Frequently asked questions
What is a bank-funded loan?
Bank-funded loans are funded by federal or state-chartered banks that hold the whole loans. The low cost of capital of banks allows Credibility Capital to offer low-APR term loans.
What kinds of loans do you offer?
We offer transparent, fair term loans up to $400,000, paid in fixed monthly payments over 1, 2, and 3-year terms. Each month, borrowers pay down a portion of the principal and a portion of the interest - this is called a fully amortizing loan. The loans do not require any real property as collateral, but they are backed by a personal guarantee on behalf of the business owner. For businesses that do not qualify for our term loan, we provide access to a network of trusted, vetted partners who offer complementary funding products.
Does Credibility Capital pull personal credit reports?
Credibility Capital initially performs a “soft pull” on your credit, which means that your personal credit score will not be affected by applying for a loan with us. Only if we close a loan do we perform a "hard pull," but this is standard for loans like ours.
What are your fees?
Credibility Capital charges a one-time origination fee to cover the cost of servicing and processing our term loans, generally ranging from 3% to 5% depending on the amount of the loan. We do not charge any fees for paying back the loan early. For more details on our rates and fees, please contact a loan specialist by calling (212) 581-2352 Monday–Friday, 9am–7pm EST.
How does the application process work?
To see what business financing products may be available to your business, go to the "Borrow" page and "Check Options." It takes just seconds to check eligibility. From there you can apply online for the right product for your business in just 5 minutes and funding can be available within as little as 3 days.
What additional documents may I need to provide for loan approval?
After reviewing your Credibility Capital loan application, we may request additional documentation to supplement your application. Documentation requirements vary by industry and individual, and will include bank statements for the previous six months and/or tax returns for the previous two years. Your loan specialist will advise if any additional documentation is needed.
Can I prepay the loan?
Yes, you can absolutely prepay your Credibility Capital term loan and no additional fees apply. You can even save on paying interest by paying down your outstanding principal balance at any time.
How does repayment work?
Borrowers pay back Credibility Capital term loans on a monthly basis. The monthly payment amount is a fixed amount, part of which pays down the outstanding principal and part of which pays off interest, so that you will have paid back the loan in full by the time your 1, 2 or 3-year term is up.
How quickly will I receive my funds?
If you are approved for a Credibility Capital term loan, the funds could be be deposited into your business bank account within 24 hours of receiving your bank routing information. **Bank routing information must be received by 3:00PM EST.
Are your loans secured?
Our Credibility Capital term loans are secured by a blanket Uniform Commercial Code (“UCC”) filing that we place on the business. However, we do not take out liens on specific pieces of collateral such as real estate or equipment.
Why do you need to look at my personal credit?
When reviewing a loan application, it is important for us to look at your personal credit for two key reasons:
- To protect small business owners against fraud, we need to verify identity through personal credit.
- To ensure that we lend responsibly, we need to verify that the business owner can make payments should the business default on the loan.
How secure is my application and personal information?
Your security is critical to us. We meet or exceed industry-best, bank-grade security guidelines when it comes to handling electronic data.