Credibly Review

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Pros

• Low credit score requirements
• Discounts for repaying early
• Financing is suited for business growth needs
• The application process is fast and easy
• Website is clear and informative

Cons

• Rates can be expensive
• Some additional fees are charged
• A blanket lien is required

Overview

Credibly is a Michigan-based online lender that offers short-term financing in the form of business loans and merchant cash advances.

With terms and fees that fall well within alternative lending norms (which tend to be quite high), Credibly relies on its relatively easy qualifications to attract customers. While most lenders require a long time in business or a flawless credit score, Credibly’s requirements are much lower — you might qualify even if you’ve only been in business six months or have a credit score of 500.

In other words, if your business doesn’t yet qualify for financing elsewhere, Credibly is a worthwhile alternative. While you might want to shop around a bit before settling, Credibly offers competitive rates and has transparent service.

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Interested in learning more? Read on for the details!

Services Offered

• Short-Term Loans: A financial product that grants borrowers a lump sum. Unlike other term loans, short-term loans carry a one-time fee that is repaid along with the principal. Repayments are made daily or weekly, with the term usually lasting less than a year.
• Medium-Term Loans: These are more traditional term loans. The lender provides a lump sum, and the borrower pays back the principal plus accrued interest over the term. Payments are typically made monthly or weekly.
• Merchant Cash Advances: The funder buys a percentage of your future credit/debit card sales for a lump sum. A percentage of your daily card-based sales will be held back until the funder has collected the amount it advanced plus a flat fee.

Borrower Qualifications

The minimum requirements to have a good chance of qualifying for a loan or advance from Credibly vary, depending on the type of financing you’re seeking.

Working Capital Loans & Merchant Cash Advances

These are the minimum requirements to get a working capital loan or merchant cash advance from Credibly:

Business Expansion Loans

These are the minimum requirements for Credibly’s business expansion loans:

Terms & Fees

Credibly offers three types of financing: working capital loans, merchant cash advances, and business expansion loans. Learn the details about each type of financing below.

Working Capital Loans

These are the terms and fees for a Working Capital Loan:

Credibly’s Working Capital Loan is a short-term loan. Unlike longer-term loans, short-term loans don’t accrue interest over time. Instead, the total cost of borrowing is front-loaded into a fixed fee. This cost is expressed as a multiplier called a factor rate. If you want to know how much the loan will cost you, multiply the amount you’re borrowing by that rate. The result is the amount you have to pay back. Note that this does not include the origination fee.

The other major difference comes in the form of the method of repayment. During each payment period, Credibly will withdraw a micropayment from your business account through an automated clearing house (ACH). For this product, repayments can be on a daily or weekly basis.

Since short-term loans tend to translate to very high rates of interest while still technically being subject to state loan laws, Credibly’s Working Capital Loans aren’t available in every state. (Credibly doesn’t disclose which ones on its site, however.)

Merchant Cash Advances

These are the terms and fees for Merchant Cash Advances:

Merchant cash advances are similar to Credibly’s short-term loan products in that a factor rate is used to calculate the cost of financing. However, there are a few differences. A merchant cash advance isn’t a traditional loan but instead is a purchase of future receivables. In other words, Credibly purchases a percentage of your future sales in exchange for cash upfront. To collect the amount Credibly “purchased,” the funder automatically debits a percentage from either your credit card processor or business bank account each day.

While there aren’t set terms, the anticipated duration of paying off your cash is three to 18 months. While the borrowing fees are similar to those associated with Credibly’s short-term loans, a Credibly cash advance also requires a $50 monthly admin fee.

Business Expansion Loans

These are the terms and fees for Business Expansion Loans:

A more traditional option is the Business Expansion Loan. These loans accrue interest in the same way that bank loans do. Repayments resemble those of short-term loans — except Business Expansion loans are repaid weekly. The interest rate you’re assigned will be based on the overall health of your business, as assessed by Credibly’s underwriting department.

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Application Process

You can “prequalify” for a loan online, a term which here means, “begin the application process.” You’ll be required to enter basic information about yourself and your business. Credibly will use the answers provided to decide whether or not you’re eligible for a loan and how much funding you qualify for.

If you are eligible, you’ll have to talk to a real person. This person will work with you to determine how much money your business needs and what documentation you have to provide. Before the loan is finalized, you’ll have to provide the following information:

• Business lease agreement or business mortgage statement
• Picture ID of all owners
• Most recent business tax return (if you are applying for a loan above $100,000)
• Bank statements for the last three months
• Basic personal information, such as your social security number

When you’ve provided all the information, your file will be sent to underwriting.

If all of your information checks out, Credibly will extend a finalized offer to you. Should you accept, you’ll have to sign a business loan agreement, and the money will be transferred to your account.

The time from application to funding generally takes two to five days: one day for the application, one day to get a finalized quote, and one to three days for funding.

Sales & Advertising Transparency

Credibly discloses most of the basic information you’ll need on its website, although there are a few elements that could use some elaboration. Overall, Credibly provides a lot more information than many other online lenders do.

Customer Service & Technical Support

Credibly is available by phone and by chat via its website. Credibly is also on Facebook and Twitter. Or, if you don’t want to talk to people, an FAQ is available.

Customer service often gets cited as one of the high points of working with Credibly. Representatives are friendly, and hold times are short.

User Reviews

Negative Reviews & Complaints

On the Better Business Bureau website, Credibly currently has three recent complaints, two negative reviews, and an A+ rating overall. The company also has a handful of negative reviews on Trustpilot.

Here are some of the most common complaints:

• Early Repayment Stipulations: While Credibly does allow early repayment discounts, you’ll have to read the fine print to make sure you get the discount. It has to be made in a lump sum from a qualified account, for example.
• Payment Issues: A few customers complained about the repayment system and having to make more payments than anticipated. Given the nature of merchant cash advances, however, this may not have been Credibly’s fault.
• Long Application Process: Some reviewers complained that the application process took longer than they expected. Note that while Credibly makes claims of 48-hour funding, this refers to how long it will take to receive the funds after your application is approved.

Positive Reviews & Testimonials

There are a few testimonials on Credibly’s website and YouTube page. The lender also has a rating of 9.2 out of 10 on Trustpilot with 261 reviews. In general, customers liked:

• Easy Application Process: Compared to traditional lenders such as banks and credit unions, Credibly’s process should be quick and easy.
• Low Prerequisites: Younger businesses without great credit might still be able to qualify for funding.
• Good Customer Service: Most clients were pleased with the frequency and quality of the assistance they received from Credibly staff.

Have you done business with Credibly? Leave a message in the comments letting us know what you think!

Final Verdict

While Credibly’s rates aren’t the best in the business, it is a fairly transparent online lender with a flexible array of products that are within reach of businesses that have poor credit. If you’re in a pinch and don’t have access to other financing options, Credibly might be the lender that works for your business.

Don’t get a loan from Credibly without making a few comparisons first, though. Most lenders (Credibly included) will provide an initial quote within a few minutes without damaging your credit score. Head over to our Small Business Loan Comparison page to learn about some of our favorite business lenders.

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