Credibly Review

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Phone Number

(888) 466-0535

Date Established

2010

Location

Troy, MI

Pros

• Relaxed loan qualifications
• Transparent terms and fees
• Easy application process

Cons

• Moderate factor rate
• Some additional fees
• High origination fee

Overview

Credibly is a Michigan-based online lender that offers short-term financing in the form of Working Capital Loans and Business Expansion Loans.

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. If you’re having trouble finding loans through other means, Credibly seems transparent enough to serve as a reasonable lender of last resort.

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.

Services Offered

• Short-term loans
• Medium-term loans

Borrower Qualifications

These are the minimum requirements to get a working capital or business expansion loan from Credibly:

Terms and Fees

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 flat 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. Each business day, Credibly will withdraw a micropayment from your business account through an automated clearing house (ACH).

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. (They don’t disclose which ones on their site, however.)

These are the terms and fees for Business Expansion Loans:

A more traditional option is the Business Expansion Loan. These loans accrue interest similar to most bank loans.

Repayments, however, follow a similar course as the short-term loans do, only the payments will be withdrawn weekly rather than daily. The interest rate you’re assigned will be based on the overall health of your business as assessed by Credibly’s underwriting department.

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.

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

Credibly discloses most of the basic information you’ll need on their website, although there are a few elements that could use some elaboration. Overall they provide a whole lot more information than many other short-term lenders do.

Customer Service and Technical Support

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

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

On the BBB, Credibly currently has 3 recent complaints, two negative reviews, and an A+ rating overall. The company also has a couple negative reviews on TrustPilot.

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

There are a few testimonials on Credibly’s website and YouTube page, and some positive reviews on TrustPilot. In general, customers cite:

• 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!

Final Verdict

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.

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Chris Motola

Chris Motola is an independent writer, journalist, programmer, and game designer who has mastered the art of using his laptop in no fewer than 541 positions, most of them unergonomic. When he's not pushing keys or swiping screens, he's probably out exploring urban or natural environs, experimenting in the kitchen, or delighting/annoying his friends with his ideas and theories.

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