Summary
- Credibility Capital aims to help small business owners with its two business financing products, a small business loan or a line of credit.
- Borrowers who qualify can get good terms and low rates with its line of credit.
- Small businesses can use lines of credit to increase cash flow to help their business succeed.
- Read this Credibility Capital review for its line of credit product to learn what it is, who is eligible to apply, and the pros and cons.
- Learn the best alternatives in this Credibility Capital review if its line of credit isn’t the right option for you.
Editorial note: Our top priority is to give you the best financial information for your business. Nav may receive compensation from our partners, but that doesn’t affect our editors’ opinions or recommendations. Our partners cannot pay for favorable reviews. All content is accurate to the best of our knowledge when posted.
Credibility Capital Line of Credit Features
Credibility Capital is well rated on Trustpilot and has an A+ rating from the Better Business Bureau. It offers two small business financing options — term loans and business lines of credit — with an easy application for both.
A line of credit is a funding tool that you can draw from as needed, and is one of the most common types of funding for small business owners. Unlike a loan agreement with set repayment terms and a pre-decided loan amount, you only borrow as much as you need with a line of credit. With Credibility Capital, you can get a line of credit for $100,000 to $250,000. Interest rates start at 8.99% at the time of writing — and you only pay interest on what you borrow. The term lasts for five years total, and it’s made up of two parts:
- A two-year draw period that allows you to make up to four draws per month. (A draw is another way to say a withdrawal.) You don’t have to make repayments during this draw period and only pay interest on what you use, but there are no prepayment penalties.
- After that, you start making monthly payments on the total you have drawn for the next three years. Or you may qualify to renew the line of credit or refinance into a new installment loan.
While there are no draw fees or prepayment fees, there is a commitment fee when you close the line of credit. Credibility Capital reviews your credit only every six months, less often than many business lenders.
If you’re looking for a Credibility Capital loan or another type of business loan rather than a line of credit, see this guide from Nav to learn more on term loans.
Credibility Capital Borrower Eligibility
Let’s look at the eligibility requirements. Credibility Capital typically doesn’t lend to brand new businesses. To qualify for Credibility Capital funding, you need to meet the following minimum requirements:
- You have been in business for at least 24 months
- You make $200,000 or more in annual revenue
- You (the owner) has a personal credit score (FICO) of 650 or above
- There are no unpaid liens or judgments against you or your business
- You haven’t declared bankruptcy in the last five years
- You don’t have any delinquencies for more than $1,000
- You’re a U.S. citizen but cannot live in Nevada, North Dakota, South Dakota, or Vermont
Every business owner that owns at least 25% of the business must complete an application. Additionally, you’ll likely need to gather your tax returns for the previous two years, bank statements, profit and loss statements, and balance sheets.
Credibility Capital Line of Credit Pros and Cons
Pros
- Fast funding in as quickly as three business days
- Possible lower interest rates than other online lenders
- Quick online application process
- No payments required during draw period
- Long repayment period
Cons
- Not open to startups or brand new businesses
- Not available for anyone with bad credit
- Need to provide more detailed documentation than some options
- Have to do a hard credit pull
Alternatives to Credibility Capital
If a Credibility Capital line of credit won’t work for your business, there are many other options that could fit your business needs. We gathered other lines of credit, as well as term loans that might work for you.
Lines of credit
Line of Credit by Fundbox
Line of Credit by Fundbox
Nav recommends this product as a great solution for newer small businesses looking for a fast application process and access to a flexible LOC product. Bonus: When you click 'Apply now," we'll securely pass over your info, making applying with Fundbox a breeze. Only answer a few additional questions on their end and you're good to go.
Pros
- 625 minimum personal credit score
- No impact to credit score to apply (soft pull only)
- No draw fees
- Fast approval and funding, with funds available as soon as the next business day
- Use as much as you need, only pay interest on what you use
- Fundbox reports payment activity to all the major commercial credit bureaus via the Small Business Financial Exchange (SBFE), which can help strengthen a business's credit profile.
Cons
- Must have a business checking account with a minimum balance of $500
- May require large weekly payments (0.4% - 0.7% of the original draw amount per week) due to the short repayment duration.
Funding Amount
Cost
Repayment Terms
Funding Speed
Line of Credit by Rapid Finance
Line of Credit by Rapid Finance
A Line of Credit through Rapid Finance can be a great way to get flexible access to capital right when you need it.
Pros
- Fast approvals for qualified applicants with the initial draw wired as quick as the same day. No competitor payoffs required Minimal documentation required for approval Use as much as you need, only pay fees on what you draw Online customer portal to make draws and access account information
Cons
- Not ideal for startups or low monthly revenue businesses Requires an established business bank account
Funding Amount
Cost
Repayment Terms
Funding Speed
Term loans
Intermediate-Term Loan by Kapitus
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Intermediate-Term Loan by Kapitus
Great for established businesses looking for large capital amounts.
Pros
- Repayment term of 2-6 years for those who qualify
- Favorable payment plans for businesses with $250k+ annual revenue
- Specialty loan programs for medical practices.
Cons
- Some repayment structures require weekly payments
- Favorable terms for 3+ years time in business.
Funding Amount
Cost
Repayment Terms
Funding Speed
Term Loan by OnDeck
Term Loan by OnDeck
This is a great option for businesses with consistent revenue, seeking competitive pricing working capital products. OD is known in the industry for their transparency and speed to fund. OD is the largest online lending company, which provides confidence to users with finding the right long-term partner to help fuel their company's growth.
Pros
- One application, two paths to finance your business - applicants are reviewed for both a Term Loan and Line of Credit
- Minimal paperwork
- Fast approval time
- Transparent pricing
- “White Glove” customer service
- Access to multiple lending options.
Cons
- Need a minimum of 1 yr time in business
- Not available in all states.
Funding Amount
Cost
Repayment Terms
Funding Speed
SBA Loan by SmartBiz
SBA Loan by SmartBiz
For high cost projects with long repayment. No immediate funds needed.
Pros
- APR as low as 11.25% with monthly repayment plans up to 10 years
- Ability to be pre-approved and review terms and conditions before needing to provide a full list of financial documents.
Cons
- Lengthy application process (30-60 days) with lower approval odds
- Requires more documents than other Bank Loan products.
Funding Amount
Cost
Repayment Terms
Funding Speed
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Tiffany Verbeck
Content Manager
Tiffany Verbeck is a Content Manager for Nav. She uses her 8 years of experience writing about business and financial topics to oversee the production of Nav’s longform content. She also co-hosts and manages Nav’s podcast, Main Street Makers, to bring small business owners together to share tips and tricks with a community of like-minded entrepreneurs.
Previously, she ran a freelance business for three years, so she understands the challenges of running a small business. Also, she worked in marketing for six years in a think tank in Washington, DC. Her work has appeared on sites like Business Insider, Bankrate, and Mission Lane.