Credibly, formally known as Retail Capital, is a small business lender that helps businesses navigate the murky underworld of alternative funding. They have over 50 years of experience on their team and have been in business since 2010. Like most alternative funding companies, they help customers who are underserved by banks. They work hard with the underwriting procedures to give business owners alternatives to SBA and conventional business loans.
For those seeking business capital, Credibly / Retail Capital has two options:
- Business Loan – they give you a lump sum between $5k-$250k. Each business day, you payback a fixed dollar amount and are required to pay back the loan at an agreed upon date (between 6-18 months).
- Merchant Cash Advance – they providing funding from $5k-$250k. Each day, you payback a percentage of your future daily sales until the merchant cash advance (MCA) is paid off. In a way, Credibly buys a portion of your business until the loan is paid in full. MCA’s typically have higher rates than business loans but do not require any collateral.
They do not offer SBA-backed loans or other conventional business loans. Other types of financing mechanisms require collateral, making it difficult for small businesses that have only a few infrastructure resources. With Credibly, a small business can easily apply for a business loan or a MCA without having to turn over vital resources that help them run the business.
Types of Loans Offered
9.99% – 36%
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18 – 24 Months
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This review will highlight data on Credibly’s business loan service.
Easy Application Requirements
There are several benefits to choosing Credibly loans as your alternative funding source. To start, Credibly puts their application requirements and interest rates online for everyone to access. This may seem like a simple thing, but when you look at companies across the business loan industry, only a handful display relative information.
Credibly requires the following from applicants:
- 6 months in business
- No credit score cut off
- $15k/monthly revenue
- 2.5% origination fee
- Personal guarantee
Even though many of these requirements are stricter than competitors, at least they show you up front. Credibly’s 6 months in business minimum is perfect for startups. And the fact that they do not judge you solely based on your credit score, is perfect for small business owners looking to start over.
There is a minimal credit check with Credibly. On the application form, the borrow gives some basic information about their business finances. No personal credit check is required and the borrower does not have to provide lengthy credit card statements and financial documentation. No collateral means that the borrower doesn’t have to use their business infrastructure to back the cash advance.
To be even more transparent, Credibly offers a calculator to small business owners researching loans. This calculator gives you an estimation of the interest you would pay for a loan ranging from $5k-$250k over 6-18 months. Six to 18 month terms are about average in the alternative funding industry.
Credibly doesn’t have a lengthy paperwork process. They only require a simple 1-page application after filling out the online form. Other lenders (especially banks) have lengthy paperwork processes for small business loans. The one-page application gauges the overall health of your business.
We also appreciated the resources and usability of the Credibly website. One of the benefits of the site was the easy-to-use application portal. We also appreciated that the website has a blog, with several articles that relate to small business financing. One area of the website’s functionality that was lacking was information about the specific terms of the Credibly cash advance solution.
Fast Access to Cash
Another benefit of Credibly was the fast access to cash. With Credibly, you can hear back about your approval within 24 hours. In another 48 hours, your business can get access to its MCA line of credit. With traditional industrial banks and other financing businesses, we found that it could take as long as 30 days to get access to your money. With other credit processes, it can take 30 days to get approval on any type of credit. Credibly lets its customers get access to their money fast.
Overall, Credibly has an outstanding reputation with the BBB. The company currently has an accreditation and an A+ with a relatively low number of complaints. This rating is due to the company’s time in business, their efforts to get an accreditation, and the low number of complaints on file.
Why We Recommend Credibly
- No processing fees
- No prepayment penalties
- No extensive credit check
- Transparent requirements
- A+ Rating with the BBB
- Funds available in 2 days
Even though Credibly provides customers with fast cash, there are a few concerns to go over.
High Interest Rates and Fees
The biggest concern with Credibly loans are the fees. Interest rates for Credibly range from 22-47%. This information was pulled from the site, so while we source these interest rates for business loans, it may actually apply to their MCA’s. When we used Credibly’s calculator to find the cents on the dollar you would pay for a $100k loan over 12 months, it came out to $0.34 – one of the highest rates in the industry.
Their other high fee is their origination fee. A 2.5% origination fee isn’t that high, but many other alternative lenders don’t even have origination fees. Credibly also requires a personal guarantee, meaning that if you cannot pay your loans, they can collect on your personal real estate and bank accounts.
For small businesses, a merchant cash advance can be a risky type of unsecured loan. Typically, small businesses use these resources to bolster their payroll, make short-term capital expenditures, and pay for other resources that are considered “short-term.” There are other products available in the small business lending industry that can help businesses meet their short-term needs. For example, equipment leasing may be a good option for a business that needs to purchase equipment for the short-term. An MCA from Credibly may not be the best option for a small business that is looking for short-term financing options.
Also, there is a certain amount of risk for small businesses that use the MCA products offered by companies such as Credibly. MCAs take away from a small business’s future credit card receipts, a vital source of revenue for small businesses.
*Star Rating is determined by evaluating APR range, minimum credit score requirement, revenue requirement, length in business requirement, and other related approval data.
Before applying with Credibly for a small business loan, make sure you meet all of their minimum loan requirements:
- At least 6 months in business
- $15k monthly revenue
- Personal collateral
These requirements are all outlined on their website.
How to Apply
There is an “Apply Now” button on the top right corner of Credibly’s home page. From there, you will be redirected to their online application.