A newer short-term lender looking to help more established business owners with good credit.
The new online upstart Credibility Capital is just one business loan option that can connect you to a lender that suits your needs.
|Product Name||Credibility Capital Business Loans|
|Min Loan Amount||$10,000|
|Max. Loan Amount||$400,000|
|Interest Rate Type||Variable|
|Maximum Loan Term||3 years|
|Requirements||$15,000+ in monthly revenue, 550+ credit score, in operation 18+ months, no bankruptcies in 5 years, located in eligible state. |
- Revenue-generating business in operation 18+ months
- $15,000+ in monthly revenue
- 550+ credit score
- No commercial or personal bankruptcies in 5 years
- Business located in eligible state
Do I qualify?
To qualify for a business loan with Credibility Capital, you must generate $15,000+ of monthly revenue, be a US citizen and in business at least 18 months. You must also have 550+ credit score that’s free of commercial or personal bankruptcies in the past five years. Finally, your business cannot be located in Nevada, North Dakota, South Dakota or Vermont.
What is Credibility Capital?
Credibility Capital is an online lending platform founded in 2013 by Brett Baris and Mark Rambler, venture capitalists looking to help out small business.
Its platform connects qualifying small and medium-size businesses to partnered Credibility Capital investors for short-term business loans of up to $400,000 and with terms of up to three years.
What makes a Credibility Capital business loan unique?
Credibility Capital is an online lender, which means the process of applying for a loan, having your application assessed and receiving your loan funds takes place without setting foot in a lending office.
Borrowers report that Credibility Capital’s service is simple and easier than applying for a loan with a traditional lender. If your application is approved, you could receive funds in your bank account within 24 hours.
What are the benefits of a Credibility Capital business loan?
- Potential for multiple offers. If you don’t qualify for in-house funding, you could be connected to lenders willing to provide you a loan.
- Fast turnaround. Unlike traditional lenders that can take weeks to process your application, Credibility Capital approves and delivers funds in as little as three business days.
- No prepayment fees. Many lenders charge a fee for early loan repayment. With Credibility Capital, you can repay your loan before your loan term is up with no hidden costs or penalties.
What to watch out for
Credibility Capital offers potential borrowers a convenient and simple online application and can deliver funds in a matter of days. But strict expectations for qualifying businesses and inflexible long-term loan solutions requires caution.
- Strong credit only. Credibility Capital doesn’t report an official minimum credit requirement, but borrowers suggest it’s looking for 650 or higher.
- No long-term options. A three-year loan is the longest term available. While a viable option for those in need of short-term capital, long-term borrowers will need to look elsewhere.
- Not for startups. If your business hasn’t been around for at least 18 months, you won’t have much luck with this lender.
- Your business is collateral. Loans are secured through a UCC-1 filing placed on your business — which means if you default, you’re at risk of losing your business.
- Requires autopay. Loans require automatic monthly loan repayments. But they include both interest and principal, keeping repayments on track.
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Am I eligible?
To find out if you’re eligible for a business loan with Credibility Capital, complete the online questionnaire to view your potential loan options.
Credibility Capital outlines a handful of standard eligibility requirements on its site:
- You must be a US citizen with 550+ credit score.
- Your business must be at least 18 months old.
- Your business must currently generate $15,000 monthly revenue.
- You must not have filed for personal or commercial bankruptcy in the last five years.
- Your business must not be located in Nevada, North Dakota, South Dakota or Vermont.
How do I apply?
After assessing your application, Credibility Capital will notify you of any additional documentation it might require.
You should hear back from a loan specialist within a few days of submitting your online application. Or follow up by email or phone Monday to Friday from 9 a.m. to 7 p.m. EST.
If you’re approved for a loan, you must provide Credibility Capital with your bank routing information to receive your funds. Submit your banking information before 3 p.m EST, and your funds are deposited within 24 hours.
What documents do I need to apply?
To save time, gather together the information you’ll need to apply with Credibility Capital:
- Your business Tax Identification Number.
- Your Social Security number.
- Tax returns for the previous two years.
- Business bank statements for the previous six months.
I got a Credibility Capital business loan. Now what?
To ensure you don’t hit any stumbling blocks in the process of using and repaying your loan:
- Carefully allocate your funds. Now that your business has access to the capital it needs to grow, decide how you’d like to direct your funds. Whether it’s purchasing equipment, securing real estate or hiring new talent, make sure that you allocate your funds wisely.
- Keep up with monthly payments. Credibility Capital loans are repaid in fixed monthly amounts. Payments are withdrawn automatically, so you just ensure that your monthly loan payment is waiting to be withdrawn each month. Remember that your loan is secured, which means defaulting on a payment could put your business at risk.
Credibility Capital offers short-term business loans to borrowers looking to fund or expand their business goals. While applying and turnaround is quick, this lender is looking for high credit scores from its applicants and offers loan terms of up to three years only.
If your credit is shaky or you’re trying to fund a startup, look into other business loans that might better contribute to your bottom line.