- Short term financing
- Working capital loans
- Business expansion loans
- Short time to funding
- Daily or weekly repayments
- Knowledgeable customer service
Founded in 2010 under the name RetailCapital, Credibly is an online lender that provides short-term financing. The company offers two short term financing options: Working Capital Loans and Business Expansion Loans.
The loans differ by a few characteristics—most notably term length. The former is designed to be paid off in 6 to 17 months, whereas the latter last between 18 and 24 months. In all, APRs range from about 12% to about 142%; you can expect to repay somewhere between $1.08 and $1.41 for every dollar borrowed (see the Terms and Fees section for more information about how APRs work with short term financing).
Those terms and fees are about standard for this industry. Credibly’s products have a few things going for them—you only need to be in business for six months to qualify, there are weekly repayment options (which are often better than daily repayments), and customer service is friendly and easy to reach.
However, the online business financing field is large, and Credibly doesn’t do enough to stand out. While there isn’t a reason to not get a quote from this lender, I’d recommend shopping around a bit before making a decision.
Read on for the details, or check out our list of the 10 best lenders for merchants with little time in business.
- Working Capital Loans
- Business Expansion Loans
These are the minimum requirements to get a working capital or business expansion loan from Credibly:
|Time in business:||6 months|
|Other:||For Expansion Loans, your average daily balances must be over $1K|
Terms and Fees
These are the terms and fees for a Working Capital Loan:
|Borrowing amount:||$5K – $250K|
|Term length:||6 – 17 months|
|Flat fee:||x1.09 – x1.36|
|APR:||Approx. 15% – 142%|
|Collateral:||UCC-1 blanket lien, personal guarantee|
Instead of interest, Credibly’s working capital loans carry a one-time flat fee, which Credibly calls a factor rate. Your fee is calculated by multiplying the factor rate by the principal. For example, if you have a factor rate of 1.3, and you’re requesting a $50K loan, you’ll have to repay a total of $65K: $50,000 x 1.3 = $65000.
The flat fee is repaid along with the loan. For this loan, repayments are made via fixed daily deductions of your bank account.
APRs for these loans have the potential to range from about 15% – 142% (the shorter the term length, the larger the APR), which is about standard for the industry. For every dollar borrowed, you’re looking at repaying between $1.09 and $1.36.
The terms and fees for Business Expansion Loans:
|Borrowing amount:||$10K – $250K|
|Term length:||18 – 24 months|
|Interest rate:||9.99% – 36%|
|APR:||Approx. 12% – 40%|
|Collateral:||UCC-1 blanket lien, personal guarantee|
Credibly’s longer term loans (between 18 – 24 months) charge interest instead of a flat fee. According to the website, these loans carry APRs between 12% and 40% which is a little high for this type of loan, especially given that term lengths cap off at two years. That said, your personal interest rate will depend entirely on the strength of your business and Credibly’s underwriting department.
Repayments are made via fixed weekly deductions.
* These numbers were derived from Credibly’s business loan calculator and, as such, might not be 100% accurate.
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.
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 (for loans above $100K)
- Bank statements for the last 3 months
- Basic personal information like your social security number
When you’ve provided all the information, your file will be sent to underwriting. Be aware that Credibly does a hard check on your credit score at this time.
Assuming all 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 wired into your account.
Time from application to funding generally takes two to five days: one day for application, one day to get a finalized quote, and one to three days for funding.
Sales and Advertising Transparency
For a company that states multiple times that they carry “[n]o hidden fees and no surprises,” Credibly could certainly provide some more information on their website.
While some numbers are disclosed, the website is overall lacking in information, which makes it significantly more difficult for potential customers to compare their options. That said, this company does provide a whole lot more information than many other short term lenders. On the other hand, your time is precious, folks; don’t let anybody else waste it.
Customer Service and Technical Support
Customer service is often cited as one of the high points of working with Credibly. Representatives are friendly and hold times are short.
Negative Reviews and Complaints
Given that I don’t have much to work with, here are the most obvious deterrents of getting a loan from Credibly:
- Expensive fees: Short term financing does not come cheap. Credibly’s rates more-or-less fall within the range of its peers. However, when compared to longer term loans, borrowers from Credibly will have to repay more money in a shorter amount of time.
- Daily repayments: On paper, daily automatic repayments sound great—you repay in small increments instead of losing a large chunk of money once or twice a month. However, a daily repayment structure can be difficult for merchants who run into cash flow troubles, as it doesn’t give you much margin for error. It should be noted that Credibly’s Business Expansion Loans are repaid weekly.
- Process can take longer than advertised: The 48-hour funding window is more of a best-case scenario than a guarantee.
Positive Reviews and Testimonials
- Easy application process: Compared to traditional lenders, Credibly’s process should be quick and easy.
- Low prerequisites: Younger businesses without great credit can qualify for funding.
- Good customer service: Most clients were pleased with the frequency and quality of the assistance they received from Credibly staff.
Otherwise, I couldn’t find a whole lot of positive (or negative), reviews of Credibly on the web. You can help us out, though. Have you done business with Credibly? Leave a message in the comments letting us know what you think!
Credibly falls firmly in the average-to-middling category of short term financing, but despite the high cost of borrowing, the company doesn’t raise any red flags. If you’re in a pinch and don’t have access to other financing, 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. At the very least, you should get a quote from Credibly’s competitors OnDeck and/or CAN Capital. Need some more ideas? Check out some of our favorite lenders for newer businesses.