Pros & Cons
- Competitive rates compared with other online lenders.
- No prepayment penalty.
- Loans can be approved and funded within five business days.
- Requires higher annual revenue than other online lenders.
- Requires business lien and personal guarantee.
- Not available in Nevada, North Dakota, South Dakota or Vermont.
Credibility Capital, a New York-based online lender founded in 2013, offers low-risk borrowers access to small-business loans of up to $500,000. Loans can be funded within days.
Credibility Capital also offers business lines of credit up to $250,000, which include a two-year interest-only draw period before a three-year payback period. In this review, though, we’ll focus on the lender’s term loan.
How Much Do You Need?
Credibility Capital is best for borrowers who:
Have established businesses with stable finances. With eligibility requirements including a minimum credit score of 650, two years in business and annual revenue of at least $200,000, Credibility Capital is best for established businesses that may fall just short of qualifying for traditional financing.
Don’t want to wait for bank loans. Credibility Capital says it can approve and fund loans within three to five business days.
Want to find the best interest rate. Interest rates from Credibility Capital range from 8.99% to 17.99%, lower than many other online business loans. Plus the lender does a soft credit pull when you initially apply for funding, so you can get a sense of what rate you’ll qualify for without impacting your credit.
Credibility Capital loan features
Up to $500,000.
Estimated APR range
8.99% to 17.99%.
Closing fees apply. There are no prepayment fees or maintenance fees on installment loans.
Up to 5 years.
3 to 5 business days.
Where Credibility Capital stands out
Lower interest rates and fewer fees than other lenders
Credibility Capital’s interest rates, which range from 8.99% to 17.99%, are lower than many other online lenders. The lender charges a fee at closing, but no prepayment or maintenance fees over the life of the loan. Paying your loan back early can help cut down on how much you pay in interest, lowering the overall cost of borrowing.
Monthly payments on short-term loans
Some short-term loans require weekly or even daily repayments, which can make cash flow hard to manage. But with Credibility Capital, you’ll pay a fixed amount toward your loan balance each month — even if your terms are shorter than its maximum five years.
Faster funding than banks
Credibility Capital can fund loans in three to five business days. While that’s not as quick as lenders specializing in fast business loans, it’s significantly faster than bank and SBA loans.
Where Credibility Capital falls short
Stiff qualification requirements
Online business loans typically have more flexible requirements than other options. And while most online lenders do have credit score and annual revenue requirements, Credibility Capital’s are both on the high end.
Credibility Capital requires business owners to have a minimum credit score of 650, no bankruptcies in the last five years and no unpaid liens or judgments. You’ll also need at least two years in business plus at least $200,000 in annual revenue.
Requires a business lien and personal guarantee
Credibility Capital loans are secured by a blanket UCC lien, which essentially means you’re putting up your business as collateral. Though the company doesn’t place a lien on a specific item (real estate, equipment, etc.), the filing means it has a stake in your assets.
Additionally, anyone who owns 25% or more of your business will also need to sign a personal guarantee for the loan. This puts an individual's personal assets at risk if the business falls behind on repayments.
Both of these requirements are common among online lenders. But if you would rather secure a loan with a specific piece of collateral, like real estate, look into business bank loans. While they typically require strong financials, banks may be more flexible about what collateral you offer.
Credibility Capital loan requirements
Credit score: 650.
Time in business: Two years.
Annual revenue: $200,000.
How to apply for a loan from Credibility Capital
Credibility Capital offers a fully digital application experience through its website. The first part of Credibility Capital’s application process only takes a few minutes. You’ll start by submitting some initial information and documents, including bank statements. The lender will do a soft credit pull and then give you a preliminary decision about whether you qualify for a loan.
After that, the underwriting process begins. You’ll need to provide additional paperwork, and Credibility Capital will do a hard credit pull at that point. If you’re approved, you can sign a loan agreement and receive funding in three to five business days.
Alternatives to Credibility Capital
If your credit score is too low to qualify for a loan from Credibility Capital, OnDeck requires a minimum credit score of just 625 for loans of up to two years. OnDeck’s interest rates are significantly higher, though — ranging from 29.9% to 97.3% — and you’ll have to make daily or weekly repayments.
If you want a longer repayment term than Credibility Capital offers, Funding Circle term loans can stretch up to seven years. Funding Circle doesn’t have a stated minimum annual revenue requirement, but its other qualifications are similar to Credibility Capital (at least two years in business and a credit score of 660 or higher). Funding Circle’s interest rates are comparable to Credibility Capital’s, too, at 10.64% to 31.85%.
Compare business loans
If you’d like to compare small-business loan options, NerdWallet has a list of loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.
Frequently asked questions
Credibility Capital is a New York-based online lender that was founded in 2013. Since 2019, the company has been accredited by the Better Business Bureau, where it has an A+ rating.
Credibility Capital performs a soft credit inquiry to check your credit score, which does not impact your credit score. The lender performs a hard pull only if you’re approved for financing and move forward with the loan.