Our Take
The bottom line:
Credibly offers up to $600,000 and can be a good fit for startups or owners with bad credit, but your business will need to generate at least $15,000 in monthly revenue. Like all merchant cash advances, expect steep borrowing costs.
Credibly - Merchant cash advance
Max Loan Amount
$600,000
Min. credit score
500
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.
Full Review
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 while it varies by business, a Credibly representative told NerdWallet it’s 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.
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 is best for borrowers who:
- Have strong credit card sales. You’ll need to show an average of $15,000 in monthly sales over the past three months to qualify. You’ll also want a strong enough profit margin to handle repayments alongside your other business expenses.
- Need fast cash. Funding can arrive as soon as the same business day. This is common among online lenders, whether they offer MCAs or other types of online business loans.
- Can’t qualify for other types of business financing. Credibly’s MCA may be a viable option if you can’t secure traditional forms of financing due to a low personal credit score, limited time in business or lack of collateral.
❗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.
Credibly requirements
To qualify for an MCA from Credibly, you’ll need to meet the following minimum requirements:
- Credit score:500.
- Time in business:6months.
- Annual revenue: $180,000, although a representative told NerdWallet they may accept applicants who make a bit less.
Credibly features
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. |
Calculate MCA costs
Curious what a merchant cash advance from Credibly might cost? Plug your numbers into our MCA calculator and find out.
» MORE: Merchant cash advance calculator
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.
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
500
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 $
180,000
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
Consider if: You make less than $
180,000
a year.
Expansion Capital Group
Expansion Capital Group - Merchant cash advance
Min Credit
500
Apply now
with Fundera by NerdWallet
Expansion Capital Group may be another viable option for startups and borrowers with bad credit. Like Credibly, its MCA requires a minimum credit score of
500
and 6
months in business. Businesses may qualify with as little as $
100,000
in annual revenue, making it a potential alternative for those who don’t meet Credibly’s $180,000
revenue requirement.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
Consider if: You need to buy business equipment.
eLease
eLease - Equipment financing
NerdWallet Rating
4.0
Min Credit
550
Apply now
with Fundera by NerdWallet
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 7.5
% to 22
%. But if you fail to repay your loan, the lender can take your equipment to recoup its losses. However, applications must be made by phone, and you may pay a prepayment penalty if you try to repay your loan within the first year.
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.