Question 1

What types of small business fundings does Credibly offer?

Accepted Answer

Credibly is a direct lender of working capital loans and merchant cash advances. Through our partners, we offer SBA loans, business lines of credit, equipment financing, long term loans and invoice factoring. Our loan specialists can help you review the available loan options and determine which loan or financing is right for you.
During the coronavirus pandemic, many businesses are in need of working capital to meet operating costs and current business needs. If you have already received a PPP loan, EIDL, or other federal aid, our working capital loan might be right for you.

Question 2

What are the eligibility requirements for Credibly’s small business loans?

Accepted Answer

The eligibility requirements for Credibly’s small business loans and financing are loan-specific and based on a business owner’s specific credit history and creditworthiness. Generally, you need to have six months or more in business and a credit score of over 500, as well as an average monthly income of $15,000 ($180,000+ in annual revenue). Specific requirements will vary.

If you have bad credit, there are still financing and loan options for your business. Some funding products like merchant cash advances and invoice factoring are less credit dependent because these financing products are based on sales instead of a credit report. Similarly, equipment financing does not have as much emphasis on credit because the equipment can be used as collateral if you default on your loan. Additionally, many of our financing solutions can help you build business credit.

Startups almost never qualify for traditional business loans, and that is true for Credibly’s business loans and financing as well. There are a lot of options for funding the start of your business, including business credit cards, personal loans, and your own savings.

If you are starting a business with a significant need for cash, one option for funding is equity financing, which is where an investor buys a percentage of your business in exchange for capital. While some businesses receive funding from a career investor, making a deal for a family member to own a percentage of your business is also equity financing.

Question 3

How can I use a small business loan?

Accepted Answer

Some business loans are flexible in their loan usage options, such as a working capital loan, business expansion loan, merchant cash advance, business line of credit or SBA loan. “Flexible” means that you can use the capital to fund whatever your business needs.

However, some loan and financing options are not flexible. Equipment financing can only be used to purchase or lease equipment. Any type of real estate loan will also be specific to funding a physical business location.

Question 4

What should I consider before applying for a small business loan?

Accepted Answer

Before applying for a small business loan, you should first consider whether the capital will help your business grow or help your business survive a crisis. If you don’t have a good reason for a business loan, the fees and interest can really add up. However, if a business loan will help you buy new equipment, hire needed staff or survive a crisis like the COVID-19 pandemic, then you should consider each of the following questions when reviewing the loan.

Small Business Loan & Financing Prequalification Application