Credibly: A Match for High-Revenue Startups that Can’t Get Funded Elsewhere
Startups and bad-credit borrowers may get a short-term advance as high as $600,000 but will need strong revenue.
The bottom line:
Credibly offers cash advances up to $600,000 for startups and owners with bad credit. But your business needs to generate at least $20,000 in monthly revenue. Like all merchant cash advances, expect steep borrowing costs and aggressive repayment schedules.
Loan details
Min. Loan Amount
$5,000
Max Loan Amount
$600,000
Qualifications
Min. credit score
550
Min. Time in Business
6 months
Min. Annual Revenue
$240,000
Pros & Cons
Pros
Low starting factor rate compared with other MCAs.
Startups and bad-credit borrowers may qualify.
Prepayment discounts available.
High customer ratings on platforms like Trustpilot and ConsumerAffairs.
Cons
High minimum revenue requirement compared with other MCAs.
Can’t be used to build business credit.
Charges an origination fee and a monthly administrative fee.
Credibly offers merchant cash advances (MCAs) to small-business owners who need fast cash. You can get up to $600,000, which you’ll repay daily or weekly through a percentage of future credit card sales. This percentage is called a holdback rate, and it varies by business. A Credibly representative told NerdWallet the holdback rate is typically around 10%.
Editor’s note: Credibly also offers other types of loans, like equipment loans or business lines of credit, through its lending partners. This review will focus on its MCA offering.
Is Credibly right for you?
Consider Credibly if you: | Skip Credibly if you: |
|---|---|
Have strong credit card sales. | Lack the cash flow to keep up with daily or weekly payments. (Consider online lenders like Altbanq and Headway Capital, which offer monthly payment options.) |
Need fast cash. | Have a fair or better personal credit score. |
Can’t qualify for other types of business financing. | Have been operating for at least a couple of years. (Try for an SBA loan, provided you have good credit.) |
❗Nerdy Tip
Merchant cash advances are one of the most expensive financing options. Business owners should explore all other small-business loan options before considering an MCA.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Credibly merchant cash advance details
Advance amount | $5,000 to $600,000. |
Factor rates | Start at 1.11. |
Fees |
|
Terms | Borrowers repay their advances in 3 to 24 months, on average. |
Repayment schedule | Daily or weekly. |
Funding speed | As fast as the same business day. |
Credibly's MCA application process
This Writer's Take
I'm Karrin Sehmbi, editor and content strategist for small business at NerdWallet. I tested Credibly's pre-application flow, and here's what I learned.
Fast facts
- Time to complete: 7 minutes.
- Total clicks: 6.
- Number of follow-up emails: 1.
What impressed me
Credibly’s online pre-application was easy and quick to fill in. I stopped short of e-signing and moving to the financial section, which likely would have asked me to upload recent bank statements or link a business account.
Immediately after closing the browser, I received a follow-up email from Credibly encouraging me to complete the application. The message included a signature for the senior business consultant dedicated to my financing request, including their name, phone number and email address. While this isn’t unique to Credibly, it’s a promising sign that a borrower would be able to reach an actual human fairly easily. It’s also been my experience that some lenders first send generic email nudges, without a signature and contact information.
What annoyed me
I was mildly annoyed almost immediately in the process. After filling in several fields on the first page, I moved to a second page that asked for much of the same information (business name, monthly revenue, name, phone number and email address). It didn’t take much time to fill the fields in again, but there’s clearly room here for streamlining the application flow.
Where Credibly stands out
Relatively low starting factor rate
While Credibly’s MCA will still be pricier than most non-MCA funding options, it offers a fairly low starting factor rate of 1.11. However, only the most qualified borrowers will likely see that rate. Credibly’s cash advance also offers a discount for early repayment, which can help save money.
Curious what a merchant cash advance from Credibly might cost? Plug your numbers into our MCA calculator below to find out.
Low credit-score and time-in-business requirements
Many traditional lenders set high bars to clear before you qualify for a business loan or line of credit. For example, bank loans typically require a personal credit score of 700 or higher and a minimum of two years in business. They can also take weeks to fund.
With Credibly’s MCA, you may qualify with a credit score as low as 550 and just 6 months in business.
Still, it’s worth checking out alternatives that may be more affordable for startups and bad-credit borrowers, such as microloans and certain online business loans.
Helpful customer support
Credibly offers three ways to reach customer support: phone, email and text message. When NerdWallet tested all three, we found representatives to be helpful, well-informed and friendly.
However, there were a couple of times when no one answered the phone, and one text reply took 18 hours and required a follow-up.
Where Credibly falls short
High revenue requirements
To qualify for Credibly’s MCA, your business will need to generate at least $240,000 a year. That’s relatively high compared with some other MCAs NerdWallet analyzes. However, a representative told NerdWallet that in certain cases, businesses earning less may still be eligible.
Extra fees
Credibly charges a 2.5% origination fee and a monthly $50 administrative fee. While $50 may not sound like a lot, it adds up to $1,200 if it takes 24 months to repay the advance. That said, Credibly’s origination fee is slightly lower than those charged by some other merchant cash advance providers.
Alternatives to Credibly
Expansion Capital Group
Expansion Capital Group
Expansion Capital Group - Merchant cash advance
Min Credit
500
Apply nowwith NerdWallet Small Business
Consider Expansion Capital Group over Credibly if you make less than $240,000 a year.
Expansion Capital Group may be another viable option for startups and borrowers with bad credit. Like Credibly, its MCA requires a minimum of 6 months in business. But you may qualify with a slightly lower credit score of 500 and a much lower annual revenue of $96,000.
However, Expansion has a slightly higher starting factor rate of 1.18 and charges a 3.9% origination fee, which could result in higher overall costs compared with Credibly.
eLease
eLease
eLease - Equipment financing
NerdWallet Rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
4.0
Min Credit
550
with NerdWallet Small Business
Consider eLease over Credibly if you need to buy business equipment.
If you need cash to buy business equipment — such as vehicles, office furniture or machinery — eLease’s equipment financing may be an option.
The lender accepts startups and borrowers with personal credit scores as low as 550, and possibly even lower. There is no minimum annual revenue requirement. Because eLease and other equipment financing options use the equipment you buy as collateral on the loan, it’s likely to be significantly less expensive than Credibly. An eLease representative told NerdWallet that it charges interest rates ranging from 9% to 22%. But if you fail to repay your loan, the lender can take your equipment to recoup its losses.
However, you must apply over the phone, and you may pay a prepayment penalty if you try to repay your loan within the first year.