Finimpact

Credibly Business Loans Review

Credibly offers small and mid-sized businesses a wide range of funding choices at each stage of business growth.

credibly review
credibly
3.7
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Credit Score
Min. Credit Score 500+
Loan Amount
Loan Amount $5K-$400K
Loan Repayment
Loan Repayment 6-18 months
michelle jackson
Written by:Michelle Jackson
Freelance Financial Writer and Online Business Coach

Unlike other lenders that have a smaller suite of financial products, Credibly offers an impressive range of financial products. If a company is needing a working capital loan, lines of credit or an SBA loan. Credibly is able to take care of most company’s borrowing needs regardless of the stage of business they happen to be in. Credibly works businesses positioned in a wide range of industries.

Summarized Ratings

This parameter considers loan terms, repayment optionality, and loan limits. For each financing arrangement offered, each of these features was evaluated using the five-point scoring system. Then, the various scores were aggregated and averaged to establish an overall loan features score.

Credibly gets a 3.8 for Loan Features. This well above average score reflects a very broad offering of loan terms, flexible loan limits, and fairly accommodative repayment options.

Pros
Simple application process
Bad credit is welcome
Multiple loans on offer
Open to high-risk industries
High borrowing limits
Cons
High-interest rates
Origination fees
Daily and weekly payments

What Is Credibly?

Credibly is a Michigan-based online lender that provides small business loans across all 50 states. You’ll find an impressive range of seven different loan types on offer, borrowing limits up to $400,000 for short-term loans and up to $5,000,000 for longer-term loans. These are often accompanied by generous repayment terms. You’ll even find some specialist lending options that are aimed specifically at business expansion, and the Credibly customer service team is on hand to help you every step of the way.

credibly

Credibly Business Loan Features

Credibly small business loans come in seven different varieties. Its most popular option is a working capital loan that operates a little differently from a standard term loan. Rather than apply an interest rate, you’ll instead be charged a lump sum as a total percentage of the loan, making it a little easier to budget for.

The platform has plenty of flexible options too, such as a line of credit and a merchant cash advance. Credit requirements are low, but you might find that rates and fees can be a little high on some products.

Credibly has quite an impressive pedigree of reviews and articles under its belt, being praised in Entrepreneur magazine, Bloomberg and INC. 500. In addition, it’s got an A+ rating at the Better Business Bureau meaning your loan is going to be in safe hands.

Working Capital Loan

For short-term lending needs Credibly offers a working capital loan. Instead of being charged interest, a factor rate will be applied to your lending as a lump sum of the total payment. For example, if you have a factor rate of 1.15 and you borrow $10,000, your total payment will be $11,500 over the lifetime of the loan. Plus, you’ll be paying this back either weekly or daily so make sure you’ve got the cash flow to cover it.

Term length

6 to 18 months

Repayment period

Daily or weekly

APR range

Factor rates from 1.15

Min - Max amount

Up to $400,000

Long-Term Business Expansion Loan

These loans are offered over a longer period and usually have lower rates. They’re used specifically for business expansion so you’ll need to include a business plan as part of your application. Plus, it’s unlikely newer businesses will qualify and you’ll need to have a little experience under your belt.

Term length

3 to 10 years.

Repayment period

Monthly

APR range

Between 8% - 25%

Min - Max amount

$150,000 - $5,000,000

Line of Credit

A line of credit is a very flexible type of lending that works by allowing you to draw on an agreed designated lending limit. You only ever pay interest on the money you withdraw, although you’ll be charged fees every time you dip into it.

Term length

Not disclosed

Repayment period

Not disclosed

APR range

From 4.6%

Min - Max amount

Not disclosed

SBA Loans

Backed by the government an SBA loan usually has quite favorable terms, but will often require more documentation to apply.

Term length

2 - 25 years

Repayment period

Monthly

APR range

Starting from 6.99%

Min - Max amount

Not disclosed

Merchant Cash Advance

With this type of lending, you’re promising to repay a percentage of your credit and debit card sales. Terms are usually short-term and interest rates higher.

Term length

3 - 18 months

Repayment period

Daily

APR range

Factor rates from 1.15

Min - Max amount

Up to $400,000

Equipment Financing

Used to purchase a specific item of machinery that will be used as collateral for the loan. This can often mean lower rates.

Term length

The working life of the asset

Repayment period

Monthly

APR range

Not disclosed

Min - Max amount

Not disclosed

Invoice Factoring

If you’ve got cash flow issues you might want to consider invoice factoring. Here, you’re borrowing against your unpaid invoices and will repay the loan once your customers have paid you.

Term length

Usually one month

Repayment period

When you receive payment from your customers

APR range

Not disclosed

Min - Max amount

Not disclosed

Credibly Interest Rates and Fees

Credibly small business loansavailable, you’ll find a wide range of rates and fees. Generally, an origination fee of 2.5% will be charged regardless of the type of borrowing you choose, while other fees can vary. The platform doesn’t disclose all charges before you apply and you may need to get in touch directly to learn more.

Origination fees

2.5%

Prepayment fees

Zero

Late payment fees

Not disclosed

Maintenance fees

Not disclosed

Interest rates

Between 8% - 25%


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How to Qualify for a Credibly Business Loan?

Qualification criteria are quite lenient, especially when compared to other online lenders. The lowest credit score accepted is 500, you’ll need an average of $15,000 per month in gross sales and to have been in business for at least six months. However, there are some slight variations for each loan type that we’ve outlined below.

Working Capital Loan

Minimum credit score

500+

Minimum annual revenue

$180,000

Minimum time in business

Six months

Long-Term Business Expansion Loan

Minimum credit score

Not disclosed

Minimum annual revenue

Not disclosed

Minimum time in business

Not disclosed

Line of Credit

Minimum credit score

560+

Minimum annual revenue

$50,000

Minimum time in business

Six months

SBA Loans

Minimum credit score

620+

Minimum annual revenue

Not disclosed

Minimum time in business

Two years

Merchant Cash Advance

Minimum credit score

500+

Minimum annual revenue

$180,000

Minimum time in business

Six months

Equipment Financing

Minimum credit score

Not disclosed

Minimum annual revenue

Not disclosed

Minimum time in business

Not disclosed

Invoice Factoring

Minimum credit score

Not disclosed

Minimum annual revenue

Not disclosed

Minimum time in business

Not disclosed

Credibly Loan Application Process

Because Credibly offers a wide variety of financial products, customers should be mindful of the potential for slight differences in the application process for each product. Prior to beginning the application process, future borrowers should reach out to the U.S. based customer service team to ask questions about how to prepare their loan application.

Credibly does offer a pre-qualification process via a soft-pull credit inquiry. This is ideal for most borrowers because they’re able to find out if they’re eligible for a financial product without impacting their credit rating. Prior to applying for a loan product, the following documentation should be collected:

  • At least 3 years worth of tax returns
  • A well developed business plan
  • An understanding of what will be collateral for the loan
  • Proof of monthly revenue
  • The amount you would like to request in loan funds
  • Future borrowers should also spend time cleaning up any credit related issues that may be dragging down their credit score as the higher their score the better loan terms and likelihood of approval. Credibly notes that approvals are quick however like all loan requests, there are various factors that influence the speed of a loan request. Once approved, funds are made available to borrowers on the same day.

    Credibly

    How Does Credibly Determine the Loan Amount?

    Your loan amount will primarily be decided by your credit score. Although your business performance and profit and loss statement will play a key role too. Beyond this, Credibly doesn’t give much away about its assessment method so you might want to get in touch directly if you have questions.

    Credibly Customer Support

    Credibly is praised across the board for its excellent customer service. You can reach out over the phone, email or live chat via the website. What’s more, the lender is active across multiple social media accounts and inquiries are encouraged.

    Plus, you’ll find a range of blogs and guides on the website covering topics like debt refinancing, dealing with poor credit and asset-based lending.

    Credibly Business Loans Reviews

    Credibly has an excellent rating on Trustpilot with an average score of 4.6 out of 5 from 675 reviews. Over on Consumer Affairs, it only has a three out of five rating, though there are significantly fewer reviews there.

    Customers tend to praise the professional service given alongside the fast and convenient application process. In many instances, individual service agents are named for their top-notch customer service. In addition, users noted that it was very easy to understand the different loan types and get advice on the best options.

    In some instances of criticism, customers remarked that charges could be a little steep, applications were rejected without adequate reasons being given and some applications took longer than expected.

    Positive Reviews

    Negative Reviews

    Incredibly attentive customer service

    High fees

    Fast application process

    Rejected with no reasons given

    Easy-to-understand loan options

    Some lengthy applications

    Credibly Perks and Bonuses

    While some financial institutions opt to focus on servicing a small number of financial products and services, Credibly’s unique strength as a lender is in its variety of products, quick access to funding and a U.S. based customer service team that allows customers to address their questions and issues without dealing with a huge time difference.

    Flexibility

    Credibly doesn’t offer additional opportunities to save on its products but makes up for that with reasonable lending terms for specific products. It’s also unclear if payment deferrals are available to its clients, borrowers can make modification requests but it’s unclear as to how often those requests are approved.

    Transparency

    The Credibly website provides an incredibly wide range of resources that assist and educate potential borrowers on what to expect when making a borrowing request based on each product that Credibly offers.

    Trustpilot Credibly reviews show a consistently high level of customer satisfaction with customers reporting that they are happy with the service that they received and are pleased with how quickly funding is received once a funding request has been approved.

    One interesting area of client dissatisfaction to note is the experience that customers had with their loan experience specific to PPP loans during the CARES Act response to the impact of COVID on the economy. This particular loan and service is no longer available to customers as the CARES Act fiscal cycle has ended.

    Other customers reported some frustration related to communicating with Credibly when they have pressing questions about their loan processing. This was an infrequently reported frustration.

    Technology

    Customers use an online portal to access all details of their customer profile. Customers can also use the chat feature to answer quick questions, email or call Credibly customer support. Credibly doesn’t have an app to support its platform.

    Credibly users set up ACH payments within the customer portal. Borrowers should be mindful of the different payment cadences available to them ranging from daily repayments to weekly.

    Final Thoughts

    Credibly is a solid service provider when it comes to small business loans. With reasonable rates, high borrowing limits, flexible options and respectable lending terms, there’s an excellent chance you’ll find what you need here. Plus, it’s very welcoming to those with poor credit, and it doesn’t hurt your score to check if you’re eligible as only a soft credit check is run.

    For some, rates might be a little high here, and there are a few fees to contend with, but overall we’d highly recommend the platform.

    Frequently Asked Questions (FAQ)

    Is Credibly an SBA lender?
    Yes, Credibly is an SBA lender and qualified borrowers may be approved for products with an APR ranging between 5-8% per loan.
    Does Credibly report to credit bureaus?
    Yes, Credibly reports repayment activity to all three major credit bureaus.
    Is Credibly a bank?
    No, Credibly is not a traditional bank. Instead, it’s an online lender that partners with banks to provide many of its financial products.
    Is Credibly legitimate?
    Yes, Credibly is a legitimate company.

    About the Author

    Michelle Jackson

    Freelance Financial Writer and Online Business Coach

    Michelle Jackson is the host of the podcast "Michelle is Money Hungry." Her goal is to transform people's financial lives through increased financial knowledge.

    More about me