Step by Step: Credibility Capital Business Loan Application

Small Business, Small Business Loans
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Editor’s note: NerdWallet’s Step by Step series gives small-business owners a behind-the-scenes look at the loan application processes for various online lenders. We show you what you can expect screen by screen as you submit your application.

Alternative lender Credibility Capital provides short-term, low-APR financing to established small businesses. If you’ve been around at least a year and are making more than $100,000 in annual revenue, you can apply for a one-, two- or three-year term loan from $10,000 to $350,000.

With a minimum credit requirement of 650, Credibility Capital is a prime lender, meaning businesses with struggling finances may not be approved. During the underwriting process, you’ll also have an opportunity to chat with a loan specialist who can help you decide whether a Credibility Capital loan is appropriate for you, and where you can turn for alternate financing if you’ve been denied.

To help ease the strain on overburdened small-business owners, we’ve broken down the Credibility Capital application process to give you an idea of just how long it takes, and what it takes, to complete.

Table of Contents

Credibility Capital loan application: summary

Enter business information

Review preliminary loan information

Start application

Provide detailed business information

Provide business financial information

Complete personal information

Submit application

Talk with an underwriter

Funding

To apply

Credibility Capital loan application: summary

 a Fundation business loan: How much time?Time: 10 – 20 minutes
Calls from lender: One from an underwriter, possibly a follow-up
Documents needed:

  • Two years of tax returns
  • Profit and loss statement
  • Six months of bank statements
  • Balance sheet (possibly, depending on the size of the loan)
  • A copy of your driver’s license
credibilitycapitallogo
  • Loan amount: $10,000 to $350,000.
  • APR: 10% to 25%.
  • Loan term: One, two or three years.
  • Funding time: Seven days on average.
  • Read our Credibility Capital review.
Apply now at Credibility Capital


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1. Enter basic info about your business and your loan request

 a Fundation business loan: How much time?Time: Less than a minute
Documents needed? None

The first step in the application process takes place right on Credibility Capital’s home page. Either select “Check Options” or scroll down and you’ll be presented with six questions about your business and personal finances to help the company learn more about you as a borrower.

Because Credibility Capital offers annual percentage rates starting at 10%, the bar is a little higher for its borrowers, says Mark Rambler, Credibility Capital’s president, chief operating officer and co-founder. These first six questions help it avoid giving anyone false hope, he adds.

basic info cred cap step by step

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2. Review preliminary loan info

Time: Less than a minute
Documents needed? None

If you’re approved to move on with a Credibility Capital product, you’ll be directed to a page with basic information about the kind of financing you can expect to receive based on your financial history. The company includes the amount of your monthly payments to help you get a better idea of how they could impact your budget.

eligible cred cap step by step

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3. Start application

 a Fundation business loan: How much time?
Time: Less than a minute
Documents needed? None

After hitting apply, you’ll be directed to Credibility Capital’s official application. Your answers from the first six questions will be auto-populated, but you’ll have to add additional details like the business name, contact information, and how many people own more than 25% of the business.

basic info cred cap step by step

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4. Provide detailed business information

 a Fundation business loan: How much time?
Time: One minute
Documents needed? None

The next step of the application gives you the option to provide a more comprehensive view of your business. Though it’s optional, providing context gives the underwriters a better understanding of the kind of business you run and its financial health. The same is true for the final three questions on the page.

business info cred cap step by step

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5. Provide business financial information

 a Fundation business loan: How much time?
Time: Five minutes
Documents needed? None

You’ll then provide a basic overview of your finances. You’ll supply revenue and pretax profit, as well as monthly debt payments.

finances cred cap step by step

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6. Complete personal details

 a Fundation business loan: How much time?
Time: Two minutes
Documents needed? None

During the last step of the application, you’ll provide your personal details, as well as the personal details of any co-workers who own more than 25% of the company.

owner cred cap step by step

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7. Submit application

 a Fundation business loan: How much time?
Time: Less than a minute
Documents needed? None

Finally, submit your application.

submit cred cap step by step

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8. Talk with an underwriter

 a Fundation business loan: How much time?
Time: 10 minutes
Documents needed? Two years of tax returns, profit and loss statement, six months of bank statements, a copy of your driver’s license, and a balance sheet (possibly, depending on the size of the loan).

Next, your application will be sent to an underwriter, and your credit will be pulled (hard pull for your commercial credit, but soft for your personal so it won’t impact your FICO score). You’ll be contacted by an underwriter within a few hours of hitting “submit.”

Your underwriter — or loan specialist, as Credibility Capital refers to this person — will tell you your preliminary offer and terms. You can choose to decline the offer (which happens a third of the time, according to Rambler) or move forward. The call lasts roughly five to 10 minutes, but may last longer if the underwriter or, more likely, the borrower has detailed questions.

“Borrowing is a big responsibility,” Rambler says. “It’s not something people take lightly, so we definitely spend as much time as people need on that first call.” You’ll chat in detail about your business (for instance, if you said you were in the gardening industry, the loan specialist will ask if you own a gardening center or a landscaping business, Rambler explains) and be asked to provide the verification documents listed above.

You’ll be contacted again if the underwriter needs to verify something on a credit report or if there is a discrepancy in the information you provided.

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9. Funding

If no additional information is needed and you accept the loan offer, your financing can be wired to you as quickly as that day. Time to funding can happen in as little as two days, Rambler says, but it’s more likely the process will take seven to 10 days.

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Apply

If you’re ready to get started with Credibility Capital, apply on the lender’s secure site:

Apply now at Credibility Capital

Compare Credibility Capital with other lenders

If you want to compare Credibility Capital with other lenders, use NerdWallet’s small-business loan tool. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.

Jackie Zimmermann is a staff writer at NerdWallet, a personal finance website. Email: jzimmermann@nerdwallet.com. Twitter: @jackie_zm.

Updated Oct. 9, 2017