As a small business owner, you know that access to capital is crucial for growth and success. But what happens when traditional banks aren't an option? Enter Credibly, an #AlternativeLender promising fast and convenient funding with lenient approval policies. But before you jump into a #Credibly loan, let's take a closer look at what they offer, the potential benefits and drawbacks, and whether this lender is the right fit for your business.
A Buffet of Loan Options:
Credibly boasts a diverse menu of loan products to cater to various business needs. From short-term working capital loans to long-term expansion financing, they have something for everyone.
Here's a quick rundown of their key offerings:
Working Capital Loans: Perfect for covering immediate cash flow gaps, these loans have terms of 6-18 months and require weekly or daily repayments. While the starting APR of 1.09% seems attractive, remember, this is a factor rate, often translating to a higher effective interest rate.
Long-Term Business Expansion Loans: Looking to invest in growth? These loans offer terms of 18-24 months with monthly repayments, but the APR can range from 8-25%, significantly higher than traditional bank loans.
Lines of Credit: This flexible option provides ongoing access to funds, with repayment terms ranging from 1 year to open-ended. The minimum APR of 4.8% is competitive, but be mindful of potential fees and variable interest rates.
SBA Loans: Credibly also facilitates SBA loans, offering government-backed financing with lower interest rates and longer terms (2-25 years). However, qualifying for these loans often requires a strong credit history and established business.
Merchant Cash Advances: These are essentially cash advances based on your daily sales, with repayment periods of 3-18 months. While convenient, they come with high factor rates (starting at 1.09%), making them a costly option.
Equipment Financing: Need new machinery or technology? Credibly offers financing tailored to specific equipment purchases, with terms and APRs varying depending on the equipment and your business profile.
Invoice Factoring: This option allows you to sell outstanding invoices for immediate cash, but be prepared for one-time fees that can eat into your profits.
Speed and Convenience, but at a Cost:
One of Credibly's biggest selling points is its fast and streamlined application process. Pre-qualification takes only minutes, and funding can arrive in as little as one day if approved. This can be a lifesaver for businesses facing urgent cash needs.
However, convenience comes at a price. Compared to traditional lenders, Credibly's interest rates and fees are generally higher. Factor rates and variable APRs can quickly add up, making these loans a costly solution for long-term financing needs.
Weighing the Opportunity vs. Risk:
Before diving into a Credibly loan, carefully assess your business needs and financial situation. These loans are best suited for short-term funding gaps or specific growth initiatives with high return potential. If you have a solid business plan and can handle the higher costs, Credibly can be a valuable resource. However, if you need long-term financing or have a struggling business, traditional lenders or alternative financing options with lower interest rates might be a better choice.
Customer Reviews: A Mixed Bag:
While Credibly boasts a generally positive rating on Trustpilot (92% excellent/good), some negative reviews highlight issues like high fees and unexpected changes in loan terms. It's crucial to do your research, read reviews from other borrowers, and compare Credibly's offerings with other lenders before making a decision.
The Final Verdict:
Credibly can be a valuable tool for small businesses in need of quick and convenient funding. However, the high costs associated with their loans should not be taken lightly. Carefully weigh the potential benefits and drawbacks, and ensure you have a clear plan to repay the loan before signing on the dotted line. Remember, alternative lenders like Credibly should be seen as a temporary financial boost, not a long-term solution.
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