Product Overview of Credibly
Credibly is a data-driven, online fintech lending platform specialized in providing short-term and medium-term financing solutions to support the growth of small and medium-sized businesses (SMBs). Here’s a detailed look at what Credibly offers and its key features:
What Credibly Does
Credibly serves as a financing platform that connects small business owners with various loan options, addressing the need for quick and accessible funding. The platform is designed to help businesses cover everyday expenses, manage cash flow, and capitalize on growth opportunities.
Key Features and Functionality
Loan Products
Credibly offers a diverse range of financing products, including:
- Working Capital Loans: Short-term loans designed to cover everyday expenses such as purchasing inventory, making payroll, and paying rent. These loans typically require daily or weekly repayments and may necessitate collateral.
- Merchant Cash Advances (MCAs): An expensive but quick way to borrow money, with repayment tied to the business’s daily receivables. MCAs come with an origination fee and a monthly admin fee.
- Business Lines of Credit: Revolving lines of credit up to $250,000, allowing businesses to draw only what they need and repay the amount plus interest. This option operates similarly to a credit card.
- Medium-Term Business Expansion Loans: Loans up to $250,000 with terms of 18 or 24 months, suitable for business expansion and growth.
- Additional Financing Options: Credibly also provides access to other financing products through its network of lender partners, including SBA loans, invoice factoring, and equipment financing.
Eligibility Requirements
To qualify for Credibly’s loans, businesses must:
- Be located in the United States
- Have at least six months in business
- Generate a minimum of $15,000 in monthly revenue
- Have a minimum credit score of 500.
Application and Funding Process
The application process is streamlined and can be completed online or via phone. Businesses can receive approval within 4 hours, and funds can be deposited into their account as soon as the same day. During the prequalification process, Credibly performs a soft credit pull, which does not impact the business’s credit score.
Repayment Terms
Repayment terms vary by loan product but often include daily or weekly automatic debits for working capital loans and MCAs. For lines of credit, businesses only repay the amount drawn plus interest.
Fees and Costs
Credibly’s loans come with higher interest rates and fees compared to traditional lenders. This includes an origination fee of 2.5% on working capital loans and MCAs, as well as a $50 per month admin fee for MCAs. However, the rates are generally competitive with other short-term lenders.
Customer Support and Reputation
Credibly is known for its strong customer support and has an A rating from the Better Business Bureau and a 4.8 out of 5 star rating on Trustpilot. Customer reviews highlight the ease of application, quick funding, and excellent customer service.
Benefits and Drawbacks
Pros:
- Quick access to funding, with possible same-day approval
- Lower credit score requirements (minimum 500)
- Flexible repayment plans
- Access to a variety of financing options
- Strong customer support
Cons:
- Higher interest rates and fees compared to traditional lenders
- Repayment structures can be confusing
- Some loan products may require collateral
- Higher costs associated with MCAs and other short-term loans.
In summary, Credibly is a versatile and user-friendly financing platform that caters to the diverse financial needs of small and medium-sized businesses, offering rapid access to funds and flexible repayment options, despite higher costs.