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Credibility Capital Review

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Business owners looking for term loans to finance medium or large purchases could benefit from Credibility Capital’s offerings. Credibility Capital issues loans between $25,000 and $350,000 with relatively low starting rates, making it an attractive option for entrepreneurs searching for alternatives to traditional bank loans.

Continue reading to determine if a term loan from Credibility Capital would be the right fit for your business.

What Credibility Capital offers

Business owners can apply for term loans from Credibility Capital that are funded through various federal or state-chartered banks. Credibility’s rates are competitive with other online lenders, but like its competitors, it does require a personal guarantee.

Here’s a quick look at what’s offered:

  Amount Terms APR Range Fees Time to Funding
Term loans $25,000 to $350,000 12-, 24- or 36-months terms available 8.00% to 24.99% 3.00% - 5.00% one-time origination fee As few as 3 business days


Credibility Capital does not charge an application fee, but you would owe an upfront loan origination fee if you end up borrowing money. The origination fee would depend on the amount of your loan. The fee could range from 3.00% - 5.00% to cover servicing and processing costs.

Loans are also fully amortizing and must be paid back on a monthly schedule. However, you could pay down your balance early without facing prepayment penalties.

The online application is quick, and you could prequalify for a loan in minutes. After being approved, you may receive funding in as little as three business days.

Who is eligible for Credibility Capital financing?

Established businesses that are generating revenue would be best suited for loans from Credibility Capital.

Here’s what you need to apply:

  • 24 months in business
  • At least $150,000 in revenue in the last 12 months
  • Personal FICO Score of at least 650
  • Bank statement from the last six months
  • Tax returns for the previous two years

When approving borrowers, Credibility Capital looks for indicators that the business would be able to repay debt and could take circumstantial factors into consideration. For instance, if you don’t have a 650 credit score but your business partners have stronger scores, Credibility Capital may collectively consider all of your credit during the underwriting process.

Credibility Capital does not work with business owners who are not U.S. citizens, or those who have had a personal or commercial bankruptcy in the last five years. Additionally, businesses in the following states cannot borrow from Credibility Capital:

  • Nevada
  • North Dakota
  • South Dakota
  • Vermont

When you first apply, Credibility Capital performs a soft inquiry on your credit, which would not affect your score. If you move forward with a loan offer, then the company would make a hard pull to close the loan, which could have an impact on your score. We’ll discuss hard and soft credit inquiries further in a later section.

If you don’t qualify for a term loan, Credibility Capital may connect you with a partner in its network that offers other financing products for which you could be eligible.

Pros and cons of Credibility Capital

Before applying for a term loan from Credibility Capital, consider a few positive and negative aspects of the lender.

Pros Cons
  • Wide range of loan amounts available to cover a variety of business needs.
  • Only 1 type of financing offered.
  • Fees, rates and terms advertised online, though Credibility does not disclose its maximum APR online.
  • Your actual rate and terms may not be as favorable as advertised.
  • Submitting an application won’t hurt your credit.
  • Strong credit history required to be eligible for funding.

The fine print

Understand the implications of a personal guarantee. Borrowers must sign a personal guarantee when taking out a loan from Credibility Capital. A personal guarantee is a legally binding agreement that puts you on the hook to repay the loan if your business defaults. It’s common for borrowers to be required to provide a personal guarantee when taking out a business loan, but keep in mind that you’d be putting your personal finances on the line.

Watch out for the additional UCC filing. In addition to requiring a personal guarantee, Credibility Capital places a UCC filing on the business to secure the loan. A UCC filing, or UCC lien, gives a lender the ability to claim the rights to business assets until debt is repaid. Credibility Capital would not place a lien on a specific piece of collateral, like real estate or equipment. Instead, the filing would be a blanket lien on your business as a whole.

A hard credit inquiry happens later. Credibility Capital looks at your personal credit in two different ways: a soft credit pull and a hard credit pull. The soft inquiry happens when you first apply and determines whether you prequalify for a loan. The hard pull occurs when you close on a loan. A hard inquiry could shave a few points off your credit score. If you already have other things negatively affecting your score, like existing debt or late payments, a hard inquiry could have a bigger impact.

Is a Credibility Capital loan worth it?

A term loan from Credibility Capital could help finance a major or minor business purchase, as loan amounts range from $25,000 up to $350,000, although some online lenders offer loans as low as $10,000 and as high as $500,000 or more. You would have one to three years to repay your debt to Credibility Capital, which could provide manageable monthly payments.

Credibility Capital’s interest rates start at 8.00%, though your rate would likely depend on a number of factors, including your personal credit history and business performance. You may find that the lender offers you a higher rate than advertised.

Applying for a loan wouldn’t impact your credit score and there aren’t any fees for submitting an application. You could apply online to check out what kind of financing Credibility Capital could provide before moving forward and taking out a loan.

Compare rates. When shopping for business financing, be sure to compare rates and terms from multiple lenders to find an option that works best for your business. Credibility Capital appears to be more upfront with their loan details than other lenders, which may make it easier to see how Credibility Capital financing measures up to others.


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