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Credibility Capital Small-Business Loans: 2024 Review

Credibility Capital offers short-term business loans for small-business owners with good credit and established businesses.
By Rosalie Murphy
Last updated on February 8, 2024
Edited byRyan Lane
Fact checked and reviewed

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SOME INFO MAY BE OUTDATED
This page includes information about the Credibility Capital - Online term loan, currently unavailable on NerdWallet. The information about the Credibility Capital - Online term loan has been collected by NerdWallet and has not been provided or reviewed by the issuer.

Our Take

The bottom line:

Editor’s note: As of May 2023, Credibility Capital is no longer operational. For alternative options, see our page on the best small-business loans.
Full review

Credibility Capital - Online term loan

Max Loan Amount
$500,000
Min. credit score
650

Pros & Cons

Pros

  • Competitive rates compared with other online lenders.
  • No prepayment penalty.
  • Loans can be approved and funded within five business days.

Cons

  • Requires higher annual revenue than other online lenders.
  • Requires business lien and personal guarantee.
  • Not available in Nevada, North Dakota, South Dakota or Vermont.

Compare to Other Lenders

with Fundera by NerdWallet

with Fundera by NerdWallet

Max loan amount

$250,000

Max loan amount

$500,000

Min. credit score

625

Min. credit score

660

Full Review

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?

with Fundera by NerdWallet

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.

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
    9.49
    % to
    15.49
    %, 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

Loan amount
Up to $500,000.
Estimated APR range
9.49
% to
15.49
%.
Fees
Closing fee ranging from 2.99% to 4.99%; fee varies based on loan amount. There are no prepayment fees or maintenance fees on installment loans.
Terms
Up to 5 years.
Repayment schedule
Monthly repayments.
Funding speed
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
9.49
% to
15.49
%, 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

OnDeck

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
27.2
% to
99.9
% (based on loans originated in the half-year ending March 31, 2024; minimums provided are rates that at least 5% of customers received) — and you’ll have to make daily or weekly repayments.

Funding Circle

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
15.22
% to
45
%.

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

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