As of December 2020, Credibility Capital’s lending business is currently on pause. This review includes details about their business loan products prior to that pause—if and when Credibility begins offering financing, this review will be updated to reflect any new changes or information.
Credibility Capital is an online business loans marketplace that matches institutional investors to small business owners who need financing. Their investors include banks, hedge funds, and insurance companies. Business owners can apply online for between $25,000 and $350,000 in financing.
Credibility Capital partners with several high-profile organizations, such as Dun & Bradstreet and New York City Small Business Services. Through these partners, they get access to small business owners who are looking for loans, and cross-sell products.
Overall, Credibility Capital business loans are great for established, qualified businesses who are looking for affordable, medium-term financing. These loans are also ideal for businesses who might be able to qualify for a bank or SBA loan, but would prefer a streamlined, online-based process and slightly expedited timeline.
Pros and Cons
- Affordable rates compared to other online lenders
- Monthly repayment; no prepayment penalties
- Great alternative to bank or SBA loans for established, qualified businesses
- Can be used to refinance existing debt
- Online-based application and tracking portal, personalized customer service; great customer reviews
- Highly qualified businesses might be able to access lower rates with a bank or SBA loan
- Slower to fund than many alternative lenders
- High origination fees
- Can’t be used to build or improve credit
- Requires high qualifications; not available for newer businesses or those with average credit or below
Credibility Capital Small Business Loans
As we mentioned, Credibility Capital offers medium-term loans through their online marketplace platform. Here are the details you can expect with their business financing:
$25,000 to $350,000
One, two, or three years
8% to 20%
Credibility Capital Loan Requirements
Time in business
Currently generating revenue
Strong personal credit
Credibility Capital Borrower Eligibility
On top of meeting these general qualifications, there are a handful of additional criteria you’ll want to keep in mind before deciding to apply for a loan from Credibility Capital:
Credibility Capital does not work with businesses in the following industries:
- Adult entertainment
Financial and Business History
- Credibility Capital does not offer loans to sole proprietorships.
- Business owners must be U.S. citizens to be eligible for a loan from Credibility Capital.
- Credibility Capital cannot work with businesses who have had commercial or personal bankruptcies within the last five years.
- Credibility requires business owners to have a business bank account.
- Credibility Capital will not work with borrowers who have unpaid tax liens, but will consider borrowers who are on a payment plan.
- Credibility doesn’t require borrowers to be profitable, but they require a debt service coverage ratio (DSCR) of at least 1.
- Credibility Capital will work with borrowers to use their loans to refinance debt.
- Credibility Capital cannot work with businesses located in Nevada, North Dakota, South Dakota, or Vermont.
- Credibility can fund home-based businesses.
What You Need to Apply
You’ll need the following to apply for financing with Credibility Capital:
- Business tax ID number
- Revenue for the last year
- Social security number for all primary owners
- Six months of business bank statements
- Two years of personal tax returns
- Two years of business tax returns
- Most recent profit and loss statement
- Most recent balance sheet
- Voided business check
- Copy of driver’s license
- Business debt schedule
How to Get a Business Loan From Credibility Capital
If you’re interested in applying for a business loan from Credibility Capital, you can start the process by filling out an application on their website. Credibility Capital funding can be available in as little as three days, but on average, takes five to seven business days.
Here’s what to expect from the end-to-end loan application process:
Application and Underwriting Process
Credibility Capital’s initial online application shouldn’t take more than 15 minutes to complete. The form asks some questions around how much business financing you need, how you plan to use the financing, and your estimated credit score. You’ll need to provide information about your business’s ownership, as well.
Once you submit your application, Credibility will screen it to make sure you meet basic eligibility requirements. If you do, they will do a soft pull of your personal credit score (which will not affect your credit) and check your business credit report.
At that point, if your credit history meets Credibility Capital’s eligibility criteria, they will send you an initial offer and request any additional documentation they need—such as bank statements and tax returns.
You can upload documents and view your loan progress in Credibility’s online portal. You’ll also be able to work with a Credibility Capital loan specialist who can advise you through the process and answer any questions you may have.
That said, once they receive all of your documentation, the Credibility risk team will conduct a full credit assessment. Assuming everything looks good, Credibility will provide a final offer and send the loan agreement for you to sign.
When you receive your business loan agreement from Credibility Capital, you’ll see your final loan amount, interest rate, terms, and additional details. Credibility Capital typically approves borrowers for loans equal to 10% to 20% of their total annual revenue.
You’ll want to review your loan agreement carefully and make sure you understand all of the terms and conditions before signing. With that in mind, it’s important to note a few things about Credibility Capital’s financing:
- Personal guarantee: Credibility requires a personal guarantee from anyone who owns at least 25% of the business.
- Origination fee: Credibility charges a one-time origination fee ranging from 3% to 5% depending on the amount of the loan.
- Blanket lien: Credibility will file a blanket UCC-1 lien on your business once you receive funding. They do not, however, take out liens on specific pieces of collateral, such as real estate or equipment.
Additionally, before you close on your loan, Credibility will require a brief phone conversation with you as part of their anti-fraud procedures. If you have not yet spoken to a loan specialist, someone will contact you before closing.
Finally, after you’ve signed your loan agreement, Credibility Capital will do a hard credit pull at closing, which can cause your score to drop by a few points. All in all, however, you should be able to get your funds in your business bank account in as little as 24 hours after Credibility receives your bank routing information.
After you receive your loan, you can view statements and your loan balance on Credibility’s online portal.
Your first payment will be due 30 days after closing on the loan. Credibility Capital will automatically debit fixed payments from your business checking account. Debits occur on a monthly basis.
Credibility Capital loans are fully amortizing loans, which means that each payment covers both interest and principal. As you pay down the loan, more money goes toward principal and less toward interest. If you end up paying your Credibility Capital loan early, therefore, you will be able to save on interest and won’t be charged a prepayment penalty.
That said, Credibility doesn’t report loan payments to the consumer or business credit bureaus, so a late payment shouldn’t affect your credit score—on the other hand, though, you also cannot use your loan to build or improve your business credit.
But, if you are late on a payment, Credibility charges a 5% late fee. Additionally, if there are insufficient funds in your account when Credibility tries to debit a payment, there’s also a $35 non-sufficient funds (NSF) fee. Credibility does not charge maintenance or application fees, however.
Finally, your Credibility Capital loan is eligible for renewal after six months of on-time payments for first-time business loans.
Credibility Capital Customer Service
Credibility Capital customer service and loan specialists are available via phone and email. You can reach out from Monday through Friday from 9:00 a.m to 6:00 p.m. ET by calling 973-718-9100 or emailing firstname.lastname@example.org.
In addition, once you’ve started your application (or received a loan), you’ll be able to monitor your progress using your online account on the Credibility Capital website.
Credibility Capital Reviews
How do borrowers feel about their experience with Credibility Capital?
Overall, Credibility Capital reviews across the internet are pretty strong.
Although Credibility does not have any customer reviews on the Better Business Bureau website, this small business lender is BBB-accredited with an A+ rating. In addition, Credibility Capital only has one complaint closed on the site in the last three years.
With that in mind, Credibility has an impressive average of 4.8 out of 5 stars on Trustpilot and 5.0 out of 5 stars on Google Reviews (although there are only a few reviews on Google).
In general, here’s what positive reviewers have to say about Credibility Capital:
- Excellent customer service; loan specialists were particularly helpful in navigating the process
- Straightforward, organized process that was easy to understand and follow
- Reasonable terms and documentation; fast funding
More negative reviews, on the other hand, tend to focus on the following:
- Late fees charged when borrowers were using auto pay
- Underwriting process could be a little faster
All things considered, however, there aren’t very many strongly negative Credibility Capital reviews. Plus, to Credibility’s credit, representatives respond to those that are posted and try to work with borrowers to resolve their issues.
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Is Credibility Capital in Fundera's Network?
Credibility Capital is in Fundera’s Lender Network. The Fundera team has carefully vetted Credibility Capital and determined that their offering is one of the best in their product category. When working with Credibility Capital, you can be sure you’re getting transparent, fair pricing on a best-in-class product.
Randa Kriss is a senior staff writer at Fundera.
At Fundera, Randa specializes in reviewing small business products, software, and services. Randa has written hundreds of reviews across a wide swath of business topics including ecommerce, merchant services, accounting, credit cards, bank accounts, loan products, and payroll and human resources solutions.