Credibility Capital Review: Business Loans for Underserved Businesses
Credibility Capital provides affordable loans to underserved businesses. Many borrowers refinance existing high-interest loans, or they borrow for one-, two-, or three-year terms so they can help their companies grow.
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What we like:
Great customer service
|Estimated APR||8.00% – 20.00%|
|Loan Amounts||$10,000 – $350,000|
|Term Lengths||1 – 3 years|
|Origination Fee||3% – 5%|
Credibility Capital is a great option for new companies in need of a short-term or medium-term small business loan. Credibility aims to make fair, affordable loans available quickly to companies that need access to working capital, whether they have an existing high-interest business loan they want to refinance or they’re hoping to invest in business growth.
Credibility Capital is not interested in competing with big banks, many of which are reluctant to lend to companies without a multi-year track record of earning substantial annual revenue. Instead, the lender targets an underserved market of high-quality small businesses and provides these companies with loans with low APRs and borrower-friendly repayment terms.
This Credibility Capital review will cover the pros and cons of the lender and help you decide if it’s the right choice for you.
In this review:
- Getting a Loan Through Credibility Capital
- Basic Information: Rates, Terms, Fees & Limits
- The Benefits of Credibility Capital
- Downsides of Credibility Capital
Getting a Loan Through Credibility Capital
Getting a loan through Credibility Capital is very easy if you can meet some basic qualifying requirements. You can submit a short online application, receive a fast decision, and sometimes get funding within as little as a few days. Dedicated loan specialists are also available Monday through Friday, 9 AM to 6 PM EST at (973) 718-9100.
When you apply, you’ll also find out loan terms—including interest rates and repayment timelines—up front so you can make a fully informed decision about whether the loan is right for you. To get approved, however, you’ll need to meet some basic minimum qualifications.
Minimum requirements to qualify for a loan through Credibility Capital include:
- At least two years in business and generating revenue
- A minimum personal credit score of 650, but borrowers with scores of 680 or higher stand the best chance of getting approved for a loan at favorable rates
- A similar business credit score as your personal score; however, your business credit score carries less weight and is primarily checked to ensure that your company does not have any major derogatory items on your credit report, such as bankruptcies, foreclosures, or delinquencies.
>> Read More: Business Credit vs Personal Credit
If you can meet these requirements, you stand a good chance of approval for a Credibility Capital loan.
Basic Information: Rates, Terms, Fees & Limits
Here are some of the key things you need to know about Credibility Capital Loans:
- You can borrow up to $350,000
- Loan rates start at 8%
- Borrowers have a choice of a 12, 24, or 36-month repayment period
- Borrowers pay an affordable one-time origination fee but pay no monthly servicing charge or prepayment penalties for repaying loans early
While you have a choice of a one, two, or three-year loan term, one-year loan terms are much less common than longer-term loans. One-year loans do typically have slightly lower interest rates, but the shorter repayment timeline provides less flexibility to borrowers. Instead, you may prefer to opt for a two-year term—the most popular term—and can simply choose to increase your monthly payments to pay off the loan early—with no prepayment penalties.
The Benefits of Credibility Capital
There are many benefits to borrowing with Credibility Capital, including some of the following:
- Affordable interest rates: Many borrowers come to Credibility Capital with high-interest loans, including with loans carrying APRs of around 20% or higher. Refinancing with Credibility Capital can significantly reduce interest costs.
- No prepayment penalties: The ability to repay your loan early without incurring penalties provides your business with the flexibility you deserve.
- A focus on underserved markets: Many small businesses struggle to find the right financing, which impedes growth. Credibility Capital was specifically created to help these high-quality businesses secure the working capital they need to grow.
- High Trustpilot ratings: In 2019, every review on TrustPilot has been five stars. The company’s 100th rating on Trustpilot also put the company’s overall rating at 9.6 out of 10, showing customers are having positive experiences with the company.
Downsides of Credibility Capital
There are also some downsides to consider as well, including:
- You’ll have to pay a one-time origination fee, usually between 3% and 5% of the loan amount. While this isn’t uncommon with business loans, it is sometimes possible to find a lender that won’t charge this fee.
- Some companies can’t meet the minimum time in business requirements. If you haven’t been in business for two years, you can’t qualify.
- Credibility Capital does not lend to businesses in Nevada, North Dakota, South Dakota, or Vermont.
- The Business owner must be a U.S. citizen with strong credit, and there may not be any personal or commercial bankruptcies within the past five years.
- Loans require a personal guarantee from the business owner, so they’ll be on the hook for the loan even if the business fails.
Bottom Line: Credibility Capital Provides Affordable Loan Options for Small Business
Credibility Capital is a great option if you are a small business owner who needs a one-, two-, or three-year loan at an affordable rate. Simply submit your online application or call a loan specialist to see what Credibility Capital offers to you.4.10 Credibility Capital Small Business Financing
Author: Christy Rakoczy