers medium-term installment loans to eligible merchants.
This lender is partnered with numerous other companies; the most notable company is Dun & Bradstreet, with whom it has an exclusive partnership.
Credibility Capital’s rates and fees are more or less competitive with lenders that offer similar products. This lender’s maximum APR is a little lower than others, but it also offers shorter term lengths than you might be able to find elsewhere. Keep in mind, however, that your personal rates will depend on the strength of your business and how Credibility Capital evaluates risk.
However, if you meet the qualifications, Credibility Capital is certainly worth including in your comparisons. In addition to the competitive rates and fees, the company is transparent, communicative, and has a positive reputation across the web.
Read on for the details!
Table of Contents
Credibility Capital offers installment loans to qualified merchants. Installment loans grant the borrower a lump sum of cash. The borrower then makes regularly scheduled payments — daily, weekly, or monthly — depending on the duration until the principal is paid off, along with accumulated interest.
These are the minimum requirements to qualify for a Credibility Capital loan:
|Time In Business:||24 months|
|Credit Score:||Strong personal credit|
|Revenue:||Currently generating revenue|
Credibility Capital does not have any specific requirements regarding your credit score, but the lender does require “strong personal credit.” If your credit score is at least 640 or above, you will have a better chance of qualifying. The lender also does not have any specific requirements regarding how much revenue your business makes.
In addition to the above, Credibility Capital will not consider businesses if they have filed for personal or business bankruptcy in the last five years. This company also cannot currently lend to businesses in Nevada, North Dakota, South Dakota, or Vermont.
Rates & Fees
There are the rates and fees for Credibility Capital’s loans:
|Term Length:||1, 2, or 3 years|
|Collateral:||Personal guarantee, UCC-1 blanket lien|
Credibility Capital offers traditional installment loans with term lengths of one, two, or three years. Repayments are fixed and made monthly. Credibility Capital’s loans are fully amortizing, meaning that if you make all the payments on time, your loan will be fully paid off at the end of your term. As is usually the case for term loans, the longer your term, the more you’ll pay in interest.
This company charges a one-time origination fee but does not charge any other fees. For example, you will not be charged a prepayment penalty for repaying your loan early.
Credibility Capital stands out from other lenders because you can check your eligibility without making an account. If you are not eligible, you are free to create an account so that Credibility Capital can hook you up with one of its partners, or you can go elsewhere to seek funding.
If you choose to make an account, you will have to provide basic information about yourself and your business. To complete the application, you will have to provide these documents:
- Tax ID number
- Revenue for the last 12 months
- Social Security number
When your application is complete, a loan specialist will get in contact with you to continue the process. This person might request additional documents, such as bank statements and tax returns, depending on your business and what product you’re applying for.
Credibility Capital will also run a credit check. However, according to the FAQ, it will be a soft check, which won’t affect your credit score. A hard pull will not be performed until you close on the loan.
The time from application to funding normally takes less than a week.
Sales & Advertising Transparency
Credibility Capital is a signatory on the Small Business Borrower’s Bill of Rights. This bill lays out the fundamental standards that should be upheld by business lenders, which includes access to transparent terms.
The company lives up to that promise — Credibility Capital provides plenty of information on its website that will help borrowers decide if this is the right loan for them. Additionally, because the company lets you check your eligibility without making an account and filling out a lengthy application, potential borrowers will be able to quickly determine if a loan from this company is worth pursuing.
Customer Service & Technical Support
Customer service is available Monday-Friday, 9 AM-7 PM EST. Most customers are happy with the level of customer service, claiming that the reps are friendly, knowledgeable, and proactive.
Negative Reviews & Complaints
Credibility Capital has a presence on the Better Business Bureau website; the company is accredited with an A+ rating. Currently, the lender has five reviews (most of which are positive) and one complaint.
Regardless, here are the reasons Credibility Capital may not work for you:
- Not For Startups Or Merchants With Poor Credit: Credibility Capital targets borrowers with businesses at least 24 months old and with strong credit. If you do not meet the borrowing requirements, you will have to look elsewhere for funding.
- Short Term Lengths: Credibility Capital offers maximum borrowing term lengths of three years, whereas similar lenders provide loans with more extended term lengths.
- High Origination Fees: Credibility Capital takes a fairly hefty chunk out of your lump sum compared to some of its competitors.
Positive Reviews & Testimonials
This lender has a few positive reviews on the BBB site and some borrower stories on its website. Credibility Capital also has a 4.9/5 TrustScore with Trustpilot. This is what customers liked about the service:
- Fast Time From Application To Funding: While a bank usually takes months to fund a business, Credibility Capital only takes a few days.
- Little Paperwork: Credibility Capital requires much less paperwork than banks might.
- Professional & Friendly Customer Service: Reviewers liked that the customer service reps were informative, professional, and cared about their business.
Credibility Capital is best for strong, creditworthy businesses that are not quite eligible for a bank loan yet. If you qualify, Credibility Capital is certainly worth getting a quote from; the application is easy, and the company is transparent and helpful.
That said, Credibility Capital is not the only lender that offers funding options to merchants with over a year in business and strong personal credit. Anyone eligible for this service will be eligible for others, and your rates will vary by lender based on how each lender evaluates risk. Because other lenders offer more extended term lengths and lower minimum APRs, borrowers (especially very creditworthy borrowers) might be able to find better rates elsewhere. For this reason, it’s best to make some comparisons before settling on Credibility Capital (or any other lender).