Fundible vs. Credibly: Which small business lender is right for you?
Key takeaways
- Fundible and Credibly both offer conventional and alternative funding options
- Choose Fundible for flexible requirements
- Choose Credibly for short-term funding
If you’re a business owner needing financing, exploring your loan options is recommended, as it will help you find the best loan that suits your business needs. While both Fundible and Credibly take borrowers with bad credit, Fundible offers the most lenient eligibility requirements, aiming to help most business owners find funding. Both lenders also offer slightly different loans types: Fundible offers an array of loans from equipment loans to invoice financing, while Credibly features working capital loans and merchant cash advances.
We’ll compare Fundible versus Credibly, highlighting their key features and benefits to help you make an informed decision.
Fundible vs. Credibly at a glance
Fundible and Credibly both offer multiple small business loans, including conventional and alternative business loans with generous loan limits. They greatly differ when it comes to loan eligibility, with Fundible having the more lenient requirements, making it a good fit for businesses with bad credit. Compared to Fundible, Credibly offers shorter terms of three to 24 months, so businesses needing assistance handling seasonal expenses may find it a suitable option.
| Fundible | Credibly | |
|---|---|---|
| Bankrate Score | 4.7 | 4.6 |
| Best for | Flexible requirements | Short-term funding |
| Number of loan products | 6 | 6 |
| Loan amounts | $5,000 to $10 million | $5,000 to $10 million |
| Interest rates | 0.75% Monthly rate; from 5.00% Simple interest | 1.11 Factor rate |
| Term lengths | 1 to 10 years | 3 to 24 months |
| Personal credit score | 450 | 500 |
| Minimum time in business | 6 months | 3 months |
| Minimum business revenue | $100,000 | $180,000 |
Fundible business loans
Fundible offers a range of small business loans tailored to various needs. Its loan products include terms loans, lines of credit, equipment financing, SBA loans, bridge loans and invoice financing or factoring, accommodating businesses with revenues ranging from $100,000 to $250,000.
It’s especially suitable for entrepreneurs with lower credit scores and startups with at least six months of operation. According to a spokesperson, the lender may accept credit scores as low as 450. Since Fundible collaborates with partner lenders, each with different requirements, your loan options depend on what you qualify for.
Pros
- Flexible eligibility
- Loan variety
- Generous loan amounts
Cons
- Partner network
- Unclear loan details
- Restrictions on certain loans
Credibly business loans
Credibly’s small business loan options are diverse, including conventional loans and alternatives like invoice factoring and merchant cash advances. Its loans offer short terms of three to 24 months and same-day funding for fast access to capital. The lender is unique for its minimum credit score requirement of 500, accommodating newer businesses with just three months of operation.
This accessibility sets it apart from the business loan requirements of traditional financial institutions, which often demand higher credit scores and longer business histories. However, a challenge for some may be the annual revenue requirement of $180,000.
Pros
- Same-day funding
- Low credit score requirement
- Loan variety
Cons
- Fees
- Expensive factor rates
- Significant annual revenue requirement
How to choose between Fundible and Credibly
Between Fundible and Credibly, Fundible’s flexible lending requirements allow it to excel in providing funding options to businesses with less-than-perfect credit. Additionally, its long-term financing solutions and generous loan amounts accommodate various business needs and growth plans.
On the other hand, Credibly may accept startup businesses that have ample revenue to repay the loan. Its loan options are best suited for businesses requiring quick access to capital for immediate, short-duration needs. Credibly’s streamlined application process and rapid approval make it an attractive option for addressing urgent financial gaps.
Choose Fundible for flexible requirements
If you have a lower credit score, Fundible’;s business loans are the better choice for you. Fundible’s flexible credit requirement of 450 and loan variety can benefit borrowers who don’t meet stringent traditional loan criteria, which is often the case for startup businesses.
Additionally, Fundible’s terms of one to 10 years are longer than most Credibly business loans, leaving businesses with more options to secure short or long-term financing. And when opting for long-term financing, you can ensure stability and predictability, allowing for strategic planning, expansion and investment in assets, such as furniture, equipment or machinery.
Choose Credibly for short-term funding
Credibly is a top pick for your business if you need quick access to funds and can manage shorter repayment periods. While Credibly offers long-term financing through its partners, most of its loans focus on short terms, such as its working capital or merchant cash advance.
Compared to long-term financing solutions that are ideal for large purchases such as real estate and equipment, short-term business loans are ideal for more immediate business needs. For example, if a business wants to explore growth opportunities, cover seasonal expenses or address unexpected obstacles in cash flow without committing to long-term debt.
Similar to Fundible, Credibly is flexible with its lending, requiring only a 500 credit score and three months in business. Credibly’s time-in-business requirement is shorter than Fundible’s, although either lender works well for startup business loans. Where things might get tricky for some businesses is Credibly’s minimum annual revenue of $180,000, which is higher than Fundible’s $100,0000 requirement.
Alternatives
If your business needs to extend beyond what Fundible or Credbily can provide, consider exploring alternative lenders.
If you are an established business with good to excellent credit and low annual revenue, Funding Circle could be your perfect lender since its annual revenue requirement is only $50,000. Or if you’re a startup with bad credit, Fora Financial offers terms of up to 16 months and loans between $5,000 and $1.5 million.
Business credit cards
Rather than pursuing a traditional business loan, you can apply for a business credit card, which offers flexible credit access, similar to a business line of credit. A business credit card allows you to manage day-to-day expenses without committing to borrowing a large lump sum. Some come with low or zero introductory APRs, and you can avoid paying interest if you pay your balance in full each month.
SBA loans
Another avenue to explore is SBA loans. Both Fundible and Credibly offer SBA loans, but it’s worth noting that other types of SBA loans, such as microloans and Community Advantage loans, may better suit your needs. These loans often come with lower eligibility requirements and affordable rates, making them accessible to a broader range of business owners.
SBA loans typically take months to get approved and funded, but if you work with an SBA Preferred Lender, like Wells Fargo or Live Oak Bank, you can expedite the process and get your funds faster.
Bottom line
Choosing between these two lenders depends on the specific time frame and nature of the funding needs, with Fundible offering flexibility and Credibly focusing on short-term relief. As you compare Fundible and Credibly, evaluate your credit score, time in business and desired loan terms carefully before making a decision on which one has the best small business loan for you.
Remember that there are alternative lenders and loan types, including SBA loans, so explore all your choices to find the best fit for your business.
Frequently asked questions
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Qualification criteria vary among lenders, but factors like your credit score, business revenue and time in business are often considered. Lenders typically want to see good to excellent credit and strong annual revenue like $100,000 or more to approve an unsecured loan.
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Getting a loan to start a business can be smart because it can get you access to capital, but it’s essential to carefully assess the risks and your ability to repay the loan. You’ll want to have a solid plan for generating revenue once you open your doors and fit the business loan into your business budget.
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Credibly typically requires a minimum of three months in business, a low requirement compared to most lenders.
